Securities code: Elite Color Environmental Resources Science&Technology Co.Ltd(002998) securities abbreviation: Elite Color Environmental Resources Science&Technology Co.Ltd(002998) Announcement No.: 2022015
Elite Color Environmental Resources Science&Technology Co.Ltd(002998)
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:
According to the questions and answers on the implementation of accounting standards for business enterprises (hereinafter referred to as the "implementation questions and answers") issued by the Ministry of finance of the people's Republic of China (hereinafter referred to as the "Ministry of finance") on November 2, 2021 and the notice on revising and printing the accounting standards for Business Enterprises No. 21 - leasing "(CAI Kuai [2018] No. 35) (hereinafter referred to as the" new leasing standards ") issued on December 7, 2018, Youcai Environmental Resources Co., Ltd. (hereinafter referred to as "the company" and "the company") will implement the new accounting standards and change relevant accounting policies from January 1, 2021 according to relevant requirements. The change of accounting policies is not expected to have a significant impact on the company's financial position, operating results and cash flow.
The second meeting of the third board of directors and the second meeting of the third board of supervisors held on April 13, 2022 considered and adopted the proposal on changes in accounting policies, and now the relevant information is announced as follows: I. overview of changes in accounting policies
1. Reason and date of accounting policy change
The notice of the Ministry of finance of the people's Republic of China (hereinafter referred to as the Ministry of Finance) on revising and printing the accounting standards for Business Enterprises No. 14 - Revenue (CAI Kuai [2017] No. 22) issued on July 5, 2017 requires that enterprises listed at home and abroad and enterprises listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business enterprises shall be implemented as of January 1, 2018; Other domestic listed enterprises shall be implemented as of January 1, 2020; Non listed enterprises that implement the accounting standards for business enterprises shall go into effect as of January 1, 2021. According to the requirements of the above documents, the company will implement the new income standard from January 1, 2020. According to the accounting standards for Business Enterprises No. 21 - leasing (hereinafter referred to as the "new leasing standards") revised and issued by the Ministry of finance of the people's Republic of China in December 2018, enterprises that are required to be listed at the same time at home and abroad and enterprises that are listed abroad and adopt international financial reporting standards or accounting standards for enterprises to prepare financial statements shall be implemented as of January 1, 2019, and other enterprises that implement accounting standards for business enterprises shall be implemented as of January 1, 2021. The company will implement the accounting standards for Business Enterprises No. 21 - leasing revised by the Ministry of Finance in 2018 from January 1, 2021.
2. Accounting policies adopted before change
Before this 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 announcement of accounting standards for business enterprises and other relevant regulations issued by the Ministry of finance.
3. Accounting policies adopted after change
After this change, the company will implement the new income standard. For other unchanged parts, the former Ministry of finance, the company and all members of the board of directors still guarantee that the contents of information disclosure are true, accurate and complete, and there are no false records, misleading statements or major omissions. The accounting standards for business enterprises - basic standards, various specific accounting standards, the application guide of accounting standards for business enterprises, the interpretation announcement of accounting standards for business enterprises and other relevant provisions issued in the current period shall be implemented. 2、 Impact of changes in accounting policies on the company
1. Main contents of the revision of the new income standard
Incorporate the current revenue and construction contract into the unified revenue recognition model; Taking the transfer of control right instead of risk reward transfer as the judgment standard of the time point of income recognition; Identify the individual performance obligations contained in the contract and recognize the revenue respectively when performing; Provide clearer guidance on the accounting treatment of contracts with multiple transaction arrangements; The revenue recognition and measurement of certain specific transactions (or events) are clearly specified. 2. Impact of this accounting policy change on the company
The company has implemented the accounting standards for Business Enterprises No. 14 - income revised by the Ministry of Finance in 2017 since January 1, 2020. According to the connection provisions of the new income standard, the cumulative impact of the first implementation of the standard is adjusted. The amount of retained earnings and other relevant items in the financial statements at the beginning of the first implementation period (January 1, 2020) is adjusted, and the information of comparable periods is not adjusted.
When implementing the new revenue standard, the company only adjusts the cumulative impact of contracts that have not been completed on the first execution date; For contract changes occurring before the beginning of the earliest comparable period or before the beginning of 2020, no retroactive adjustment is made. Instead, according to the final arrangement of contract changes, the fulfilled and unfulfilled performance obligations are identified, the transaction price is determined, and the transaction price is apportioned between the fulfilled and unfulfilled performance obligations. The impact of the implementation of the new income standard on the relevant items of the balance sheet at the beginning of the current period is shown as follows:
Cumulative impact amount of the project on December 31, 2019 January 1, 2020
Remeasurement and reclassification
Subtotal
(Note 1) (Note 2)
Advance payment 1056735887 -1056735887
Contract liabilities 935164502
Other current liabilities 121571385
Total liabilities 1056735887
Note: the above table only presents the affected financial statement items, and the unaffected financial statement items are not included. Therefore, the disclosed subtotal and total cannot be recalculated according to the figures presented in the above table.
