财务报表附注翻译

******CO.,LTDNOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDEDDECEMBER31,2013(AllamountsinRMBYuan)CompanyProfile*******Co.,Ltd.(hereinafterreferredtoasthe"Company")isalimitedliabilitycompany(Sino-foreignjointventure)jointlyinvestedandestablishedby****Co.,Ltd.and*******Limitedon24June2013.OnDecember26,2013,theshareholdershavebeenchangedto*****CO.,LTDand*******LIMITED.BusinessLicenseofEnterpriseLegalPersonLicenseNo.:LegalRepresentative:RegisteredCapital:RMB(Paid-inCapital:RMB)Address:BusinessScope:Financingandleasingbusiness;leasingbusiness;purchaseofleasedpropertyfromhomeandabroad;residuevaluetreatmentandmaintenanceofleasedproperty;consultingandguaranteesofleasetransaction(articlesinvolvedintheindustrylicensemanagementwouldbedealtintermsofnationalrelevantstipulations)DeclarationonfollowingAccountingStandardforBusinessEnterprisesThefinancialstatementsmadebytheCompanyareinaccordancewiththerequirementsofAccountingStandardforBusinessEnterprises,whichreflectsthefinancialposition,financialperformanceandcashflowoftheCompanytrulyandcompletely.BasicofpreparationoffinancialstatementsTheCompanyimplementstheAccountingStandardsforBusinessEnterprises(‘FinanceandAccounting[2006]No.3”)issuedbytheMinistryofFinanceonFebruary15,2006andthesuccessiveregulations.TheCompanypreparesitsfinancialstatementsonagoingconcernbasis,andrecognizesandmeasuresitsaccountingitemsincompliancewiththeAccountingStandardsforBusinessEnterpriseS-BasicStandardsandotherrelevantaccountingstandards,applicationguidelinesandcriteriaforinterpretationofprovisionsaswellasthesignificantaccountingpoliciesandaccountingestimatesonthebasisofactualtransactionsandevents.Themainaccountingpolicies,accountingestimatesandchangesFiscalyearTheCompanyadoptsthecalendaryearasitsfiscalyearfromJanuary1toDecember31.FunctionalcurrencyRMBwasthefunctionalcurrencyoftheCompany.AccountingmeasurementattributeTheCompanyadoptstheaccrualbasisforaccountingtreatmentsanddouble-entrybookkeepingofborrowingforfinancialaccounting.Thehistoricalcostisgenerallyasthemeasurementattribute,andwhenaccountingelementsdeterminedareinlinewiththerequirementsofAccountingStandardsforEnterprisesandcanbereliablymeasured,thereplacementcost,netrealizablevalueandfairvaluecanbeusedformeasurement.AccountingmethodofforeigncurrencytransactionsTheCompany'sforeigncurrencytransactionsadoptapproximatespotexchangerateofthetransactiondatetoconvertintoRMBinaccordancewithsystematicandrationalmethod;onthebalancesheetdate,theforeigncurrencymonetaryitemsusethespotexchangerateofthebalancesheetdate.Allbalancesofexchangearisingfromdifferencesbetweenthebalancesheetdatespotexchangerateandtheinitialrecognitionortheformerbalancesheetdatespotexchangerate,exceptthattheexchangegainsandlossesarisingbyborrowingforeigncurrencyfortheconstructionorproductionofassetseligibleforcapitalizationaretransactedinaccordancewithcapitalizationprinciples,areincludedinprofitorlossinthisperiod;theforeigncurrencynon-monetaryitemsmeasuredathistoricalcostwillstillbeconvertedwiththespotexchangerateofthetransactiondate.ThestandardforrecognizingcashequivalentWhenmakingthecashflowstatement,cashonhandanddepositsreadilytobepaidwillberecognizedascash,andshort-term(usuallynomorethanthreemonths),highlyliquidandreadilyconvertibletoknownamountsofcashwithinsignificantriskofchangesinvaluearerecognizedascashequivalent.FinanciallnstrumentsClassification,recognitionandmeasurementoffinancialassets-Thecompanyatthetimeofinitialrecognitionoffinancialassetsdividesitintothefollowingfourcategories:financialassetsmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiod,loansandreceivables,financialassetsavailableforsaleandheld-to-maturityinvestments.Financialassetsaremeasuredatfairvaluewheninitiallyrecognized.Relevanttransactioncostsoffinancialassetsmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiodarerecognizedinprofitorlossofthisperiod,andrelevanttransactioncostsofothercategoriesoffinancialassetsarerecognizedintheamountinitiallyrecognized.--Financialassetsmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiodrefertotheshort-termsalesfinancialassets,includingfinancialassetsheldfortradingorfinancialassetsmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperioddesignateduponinitialrecognitionbythemanagement.Financialassetsmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiodaresubsequentlymeasuredatfairvalue,andtheinterestorcashdividendsobtainedduringtheholdingperiodwillberecognizedasinvestmentincome,andthegainsorlossesofthechangeinfairvalueattheendofthisperiodarerecognizedintheprofitorlossinthisperiod.Whenitisdisposed,thedifferencebetweenthefairvalueandtheinitialrecordedamountisrecognizedasinvestmentincome,whileadjustinggainsfromchangesinthefairvalue.--Loansandreceivables:thenon-derivativefinancialassetswithoutthepriceinanactivemarketandwithfixedanddeterminablerecoverycostareclassifiedasloansandreceivables.Loansandreceivablesadopttheeffectiveinterestmethodandtakeamortizedcostforsubsequentmeasurement,andgainsorlossesarisingfromderecognition,impairmentoramortizationareincludedintheprofitorlossofthisperiod.--Financialassetsavailableforsale:includingnon-derivativefinancialassetsavailableforsalerecognizedinitiallyandothernon-derivativefinancialassetsexceptforloansandreceivables,held-to-maturityinvestmentsandtradingfinancialassets.Financialassetsavailableforsalearesubsequentlymeasuredatfairvalue,andinterestorcashdividendsobtainedduringtheholdingperiodwillberecognizedasinvestmentincome,andgainsorlossesarisingfromthechangesinfairvalueattheendofthisperiodarerecognizeddirectlyinowners'equityuntilthefinancialassetisderecognizedorimpairedandthenisrecognizedastheprofitorlossinthisperiod.--Held-to-maturityinvestments:thenon-derivativefinancialassetswithclearintentionandabilitytoholdtomaturitybythemanagementofthecompany,afixedmaturitydateandfixedordeterminablepaymentsareclassifiedasheld-to-maturityinvestments.Held-to-maturityinvestmentsadopttheeffectiveinterestmethodandtakeamortizedcostforsubsequentmeasurement,andgainsorlossesarisingfromderecognition,impairmentoramortizationareincludedintheprofitorlossofthisperiod.Classification,recognitionandmeasurementoffinancialliabilities-Thecompanyatthetimeofinitialrecognitionoffinancialliabilitiesdividesitintothefollowingtwocategories:financialliabilitiesmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiodandotherfinancialliabilities.Financialliabilitiesaremeasuredatfairvaluewheninitiallyrecognized.Relevanttransactioncostsoffinancialliabilitiesmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiodarerecognizedinprofitorlossofthisperiod,andrelevanttransactioncostsofotherfinancialliabilitiesarerecognizedintheamountinitiallyrecognized.--Financialliabilitiesmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperiodincludethetradingfinancialliabilitiesandfinancialliabilitiesmeasuredatfairvaluewithchangesincludedintheprofitorlossofthisperioddesignateduponinitialrecognition.Financialliabilitiesaresubsequentlymeasuredatfairvalue,andthegainsorlossesofthechangeinfairvaluearerecognizedintheprofitorlossinthisperiod.