Sinobioway Medicine(SZ:002581) Zheng Quan Zhi Xing·2025-07-30 16:36General Principles - The financial management system of Shandong Weiming Biological Pharmaceutical Co., Ltd. aims to standardize accounting recognition, measurement, and reporting to ensure the quality of accounting information and improve economic efficiency while protecting shareholders' rights [1][2][3] Financial Management Structure and Personnel - The company has established a financial management organization under the leadership of the board of directors, with the general manager responsible for implementation [2][3] - A planning finance center is set up to handle financial management and accounting matters, staffed with qualified accounting personnel [2][3] - The company has the authority to appoint and dismiss financial heads of its subsidiaries, while other financial personnel are hired according to internal regulations [2][3] Accounting Policies and Estimates - The company adopts a calendar year as its accounting period, running from January 1 to December 31 [3][4] - The functional currency for accounting is determined based on the primary economic environment, with RMB used for companies established in mainland China [4][5] - The company uses the accrual basis of accounting and historical cost for measurement [4][5] Financial Asset Recognition and Measurement - Financial assets are classified at initial recognition into categories such as amortized cost, fair value through other comprehensive income, and fair value through profit or loss [5][6] - The company assesses credit risk and recognizes impairment losses based on expected credit losses [8] Inventory Accounting - Inventory is initially measured at cost and includes raw materials, finished goods, work in progress, and low-value consumables [9] - The company uses the weighted average method for inventory issuance and recognizes impairment when the cost exceeds the net realizable value [9] Long-term Equity Investment Accounting - The company uses the cost method for subsequent measurement of long-term equity investments in subsidiaries and adjusts for equity method in consolidated financial statements [10] Fixed Assets and Depreciation - Fixed assets are recorded at actual cost and depreciated using the average annual method based on asset categories [11][12] Intangible Assets Accounting - Intangible assets are initially measured at cost, including purchase price and related expenses, and are amortized over their useful lives [13][14] Revenue Recognition - Revenue is recognized when control of the goods is transferred to the customer, and specific criteria must be met [21] Tax Accounting - The company uses the balance sheet liability method for income tax accounting, recognizing deferred tax assets or liabilities based on differences between the book value and tax base of assets and liabilities [17] Financial Reporting - The company prepares financial reports including balance sheets, income statements, cash flow statements, and changes in equity statements, adhering to relevant accounting standards [23][24][25]