Yifan Pharmaceutical Co.Ltd(002019) YIFAN PHARMACEUTICAL CO.,LTD.
Financial accounting system
(revised in April 2002)
catalogue
Chapter I General Provisions 3 Chapter II work requirements Chapter III current assets Chapter IV non current assets Chapter V liabilities Chapter VI owner's equity Chapter VII period expenses Chapter VIII income, profit and distribution Chapter IX income tax Chapter 10 borrowing costs Chapter XI consolidated financial statements Chapter XII merger, division, bankruptcy, dissolution and liquidation of the company Chapter 13 debt restructuring 20 chapter XIV financial report 22 Chapter 15 Supplementary Provisions twenty-two
Chapter I General Provisions
Article 1 in order to strengthen and standardize the accounting work of the company and safeguard the legitimate rights and interests of investors and creditors, this system is hereby formulated in accordance with the accounting law of the people's Republic of China, the accounting standards for business enterprises and the articles of association. Article 2 this system is applicable to the control and management of the financial departments / personnel at all levels and relevant departments and personnel of the company who need to follow the working standards.
Article 3 this system is proposed by Yifan Pharmaceutical Co.Ltd(002019) and requires financial personnel at all levels and relevant personnel to consciously abide by and be bound by it.
Chapter II work requirements
Article 4 the company shall set up a separate accounting institution and allocate accounting personnel. The economic business of the company shall fill in accounting vouchers, register accounting books and prepare accounting statements according to regulations. The accounting archives of the company shall be implemented in accordance with the provisions of the measures for the management of accounting archives.
Article 5 the accounting work of the company must comply with the provisions of relevant national laws and regulations. Debit and credit bookkeeping method is adopted for accounting. Accounting records must be clear to facilitate understanding, inspection and use.
Article 6 the accounting period shall be determined according to the starting and ending time of the Gregorian calendar, and shall be divided into annual, semi annual, quarterly and monthly. The fiscal year starts from December 1 to December 31 of the Gregorian calendar.
Article 7 RMB shall be used as the bookkeeping base currency for accounting. For foreign currency transactions, they are translated into RMB for bookkeeping at the beginning of the current period or the middle exchange rate of the spot market. At the end of the period, the ending balance of various foreign currency accounts is converted into RMB according to the ending market exchange rate, and the difference between the ending balance of foreign currency accounts and the ending balance of the corresponding bookkeeping RMB account is recognized as exchange gain and loss. The assets and liability items in the balance sheet shall be translated at the spot exchange rate on the balance sheet date; Except for the "undistributed profit" item, other items of owner's equity are translated at the spot exchange rate at the time of occurrence. The income and expense items in the income statement are translated at the spot exchange rate on the transaction date. When disposing of overseas business, the translation difference of foreign currency financial statements related to the overseas business shall be transferred from the owner's equity item to the current profit and loss of disposal.
Article 8 accounting must be based on the legal vouchers of the actual economic business, truthfully reflect the financial situation and operating results, and ensure that the contents are true, the figures are accurate, the items are complete, the procedures are complete and the data are reliable. Article 9 accounting shall be based on the accrual basis.
Article 10 the accounting information provided by accounting shall be comparable. The same or similar transactions or events in different periods of the company shall adopt consistent accounting policies and shall not be changed at will. If the accounting policies or accounting estimates really need to be changed, they shall be implemented with the approval of the board of directors of the company according to the different classification of the changed matters, except that the standard change is automatically applicable.
Article 11 accounting shall follow the principle that substance is more important than form. Accounting recognition, measurement and reporting shall be carried out in accordance with the economic essence of transactions or events, and shall not be based solely on the legal form of transactions or events.
Article 12 accounting shall follow the requirements of the principle of prudence and reasonably account for possible losses and expenses.
Article 13 accounting shall be measured at historical cost. If replacement cost, net realizable value, present value and fair value are used, it shall be ensured that the amount of accounting elements determined can be obtained and measured reliably. Article 14 The objective of the financial accounting report is to provide the users of the financial accounting report with accounting information related to the company's financial status, operating results and cash flow, reflect the performance of the entrusted responsibilities of the company's management, and help the users of the financial accounting report make economic decisions.