--Otherfinancialliabilities:adoptingtheeffectiveinterestmethodandtakingamortizedcostforsubsequentmeasurement.Thegainsorlossesarisingfromderecognitionoramortizationisincludedintheprofitorlossofthisperiod.RequirementsforderecognitionoffinancialliabilitiesFinancialliabilitiesshallbeentirelyorpartiallyderecognizedifthepresentobligationsderivedfromthemareentirelyorpartiallydischarged.WheretheCompanyentersintoanagreementwithacreditorsoastosubstitutethecurrentfinancialliabilitieswithnewones,andthecontractclausesofwhicharesubstantiallydifferentfromthoseofthecurrentones,itshallrecognizethenewfinancialliabilitiesinplaceofthecurrentones.Wheresubstantialrevisionsaremadetosomeorallofthecontractclausesofthecurrentfinancialliabilities,theCompanyshallrecognizethenewfinancialliabilitiesafterrevisionofthecontractclausesinplaceofthecurrentonesentirelyorpartially.Uponentireorpartialderecognitionoffinancialliabilities,differencesbetweenthecarryingamountsofthederecognizedfinancialliabilitiesandtheconsiderationpaid(includingnon-monetaryassetssurrenderedornewfinancialliabilitiesassumed)arechargedtoprofitorlossforthecurrentperiod.WheretheCompanyredeemspartofitsfinancialliabilities,itshallallocatethecarryingamountsoftheentirefinancialliabilitiesbetweentherelativefairvaluesofthepartsthatcontinuetoberecognizedandthederecognizedpartsontheredemptiondate.Differencesbetweenthecarryingamountsallocatedtothederecognizedpartsandtheconsiderationpaid(includingnon-monetaryassetssurrenderedandthenewfinancialliabilitiesassumed)arechargedtoprofitorlossforthecurrentperiod.RecognitionandmeasurementfortransferoffinancialassetsIftheCompanyhastransferrednearlyalloftherisksandrewardsrelatingtotheownershipofthefinancialassetstothetransferee,theyshallbederecognized.Ifitretainsnearlyalloftherisksandrewardsrelatingtotheownershipofthefinancialassets,theyshallnotbederecognizedandwillberecognizedasafinancialliability.IftheCompanyhasnottransferrednorretainednearlyalloftherisksandrewardsrelatingtotheownershipofthefinancialassets:(1)togiveupthecontrolofthefinancialassetstobederecognized;(2)notgivingupcontrolofthefinancialassettoberecognizedbasedontheextentofitscontinuinginvolvementinthetransferredfinancialassetsandliabilitiesarerecognizedaccordingly.Ifthetransferofentirefinancialassetssatisfythecriteriaforderecognition,differencesbetweentheamountsofthefollowingtwoitemsshallberecognizedinprofitorlossforthecurrentperiod:(1)thecarryingamountofthetransferredfinancialasset;(2)theaggregateconsiderationreceivedfromthetransferplusthecumulativeamountsofthechangesinthefairvaluesoriginallyrecognizedintheowners'equity.Ifthepartialtransferoffinancialassetssatisfythecriteriaforderecognition,thecarryingamountsoftheentirefinancialassetstransferredshallbesplitintothederecognizedandrecognizedpartsaccordingtotheirrespectivefairvaluesanddifferencesbetweentheamountsofthefollowingtwoitemsarechargedtoprofitorlossforthecurrentperiod:(1)thecarryingamountsofthederecognizedparts;(2)Theaggregateconsiderationforthederecognizedpartsplustheportionoftheaccumulativeamountsofthechangesinthefairvaluesofthederecognizedpartswhichareoriginallyrecognizedintheowners'equity.Determinationofthefairvalueoffinancialinstruments-Iffinancialinstrumentstradeinanactivemarket,thequotedpriceinanactivemarketdeterminesitsfairvalue;iffinancialinstrumenttradenotinanactivemarket,thevaluationtechniquesdeterminethefairvalue.Valuationtechniquesincluderecentmarkettransactionpricereferencetothefamiliarsituationandvolunteertransaction,currentfairvaluereferencetoothersubstantiallysimilarfinancialinstruments,discountedcashflowmethodandoptionpricingmodelandsoon.TestandProvisionsforimpairmentlossonfinancialassets--Excepttradingfinancialassets,theCompanymakesassessmentonthecarryingvaluesoffinancialassetsatthebalancesheetdate.Ifthereisevidencethatthefairvalueofspecificfinancialassethasbeenimpaired,provisionsforimpairmentlossismadeaccordingly.