Today's Information

Provided by: CHUNG-HSIN ELECTRIC & MACHINERY MFG. CORP.
SEQ_NO 1 Date of announcement 2022/06/29 Time of announcement 14:58:49
Subject 
 The Company's Change of the Accounting Policy
Starting from 2022
Date of events 2022/06/28 To which item it meets paragraph 9
Statement 
1.Date of the board of directors' resolution:2022/06/28
2.Nature of the change: Change of Accounting Policy
3.Reason for the change:Recognition of Financial Leasing to Change to
Recognition of Revenue from Contracted Clients
4.Changed period for retrospective application of the new accounting policy:
2022/01/01
5.The line items affected and the actual effect for the year
before accounting change: The line items affected for the consolidated balance
sheet starting from January 1, 2022 are as followed,
The Account Receivable decreased by $64.091 Million
The Property, Plant and Equipment increased by $59.997 Million
The Retained Earnings decreased by $4.094 Million
6.Actual effect on the opening balance of retained earnings for
the past accounting year:The line items affected for the consolidated
Comprehensive Income Statement starting from January 1, 2022 are as
followed,
Operating Revenue increased by $2.506 Million
Operating Cost increased by $3.585 Million
Gross profit, Profit and Comprehensive Income decreased by $1.079 Million
7.The reasonableness and necessity for the change in accounting policy
or accounting estimate after the beginning of the accounting year:
The forementioned line items was originally recognized under the
International Accounting Standards (IAS17) "financial leases." Due to the
public announcement IFRS15, the change is made to allow consistency of
transaction processing and is to take effect starting from January 2022.
For reliability and consistency on operational performance provided by the
financial statements, the recognition is therefore changed to Recognition
of Revenue from Contracted Clients, as in accordance with IFRS 15.
8.If the decided effect is impracticable, specify the reasons
why retrospective application is impracticable, and how and from
when the accounting policy change will be applied: None.
9.If the decided effect is impracticable, the opinion provided by the CPA
 about the effect of the audit opinion for the accounting year
preceding the accounting change: None
10.Opinion expressed by the CPA regarding itemized analysis
of reasonableness: The CPA follows the Article 6 in Regulations Governing the
Preparation of Financial Reports by Securities Issuers as required,and
conducts the item-by-itme analysis of the relevant information on changes
and the application of accounting policy. No major inconsistency is found.
11.Objection or reservation opinion from the independent directors: None
12.Countermeasures: The resolution had been approved by the Board of Directors
on June 28 2022, and the execution shall be performed in accordance with
Regulations Governing the Preparation of Financial Reports by Securities
Issuers.
13.Any other matters that need to be specified: The Accounting Policy for The
Company's Solar Power Generation and the Bulk-Tariff Business Model follows
IFRIC 4 to recognize the line item as financial leasing starting from 2017,
whereas the newly-applied accounting policy started from January 1, 2019 was
in accordance with IFRSs.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

CHEM - Chung Hsin Electric & Machinery Mfg. Corp. published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 07:16:06 UTC.