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Dongcheng District, Beijing, +86(01065547190 certified public accountants 100027, P.R.China facsimile: +86(01065547190
ShineWing Certified Public Accountants (special general partnership)
About Tianqi Lithium Corporation(002466) joint stock company sqm in the first quarter of 2022
Opinions on accounting treatment of the impact of performance report on the company's finance
Company statement:
1、 Background information
Tianqi Lithium Corporation(002466) (hereinafter referred to as "the company") was registered in the company's designated information office on April 30, 2022
The exposed media include securities times, Securities Daily, China Securities News, Shanghai Securities News and cninfo（ http://www.cn.info.com.cn. ）Disclosed the company's first quarter report of 2022 (Announcement No.: 2022015),
Stated that: whereas the company's important associate, Sociedad Qu í mica y minera de Chile S.A. (hereinafter referred to as
"Sqm") is a company listed on Santiago de Chile and the New York Stock Exchange of the United States. According to the information disclosure rules of the two exchanges, the quarterly financial report disclosed by sqm is later than that disclosed by the company's first quarterly report, and the company cannot announce its quarterly financial information before sqm. According to Article 9 of the accounting standards for Business Enterprises No. 32 - interim financial reports, the company
The company estimates the operation of sqm in the first quarter through the financial calculation model and combined with the EPS and other information predicted by Bloomberg in the first quarter
Profit and loss, and estimate the investment income of sqm according to the shareholding ratio of the company. The investment income may be different from the accrued investment income calculated according to the shareholding ratio of the company according to the net profit actually announced by sqm. The company will carry out timely accounting treatment in strict accordance with the provisions of the accounting standards for business enterprises and timely information disclosure in accordance with the provisions of information disclosure according to the amount of difference and the impact on the company's financial information.
2、 Sqm disclosed its performance report for the first quarter of 2022 and its impact on the company
On May 19, 2022, sqm posted on its official website（ https://www.sqm.com. ）And other channels
The performance report for the first quarter of 2022 states that sqm realized a net profit of US $796.1 million in the first quarter of 2022 (according to
On May 19, 2022, China foreign exchange trading center was authorized to announce the central parity of RMB exchange rate (equivalent to about 5.376 billion yuan).
As of the disclosure date of this announcement, the company holds 625568 class A shares and 3196193 class B shares of sqm, totaling
The shareholding ratio is about 23.02%; The long-term equity investment of sqm held by the company shall be accounted according to the equity method. As the operating performance of the first quarter of 2022 disclosed by sqm exceeds that adopted by Bloomberg in the company's report for the first quarter of 2022
The operating profit and loss data predicted by sqm (hereinafter referred to as "Pengbo news agency") based on EPS and other information in the first quarter of 2022
The annual net profit and the net profit attributable to the shareholders of the listed company are expected to increase by about 620 million yuan.
3、 Basis and rationality of relevant accounting treatment
In the process of measuring and confirming the investment income of sqm, the company comprehensively considers the reliable information that can be obtained and considered when preparing and approving the financial report.
Because sqm has not completed and reported its first quarter report when the company prepares and reports its first quarter report, and due to compliance restrictions, it is unable to provide its first quarter financial data to the company. According to Article 9 of the accounting standards for Business Enterprises No. 32 - interim financial report, "interim accounting measurement can rely on estimation to a greater extent than annual financial data, but the enterprise shall ensure that the interim financial report provided contains relevant important information". On the approval date of the first quarter report, the company estimates the operating profit and loss of sqm in the first quarter through the financial calculation model and combined with the EPS and other information predicted by Pengbo news agency in the first quarter, and estimates the investment income of sqm according to the shareholding ratio of the company. The company believes that it has fully considered all reliable information available at that time and made estimates in a consistent manner.
The semi annual report of the company will use all the information that can be obtained at reasonable cost, including the announcement of sqm's operating performance in the first quarter, and maintain the consistent estimation method with that in the first quarter to measure and confirm sqm's investment income. The specific information adopted depends on the following two situations: (1) if the semi annual business performance report of sqm is reported earlier than the semi annual report of the company, the company will calculate and confirm the investment income of the company to sqm in the first half of the year by using the actual semi annual performance report data of sqm; (2) If the semi annual business performance report of sqm is later than the semi annual report of the company, the company will use the semi annual business performance data of sqm predicted by Pengbo to calculate and confirm the investment income in the first half of the year through the financial calculation model. The above two situations are the reliable information that the company can obtain and consider on the approval date of the financial report, The calculated amount of investment income will include the difference between the sqm related investment income calculated and confirmed in the first quarter report of the company using the prediction data of Pengbo news agency and the investment income calculated according to the operating performance disclosed in the first quarter performance report of sqm (the amount is expected to be about 620 million yuan in the first quarter of 2022), that is, the amount will be reflected in the semi annual report of the company.
Whereas: (1) according to Article 2 of the accounting standards for Business Enterprises No. 29 - events after the balance sheet date, "events after the balance sheet date refer to favorable or unfavorable events that occur between the balance sheet date and the date of approval and issuance of the financial report." Since the disclosure time of sqm's first quarter operating performance report occurs after the approval date of the company's first quarter report, it does not constitute an event after the balance sheet date. (2) According to Article 11 of the accounting standards for Business Enterprises No. 28 - changes in accounting policies and accounting estimates and correction of errors, "Prior period error" refers to the omission or misstatement of the prior period financial statements due to the failure or wrong use of the following two kinds of information. (I) reliable information expected to be obtained and taken into account when preparing the prior period financial statements. (II) Reliable information that can be obtained when the previous financial report is approved and reported. Prior period errors usually include calculation errors, errors in the application of accounting policies, negligence or misinterpretation of facts and the impact of fraud, as well as inventory gains of inventories and fixed assets. " Since the company adopts or will adopt the reliable information available at that time on the approval date of the first quarter report and the approval date of the semi annual report, there is no calculation error, accounting policy application error, negligence or misinterpretation of facts and fraud. Therefore, the difference in the calculation results caused by the reliable information obtained at different time points does not constitute the correction of accounting errors. In conclusion, the company believes that the difference in the calculation results of sqm investment income caused by the company based on the reliable information obtained at two different time points should not be reflected in the first quarter report.
According to the definition of accounting standards for business enterprises, accounting estimation refers to the judgment made by an enterprise on the basis of the latest available information for transactions or events with uncertain results. The above accounting treatment of sqm investment income of the company meets the definition of accounting estimation. The semi annual report of the company will use all the information that can be obtained at reasonable cost, including the announcement of sqm's operating performance in the first quarter, and maintain the consistent estimation method with that in the first quarter to measure and confirm sqm's investment income. The difference between the investment income of sqm in the first quarter included in the semi annual report and the investment income of sqm confirmed in the company's first quarter report will be reflected in the company's semi annual report, which the company believes has the basis and rationality of the standard.
Accountant's opinion:
We believe that the semi annual report of the company will use all the information that can be obtained at reasonable cost, including the announcement of sqm's operating performance in the first quarter, and maintain the consistent estimation method with that in the first quarter to measure and recognize sqm's investment income. The difference between the investment income of sqm in the first quarter included in the semi annual report and the investment income of sqm confirmed in the company's first quarter report is reflected in the company's semi annual report, and the treatment method has standard basis and rationality.
ShineWing Certified Public Accountants (special general partnership) May 23, 2002
