Securities code: Zhejiang Reclaim Construction Group Co.Ltd(002586) securities abbreviation: ST sea reclamation Announcement No.: 2022093
Zhejiang Reclaim Construction Group Co.Ltd(002586)
Announcement on changes in accounting policies
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.
Zhejiang Reclaim Construction Group Co.Ltd(002586) (hereinafter referred to as “the company”) held the 50th meeting of the sixth board of directors and the 22nd Meeting of the sixth board of supervisors on April 28, 2022 to consider and adopt the proposal on changes in accounting policies. This change in accounting policies does not need to be submitted to the general meeting of shareholders for deliberation. The details are hereby announced as follows:
1、 Summary of changes in accounting policies
1. Reason for change
On January 26, 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 of Standards No. 14”), which stipulates the accounting treatment of social capital parties for government and social capital cooperation (PPP) project contracts and the accounting treatment of changes in the basis for determining the cash flow of relevant contracts caused by the reform of basic interest rate.
On May 26, 2021, the Ministry of Finance issued the notice on adjusting the scope of application of the provisions on accounting treatment of rent concessions related to covid-19 pneumonia epidemic (CAI Kuai [2021] No. 9), which will come into force on May 26, 2021, The scope of application of rent concession related to covid-19 pneumonia epidemic, which is allowed to adopt the simplified method in the provisions on accounting treatment of rent concession related to covid-19 pneumonia epidemic, is adjusted from “the concession is only for the lease payment payable before June 30, 2021” to “the concession is only for the lease payment payable before June 30, 2022”, and other applicable conditions remain unchanged. On December 30, 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 of Standards No. 15”), which stipulates 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 research and development, the relevant presentation of centralized fund management, and the judgment of loss contracts.
According to the requirements of the above documents, the company adjusted the relevant accounting policies originally adopted accordingly.
2. Accounting policies adopted by the company before change
Before the change of accounting policy, the company implemented 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 regulations issued by the Ministry of finance.
3. Accounting policies adopted by the company after change
After this change, the company will implement the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1) issued by the Ministry of Finance on January 26, 2021 and the notice on adjusting the scope of application of the accounting treatment provisions on rent reduction related to covid-19 pneumonia epidemic (CAI Kuai [2021] No. 9) issued by the Ministry of Finance on May 26, 2021 Interpretation of accounting standards for Business Enterprises No. 15 (CK [2021] No. 35) issued by the Ministry of Finance on December 30, 2021. In addition to the above changes in accounting policies, the remaining unchanged parts are still 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.
4. Change date
The standard Interpretation No. 14 shall come into force as of the date of promulgation. The business specified in the new standard Interpretation No. 14 from January 1, 2021 to the implementation date shall be adjusted according to the standard Interpretation No. 14.
The notice on adjusting the scope of application of the provisions on accounting treatment of rent concessions related to covid-19 pneumonia epidemic (CAI Kuai [2021] No. 9) shall begin to implement the above accounting standards for business enterprises on the starting date specified in the above documents.
The contents of the standard 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 as of January 1, 2022; The content of “relevant presentation on centralized fund management” shall go into effect as of the date of promulgation. 2、 Impact of this accounting policy change on the company
Interpretation No. 14 of the guidelines applies to PPP project contracts that meet the “dual characteristics” and “dual control” described in the interpretation. For relevant PPP project contracts that are implemented before December 31, 2020 and have not been completed by the implementation date, retrospective adjustment shall be made. If retrospective adjustment is not feasible, it shall be applied from the beginning of the earliest period of retrospective adjustment, The retained earnings at the beginning of the year and other relevant items in the financial statements on the implementation date of the cumulative impact adjustment shall not be adjusted for the information of the comparable period. The standard makes simplified accounting treatment provisions for the change of the determination basis of cash flows related to financial instrument contracts and lease contracts due to the reform of benchmark interest rate. According to the provisions of the standards, the businesses related to the benchmark interest rate reform before December 31, 2020 shall be retroactively adjusted, except that the retroactive adjustment is not feasible, and there is no need to adjust the data of the previous comparative financial statements. On the implementation date of the interpretation, the difference between the original book value and the new book value of financial assets and financial liabilities shall be included in the opening retained earnings or other comprehensive income of the annual reporting period on the implementation date of the interpretation. The implementation of this provision has not had a significant impact on the financial status and operating results of the company.
The company has adopted the simplified method for accounting treatment of all lease contracts that meet the conditions before the adjustment of the scope of application, and also adopted the simplified method for accounting treatment of similar lease contracts that meet the conditions after the adjustment of the scope of application, and retroactively adjusted the relevant lease contracts that have adopted the accounting treatment of lease change before the issuance of the notice, but did not adjust the data of the comparative financial statements in the previous period; The relevant rent concessions that have not been accounted for in accordance with the provisions of the notice between January 1, 2021 and the implementation date of the notice shall be adjusted according to the notice. The implementation of this provision has not had a significant impact on the financial status and operating results of the company.
The standard Interpretation No. 15 clearly stipulates how the balance involved in the centralized and unified management of the funds of the parent company and member units by enterprises through internal settlement centers and financial companies should be presented and disclosed in the balance sheet. The implementation of this provision has not had a significant impact on the financial status and operating results of the company.
3、 Explanation of the board of directors on the rationality of accounting policy change
The board of Directors believes that this accounting policy change is a reasonable change in accordance with the latest accounting standards issued and revised by the Ministry of finance, in line with relevant regulations and the actual situation of the company. The change will not have a significant impact on the company’s financial statements. The implementation of the changed accounting policies can objectively and fairly reflect the company’s financial status and operating results, which is in line with the interests of the company and all shareholders. The board of directors agreed to the change of accounting policies of the company. 4、 Opinions of independent directors and board of supervisors on changes in accounting policies of the company
1. Independent directors express independent opinions as follows:
The change of accounting policy is helpful to improve the quality of accounting information. It is a reasonable change made by the company in accordance with the requirements of relevant documents of the Ministry of finance, in line with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shenzhen Stock Exchange and the actual situation of the company. Its decision-making process complies with relevant laws and regulations and the articles of association, and will not have a significant impact on the company’s financial statements, There are no circumstances that harm the interests of the company and shareholders, and we agree to the change of accounting policy.
2. The opinions of the board of supervisors are as follows:
The board of supervisors believes that the change of the company’s accounting policy is a reasonable change in accordance with the accounting standards for business enterprises issued and revised by the Ministry of finance, in line with relevant national regulations and the actual situation of the company, the approval and decision-making procedures are in line with laws and regulations and the articles of association, and there is no damage to the legitimate rights and interests of the company and all shareholders. The board of supervisors agrees with the change of the company’s accounting policy.
5、 Documents for future reference
1. Resolutions of the 50th meeting of the 6th board of directors; 2. Independent opinions of independent directors on matters related to the 50th meeting of the sixth board of directors of the company; 3. Resolution of the 22nd Meeting of the 6th board of supervisors. It is hereby announced.
Zhejiang Reclaim Construction Group Co.Ltd(002586) board of directors
April 30, 2002
