Vanfund Urban Investment&Development Co.Ltd(000638)
Internal control system of financial report
Chapter I General Provisions
Article 1 in order to standardize the preparation and provision of Vanfund Urban Investment&Development Co.Ltd(000638) (hereinafter referred to as “the company”) financial report, ensure that the company’s financial report information is true, accurate, complete and timely, without omission or false statement, and meet the needs of report users, this system is formulated in accordance with the requirements of relevant national laws, administrative regulations, departmental rules and normative documents.
Article 2 financial report refers to the documents provided by an enterprise to reflect the financial status of the enterprise on a specific date and the operating results and cash flow of an accounting period, including accounting statements, notes to accounting statements and other relevant information and materials that should be disclosed in the financial report.
Article 3 the company shall prepare and provide financial reports on time in accordance with relevant laws, administrative regulations and the provisions of the national unified accounting system.
Article 4 the financial reports prepared and provided by the company shall not contain false information or conceal important facts.
Article 5 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company shall ensure that the financial reports provided are free from false records, misleading statements or major omissions, and bear individual and joint legal liabilities for the authenticity, accuracy and integrity of the financial reports.
Article 6 when preparing, providing, analyzing and utilizing financial reports, attention shall be paid to at least the following risks:
(I) the preparation of financial reports violates accounting laws and regulations and the national unified accounting standards system, which may cause the enterprise to bear legal liabilities and damage its reputation.
(II) providing false financial reports, misleading users of financial reports, causing mistakes in decision-making and disturbing market order.
(III) failure to make effective use of financial reports makes it difficult to find problems in the company’s operation and management in time, which may lead to the loss of control of the enterprise’s financial and operational risks.
Article 7 strictly implement the accounting laws and regulations and the national unified accounting standards system, strengthen the management of the whole process of the preparation, external provision, analysis and utilization of financial reports, clarify the relevant work processes and requirements, implement the responsibility system, and ensure the legal compliance, authenticity, integrity and effective utilization of financial reports.
The chief financial officer is responsible for organizing and leading the preparation, external provision, analysis and utilization of financial reports.
The person in charge of the enterprise shall be responsible for the authenticity and integrity of the financial report.
Chapter II preparation of financial report
Article 8 the preparation of financial reports shall focus on accounting policies and accounting estimates, and the treatment of transactions and events that have a significant impact on the financial reports shall be examined and approved in accordance with the prescribed authority and procedures.
Prior to the preparation of the annual financial report, necessary asset inventory, impairment test and verification of claims and liabilities shall be carried out.
Article 9 the company shall carry out accounting recognition, measurement and reporting based on actual transactions or events, truthfully reflect various accounting elements and other relevant information that meet the requirements of recognition and measurement, and ensure the authenticity, reliability and integrity of accounting information.
Article 10 in accordance with the provisions of the national unified accounting standards system, the financial report shall be prepared according to the accounting books, records and other relevant materials that are completely registered and verified, so as to ensure that the contents are complete, the figures are true and the calculation is accurate, and there shall be no omission or arbitrary choice.
Article 11 the preparation of a financial report shall at least include:
(I) financial report preparation scheme before preparing the annual financial report, the Finance Department of the company is responsible for formulating the preparation scheme of the annual financial report, clarifying the preparation method of the annual financial report (including accounting policies and accounting estimates, consolidation methods, scope and principles), the accounting adjustment policy of the annual financial report, the disclosure policy and the time of the report, etc. The financial report preparation plan shall be reviewed by the manager of the financial department, submitted to the chief financial officer for approval, and then issued to all participating units.
(II) handling of major and unconventional matters: 1. Great attention should be paid to major and unconventional matters. Among them: major events usually include: the impact of audit adjustment in previous years, changes in accounting standards and systems, changes in the scope of consolidated report in the year, etc. on the financial report; Unconventional events refer to special events that have not occurred in the previous operation and accounting treatment of the enterprise, including but not limited to: goodwill, investment real estate, contingent measurement, share based payment, debt restructuring, non monetary asset exchange, etc. 2. Handling of major events and unconventional events: the Finance Department of the company shall regularly communicate with relevant departments and branches and subsidiaries, organize and communicate the accounting treatment of major events, especially the major judgments and estimates involved in asset impairment loss and fair value measurement. Before the accounting treatment of major accounting events and unconventional events, the handling departments and handling personnel shall provide relevant review and approval documents, The financial department shall prepare the report on the handling opinions of major financial and accounting matters in XX year (semi annual), submit it for approval according to the relevant processes of judgment and handling of major financial and accounting matters, and carry out accounting treatment according to the approval opinions.