Note 1: on January 1, 2020, the company's obligation to transfer goods to customers based on the consideration received from customers as agreed in the contract was reclassified from "advance payment" to "contract liability" according to the requirements of the new income standard, and the part of value-added tax was reclassified to "other current liabilities".
The impact of the implementation of the new income standard on the consolidated balance sheet as of December 31, 2020 is as follows:
The number of project statements is assumed to be affected according to the original standards
Advance payment 1396894432 -1396894432
Contract liabilities 1236189763
Other current liabilities 185704669250 Ping An Bank Co.Ltd(000001) 60704669
Total liabilities 1421894432
The impact of the implementation of the new income standard on the consolidated income statement in 2020 is as follows:
The number of project statements is assumed to be affected according to the original standards
Operating cost 1122311234931111807544461050369047
Sales expenses 6602722831710641330 - 1050369047
3. The company will implement the accounting standards for Business Enterprises No. 21 - leasing revised by the Ministry of Finance in 2018 from January 1, 2021.
On the first execution date, the company chose not to re evaluate whether the existing contracts were leases or included leases, and applied this method to all contracts consistently. Therefore, the convergence provisions of this standard are only applied to the above contracts identified as leases under the original leasing standards.
In addition, the company chooses to adopt the simplified retroactive adjustment method for the above lease contracts in accordance with the provisions of the accounting standards for Business Enterprises No. 28 - changes in accounting policies, accounting estimates and error correction, that is, adjust the amount of retained income and other relevant items in the financial statements at the beginning of the year in which the standards are first implemented, and do not adjust the information of comparable periods, The measurement method and relevant simplified treatment of operating leases are adopted according to the optional right to use assets of each lease, as follows:
The company's accounting policy for low value asset leasing is not to recognize the right to use assets and lease liabilities. According to the convergence provisions of the new lease standards, the company's low value asset leases before the first execution date shall be accounted for in accordance with the new lease standards from the first execution date, and no retroactive adjustment shall be made to the low value asset leases.
The company has implemented the new leasing standards since January 1, 2021, which has no significant impact on the current financial statements. (1) Impact of the implementation of accounting standards for business enterprises Interpretation No. 14 on the company
On February 2, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1, hereinafter referred to as "Interpretation No. 14"), which will come into force on February 2, 2021 (hereinafter referred to as "implementation date"). The company has implemented Interpretation No. 14 since the implementation date, and the implementation of Interpretation No. 14 has no significant impact on the financial statements during the reporting period.
(2) Impact of the implementation of accounting standards for business enterprises Interpretation No. 15 on the company
On December 31, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 15 (CAI Kuai [2021] No. 35, hereinafter referred to as "Interpretation No. 15"), which will be implemented as of the date of promulgation. Interpretation No. 15 regulates the presentation of centralized and unified management of the funds of the parent company and member units through internal settlement centers and financial companies.
The company has implemented Interpretation No. 15 since the implementation date, and the implementation of Interpretation No. 15 has no significant impact on the current financial statements.
3、 Opinions of the board of directors
The board of Directors believes that this accounting policy change is a reasonable change made by the company in accordance with the relevant laws and regulations issued by the Ministry of finance, and is in line with the accounting standards for business enterprises and relevant regulations. This accounting policy change can more objectively and fairly reflect the company's financial situation and operating results, will not have a significant impact on the company's financial statements, and there is no damage to the interests of the company and shareholders. We agree to this accounting policy change.
4、 Opinions of independent directors
The independent directors of the company believe that the change of the company's accounting policies is based on the relevant documents issued by the accounting department of the Ministry of finance. The decision-making procedures comply with relevant laws and regulations and the articles of association. It does not reflect the company's financial status and operating results, and will not have a significant impact on the company's financial statements. Agree to the change of the company's accounting policy.
5、 Opinions of the board of supervisors
The board of supervisors of the company believes that the accounting policy change of the company is a corresponding change in accordance with the relevant documents issued by the accounting department of the Ministry of finance, the decision-making procedures comply with the relevant laws and regulations and the articles of association, and there is no situation that damages the interests of the company and all shareholders, especially the majority of minority shareholders. The implementation of the changed accounting policies can more objectively and fairly reflect the company's financial situation and operating results, and will not have a significant impact on the company's financial statements. Agree to the change of the company's accounting policy.
6、 Documents for future reference
1. Resolutions of the second meeting of the third board of directors;
2. Resolutions of the second meeting of the third board of supervisors;
3. Independent opinions of independent directors on matters related to the second meeting of the third board of directors of the company;
Elite Color Environmental Resources Science&Technology Co.Ltd(002998) board of directors
April 14, 2022
