Securities code: Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) securities abbreviation: Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) Announcement No.: 2022025 Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565)
Announcement on changes in accounting policies of the company
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 Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) (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 18th meeting of the third board of directors and the 11th meeting of the third board of supervisors on April 19, 2022, and deliberated and adopted the proposal on the change of accounting policies of the company. The specific contents are hereby announced as follows:
1、 Overview of changes in accounting policies
1. According to the accounting standards for Business Enterprises No. 21 – leasing (CK [2018] No. 35, 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 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. Therefore, according to the regulations, the company will implement the new leasing standards from January 1, 2021. 2. The company has implemented the interpretation of accounting standards for Business Enterprises No. 14 issued by the Ministry of Finance in 2021 since January 26, 2021. The change of accounting policy has no impact on the company’s financial statements at the beginning of 2021.
3. Since December 31, 2021, the company has implemented the provisions of “relevant presentation of centralized fund management” in the interpretation of accounting standards for Business Enterprises No. 15 issued by the Ministry of finance. The change of accounting policy has no impact on the company’s financial statements.
2、 Specific situation and impact on the company
(I) new lease criteria
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; 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; For lease liabilities, the lessee shall calculate the interest expense of the lease liabilities in each period of the lease term and record it into the current profits and losses.
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 include them in the relevant asset costs or current profits and losses according to the straight-line method or other systematic and reasonable methods in each period of the lease term.
The present value of the unpaid minimum lease payments for operating leases disclosed by the company on December 31, 2020 discounted at the lessee’s incremental loan interest rate on the first execution date is 9833109 yuan, and the lease liabilities recognized on the first execution date of these lease contracts are 9833109 yuan.
This accounting policy change is made by the company in accordance with the relevant regulations and requirements issued by the Ministry of finance. Comply with the provisions of relevant laws and regulations and the actual situation of the company. The implementation of the new leasing standards will not have a significant impact on the company’s financial situation, operating results and cash flow, and there is no damage to the interests of the company and shareholders.
(II) interpretation of accounting standards for Business Enterprises No. 14
The company has implemented the interpretation of accounting standards for Business Enterprises No. 14 issued by the Ministry of Finance in 2021 since January 26, 2021. The change of accounting policy has no impact on the company’s financial statements at the beginning of 2021.
(III) interpretation of accounting standards for Business Enterprises No. 15
Since December 31, 2021, the company has implemented the provisions of “relevant presentation of centralized fund management” in the interpretation of accounting standards for Business Enterprises No. 15 issued by the Ministry of finance. The change of accounting policy has no impact on the company’s financial statements.
3、 Concluding comments of independent directors and board of supervisors
The independent directors and the board of supervisors of the company agree with the change of the company’s accounting policy and believe that the change of the company’s accounting policy is a reasonable change according to the requirements of relevant documents of the Ministry of finance, which can more objectively and fairly reflect the company’s financial situation, operating results and actual situation, help to provide more reliable and accurate accounting information, and comply with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company, There are no circumstances damaging the interests of the company and shareholders.
It is hereby announced.
Zhejiang Haiyan Power System Resources Environmental Technology Co.Ltd(688565) board of directors April 20, 2022