(III) before the preparation of the annual financial report, it is necessary to conduct a comprehensive asset inventory, impairment test and debt verification: 1. Determine a specific and feasible plan for asset inventory and debt verification. 2. Do a good job in the inventory of various assets and the verification of creditor’s rights and debts, including checking the statement with the bank, checking the cash on hand and checking the bills; Check whether the settlement funds, including accounts receivable, accounts payable and taxes payable, are consistent with the corresponding debts and creditor’s rights of the debt and creditor’s units; Check whether the actual quantity of raw materials, products in process, self-made semi-finished products, inventory commodities and other inventories is consistent with the book quantity, and whether there is scrap loss and overstock materials; Check whether the book investment exists and whether the investment income is recognized and measured in accordance with the provisions of the national unified accounting standards system; Check whether the actual quantity of houses, buildings, machinery and equipment, means of transport and other fixed assets is consistent with the book quantity, check the ownership certificates of land and houses, and determine the ownership of assets; Check whether the actual amount of construction in progress is consistent with the book records, etc. 3. For the differences found in the inventory process, the reasons shall be analyzed, the handling opinions shall be put forward and reported to the chief financial officer and the general manager for review. For the significant differences, the results of the inventory and verification and their handling methods shall also be reported to the board of directors or the securities Department of the company, and the corresponding accounting treatment shall be carried out in accordance with the provisions of the national unified accounting standards system.
(IV) reconciliation, account adjustment, error correction and settlement. The financial departments of the company’s headquarters and subsidiaries shall complete reconciliation, account adjustment, error correction and other businesses on the basis of daily and regular verification of accounting information, and then implement account closing operations. Specific control measures: 1. Check whether the content and amount of each accounting book record and accounting voucher are consistent, and whether the bookkeeping direction is consistent. 2. Check whether the relevant accounting treatment complies with the national unified accounting standards system. 3. Adjust relevant accounts and reasonably determine the accrued income and expenses of the current period according to the principle of accrual basis. 4. Check whether there are relevant items in the previous or current period that need to be adjusted due to accounting errors, changes in accounting policies and other reasons.
For adjustment items, approval documents need to be obtained and retained as the basis for adjustment. 5. The company and its subsidiaries shall settle accounts according to the stipulated settlement date, and shall not advance or delay. The annual closing date is December 31 of each calendar year; The semi annual, quarterly and monthly settlement days are the last day of each half year, quarter and month of the Gregorian calendar year. It is not allowed to settle accounts in advance in order to prepare the financial report in time, or postpone the economic and business events occurring in the current period to the next period, nor to prepare the financial report before closing. After all transactions and events of the current period are handled and reviewed and signed by the person in charge of the financial department for confirmation, the account closing and settlement operations shall be implemented. Article 12 the amount of assets, liabilities and owners’ equity listed in the financial report shall be true and reliable.
The valuation methods of various assets shall not be changed at will. In case of impairment, the provision for impairment shall be made reasonably. It is strictly prohibited to falsely increase or decrease assets.
All liabilities shall reflect the current obligations of the enterprise, and shall not be advanced, delayed or unrecognized. It is strictly prohibited to falsely increase or decrease liabilities.
The owner’s equity shall reflect the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise, which is composed of paid in capital, capital reserve, retained earnings, etc. The enterprise shall maintain and increase the value of the owner’s equity, and it is strictly prohibited to make false capital contributions, withdraw capital contributions or make false capital contributions.
Article 13 a financial report shall truthfully present the income, expenses and profits of the current period.
The recognition of various incomes shall follow the prescribed standards, and it is not allowed to falsely list or conceal the income, postpone or recognize the income in advance.
The recognition of various expenses and costs shall comply with the provisions. It is not allowed to arbitrarily change the recognition standards or measurement methods of expenses and costs, and falsely list, overstate, omit or understate expenses and costs.
Profit consists of the net amount of income minus expenses, gains and losses directly included in the current profit, etc. It is not allowed to arbitrarily adjust the calculation and distribution methods of profits and fabricate false profits.
Article 14 various cash flows listed in financial reports consist of cash flows from operating activities, investment activities and financing activities, and the boundaries of cash flows from various transactions and events shall be drawn in accordance with regulations.
Article 15 the notes are an important part of the financial report and give a true, complete and clear explanation of the matters that need to be explained in the statements reflecting the financial status, operating results and cash flow of the enterprise.
An enterprise shall prepare notes in accordance with the national unified accounting standards system. Check whether major contingencies such as guarantee, litigation, pending matters and asset reorganization are reflected and disclosed in the notes.
