Securities code: China Dive Company Limited(300526) securities abbreviation: China Dive Company Limited(300526) Announcement No.: 2022038 China Dive Company Limited(300526)
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.
China Dive Company Limited(300526) (hereinafter referred to as “the company”) held the 34th meeting of the 4th board of directors and the 21st Meeting of the 4th board of supervisors on April 20, 2022, deliberated and adopted the proposal on changes in accounting policies. According to the relevant provisions of the rules for listing shares on the gem of Shenzhen Stock Exchange (revised in 2020), the matters of changing accounting policies do not need to be submitted to the general meeting of shareholders for deliberation, Changes in relevant accounting policies are as follows:
1、 Overview of changes in accounting policies
1. Reason for change
In December 2018, the Ministry of finance of the people’s Republic of China (hereinafter referred to as the “Ministry of finance”) issued the notice on revising and printing the accounting standards for Business Enterprises No. 21 – leasing (CK [2018] No. 35) (hereinafter referred to as the “new leasing standards”), requiring enterprises listed at home and abroad as well as enterprises listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business enterprises, Effective from January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021. Due to the revision of the above accounting standards, the company needs to make corresponding changes to the relevant accounting policies originally adopted.
2. Change date
The company will implement the above new leasing standards on January 1, 2021 in accordance with the unified regulations of the Ministry of finance.
3. Accounting policies adopted before change
Before the change of accounting policy, the company implemented the accounting standards for business enterprises – Basic Standards and various specific accounting standards issued by the Ministry of finance, the accounting standards for business enterprises subsequently issued and revised, the application guide of accounting standards for business enterprises, and the
Securities code: China Dive Company Limited(300526) securities abbreviation: China Dive Company Limited(300526) Announcement No.: 2022038 accounting standards interpretation announcement and other relevant provisions.
4. Accounting policies adopted after change
After this change, the company will implement the new leasing standards revised and issued by the Ministry of finance. Other unchanged parts will 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 regulations issued by the Ministry of Finance in the early stage.
5. Approval procedure
The company held the 34th meeting of the 4th board of directors and the 21st Meeting of the 4th board of supervisors on April 20, 2022. The meeting deliberated and adopted the proposal on changes in accounting policies. According to the relevant provisions of Shenzhen Stock Exchange GEM Listing Rules (revised in 2020), the company’s accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation.
2、 Main contents of this accounting policy change and its impact on the company
1. Main contents of changes in accounting standards for Business Enterprises No. 21 – leasing
(1) For the financial lease on the first execution date, the company, as the lessee, measures the right to use assets and lease liabilities respectively according to the original book value of the financial lease assets and the financial lease payments payable; For the operating lease on the first execution date, the lessee shall measure the lease liability as the present value discounted by the incremental loan interest rate on the first execution date according to the remaining lease payment; The unpaid rent payable accrued on the accrual basis under the original lease standards shall be included in the remaining lease payments.
(2) For the operating lease before the first execution date, the company measures the right to use asset according to the amount equal to the lease liability and makes necessary adjustments according to the prepaid rent. The company conducts impairment test on the right of use assets on the first execution date and adjusts the book value of the right of use assets.
(3) The company does not recognize the right to use assets and lease liabilities for operating leases where the leased assets before the first execution date are low-value assets. For operating leases other than low value leases on the first execution date, the company adopts simplified treatment according to each lease.
2. Impact of this accounting policy change on the company
The impact of the implementation of the new leasing standards on the company’s financial statements on January 1, 2021 is as follows:
Securities code: China Dive Company Limited(300526) securities abbreviation: China Dive Company Limited(300526) Announcement No.: 2022038
Amount of statement items as of December 31, 2020 (before change) amount as of January 1, 2021 consolidated statement company statement consolidated statement company statement prepayment 7142239057423240167335902734440 use right 13467830841229885348 within one year
Other non current liabilities in the current period: 129685119141359015445413507656011
Lease liabilities 670451744636052451
The weighted average of the incremental borrowing interest rate adopted by the company for the lease liabilities included in the balance sheet on January 1, 2021 is 6.89%.
The adjustment process of the difference between the unpaid minimum lease payments for major operating leases at the end of 2020 disclosed in the company’s financial statements for 2020 and the lease liabilities recorded on January 1, 2021 is as follows:
Project consolidated statement company statement
On December 31, 2020, the minimum lease payment for major operating leases was 13808712251257842400
amount of money
After adjustment, the minimum payment for major operating leases on January 1, 2021 is 13808712251257842400
amount of money
Weighted average of incremental loan interest rate 6.89%
Lease liabilities on January 1, 202112920942841175196548
Including: lease liabilities due within one year 621642540539144097
3、 The board of directors’ statement on the reasonableness of accounting policy changes
This accounting policy change is a corresponding adjustment and change made by the company in accordance with the requirements of the new leasing standards issued by the Ministry of finance, in line with the relevant provisions of relevant regulatory authorities, its decision-making procedures in line with relevant laws and regulations and the articles of association, and there is no damage to the rights and interests of the company and all shareholders.
4、 Opinions of independent directors on changes in accounting policies
After verification, the independent directors believe that the company has changed its accounting policies in accordance with the accounting standards for business enterprises revised and newly issued by the Ministry of finance. The changed accounting policies of the company comply with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shenzhen Stock Exchange, and can objectively and fairly reflect the financial status and operating results of the company. The decision-making procedure of this accounting policy change complies with the provisions of relevant laws, regulations and the articles of association, and does not damage the interests of the company and shareholders
Securities code: China Dive Company Limited(300526) securities abbreviation: China Dive Company Limited(300526) Announcement No.: 2022038 benefits, especially the interests of minority shareholders. The independent directors of the company agreed to the accounting policy change of the company. 5、 Explanation of the board of supervisors on the change of accounting policies
After review, the change of the company’s accounting policy is the corresponding adjustment and change of the company’s accounting policy in accordance with the relevant provisions of the new leasing standards issued by the Ministry of finance, which is in line with the relevant provisions of the Ministry of Finance and the latest accounting standards; Relevant decision-making procedures comply with relevant laws and regulations, the articles of association and other provisions, and there is no damage to the interests of the company and all shareholders. Therefore, the board of supervisors agrees with the change of the company’s accounting policy.
6、 Documents for future reference
1. Resolutions of the 34th meeting of the 4th board of directors;
2. Resolutions of the 21st Meeting of the 4th board of supervisors;
3. Independent opinions of independent directors on relevant matters of the 34th meeting of the Fourth Board of directors.
It is hereby announced.
Board of directors
April 22, 2022
