Securities code: Jiangsu Chinagreen Biological Technology Co.Ltd(300970) securities abbreviation: Jiangsu Chinagreen Biological Technology Co.Ltd(300970) Announcement No.: 2022019 Jiangsu Chinagreen Biological Technology Co.Ltd(300970)
Announcement on changes in accounting policies
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
For the lease change before the first execution date, the company will conduct accounting treatment according to the final arrangement of the lease change. Compared with the original leasing standards, the impact of the implementation of the new leasing standards on relevant items in the financial statements of 2021 is as follows:
On December 31, 2021, the item of consolidated balance sheet is assumed to increase / decrease (-) according to the original lease standard
Non current assets:
Right of use assets 440177362 non current liabilities:
Lease liabilities 457986167
The items in the consolidated income statement are assumed to increase / decrease (-) according to the original lease criteria in 2021
Selling expenses 1004252015122118 - 5079598 financial expenses 1902252919022529
1、 Overview of changes in accounting policies
1. Reason for change
In December 2018, the Ministry of finance of the people's Republic of China (hereinafter referred to as the "Ministry of finance") issued the notice on revising and printing the accounting standards for Business Enterprises No. 21 - leasing (CK [2018] No. 35) (hereinafter referred to as the "new leasing standards"), requiring enterprises listed at home and abroad as well as enterprises listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business enterprises, Effective as of January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021. Due to the revision of the above accounting standards, the company needs to make corresponding changes to the relevant accounting policies originally adopted.
2. Change date
According to the above provisions, the company will implement the new leasing standards from January 1, 2021.
3. Accounting policies adopted before change
Accounting standards for business enterprises - basic standards, various specific accounting standards, application guidelines of accounting standards for business enterprises, interpretation announcement of accounting standards for business enterprises and other relevant provisions issued by the Ministry of finance.
4. Accounting policies adopted after change
After this accounting policy change, the company will implement the new leasing standards revised and issued by the Ministry of Finance in 2018. Other unchanged parts shall still be implemented in accordance with the relevant provisions of the original accounting policies.
2、 Changes in accounting policies and their impact on the company
The main contents of the changes in the new lease standards include:
1. Under the new lease standards, except for short-term leases and low value asset leases, the lessee will no longer distinguish between financial leases and operating leases. All leases will adopt the same accounting treatment, and the right to use assets and lease liabilities must be recognized;
2. For the right to use assets, if the lessee can reasonably determine that it obtains the ownership of the leased assets at the expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased assets. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter of the lease term and the remaining service life of the leased asset. At the same time, the lessee shall determine whether the right of use assets are impaired and account for the identified impairment losses;
3. For lease liabilities, the lessee shall calculate the interest expenses of the lease liabilities in each period of the lease term and record them into the current profits and losses;
4. For short-term leases and low value asset leases, the lessee may choose not to recognize the right of use assets and lease liabilities, and record them into the relevant asset costs or current profits and losses according to the straight-line method or other systematic and reasonable methods during each period of the lease term;
5, in accordance with the requirements of the new leasing standards and listing rules, the relevant contents of the leasing business should be adjusted in the disclosed financial statements. According to the new leasing standards, the company will recognize the right of use assets and lease liabilities for all leased assets according to the present value of the minimum lease payment of future rent payable (except for short-term leases and low-value asset leases with simplified treatment), and recognize depreciation and unrecognized financing expenses respectively from January 1, 2021, without adjusting the information of comparable periods.
This accounting policy change and the company's application of the new leasing standards are reasonable changes made according to the requirements of relevant documents of the Ministry of finance, which can more objectively and fairly reflect the company's financial status, operating results and actual situation, provide more reliable and accurate accounting information, comply with relevant regulations, the actual situation of the company and the relevant provisions of the accounting standards for business enterprises. This accounting policy change does not involve retroactive adjustment of the company's previous years, will not have a significant impact on the company's financial status, operating results and cash flow, and will not damage the interests of the company and shareholders.
3、 Opinions of the board of directors
On April 8, 2022, the 12th meeting of the Fourth Board of directors of the company deliberated and adopted the proposal on changes in accounting policies. The board of Directors believes that the change of accounting policies is a reasonable change in accordance with the requirements of the notice on revising and printing the accounting standards for Business Enterprises No. 21 - leasing issued by the Ministry of finance, complies with relevant laws and regulations, can objectively and fairly reflect the financial status and operating results of the company, and does not harm the interests of the company and all shareholders, especially small and medium-sized shareholders, All directors unanimously agreed on the change of accounting policies of the company.
4、 Opinions of independent directors
After verification, the independent directors believe that this accounting policy change is a reasonable change in accordance with the requirements of the notice on revising and printing the accounting standards for Business Enterprises No. 21 - leasing issued by the Ministry of finance, which can more objectively and fairly reflect the company's financial situation and operating results, and is in line with the actual situation of the company. The decision-making procedure of this accounting policy change complies with the provisions of relevant laws, regulations and the articles of association, and there is no damage to the rights and interests of the company and shareholders. All independent directors unanimously agreed to the accounting policy change.
5、 Opinions of the board of supervisors
On April 8, 2022, the 12th meeting of the Fourth Board of supervisors of the company deliberated and adopted the proposal on changes in accounting policies. The board of supervisors believes that the accounting policy change is a reasonable change in accordance with the requirements of the notice on revising and printing the accounting standards for Business Enterprises No. 21 - leasing issued by the Ministry of finance, which can objectively and fairly provide investors with more accurate accounting information. The deliberation and voting procedures of the board of supervisors on this matter comply with the relevant provisions of laws and regulations, normative documents and the articles of association, There is no situation that damages the rights and interests of the company and all shareholders. All supervisors unanimously agreed to the change of accounting policy.
7、 Documents for future reference
1. Resolutions of the 12th meeting of the 4th board of directors;
2. Resolutions of the 12th meeting of the 4th board of supervisors;
3. Independent opinions of the company's independent directors on matters related to the 12th meeting of the Fourth Board of directors. It is hereby announced.
Jiangsu Chinagreen Biological Technology Co.Ltd(300970) board of directors April 8, 2022
