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公司公告

瓦轴B:关于会计政策变更的公告(英文版)2019-04-30  

						Short title:WaZhouB                           Code:200706                                 No.:2019-10


                            Wafangdian Bearing Company Limited
                             Notice of change in accounting policy


The Company, all members of the Board of Directors, supervisors and top management hereby
guarantee the truth, accuracy and completeness of the information disclosure, no any false records,
misleading statements and major missing contents.


At the ninth meeting of the seventh board of directors and the ninth meeting of the seventh board of
supervisors, held on April 26, 2019, Wafangdian Bearing Co., LTD. (hereinafter referred to as the
"company") respectively deliberated and passed the "Motion on the Change of Accounting Policy". The
company's current accounting policy change is a reasonable change in accordance with the newly
revised and issued accounting standards for enterprises by the ministry of finance, which does not need
to be submitted to the shareholders' meeting for review. The specific situation is hereby announced as
follows:

I. An overview of the changes in accounting policy
1. Reasons for the change
2017 promulgated by the Ministry of Finance to “the Accounting Standards for Enterprises No. 22 -
Recognition and Measurement of Financial Instruments”(Finance and Accounting [2017]No. 7), “the
Accounting Standards for Enterprises No. 23 - Transfer of Financial Assets (Finance and Accounting
[2017]No. 8), “the Accounting Standards for Enterprises No. 24 - Hedging Accounting”( Finance and
accounting [2017]No. 9), “the Accounting Standards for Enterprises No. 37 - Presentation of Financial
Instruments” (Finance and Accounting [2017] No. 14), requirement of domestic listed companies shall
enter into force as of January 1, 2019 new financial instruments accounting standards.
On June 15, 2018 promulgated by the Ministry of Finance “on the Revised Printed and Distributed to
2018 annual General Corporate Financial Statements Format Notice”(Finance and Accounting [2018]
no. 15 )(hereinafter referred to as the "Finance and Accounting [2018] 15"), calling for the accounting
standards for enterprises to non-financial companies according to the revised general enterprise
financial report format (applicable to not implement new financial rules and new income criterion of
enterprises) to prepare its financial statements. In accordance with the above notice and the provisions
and requirements of the above accounting standards for enterprises, the company shall make
corresponding changes to the original accounting policies.

2.Accounting policies adopted before the change
According to the “Accounting Standards for Enterprises -- Basic Standards ”issued by the Ministry of
Finance and the specific accounting standards, accounting standards for enterprises, accounting
standards for enterprises application guide, accounting standards for enterprises interpretation
announcement and other relevant provisions.

3. Accounting policies adopted after the change
After the change, the company's accounting policy according to the Ministry of Finance promulgated in
2017 revised “the Accounting Standards for Enterprises No. 22 - Recognition and Measurement of

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Short title:WaZhouB                             Code:200706                                    No.:2019-10


Financial Instruments”,“the Accounting Standards for Enterprises No. 23 - Transfer of Financial
Assets”, “the Accounting Standards for Enterprises No. 24 - Hedging Accounting”, “the Accounting
Standards for Enterprises No. 37 - Presentation of Financial Instruments”, and on June 15, 2018
promulgated “on the Revised Printed and Distributed to 2018 Annual General Corporate Financial
Statements Format Notice” shall prevail,the remaining unchanged parts shall still be executed in
accordance with “the Accounting Standards for Enterprises - Basic Standards ”and various specific
accounting standards, accounting standards application guide for enterprises, accounting standards
interpretation announcement for enterprises and other relevant provisions issued by the ministry of
finance at the early stage.

4.Date of change
The company shall start to implement the above accounting standards for enterprises on the starting
date specified in the above documents.

5.Approval procedures
The company held the ninth meeting of the seventh board of directors and the ninth meeting of the
seventh board of supervisors on April 26, 2019, deliberated and passed the "Bill on the Change of
Accounting Policy", and the independent directors expressed their independent opinions on the bill.
According to the "ShenZhen Stock Exchange Main Board Stock Listing Rules" and other relevant
provisions, the company's accounting policy change is not required to submit to the shareholders'
meeting for review.

