Securities code: Kunshan Guoli Electronic Technology Co.Ltd(688103) securities abbreviation: Kunshan Guoli Electronic Technology Co.Ltd(688103) Announcement No.: 2022012 Kunshan Guoli Electronic Technology Co.Ltd(688103)
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 legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
This change of accounting policy does not involve the retroactive adjustment of Kunshan Guoli Electronic Technology Co.Ltd(688103) (hereinafter referred to as “the company”) in previous years, and will not have a significant impact on the company’s financial status, operating results and cash flow, and there is no damage to the interests of the company and shareholders.
The company held the 15th meeting of the second board of directors and the 9th meeting of the second board of supervisors on April 18, 2022, and deliberated and adopted the proposal on the change of accounting policies of the company. The independent directors expressed their independent opinions. This accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation. The specific contents are hereby announced as follows:
1、 Reasons for this accounting policy change
On December 7, 2018, the Ministry of Finance revised and issued the accounting standards for Business Enterprises No. 21 – leasing (CAI Kuai [2018] No. 35, hereinafter referred to as the “new leasing standards”), which requires 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 to take effect from January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021. Therefore, according to the regulations, the company will implement it from January 1, 2021.
2、 Specific situation and impact on the company
(I) main contents of this accounting policy change
(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 lease term or the remaining service life of the leased asset, whichever is shorter. 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 the lease liabilities, the lessee shall measure them according to the present value of the unpaid lease payments on the beginning date of the lease term, calculate the interest expenses of the lease liabilities in each period of the lease term according to the fixed periodic interest rate (lease embedded interest rate or incremental borrowing interest rate), and record them into the current profits and losses or relevant asset costs; (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 current profits and losses or relevant asset costs according to the straight-line method or other systematic and reasonable methods during each period of the lease term.
(II) impact on the company
The major changes in the accounting standards and financial policies of the company in the previous year will not have a retroactive impact on the company’s cash flow and financial results according to the relevant regulations issued by the accounting standards of the company.
3、 Opinions of independent directors and board of supervisors
(I) opinions of independent directors
This accounting policy change is a reasonable change made by the company in accordance with the relevant regulations and requirements of the Ministry of finance. The company complies with the provisions of relevant laws and regulations and the actual situation of the company. It does not involve the retroactive adjustment of the company’s previous years, has no significant impact on the company’s financial status, operating results and cash flow, and does not damage the interests of the company and all shareholders. The review and voting procedures of the company’s accounting policy changes comply with the provisions of relevant laws, regulations and the articles of association. We agree with the change of the company’s accounting policies.
(II) opinions of the board of supervisors
This accounting policy change is a reasonable change made in accordance with the relevant documents of the Ministry of finance, in line with the relevant provisions of the Ministry of Finance and other regulatory bodies, can more objectively and fairly reflect the company’s financial situation and operating results, and is in line with the interests of the company and shareholders. The review procedures of this accounting policy change comply with the provisions of relevant laws, regulations and the articles of association.
It is hereby announced.
Kunshan Guoli Electronic Technology Co.Ltd(688103) board of directors April 20, 2022