Chapter III current assets
Article 15 the company's current assets refer to the assets that can be realized or consumed within a business cycle, generally including cash, various deposits, trading financial assets, receivables and prepayments, contract assets, inventories, etc. Article 16 each accounting unit of the company shall set up a subsidiary ledger of cash and bank deposits, which involves the receipt and payment of monetary funds, prepare accounting vouchers for receipt and payment, and register them one by one according to the order of business occurrence. If there are foreign currency deposits, they shall conduct detailed accounting for RMB and foreign currency deposits respectively. The book balance of cash must be consistent with the amount of inventory; The book balance of bank deposits shall be regularly checked with the bank statement, and the reconciliation statement shall be prepared on a monthly basis; The foreign currency balance of the foreign currency account shall be converted into RMB according to the national foreign exchange rate at the end of the month as the ending RMB balance of the foreign currency account. The difference between the RMB balance of the adjusted foreign currency account and the original book balance shall be included in the current financial expenses as exchange gains and losses.
Article 17 accounts receivable and prepayments shall be recorded according to the actual amount, and Sub Ledger shall be set up according to the current account name or expense type for Sub Ledger accounting. Bad debt reserves shall be accrued for accounts receivable (including accounts receivable and other receivables). For accounts receivable, whether or not it contains major financing components, the company always measures its loss reserves according to the amount equivalent to the expected credit loss in the whole duration, The increase or reversal amount of the loss reserves thus formed shall be included in the current profits and losses as impairment losses or gains. The company combines the receivables according to similar credit risk characteristics (aging), and estimates the withdrawal proportion of bad debt provision of the receivables based on all reasonable and based information, including forward-looking information, as follows:
Accrual proportion of aging accounts receivable (%) within 1 year (including 1 year) 5
1-2 years 15
2-3 years 50
More than 3 years 100
If there is objective evidence that a certain account receivable has been impaired, the company will make a single provision for bad debts and recognize the expected credit loss.
(I) recognition criteria for bad debts:
(1) If the debtor goes bankrupt or dies, it is still unable to recover after paying off its bankruptcy property or legacy;
(2) The debtor fails to perform its repayment obligations within the time limit, and has obvious characteristics indicating that it cannot be recovered.
(II) receivables that cannot be recovered shall be regarded as bad debt losses after approval, and the withdrawn bad debt reserves shall be written off.
Article 18 financial assets
An enterprise shall classify financial assets into the following three categories according to its business model of managing financial assets and the contractual cash flow characteristics of financial assets:
(I) financial assets measured at amortized cost meet the following conditions at the same time:
(1) The business model for the enterprise to manage the financial assets is to collect the contract cash flow as the goal.
(2) The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the principal and interest based on the outstanding principal amount.
(II) financial assets measured at fair value and whose changes are included in other comprehensive income meet the following conditions:
(1) The business model of the enterprise in managing the financial asset aims at both receiving the contractual cash flow and selling the financial asset.
(2) The contractual terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the principal and interest based on the outstanding principal amount.
(III) financial assets measured at fair value with changes included in current profits and losses. For financial assets classified as measured at amortized cost and financial assets other than those measured at fair value and whose changes are included in other comprehensive income, the enterprise shall classify them as financial assets measured at fair value and whose changes are included in current profits and losses.
Article 19 contract assets and contract liabilities
The company lists contract assets or contract liabilities in the balance sheet according to the relationship between performance obligations and customer payment. The right of the company to receive consideration for transferring goods or providing services to customers (and the right depends on other factors other than the passage of time) is listed as contract assets. Contract assets and contract liabilities under the same contract are presented in net amount. The right of the company to collect consideration from customers unconditionally (only depending on the passage of time) is listed separately as accounts receivable.
Article 20 inventories include finished products or commodities held for sale in the normal process of production and operation, or for the sale of products in process that are still in the process of production, or materials and materials that will be consumed in the process of production or the provision of labor services. Specifically, raw materials, products in process, semi-finished products, finished products, etc. Inventories are initially measured at cost. Inventory costs include procurement costs, processing costs and other expenses incurred to make inventories reach the current location and state.