II. The accounting policy adopted after the change and its impact on the company
(I) The new financial instrument standards mainly include:
1. To the enterprise financial assets "business model" and "financial assets contractual cash flow
characteristics" as a judgment of classification of financial assets, financial assets classified as financial
assets measured at the amortized cost, measured at fair value and the changes are included in other
comprehensive income and financial assets at fair value and whose fluctuations are recorded into the
profits and losses of the three categories of financial assets;
2. Further clarifying the judgment principle of financial asset transfer and its accounting treatment;

 (II) According to the relevant requirements of financial and accounting standards no. 15 [2018],
the company has presented and adjusted relevant items of financial statements, and adjusted the
comparative data of comparable accounting periods accordingly:
1. The "notes receivable" and "accounts receivable" items are merged into the newly added "notes
receivable and accounts receivable" items;
2. The "interest receivable" and "dividend receivable" items are merged into the "other receivables"
items;
3. Merge the "fixed assets liquidation" project into the "fixed assets" project;
4. The project of "engineering materials" shall be merged into the "project under construction";
5. The "notes payable" and "accounts payable" items are merged into the newly added "notes payable
and accounts payable" items;
6. To merge "interest payable" and "dividends payable" into "other payables";
7. To merge "special payables" into "long-term payables";
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Short title:WaZhouB                            Code:200706                                    No.:2019-10


8, "Holding for sale assets" line item and "holding for sale liabilities" line item accounting content
changes;
Newly added "research and development costs" project, the research and development costs originally
included in "management cost" project is separately listed as "research and development costs" project;
10. To add "including: interest expense" and "interest income" items. Add "interest expense" and
"interest income" detailed items under "financial expense" item;
11. Adjustment of accounting contents of "other income", "income from asset disposal", "non-operating
income" and "non-operating expenditure";
12. "Share of other comprehensive income that cannot be reclassified into profit and loss under the
equity method" is simplified as "other comprehensive income that cannot be transferred into profit and
loss under the equity method";
13. To add "carried forward retained earnings by changes in defined benefit plans" to the statement of
changes in owners' equity;
In addition to the impact of the above item changes, this accounting policy change only affects the
items listed in the financial statements, does not involve retroactive adjustment of previous years of the
company, and does not affect the company's 2018 total assets, total liabilities, net assets, net profits and
other relevant financial indicators.

III.Explanation of the rationality of accounting policy change by the board of
directors
Company's board of directors believes that the change in accounting policy is according to the newly
revised and promulgated by the ministry of finance accounting standard for business enterprises to the
reasonable changes, in line with the shenzhen stock exchange "Main Board Listed Company Operation
Guide" concerned regulation, comply with the company actual situation, can be more objective and fair
to reflect the company's financial position and operating results, in the interests of the company and all
shareholders. The board of directors agrees to the change of the company's accounting policy.

IV.Independent opinions of the independent directors on the change of accounting
policies
Independent directors hold that: The change in “accounting policy is according to the ministry of
finance promulgated“the Accounting Standards for Enterprises No.22 - Recognition and Measurement
of Financial Instruments     ”(Finance and Accounting [2017]No. 7), “the Accounting Standards for
Enterprises No. 23 - Transfer of Financial Assets” (Finance and Accounting [2017]No. 8), “the
Accounting Standards for Enterprises No. 24 - Hedging Accounting”(Finance and Accounting
[2017]No. 9), “the Accounting Standards for Enterprises No. 37 - Presentation of Financial Instruments”
(finance and accounting [2017] No. 14 )and “on the Revised Printed and Distributed to 2018 Annual
General Corporate Financial Statements Format Notice ”(finance and accounting [2018] No. 15) for the
reasonable change,which can more objectively and fairly reflect the company's financial situation and
operating results, will not have a significant impact on the company's financial statements. The
decision-making procedure for the change of accounting policy is in accordance with relevant laws,
regulations and the provisions of the articles of association, and there is no circumstance that damages
the rights and interests of the company and minority shareholders. Agree to the company's accounting
policy change.

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Short title:WaZhouB                           Code:200706                                  No.:2019-10


V.Opinions of the board of supervisors on the change of accounting policies
The accounting policy change is according to the newly revised and promulgated by the ministry of
finance accounting standard for business enterprises to the reasonable changes, in line with the
ShenZhen Stock Exchange "Main Board Listed Company Norms Operation Guidelines "concerned
regulation, comply with the company actual situation, to be more objective and fair to reflect the
company's financial position and operating results, in the interests of the company and all shareholders;
The procedure for the board of directors to review and vote on this matter conforms to the relevant
provisions of laws and regulations, normative documents and the articles of association, and does not
harm the interests of the company and minority shareholders. The board of supervisors agrees to the
company's accounting policy change.

VI. Documents for future reference
1. Resolution of the ninth meeting of the seventh board of directors;
2. Resolution of the ninth meeting of the seventh board of supervisors of the company;
3. Independent opinions of the company's independent directors on matters related to the ninth meeting
  of the seventh board of directors.


     Hereby notify



                                                                          Board of
                                                                  Wafangdian Bearing Co., Ltd.
                                                                        29 April 2019




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