Securities code: Espressif Systems (Shanghai) Co.Ltd(688018) securities abbreviation: Espressif Systems (Shanghai) Co.Ltd(688018) Announcement No.: 2022021 Lexin information technology (Shanghai) Co., Ltd
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 content tips:
The change of accounting policy is the result of the change of accounting policy of Lexin information technology (Shanghai) Co., Ltd. (hereinafter referred to as “the company” or ” Espressif Systems (Shanghai) Co.Ltd(688018) “) in accordance with the question and answer on the implementation of accounting standards for business enterprises (hereinafter referred to as “the implementation question and answer”) issued by the accounting department of the Ministry of finance of the people’s Republic of China (hereinafter referred to as “the implementation question and answer”) on November 2, 2021 Make appropriate changes and adjustments to the accounting and presentation of relevant accounting subjects.
This accounting policy change will not have a significant impact on the company’s financial position, operating results and cash flow.
1、 Overview of changes in accounting policies
On November 2, 2021, the implementation question and answer issued by the Ministry of Finance clearly stipulates that, “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 company reclassifies the transportation costs incurred in performing the customer’s sales contract from “sales expenses” to “operating costs” from January 1, 2021 before the control of the goods is transferred to the customer.
2、 Details of this accounting policy change and its impact on the company
(I) accounting policies adopted before this change
Before this accounting policy change, the company implemented the accounting standards for business enterprises – basic standards, various specific accounting standards, application guidelines of accounting standards for business enterprises, interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of finance, and listed the relevant transportation costs in the “sales expenses” item.
(II) accounting policies adopted after this change
After this accounting policy change, the company implemented the implementation Q & A issued by the Ministry of Finance on November 2, 2021, and listed the transportation costs incurred in performing the customer sales contract in the “operating cost” item. 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.
(III) details of the change and its impact on the company
According to the requirements of the implementation Q & A, the transportation costs incurred before the transfer of commodity control to the customer and in order to perform the sales contract should be reclassified from “sales expenses” to “operating costs”; The related cash outflow shall be reclassified from “other cash paid related to operating activities” to “cash paid for purchasing goods and receiving labor services”.
The company prepares the 2021 financial statements and subsequent financial statements in accordance with the above implementation Q & A requirements of the accounting department of the Ministry of finance, and does not retroactively adjust the relevant items of the 2020 financial statements. The impact of reclassification between reporting accounts is as follows:
Unit: yuan currency: RMB
Contents and reasons of the amount affected by the change of accounting policy (decrease is indicated with “-“). The affected statement account is 2021
Consolidated parent company
Before the control of the goods is transferred to the sales expense -292108789 -167945513 customers, and for the performance of the customer’s sales contract
For the transportation costs incurred, the self selling operating costs of 292108789 and 167945513 are reclassified to the operating costs, and the related cash outflows are paid to other operating activities
Other cash paid related to operating activities – 292108789 – 167945513 are reclassified to purchasing goods, receiving labor services, purchasing goods and receiving labor services
Cash paid 292108789167945513
Unit: yuan currency: RMB
Contents and reasons of the amount affected by the change of accounting policy (decrease is indicated with “-“). The affected statement subjects are 2020
Consolidated parent company
Before the control of the goods is transferred to the sales expense -196090130 -112740385 customers, and for the performance of the customer’s sales contract
For the transportation costs incurred, the self selling operating costs of 196090130 and 112740385 are reclassified to the operating costs, and the related cash outflows are paid to other operating activities
Other cash paid related to operating activities – 196090130 – 112740385 are reclassified to purchasing goods, receiving labor services, purchasing goods and receiving labor services
Cash paid 196090130112740385
This accounting policy change will have an impact on the company’s “sales expenses” and “operating costs”, and will not have a significant impact on the company’s financial position, operating results and cash flow.
3、 Relevant procedures of this accounting policy change
This accounting policy change is implemented in accordance with the relevant provisions of the implementation question and answer issued by the Ministry of finance, and does not need to be submitted to the board of directors and the general meeting of shareholders for approval.
It is hereby announced.
Board of directors of Lexin information technology (Shanghai) Co., Ltd. April 1, 2022
