Analysis on the reasons of Yunnan Baiyao changing its accounting policy.

Why did Yunnan Baiyao change its accounting policy?

Yunnan Baiyao Co., Ltd. is a large enterprise in China, which mainly produces Chinese herbal medicines and mainly deals in pharmaceutical products. Yunnan Baiyao announced the change information of accounting policy in the 20 19 annual report, which attracted market attention. First of all, Yunnan Baiyao attributed the policy change to the implementation of the new accounting standards to improve the transparency and scientificity of financial reporting.

Secondly, after the change of accounting policy, Yunnan Baiyao adjusted the measurement methods and accounting principles of some projects, mainly modifying the provisions on income, inventory, accounts receivable and related transactions. This change is helpful to improve the quality of the company's financial report and fully reflect the actual financial situation of the company.

Finally, after the change of accounting policy, Yunnan Baiyao will gradually implement the new financial consolidation policy. This means that the company will strictly implement the new regulations, strengthen financial risk control, and improve the financial transparency and information disclosure level of the company in related party transactions and subsidiary control. This has a positive impact on the healthy development of the company itself and the confidence of investors.

Generally speaking, the change of Yunnan Baiyao accounting policy is a necessary measure to adapt to the new accounting standards and market demand. Yunnan Baiyao can not only standardize financial reports and improve information transparency, but also continuously improve the quality of products and services, protect the interests of investors and achieve sustainable development by revising and perfecting the company's internal control and financial management system in time.