Stock abbreviation: Liaoning Sg Automotive Group Co.Ltd(600303) securities code: Liaoning Sg Automotive Group Co.Ltd(600303) No.: pro 2022033 Liaoning Sg Automotive Group Co.Ltd(600303)
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 tips:
● this accounting policy change is made by the company in accordance with the relevant regulations and requirements issued by the Ministry of finance. After the change, the accounting policy can objectively and fairly reflect the company’s financial status and operating results, comply with the provisions of relevant laws and regulations and the actual situation of the company, and there is no damage to the interests of the company and shareholders.
Liaoning Sg Automotive Group Co.Ltd(600303) (hereinafter referred to as ” Liaoning Sg Automotive Group Co.Ltd(600303) ” and “the company”) deliberated and adopted the proposal on changes in accounting policies at the fifth meeting of the 10th board of directors and the second meeting of the 10th board of supervisors. The independent directors of the company expressed their independent opinions. According to relevant regulations, this accounting policy change of the company does not need to be submitted to the general meeting of shareholders for deliberation. The specific contents are announced as follows:
1、 Overview of changes in accounting policies
(I) reason and date of change
1. On February 2, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1), hereinafter referred to as “Interpretation No. 14”), which shall be effective from the date of promulgation
execute. The relevant newly added businesses from January 1, 2021 to the implementation date shall be adjusted according to Interpretation No. 14.
2. On December 31, 2021, the Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 15 (CAI Kuai [2021] No. 35, hereinafter referred to as “Interpretation No. 15”), which will be implemented as of the date of promulgation, As of January 1, 2022, Interpretation No. 15 “accounting treatment for the external sales of products or by-products produced before the fixed assets reach the expected usable state or in the process of R & D” and “judgment on loss contracts” shall be implemented.
(II) introduction of accounting policies before and after the change
1. Accounting policies adopted before change:
The company implements 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. Accounting policies adopted after change:
After this accounting policy change, the company will implement Interpretation No. 14 and Interpretation No. 15 issued by the Ministry of finance. In addition to the above changes in accounting policies, other unchanged parts shall still be implemented 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 in the early stage.
3. Main contents of this accounting policy change
(1) Interpretation No. 14 mainly clarifies the accounting treatment of the social capital party for the government and social capital cooperation (PPP) project contract and the accounting treatment of the change in the basis for determining the cash flow of relevant contracts caused by the reform of the benchmark interest rate.
(2) The main content of Interpretation No. 15 Interpretation No. 15 mainly defines the accounting treatment of the external sales of products or by-products produced before the fixed assets reach the expected serviceable state or in the process of R & D, the requirements for the presentation of financial statements under the centralized fund management mode of the group, and the judgment on loss contracts.
(III) reason and rationality of change
This accounting policy change is a reasonable change in accordance with the relevant provisions of the accounting standards revised and promulgated by the Ministry of finance, which can more objectively and fairly reflect the company’s financial situation and operating results, and provide investors with more reliable and accurate accounting information. There is no situation that damages the interests of the company and all shareholders.
2、 The impact of the specific circumstances of this accounting policy change on the company
This accounting policy change will not have a significant impact on the company’s financial position, operating results and cash flow in the current period and before the accounting policy change.
3、 Concluding comments of independent directors and board of supervisors
(I) opinions of independent directors
This accounting policy change is a reasonable change made in accordance with the accounting standards revised by the Ministry of finance, in line with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shanghai Stock Exchange, in line with prudent accounting principles, can objectively and fairly reflect the company’s financial status and operating results, will not have a significant impact on the company’s financial statements, and there is no situation that damages the interests of the company and all shareholders, especially minority shareholders, The decision-making procedure shall comply with the articles of association and other relevant provisions. Agree to the change of the company’s accounting policy.
(II) opinions of the board of supervisors
The company’s implementation of the new accounting standards is a reasonable change in accordance with the relevant documents of the Ministry of finance, which can more objectively and fairly reflect the company’s financial situation and operating results, and there is no situation that damages the interests of the company and all shareholders. The review procedures of this accounting policy change comply with the provisions of relevant laws, regulations and the articles of association. The board of supervisors agreed to the accounting policy change.
It is hereby announced.
Liaoning Sg Automotive Group Co.Ltd(600303)
April 29, 2022
