Shanghai Pharmaceuticals Holding Co.Ltd(601607) board of directors
Notes on changes in accounting policies
1、 Overview of this accounting policy change and its impact on the company
In 2021, the Ministry of Finance issued the notice on printing and distributing the interpretation of accounting standards for Business Enterprises No. 14 (CK [2021] No. 1), the notice on adjusting the scope of application of the accounting treatment provisions on rent concessions related to covid-19 pneumonia epidemic (CK [2021] No. 9) and the question and answer on the implementation of accounting standards for business enterprises. The group has adopted the above notice and implemented Q & A to prepare the financial statements of 2021. The main contents of this accounting policy change and its impact on the company are as follows:
(I) accounting treatment of rent concession related to covid-19 pneumonia epidemic
In 2021, the Ministry of Finance issued the notice on adjusting the scope of application of the provisions on accounting treatment of rent concessions related to covid-19 pneumonia epidemic. For the rent relief directly caused by covid-19 pneumonia epidemic, reached with the lessor and only for the rent relief before June 30, 2022, the group and the company have adopted the simplified method in the above notice when preparing the financial statements of 2021, which has no significant impact on the financial statements.
(II) cash flow statement related to leasing
The Ministry of Finance issued the question and answer on the implementation of accounting standards for business enterprises in 2021, which made it clear that except that the prepaid rent and lease deposit expenses related to simplified short-term leases and low-value asset leases are still included in the cash outflow from operating activities, other prepaid rent and lease deposit expenses are included in the cash outflow from financing activities. The group and the company have adopted the above methods when preparing the financial statements of 2021, which has no significant impact on the financial statements.
(III) presentation of transportation costs
The Ministry of Finance issued the question and answer on the implementation of accounting standards for business enterprises in 2021. For the transportation costs incurred before the control of goods is transferred to customers and in order to perform customers' sales contracts, the group and the company reclassify their self sales expenses to operating costs when preparing the financial statements of 2021.
The financial statements of the group will be adjusted retroactively as follows:
Unit: Yuan
Affected amount
The contents and reasons of the change and those affected shall be reported to 2020
Table item name
Parent company of consolidated statement
For the transfer of control of goods to customers
The transportation costs incurred before the customer and the sales expenses for the performance of the customer's sales contract - 70614254924 - will be included in the sales expenses
All reclassified to operating costs. Operating cost 70614254924-
(IV) accounting treatment for changes in the basis for determining the contractual cash flow of financial assets or financial liabilities caused by the reform of benchmark interest rate
The Ministry of Finance promulgated the interpretation of accounting standards for Business Enterprises No. 14 in 2021, which stipulates the accounting treatment of changes in the basis for determining the contractual cash flow of financial assets or financial liabilities caused by the reform of benchmark interest rate. When preparing the 2021 financial statements, the group and the company have adopted the accounting treatment of the change in the basis for determining the contractual cash flow of financial assets or financial liabilities caused by the reform of the benchmark interest rate in the interpretation of accounting standards for Business Enterprises No. 14. As of December 31, 2021, it has no significant impact on the group and the company. 2、 Explanation of the board of directors on the rationality of this accounting policy change
The board of directors agreed that the change of accounting policy is a reasonable change in accordance with the relevant provisions of the accounting department of the Ministry of Finance on the implementation of Q & A. the changed accounting policy can objectively and fairly reflect the company's financial situation and operating results without damaging the interests of the company and shareholders. The decision-making procedures of this accounting policy change comply with the provisions of relevant laws, regulations and the articles of association. This change will not have a significant impact on the financial report. Therefore, we agree to the change of the company's accounting policies.
Shanghai Pharmaceuticals Holding Co.Ltd(601607) board of directors
March 29, 2022