--MeasurementofimpairmentoffinancialassetsmeasuredatamortizedcostIfthereisobjectiveevidencethatthefinancialassetmeasuredatamortizedcosthasbeenimpaired,thecarryingamountofthefinancialassetiswrittendowntothepresentvalueofestimatedfuturecashflows(excludingfuturecreditlossesthathavenotyetoccurred),andtheamountofreductionisrecognizedasimpairmentlossandisrecognizedintheprofitorlossofthisperiod.TheCompanycarriesouttheimpairmenttestofsignificantsinglefinancialassetseparately,carriesouttheimpairmenttestoninsignificantsinglefinancialassetfromasingleorcombinationofangles,andcarriesouttheimpairmenttestonsingleassetwithoutobjectiveevidenceofimpairmentalongwiththefinancialassetswithsimilarcreditriskcharacteristicstoconstituteacombination,butdoesnotcarryouttheimpairmenttestontheprovisionforimpairmentoffinancialassetsbasedonthesingleintheportfolio.Inthesubsequentperiod,ifthereisobjectiveevidencethatthevalueoffinancialassethasbeenrestoredandrecognizedrelevanttotheobjectivemattersoccurringaftertheimpairment,previouslyrecognizedimpairmentlossshallbereversedandchargedintotheprofitorlossofthisperiod.Butthebookvalueafterthereversalshouldnotexceedtheamortizedcostatthereversaldateofthefinancialassetssupposednoprovisionforimpairment.Whenthefinancialassetsmeasuredatamortizedcostactuallyoccurloss,offsetagainsttherelatedprovisionforimpairment.--AvailableforsalefinancialassetsIfthereisobjectiveevidencethatanimpairmentofavailableforsalefinancialassetsoccurs,eventhoughthefinancialassethasnotbeenderecognised,thecumulativelossofdecreaseofthefairevalueoriginallyrecordedintheowner'sequityshouldbetransferredoutandchargedintothecurrentprofitandloss.Thecumulativelossistheinitialacquisitioncostofavailableforsalefinancialassets,deductingthefairvalueofthewithdrawingprincipalandamortizationamountandimpairmentlossaswellasnetimpairmentamountoriginallychargedintotheprofitorloss.RecognitionandprovisionforbaddebtsofaccountsreceivableIfthereisobjectiveevidencethatreceivablesareimpairedattheendofthisperiod,thecarryingvaluewillbewrittendowntoitspresentvalueofestimatedfuturecashflows,andtheamountofreductionisrecognizedasimpairmentlossandisrecognizedinthecurrentprofitorloss.Presentvalueofestimatedfuturecashflowsisdeterminedthroughfuturecashflows(excludingcreditlossesthathavenotbeenincurred)discountedattheoriginaleffectiveinterestrate,takingintoaccountthevalueofrelatedcollateral(lessestimateddisposalcosts,etc.).Originaleffectiveinterestrateistheactualinterestratewhenthereceivablesarerecognizedinitially.Theestimatedfuturecashflowsofshort-termreceivableshavesmalldifferencefromthepresentvalue,andtheestimatedfuturecashflowsarenotdiscountedindeterminingtherelatedimpairmentloss.Thesignificantsinglereceivablesareseparatelycarriedoutimpairmenttestattheendofthisperiod,andifthereisobjectiveevidencethattheimpairmenthasoccurred,basedonthedifferenceofthepresentvalueoffuturecashflowslessthanthebookvalue,theimpairmentlossisrecognizedandtheprovisionofbaddebtsisdone.Thesignificantsingleamountreferstotopfivereceivablebalancesorthesumofpaymentsaccountingformorethan10%ofreceivablebalances.Ifthereisobjectiveevidencethattheindividualnon-significantreceivablesimpairmenthasoccurred,separateimpairmenttestisdone,theimpairmentlossisrecognizedandtheprovisionforbaddebtsisdone;otherindividualnon-significantreceivablesandreceivablesnotimpairedafterseparatetestaretogetherdividedintoseveralcombinationsforimpairmenttestingwithagingasthesimilarcreditriskcharacteristics,todeterminetheimpairmentlossanddoprovisionforbaddebts.Inadditiontoseparateprovisionforimpairmentofreceivables,thecompanyisbasedontheactuallossrateofreceivableportfoliowiththesameorsimilartothepreviousyearandagingasthesimilarcreditriskcharacteristics,andcombinesthecurrentsituationtodeterminetheratioofprovisionforbaddebtsasfollowsAgingRatioofprovisionWithinoneyear5%1-2years20%2-3years50%0ver3years80%FixedassetsanddepreciationaccountingmethodRecognitioncriteriaoffixedassets:fixedassetsrefertotangibleassetsheldforthepurposeofproducingcommodities,providingservices,rentingorbusinessmanagementwithusefullivesexceedingoneaccountingyearandhighunitvalueClassificationoffixedassets:buildingsandconstructions,machineryequipment,transportequipmentandofficeequipment.Fixedassetspricinganddepreciationmethod:thefixedassetsispricedbasedonactualcostanddepreciatedinastraight-linemethod.Theestimatedusefullives,estimatedresidualrateandannualdepreciationrateofvariouscategoriesoffixedassetsarelistedasfollows:CategoryoffixedEstimatedusefullEstimatedresiduaAnnualdepreciatassetsives(year)lrate(year)ionrate(%)Buildingsandconstructions20104.5machineryequipment1059.5transportequipment5519officeequipment5519Impairmentoffixedassets:theCompanychecksthefixedassetstermbytermattheendofthereportingperiod,andifthemarketcontinuingtofallortechnologicalobsolescence,damage,long-termidleandotherreasonsresultinfixedassetsrecoverableamountlowerthanitsbookvalue,inaccordancewiththedifferenceprovisionforimpairmentoffixedassets,theimpairmentlossisrecognizedinfixedassetsandcannotbereversedinasubsequentaccountingperiod.Therecoverableamountisrecognizedbasedonthefairvalueoftheassetsdeductingthenetamountafterdisposalexpensesandthepresentvalueofcashflowsoftheestimatedfutureassets.Thepresentvalueofthefuturecashflowsoftheassetisdeterminedinaccordancewiththeresultingestimatedfuturecashflowsintheprocessofcontinuoususeandfinaldisposaltoselectitsappropriatediscountrateandtheamountofthediscount.AccountingmethodofconstruetioninprogressTheconstructioninprogressispricedontheactualcost,totemporarilytransfertofixedassetswhenreachingtheintendedusestateinaccordancewiththeprojectbudgetandtheactualcostoftheproject,andtoadjustthebookvalueoffixedassetsaccordingtotheactualcostafterhandlingfinalsettlementofaccounts.Acquisition,constructionorproductionofassetseligibleforcapitalizationborrowedspecificallyortheinterestongeneralborrowingcostsandauxiliaryexpensesofspecificborrowingsoccurredcanbeincludedinthecostofcapitalassetsandsubsequentlyrecognizedinthecurrentprofitorlossbeforetheacquisition,constructionorproductionofthequalifyingassetreachestheintendedusestateorthesalestate.Impairmentofconstructioninprogress:theCompanyconductsacomprehensiveinspectionofconstructioninprogressattheendofthereportingperiod;iftheconstructioninprocessisstoppedforlongtimeandwillnotbeconstructedinthenextthreeyearsandtheconstructioninprogressbringsgreatuncertaintytotheeconomicbenefitsofenterprisesduetobackwardperformanceortechniquesandtheconstructioninprogressoccursimpairment,thebalanceofrecoverableamountofsingleconstructioninprogresslowerthanthebookvalueofconstructioninprogressisforimpairmentprovisionsofconstructioninprogress.Impairmentlossontheconstructioninprogressshallnotbereversedinsubsequentaccountingperiodsoncerecognized.ThepricingandamortizingofintangibleassetsPricingoftheintangibleassets---Thecostofoutsourcingintangibleassetsshallbepricedbasedontheactualexpendituredirectlyattributabletointangibleassetsfortheexpectedpurpose---Expenditureoninternalresearchanddevelopmentprojectsischargedintothecurrentprofitorloss,andexpenseinthedevelopmentstagecanberecognizedasintangiblecostsifmeetingthecriteriaforcapitalization.---Intangibleassetsofinvestmentisinaccordancewiththeagreedvalueoftheinvestmentcontractoragreementascosts,excludingnotfairagreedvalueofthecontractoragreement.---Intangibleassetsofthedebtorobtainedinthenon-cashassetcoverdebtmethodcanbeaccepted;ifthereceivablecreditor'srightischangedintointangibleassets,thenrecordaccordingtothefairvalueofintangibleassets.