About Cosco Shipping Holdings Co.Ltd(601919)
Audit report on special instructions for changes in accounting estimates in 2021
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Audit report on special instructions for changes in accounting estimates
Special notes on changes in accounting estimates in 2021 1-2
Cosco Shipping Holdings Co.Ltd(601919)
Special notes on changes in accounting estimates in 2021
In accordance with the provisions of accounting standards for Business Enterprises No. 4 - fixed assets, accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and error correction, and No. 93 correction of accounting errors, changes in accounting policies and accounting estimates in self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 - announcement format, Cosco Shipping Holdings Co.Ltd(601919) (hereinafter referred to as "the company", including subsidiaries, referred to as "the group") prepare the special description of changes in accounting estimates as follows:
1、 Overview of changes in accounting estimates
The 15th meeting of the 6th board of directors and the 8th meeting of the 6th board of supervisors successively considered and adopted the proposal on adjusting the accounting estimation of the estimated net salvage value of ships and containers, and decided that the estimated net salvage value of the fixed assets of ships and containers held by the group would be adjusted from US $366 / light ton to US $280 / light ton from October 1, 2021.
2、 Explanation on the rationality of changes in accounting estimates
According to the relevant provisions of the accounting standards for Business Enterprises No. 4 - fixed assets, at the end of each fiscal year, the enterprise shall review the expected service life, net residual value and depreciation method of fixed assets. If the expected service life and net residual value of fixed assets are different from the original accounting estimates, they shall be adjusted accordingly.
In view of the changes in the estimated net salvage value of the group's ships and containers, in order to provide more reliable and relevant accounting information, the accounting estimates of the estimated net salvage value of the group's ships and containers are adjusted as follows from October 1, 2021 after deliberation and approval by the board of directors and the board of supervisors of the company:
Estimated net residual value of fixed assets before adjustment and after adjustment
(USD / light ton) (USD / light ton)
Ships and containers 366 (about 2329.2 yuan) 280 (about 1781.9 yuan)
3、 Impact of this accounting estimate change on the company
According to the relevant provisions of accounting standards for Business Enterprises No. 28 - changes in accounting policies, accounting estimates and error correction, this change in accounting estimates will not be retroactively adjusted and will not have an impact on the disclosed financial statements of the company on or before September 30, 2021. It is estimated that after the change of accounting estimate, the depreciation cost of ships and containers of the company in 2021 will increase by 1.55%
