Sichuan Road & Bridge Co.Ltd(600039)
Notes of the board of supervisors on changes in accounting policies
On March 29, 2022, the 46th meeting of the seventh board of supervisors of the company deliberated and adopted the proposal on Revising accounting policies.
Since 2021, the Ministry of Finance and the accounting department of the Ministry of finance have successively issued the interpretation of accounting standards for business enterprises, Q & A on the implementation of accounting treatment and application cases (collectively referred to as “these accounting provisions”), mainly including:
1. On February 2, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 14, which began to be implemented on that day.
2. On August 10, 2021, the accounting department of the Ministry of Finance issued the implementation questions and answers (11) and application cases (3) of the accounting treatment of the social capital Party of the PPP project contract, which began to be implemented on the same day. According to the above provisions, the company and its subsidiaries began to implement relevant accounting policies on the implementation date of these accounting provisions.
According to the requirements of the convergence provisions of the standards, on the implementation date of the standards, the enterprise shall calculate, measure (including impairment) and present the lease in accordance with the provisions of the standards. The standards shall not apply to the items that have been derecognized on the implementation date of the standards. There is no need to adjust the opening amount of the company’s financial statements at the beginning of 2021. This revision has no significant impact on the financial position, operating results and cash flow of 2020 and previous years, and is expected to have a small impact on the financial position and cash flow of 2021. According to the Accounting Standards No. 14 of PPP – construction project and the actual income of the company’s main responsible person, the income of the project shall be recognized according to the Accounting Standards No. 14 of PPP – construction project; Adjust the statement presentation of PPP project assets: transfer the part recognized as financial assets from construction in progress, long-term receivables and non current assets due within one year to contract assets and other non current assets, and recognize the contract assets that have the right to receive the consideration as accounts receivable; The part recognized as intangible assets is transferred from construction in progress to intangible assets. The company’s consolidation and financial statements exclude the PPP project from intangible assets