---Fornon-monetarytransactionintangibleassets,thefairvalueandrelatedtaxespayableofnon-monetaryassetsshouldbetheaccountingcost.Amortizationofintangibleassets:asfortheintangibleassetswithlimitedservicelife,itisamortizedbystraight-linemethodwhenitisavailableforusewithintheserviceperiod.Asforunforeseeableperiodofintangibleassetsbringingfutureeconomicbenefitstothecompany,itisregardedasintangibleassetswithuncertainservicelife,andintangibleassetswithuncertainservicelifecannotbeamortized.TheCompany'sintangibleassetsincludelanduserights,forestlanduserightsandtheproductionandmarketinginformationmanagementsoftware.Thelanduserightsareamortizedaveragelyinaccordancewith50yearsofservicelife,forestlanduserightsareamortizedaveragelyinaccordancewith30yearsofservicelife,andtheproductionandmarketinginformationmanagementsoftwareareamortizedaveragelyinaccordancewith5yearsofservicelife.Expendituresarisingfromdevelopmentphaseoninternalresearchanddevelopmentprojectscanberecognizedasintangibleassetswhensatisfyingallofthefollowingconditions:(1)thereistechnicalfeasibilityofcompletingtheintangibleassetssothattheywillbeavailableforuseorsale;(2)thereisintentiontocompleteanduseorselltheintangibleassets;(3)themethodthattheintangibleassetsgenerateeconomicbenefits,includingexistenceofamarketforproductsproducedbytheintangibleassetsorfortheintangibleassetsthemselves,shallbeproved.Or,iftobeusedinternally,theusefulnessoftheintangibleassetsshallbeproved;(4)adequatetechnical,financial,andotherresourcesareavailabletocompletethedevelopmentofintangibleassets,andtheCompanyhastheabilitytouseorselltheintangibleassets;(5)theexpendituresarisingfromdevelopmentphaseoftheintangibleassetscanbemeasuredreliably.Impairmentofintangibleassets:theCompanyconductsacomprehensiveinspectiononintangibleassetsattheendofthereportingperiod.Iftheintangibleassetshavebeenreplacedbyothernewtechnologiessoastoseriouslyaffectitscapacitytocreateeconomicbenefitsfortheenterprise,themarketvalueofcertainintangibleassetssharplyfallandisnotexpectedtorecoverintheremainingamortizationperiod,certainintangibleassethasexceededthelegaltimelimitbutstillhassomevalueinuseaswellastheintangibleassetimpairmenthasoccurred,theprovisionforimpairmentisdoneaccordingtothedifferencebetweentheindividualestimatedrecoverableamountandthebookvalue.Impairmentlossontheintangibleassetshallnotbereversedinsubsequentaccountingperiodsoncerecognized.AccountingmethodofcapitalizationofborrowingcostsBorrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetsforcapitalizationshouldbechargedintotherelevantcostsofassetsandthereforeshouldbecapitalized.Borrowingcostsincurredafterqualifyingassetsforcapitalizationreachestheestimatedusestatearechargedtoprofitorlossinthecurrentperiod.Otherborrowingcostsarerecognizedasexpensesbasedontheaccrualandarechargedtoprofitorlossinthecurrentperiod.Capitalizationofborrowingcostsshouldmeetthefollowingconditions:expendituresarebeingincurred,whichcomprisedisbursementsincurredintheformofpaymentsofcash,transferofnon-monetaryassetsorassumptionofinterest-bearingdebtsfortheacquisition,constructionorproductionofqualifyingassetsforcapitalization;borrowingcostsarebeingincurred;purchase,constructionormanufacturingactivitiesthatarenecessarytopreparetheassetsfortheirintendeduseorsaleareinprogress.Capitalizationamountofborrowinginterest:theborrowinginterestincurredfromtheacquisition,constructionorproductionofassetseligibleforcapitalizationborrowedspecificallyorgenerallyshouldbedeterminedthecapitalizationamountaccordingtothefollowingmethodbeforetheacquisition,constructionorproductionofaqualifyingassetreachingitsintendeduseorsalestate:---Wherefundsareborrowedspecificallyforpurchase,constructionormanufacturingofassetseligibleforcapitalization,costseligibleforcapitalizationaretheactualinterestcostsincurredincurrentperiodlesstheinterestincomeofunusedborrowingfundsdepositedinthebankoranyincomeearnedonthetemporaryinvestmentofsuchborrowings.