China Hainan Rubber Industry Group Co.Ltd(601118) board of directors
Notes on changes in accounting policies
1、 Changes in accounting policies and their impact on the company
(I) reasons for this accounting policy change
On November 2, 2021, the accounting department of the Ministry of Finance issued a question and answer on the implementation of the accounting standards for business enterprises and income standards, which clearly stipulates that: generally, 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, and 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 profit and loss. The contract performance cost shall be carried forward and included in the title of "main business cost" or "other business cost" when recognizing the revenue of goods or services, and shall be listed in the item of "operating cost" in the income statement.
(II) date of this accounting policy change
The company will implement the changed accounting policies from January 1, 2021.
(III) accounting policies adopted before this change
Before the change of accounting policy, the company implemented the accounting standards for Business Enterprises No. 14 - income issued by the Ministry of Finance in 2006; After the implementation of the new income standard, according to the provisions of the application guide of accounting standards for business enterprises - accounting subjects and main accounting treatment, and considering the comparability of relevant data, the company listed the relevant transportation costs in the "sales expenses" item in 2020.
(IV) accounting policies adopted after this change
After the change of accounting policy, the company reclassified all the transportation costs incurred in performing the customer's contract before the transfer of commodity control to the customer from "sales expenses" to "operating costs" in accordance with the relevant revenue standards of the Ministry of Finance and the provisions of Q & A.
(V) specific contents of this accounting policy change
The specific contents of this accounting policy change are as follows: from January 1, 2021, the company will reclassify all the transportation costs incurred for the performance of customer contracts before the transfer of commodity control to customers from "sales expenses" to "operating costs". At the same time, relevant items in the 2020 financial statements are retroactively adjusted, and the specific adjustments are as follows:
Impact amount in 2020
Content and reason of change name of report item affected
Parent company of consolidated statement
For the operating cost of commodity control 23438615080 0
Before transfer to the customer, and the sales expense is -23438615080 0
Payment for purchasing goods and receiving labor services due to the performance of customer sales contracts
The transportation cost generated is reduced from 23438615080 0
Cash paid
All sales expenses are reclassified to payment, which is related to other operating activities
Operating costs- 234386,150.80
Closed cash
(VI) impact of this accounting policy change on the company
The above changes will affect the "operating costs" and "sales expenses" in the company's profit statement, affect the company's "gross profit margin" and other financial indicators, but will not affect the company's "operating revenue" and "operating profit", and will not have a significant impact on the company's financial status and operating results.
2、 Explanation of the board of directors on the rationality of this accounting policy change
The board of directors unanimously agreed that the change of accounting policy is a reasonable change in accordance with the relevant provisions of the accounting department of the Ministry of Finance on the implementation of Q & A. the changed accounting policy can objectively and fairly reflect the company's financial status and operating results without damaging the interests of the company and shareholders. The decision-making procedures of this accounting policy change comply with the provisions of relevant laws, regulations and the articles of association. This change will not have a significant impact on the financial report. Therefore, we agree to the change of the company's accounting policy.
China Hainan Rubber Industry Group Co.Ltd(601118) board of directors
April 7, 2022