Article 16 the company shall prepare consolidated financial statements, clarify the scope and method of consolidation, and truthfully reflect the financial status, operating results and cash flow of the company within the scope of consolidation.
(I) the financial department of the reporting unit shall, based on the holding subsidiaries accounted by the cost method in the long-term equity investment and considering all relevant circumstances, determine that the consolidation scope complies with the provisions of the national unified accounting standards system, and the financial person in charge shall review and confirm whether the consolidation scope is complete.
(II) the financial department collects and reviews the financial reports of subordinate units, and summarizes the financial reports of the current level, which shall be reviewed by the financial director of the summarizing unit.
(III) the financial department shall prepare a checklist of internal transactions, submit it to the financial principal for approval, and then distribute it to all units included in the consolidation scope. The financial department shall check the matters and amounts of internal transactions between the unit and the units included in the consolidation scope. If there are differences, it shall find out the reasons in time and make adjustments. Prepare internal transaction statement and internal transaction statement and submit them to the financial director for review.
(IV) the cross review system shall be implemented for the consolidated offset entries. After the specific preparer completes the adjustment entries, it shall be submitted to the corresponding reviewer for review. Only after passing the review can the trial balance be entered. Ensure the authenticity and integrity of consolidated offset entries through cross review.
Article 17 the preparation of financial reports shall make full use of information technology, improve work efficiency and quality, and reduce or avoid preparation errors and artificial adjustment factors.
Article 18 No unit or individual may forge or alter accounting vouchers, account books and other accounting materials, or provide false financial and accounting reports.
Chapter III external provision of financial reports
Article 19 the company shall timely provide financial and accounting reports to the outside world in accordance with the provisions of laws, administrative regulations and the national unified accounting system on the time limit for the provision of financial reports.
Article 20 the accounting information reflected in the financial and accounting reports provided to the public shall be true and complete.
Article 21 after the preparation of the company’s financial report, it shall be bound into a volume and stamped with the official seal, which shall be signed and sealed by the chairman, chief financial officer and financial manager of the company.
Article 22 the annual financial report of the company shall be audited by an accounting firm qualified for securities and futures related business. The relevant audit report shall be sealed by the above accounting firm and signed and sealed by two or more certified public accountants. The audit report issued by certified public accountants and their firms shall be provided together with the financial report.
The financial reports provided by the company shall be sorted out and filed in time and properly kept in accordance with relevant regulations.
Article 23 the directors and senior managers of the company shall sign written confirmation opinions on the periodic reports, and the board of supervisors shall put forward written review opinions to explain whether the preparation and review procedures of the board of directors comply with laws, administrative regulations and the provisions of the CSRC, and whether the contents of the report can truly, accurately and completely reflect the actual situation of the listed company.
Article 24 If the directors, supervisors and senior managers cannot guarantee the authenticity, accuracy and completeness of the contents of the periodic report or have objections, they shall state the reasons and express their opinions, and disclose them.
Article 25 the chairman, general manager, chief financial officer and financial manager of the company shall be primarily responsible for the authenticity, accuracy, integrity, timeliness and fairness of the company’s financial report.
Article 26 relevant personnel shall ensure the accurate transmission of information in accordance with the management policies of the listed company’s internal and external information.
Article 27 relevant personnel shall have the obligation of confidentiality in the process of preparing and transmitting financial reports.
Chapter IV analysis and utilization of financial reports
Article 28 the company shall attach importance to the analysis of financial reports and hold financial analysis meetings regularly. Make full use of the comprehensive information reflected in the financial report, comprehensively analyze the operation and management status and existing problems of the company, and continuously improve the operation and management level.
The financial analysis meeting of the company shall be attended by the heads of financial management center, audit and supervision department, securities department and other departments. The chief financial officer shall play a leading role in financial analysis and utilization.
Article 29 the company shall analyze the company’s asset distribution, liability level and owner’s equity structure, and analyze the company’s solvency and operating capacity through indicators such as asset liability ratio, current ratio and asset turnover rate; Analyze the increase and decrease of the company’s net assets, and understand and master the continuous change process of the company’s scale and net assets. Article 30 the company shall analyze the composition of various incomes and expenses and their increase and decrease, analyze the profitability and development ability of the company through indicators such as return on net assets and earnings per share, and understand and master the reasons for the increase and decrease of profits in the current period and the future development trend.
Article 31 the company shall analyze the operation of cash flow in business activities, investment activities and financing activities, and focus on whether the cash flow can ensure the normal operation of production and operation process and prevent cash shortage or idleness.
Article 32 the company’s regular financial analysis shall form an analysis report and form an integral part of the internal report.