---Wherefundsallocatedforpurchase,constructionormanufacturingofassetseligibleforcapitalizationarepartofageneralpool,theeligiblecapitalizationinterestamountsaredeterminedbymultiplyingacapitalizationrateofgeneralborrowingbytheweightedaverageofaccumulatedcapitalexpendituresoverthoseonspecificborrowings.Thecapitalizationratewillbedeterminedbasedontheweightedaveragerateoftheborrowingcostsapplicabletothegeneralpool.Suspensionforcapitalization:Capitalizationofborrowingcostsshouldbesuspendedduringperiodsinwhichpurchase,constructionormanufacturingofassetseligibleforcapitalizationisinterruptedabnormallywiththeinterruptiontimeexceedingthreemonthscontinuously.Borrowingcostsincurredduringtheinterruptionshouldbechargedtoprofitorlossforthecurrentperiod,andshouldcontinuetobecapitalizedwhenpurchase,constructionormanufacturingoftherelevantassetsresumes.Iftheinterruptionisthenecessaryproceduretopreparetheassetspurchased,constructedormanufacturedeligibleforcapitalizationfortheirintendeduseorsale,theborrowingcostsshouldcontinuetobecapitalized.RecognitioncriteriaandmeasurementmethodofestimatedliabilitiesRecognitioncriteriaofestimatedliabilities:whentheexternalsecurity,pendinglitigationorarbitration,productqualityassurance,layoffs,lossofcontracts,restructuringobligations,fixedassetretirementobligationsandotherpertinentbusinessmeetthefollowingconditions,itcanberecognizedastheliability:(1)theobligationisapresentobligationoftheCompany;(2)itisprobablethatsettlementofsuchanobligationwillresultintheeconomicbenefittoflowoutfromtheCompany;(3)theamountoftheobligationcanbemeasuredreliablyMeasurementmethodofestimatedliabilities:TheCompany'sestimatedliabilitiesshallbeinitiallymeasuredatthebestestimatesofthenecessaryexpendituresforthefulfillmentofthepresentobligations.Todeterminethebestestimates,theCompanyshalltakeintofullaccounttherisks,uncertainties,timevalueofmoney,andotherfactorsrelatingtothecontingencies.Ifthetimevalueofmoneyissignificant,thebestestimatesshallbedeterminedafterdiscountingtherelevantfuturecashoutflows.Ifthereisacontinuousrangeforthenecessaryexpenses,andprobabilitiesofoccurrenceofalltheoutcomeswithinthisrangeareequal,thebestestimateshallbedeterminedattheaverageamountwithintherange.Thebestestimatesshallbedeterminedasfollowsinothercircumstances:(1)ifthecontingencyinvolvesasingleitem,thebestestimateshallbedeterminedatthemostlikelyoutcome;(2)ifthecontingencyinvolvestwoormoreitems,thebestestimateshouldbedeterminedaccordingtoallthepossibleoutcomeswiththeirrelevantprobabilities;(3)whenallorpartoftheexpensesnecessaryforthesettlementofestimatedliabilitiesoftheCompanyareexpectedtobecompensatedbyathirdparties,thecompensationsshouldbeseparatelyrecognizedasassetsonlywhenitisvirtuallycertainthatthecompensationswillbereceived.Thecarryingamountoftheestimatedliabilitiesshouldbecheckedateachbalancesheetdate,andifanychangesoccur,thebookvalueshouldbeadjustedtoreflectthecurrentbestestimate.SalarypayabletostaffThestaff'salarymeansthattheenterprisegivesvariousremunerationsandotherrelevantexpensestoemployeesforobtainingservicesprovidedbytheemployeesintheaccountingperiod,includingstaff'ssalary,bonus,allowanceandsubsidy,staff'swelfare,hospitalizationinsurance,endowmentinsurance,unemploymentinsurance,occupationalinjuryinsuranceandchildbirthinsuranceandothersocialinsurancesaswellashousingpublicreserveandsoon.IntheeventthattheCompanyterminatestheemploymentrelationshipwithemployeesunilaterallybeforetheendoftheemploymentcontracts,orofferstocompensatetheemployeesinordertoencouragethemtoacceptvoluntaryredundancy(iftheCompanyhasformallyformulatedplansforterminationoftheemploymentrelationshiporofferforvoluntaryredundancy,andtheplanswillbeimplementedshortlyafterwardsandcannotberecalledbytheCompanyunilaterally),compensationsforredundancyshallberecognizedasestimatedliabilitiesandchargedtoprofitorlossforthecurrentperiod.RevenuerecognitionprincipleTherevenuefromsellinggoodsshallberecognizedwhenmeetingallfollowingconditions:thesignificantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheCompany;theCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnoreffectivecontroloverthesoldgoods;theamountofrevenuecanbemeasuredinareliableway;itisprobablethattheeconomicbenefitsassociatedwit