I. The accounting policies of this change of China Railway Construction mainly include the following aspects:
1. Change the accounting based on the actual amount in the original accounting policy to the accounting based on the contract amount. This change will make the company's financial statements reflect the company's assets and liabilities more truly, accurately and completely, and improve the comparability and transparency of the company's financial reports.
2. Change the income recognized according to the completion schedule in the original accounting policy into the income recognized according to the contract completion schedule. This change will make the company's revenue recognition more accurate and reasonable, and meet the requirements of the accounting standards for business enterprises.
3. Change the original accounting policy to confirm accounts receivable by actual collection amount to confirm accounts receivable by contract amount. This change will make the company's accounts receivable management more standardized and meet the requirements of enterprise internal control.
Two. The above accounting policy changes have been implemented since 200211and have no impact on the financial statements prepared in previous years. At the same time, the company will continue to strengthen internal control and financial management, improve the quality and transparency of accounting information, and provide more reliable and useful financial information for shareholders and investors.
Classification of accounting policy changes
1, according to the nature of changes in accounting policies. The change of accounting policy refers to the change of principles, foundations and accounting treatment methods adopted by enterprises in accounting recognition, measurement and reporting. The change of accounting estimate refers to the revaluation and adjustment of the book value of assets or liabilities or the amount of conventional consumption of assets due to the changes in the current situation of assets and liabilities and the expected economic benefits and obligations.
2, according to the scope of changes in accounting policies. The change of accounting policy is the act of changing the same transaction or event from the original accounting policy to another accounting policy. Specifically, it includes two situations: under special circumstances, if an enterprise changes its accounting policy that it does not have transactions or events, it shall be treated as a change in accounting estimates.