Impact of Changes in Accounting Policies on Mengniu Group

Changes in accounting policies may have a variety of effects on the Monarch Group.

If the changes in accounting policies relate to the accounting standards or accounting estimation methods used by the Mengniu Group, the changes may have an impact on the financial reports of the Mengniu Group. For example, if the accounting standards originally used by the Mengniu Group required the company to use a certain accounting estimation method to calculate the provision for impairment of accounts receivable, and a subsequent change in accounting policy required the company to use another accounting estimation method to calculate the provision for impairment, the change may have an impact on Mengniu Group's net profit.

In addition, a change in accounting policy may also have an impact on Mengniu Group's management and investors. For example, if the change in accounting policy makes Mengniu Group's financial reports look more conservative, then it may lead to a decrease in investor confidence in the company, which in turn may lead to a decrease in the stock price.

Therefore, a change in accounting policy may affect Mengniu Group in a number of ways, depending on the specifics of the change in accounting policy.