(I) measurement of inventory
Inventories are valued at actual cost. The raw materials purchased and accepted for warehousing shall be recorded according to the actual cost, and the raw materials sent out shall be priced by the weighted average method; Finished products in storage (self-made semi-finished products) shall be accounted according to the actual production cost, and finished products shall be priced by the weighted average method; Low value consumables received shall be amortized by one-off amortization method. The packaging materials collected for production are directly included in the cost.
(II) the inventory method of inventory quantity adopts the perpetual inventory system.
For the unrecoverable part of the inventory cost caused by the damage of the inventory, the obsolescence of all or part of the inventory and the lower sales price than the cost, the inventory falling price reserve shall be withdrawn according to the difference between the cost of a single inventory item and the net realizable value; However, for the materials held for production, if the net realizable value of the finished products produced by them is higher than the cost, the materials are still measured at the cost. If the decrease of the material price indicates that the net realizable value of the finished products is lower than the cost, the materials are measured at the net realizable value.
Chapter IV non current assets
Article 21 the long-term investment and controlling equity of the joint venture refers to the significant impact of the implementation of the investment on the invested party's equity (I) of the joint venture. Significant influence means that the investor has the right to participate in the decision-making of the financial and operating policies of the invested entity, but cannot control or jointly control the formulation of these policies with other parties. When determining whether to exert significant influence on the investee, the potential voting rights of the investee such as current convertible corporate bonds and current executable warrants held by the investor and other parties shall be considered. If the investor can exert significant influence on the invested entity, the invested entity is its associated enterprise. (II) determination of the initial investment cost of long-term equity investment: (1) for the long-term equity investment formed through business combination, for the long-term equity investment in subsidiaries formed by business combination under the same control, the share of the book value of the owner's equity of the combined party in the consolidated financial statements of the final controller shall be regarded as the initial investment cost of long-term equity investment on the combination date; For the long-term equity investment in subsidiaries formed by business combinations not under the same control, the combination cost determined on the acquisition date shall be taken as the initial investment cost of the long-term equity investment. For the long-term equity investment obtained by means other than business combination and the long-term equity investment obtained by means of cash payment, the actually paid purchase price shall be regarded as the initial investment cost; For the long-term equity investment obtained by issuing equity securities, the fair value of the issued equity securities shall be taken as the initial investment cost. (2) Long term equity investment obtained by means other than business combination. (3) For the long-term equity investment obtained by paying cash, the actual purchase price shall be taken as the initial investment cost. (III) subsequent measurement of long-term equity investment (1) long term equity investment shall be accounted in detail according to the invested unit. If the equity method is adopted for accounting, it shall be accounted in detail according to cost, profit and loss adjustment and other equity changes. (2) For long-term equity investment, provision for impairment shall be made according to the difference between the recoverable amount at the end of the period and the book value, and the impairment loss shall be included in the current profit and loss. Once the impairment loss is recognized, it shall not be reversed in subsequent accounting periods. (3) The accounting standards for Business Enterprises No. 19 - foreign currency translation shall apply to the translation of foreign currency long-term equity investments. Article 22 investment real estate
Investment real estate refers to the real estate held to earn rent or capital appreciation, or both, including the leased land use right, the land use right held and ready to be transferred after appreciation, and the leased buildings (including the buildings used for leasing after the completion of self construction or development activities and the buildings used for leasing in the future in the process of construction or development).
The company adopts the cost model to measure the existing investment real estate. Subsequent expenditures related to investment real estate are included in the cost of investment real estate when the relevant economic benefits are likely to flow in and the cost can be measured reliably; Otherwise, it shall be included in the current profit and loss when it occurs. For the investment real estate measured according to the cost model - buildings for rent, the same depreciation policy as the company's fixed assets is adopted, and the land use right for rent is implemented according to the same amortization policy as intangible assets.
Article 23 fixed assets
(I) fixed assets are valued at actual cost. Houses, buildings, machines, machinery, means of transport and other equipment, appliances and tools related to business with a service life of more than one year. The depreciation scope of fixed assets includes: houses and buildings; Machinery and equipment in use, instruments and meters, means of transport, equipment out of service for seasonal and major repair; Fixed assets that meet the conditions for recognition of leased assets; Not used, not used
