How should listed companies that issue both A shares and H shares use accounting policies and accounting estimates? Come on, everybody, 3Q.

Interpretation of Accounting Standards for Business Enterprises No.2 explains this issue in detail: 1. How should listed companies that issue A shares and H shares correctly determine their accounting policies when implementing accounting standards for business enterprises? Answer: (1) If the same transaction is clearly stipulated in the Accounting Standards for Business Enterprises but not in the International Financial Reporting Standards, the company shall confirm, measure and report it according to the Accounting Standards for Business Enterprises. Emphasis should be placed on the following transactions, and others should be handled in the same way. 1. The merger of enterprises under the same control shall be handled in accordance with the provisions of the Accounting Standards for Business Enterprises, and the purchase method shall not be used in the financial report of H shares. 2. When an enterprise evaluates assets in the process of company restructuring, the value determined by the evaluation shall be taken as the cost of the company's assets and liabilities. In the H-share financial report, the amount of assets and liabilities confirmed according to the evaluation value at the time of reorganization should not be adjusted to the book value before reorganization, nor should the value of assets and liabilities be re-evaluated. 3. Companies engaged in mining, construction, dangerous goods production, road transportation, coal production and fireworks production shall, in accordance with the provisions of national laws and regulations, determine the corresponding liabilities while confirming the costs and expenses in accordance with the provisions of the Accounting Standards for Business Enterprises, and shall not adjust the accrued safety production expenses to the owner's equity in the H-share financial report. When the enterprise purchases and builds the fixed assets for which the safety expenses have been accrued in the future, it will offset the related liabilities and carry forward the accumulated depreciation of the fixed assets in full, and the related fixed assets will not be depreciated in the future. 4. The expenses and commissions incurred by the insurer in the process of obtaining the original insurance contract shall be recognized as current profits and losses in accordance with the provisions of the Accounting Standards for Business Enterprises, and the expenses shall not be amortized in the H-share financial report. The handling fees and commissions incurred by the insurer in the process of obtaining the reinsurance contract shall be handled mutatis mutandis. (2) If the Accounting Standards for Business Enterprises clearly stipulate that international financial reporting standards allow the selection of the same transaction, the company shall confirm, measure and report in accordance with the Accounting Standards for Business Enterprises. Emphasis should be placed on the following transactions, and others should be handled in the same way. 1. For the long-term equity investment of the parent company in its subsidiaries, the accounting standards for business enterprises stipulate that the cost method should be used for accounting, while the international financial reporting standards allow the parent company to adopt the cost method or implement the financial instrument standards in its separate financial statements. In accordance with the provisions of the Accounting Standards for Business Enterprises, the Company confirms and measures the long-term equity investment of subsidiaries by using the cost method, and does not recognize it as available-for-sale financial assets. 2. Investment real estate can be measured by the cost model according to the accounting standards for business enterprises, or by the fair value model when it meets the requirements. Companies should adopt consistent accounting policies in the financial reports of A shares and H shares, instead of adopting the cost model in the financial reports of A shares, they should adopt the fair value model in the financial reports of H shares. It is also forbidden to adopt the fair value model in the A-share financial report and the cost model in the H-share financial report. (three) before the promulgation of this Ordinance, it was not handled according to the above principles, and it was adjusted retrospectively. 2. How should a listed company that issues A shares and H shares correctly make accounting estimates when implementing the accounting standards for business enterprises? A: A listed company that issues A shares and H shares at the same time should make consistent accounting estimates for the same transaction. Focus on the following matters, and other analogies. (1) The depreciation of mining rights, wells and related facilities should be calculated by the same method in the financial reports of A shares and H shares, but not by one method in the financial reports of A shares and another method in the financial reports of H shares. (II) When determining the fair value of assets and liabilities related to transactions, the Company shall make consistent judgments on the financial reports of A shares and H shares. No matter the transaction price or valuation technology in an active market, one value shall not be adopted in the financial report of A shares and another value shall be adopted in the financial report of H shares. (3) To measure the original insurance contract reserve, the insurer's original insurance contract reserve in the financial reports of A shares and H shares shall be consistent. The reserve for reinsurance contracts should also be treated in the same way. (four) the company that did not deal with the above principles before the promulgation of these regulations shall be adjusted retrospectively. Interpretation of Accounting Standards for Enterprises No.2 1. How should listed companies that issue both A shares and H shares use accounting policies and accounting estimates? A: After the accounting standards for enterprises in the Mainland are equivalent to the Hong Kong Financial Reporting Standards, listed companies that issue A shares and H shares at the same time should adopt the same accounting policies, use the same accounting estimates to confirm, measure and report the same transaction, and must not adopt different accounting methods in the financial reports of A shares and H shares. Second, what should an enterprise do to buy the equity of a subsidiary owned by a minority shareholder? How to adjust the book value of related assets and liabilities when an enterprise or its subsidiary is restructured into a company system? A: (1) The long-term equity investment formed by the parent company purchasing the minority equity of its subsidiaries shall be determined in accordance with Article 4 of the Accounting Standards for Enterprises No.2-Long-term Equity Investment. When preparing consolidated financial statements, the parent company shall adjust the owner's equity (capital reserve) for the difference between the newly acquired long-term equity investment due to the purchase of minority shares and the net assets share that should be continuously calculated according to the new shareholding ratio of the subsidiaries from the purchase date (or merger date). If the capital reserve is insufficient to be offset, the retained earnings shall be adjusted. The above provisions only apply to the purchase of minority shares of subsidiaries after the promulgation of these provisions. No retrospective adjustment will be made if the minority shares of subsidiaries previously purchased are not handled according to the above principles. (2) If the enterprise is restructured as a company, the value of assets and liabilities confirmed by evaluation shall be taken as the confirmation cost, and the owner's equity shall be adjusted for the difference between the cost and its book value; Where a subsidiary of an enterprise is restructured into a company system, the parent company shall usually determine the cost of the long-term equity investment in the subsidiary in accordance with the relevant provisions of the Accounting Standards for Enterprises Interpretation No.65438 +0, and adjust the owner's equity for the difference between the cost and the book value of the long-term equity investment. 3. Should the joint venture be included in the scope of consolidation of the consolidated financial statements? A: According to the Accounting Standards for Business Enterprises No.33-Consolidated Financial Statements, an investment enterprise shall adopt the equity method to account for the invested entity jointly controlled by other investors, and shall not adopt the proportional consolidation method. However, according to the relevant articles of association and agreements, if it shows that the investment enterprise can control the invested entity, it shall include the invested entity in the scope of consolidation of the consolidated financial statements.