Securities code: Hebei Huatong Wires And Cables Group Co.Ltd(605196) securities abbreviation: Hebei Huatong Wires And Cables Group Co.Ltd(605196) Announcement No.: 2022029 Hebei Huatong Wires And Cables Group Co.Ltd(605196)
Announcement on changes in accounting policies
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Hebei Huatong Wires And Cables Group Co.Ltd(605196) (hereinafter referred to as "the company") changed its accounting policies in accordance with the revised accounting standards for Business Enterprises No. 21 - leasing (hereinafter referred to as "new leasing standards") and the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of Finance in 2018.
This accounting policy change is an adjustment made in accordance with the relevant accounting standards revised by the Ministry of finance, and will not have a significant impact on the company's main financial indicators such as total assets, net assets and net profit in 2021 and the early stage.
1、 Overview
(I) reasons for changes in accounting policies
1. According to the new leasing standards revised and issued by the Ministry of Finance 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 business enterprises to prepare financial statements shall be implemented as of January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021. According to the requirements of the new leasing standards, the company has made corresponding changes to the relevant accounting policies originally adopted.
2. 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, which clearly stipulates that under normal circumstances, the transportation activities for the purpose of performing the customer's contract before the control of the enterprise's goods or services is transferred to the customer do not constitute a single performance obligation, and the relevant transportation costs should be regarded as the contract performance costs, Amortization is carried out on the same basis as the recognition of revenue from goods or services and included in the current profit and loss. The contract performance cost shall be listed in the "operating cost" item of the income statement.
(II) accounting policies adopted before this change
1. Before the change of accounting policy, the company listed the relevant rental expenses in the items of "operating costs", "selling expenses" and "administrative expenses" and listed the payable rental expenses in the item of "other payables" in accordance with 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 provisions issued by the Ministry of finance.
2. Before this accounting policy change, the company listed the relevant transportation costs in the "selling expenses" item. (III) accounting policies adopted after this change
1. 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 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 by the Ministry of Finance in the early stage.
2. After this accounting policy change, the company listed the transportation costs incurred in performing the customer sales contract in the "operating cost" item in accordance with the relevant implementation Q & A regulations of the accounting department of the Ministry of finance.
2、 Specific situation and impact on the company
(I) impact of the implementation of the new leasing standards
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. According to the new leasing standards, the company will pay attention to all leased assets (options) from January 1, 2021
The right to use assets and lease liabilities are recognized for short-term leases and low value asset leases (excluding leases), and depreciation and unrecognized financing expenses are recognized respectively. The information of comparable periods is not adjusted.
The implementation of the new lease standards on the items of the consolidated balance sheet and the balance sheet of the parent company on January 1, 2021
The impact of is summarized as follows: unit: Yuan
Consolidated statement
Amount of statement items affected - increase / (decrease)
31 December 2020
Right of use assets 0402288815402288815
Lease liabilities 0158576102158576102
Non current negative debt due within one year: 975465741356479289933194502
Long term deferred expenses 183695933 -10806478575631148
No impact on the parent company's statements
The company implemented the new lease criteria for the first time on January 1, 2021. According to relevant regulations, the company will not re evaluate the contract options existing before the first execution date. The company adjusted the retained earnings at the beginning of 2021 and the amount of relevant items in the financial statements for the cumulative impact of the standards, and the comparative financial statements in 2020 were not restated. (II) impact of the implementation of relevant implementation questions and answers of accounting standards for business enterprises
For the transportation costs incurred before the control of the goods is transferred to the customer and for the performance of the sales contract, the company will reclassify all the sales expenses to the operating costs. The main impacts on the company are as follows: 1. The transportation costs incurred in performing the sales contract are listed in the "operating cost" item, which is expected to have an impact on the company's "gross profit margin" and other financial indicators, and will not have a significant impact on the financial statements and other important financial indicators. 2.
From January 1, 2021, the transportation costs incurred in performing the customer's sales contract will be reclassified from "sales expenses" to "operating costs". The specific impact amount is as follows: unit: yuan
Affected amount
Year 2021
Parent company of consolidated statement
102692,354.61 60,295629.33
2. The impact on relevant subjects of the company's financial statements in 2020 is as follows: unit: Yuan
Contents and reasons of changes in accounting policies increase / (decrease) in the amount affected by the affected statements
Project name 2020
Parent company of consolidated statement
-148273362- 310318077 for sales expenses incurred in the transfer of commodity control
86 7
1482733628 before sales to customers and for the performance of sales
The transportation cost incurred by the contract will be the operating cost of 3103180777 6
It is reclassified from all sales expenses to
Operating costs.
Other payments and
-136395,664. - 288005665 the cash outflow related to this will be related to its operating activities
01 4
The cash paid from other cash related to operating activities is reclassified to the goods purchased and accepted by the purchaser
136395,664.0
1. Cash paid for labor services 2880056654
gold
3、 Concluding comments of independent directors and board of supervisors
(I) opinions of independent directors
The company changed its accounting policies accordingly according to the requirements of the documents of the Ministry of finance. The changed accounting policies comply with the relevant provisions of the Ministry of finance. The changed accounting policies have no significant impact on the company's financial status, operating results and cash flow, and there is no damage to the legitimate rights and interests of the company and all shareholders, especially the interests of minority shareholders. The procedures of this accounting policy change comply with relevant laws and regulations and the articles of association, and the company agrees to this accounting policy change.
(II) opinions of the board of supervisors
According to the requirements of relevant documents of the Ministry of finance, the company has made corresponding changes to the company's accounting policies, which are in line with the requirements of relevant laws and regulations and the actual situation of the company. The changed accounting policies are conducive to more objectively and fairly reflect the company's financial situation and operating results, and are in line with the interests of the company and all shareholders. The procedures of this accounting policy change comply with relevant laws and regulations and the articles of association, and the company agrees to this accounting policy change. It is hereby announced.
Hebei Huatong Wires And Cables Group Co.Ltd(605196) board of directors April 18, 2022
