Securities code: Kaili Catalyst & New Materials Co.Ltd(688269) securities abbreviation: Kaili Catalyst & New Materials Co.Ltd(688269) Announcement No.: 2022013 Kaili Catalyst & New Materials Co.Ltd(688269) announcement on changes in accounting policies
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important note: according to the Q & A on the implementation of accounting standards for business enterprises (hereinafter referred to as the “Q & a”) issued by the Ministry of finance of the people’s Republic of China (hereinafter referred to as the “Ministry of finance”), Kaili Catalyst & New Materials Co.Ltd(688269) (hereinafter referred to as the “company”) will be born before the control of goods is transferred to customers from January 1, 2021, And the transportation costs incurred for the performance of customer sales contracts are reclassified from “sales expenses” to “operating costs”. This change of accounting policy does not involve retroactive adjustment of the company’s previous years, and will not have a significant impact on the current period and the company’s total assets, total liabilities, net assets and net profit before the change of accounting policy.
1、 Overview of changes in accounting policies
(I) reasons and contents of changes in accounting policies
In July 2017, the Ministry of finance of the people’s Republic of China (hereinafter referred to as the “Ministry of finance”) issued the accounting standards for Business Enterprises No. 14 – Revenue (CAI Kuai [2017] No. 22) (hereinafter referred to as the “new revenue standards”), which requires enterprises listed at home and abroad and enterprises listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business enterprises to take effect as of January 1, 2018; Other domestic listed enterprises shall be implemented as of January 1, 2020.
November 2021, The implementation question and answer issued by the Ministry of Finance clearly stipulates: “Under normal circumstances, the transportation activities before the control of the enterprise’s goods or services is transferred to the customer and in order to perform the customer’s contract do not constitute a single performance obligation. The relevant transportation costs shall be regarded as the contract performance costs, amortized on the same basis as the recognition of the revenue of goods or services, and included in the current profits and losses. The contract performance costs shall be carried forward and included in the ‘main business costs’ or’ other costs’ when the revenue of goods or services is recognized “Business cost” and listed in the “operating cost” item of the income statement. “
According to the above requirements, the transportation expenses incurred by the company in performing the customer’s sales contract before the control of the goods is transferred to the customer were originally included in the “sales expenses”, but now they are included in the “operating costs” according to the provisions of the implementation Q & A. This accounting policy change is to implement the above provisions.
(II) accounting policies adopted before this change
Before the change of accounting policy, the company listed the transportation costs incurred for the performance of customer sales contracts in the “sales expenses” item.
(III) accounting policies adopted after this change
After this accounting policy change, according to the provisions of the implementation question and answer issued by the Ministry of finance, the company has listed the transportation costs incurred in performing the customer sales contract in the “operating cost” item since January 1, 2021. In addition to the above changes in accounting policies, the remaining unchanged parts are still implemented in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and various specific accounting standards issued and revised thereafter, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions.
2、 Impact of changes in accounting policies on the company
This change of accounting policy does not involve retroactive adjustment of the company’s previous years, and will not have a significant impact on the current period and the company’s total assets, total liabilities, net assets and net profit before the change of accounting policy.
It is hereby announced.
Kaili Catalyst & New Materials Co.Ltd(688269) board of directors March 31, 2022
