This is the eighth article of our interpretation of information disclosure guidelines issued by Shanghai Stock Exchange(SSE) and Shenzhen Stock Exchange(SZSE) and NEEQ(National Equities Exchange and Quotations). In this article, we will focus on for transportation, storage and postal service, culture, sports, entertainment, electric and heating power, fuel gas, water production and supply.

Listed companies are requested to disclose such non-financial information: the equity of dominant stockholders and actual controllers is in a situation of frozing and pledging; corporate governance, information disclosure by industries, continous information disclosure of acquisition and reorganization, cash bonus, commitment, internal control, social responsibility report, anti-poverty project, environment information, corporation bonds and etc.

As for the information disclosure by industry, listed companies within commercial banks, insurance companies, securities companies should implement the special regulations issued by CSRC(China Securities and Regulatory Commission; listed companies bound by industry information disclosure guidelines should implement the requirements for regular report, and disclose those information in the chapters of corporate business abstract and discussion and analysis of corporate ooperation.  

Auditors should pay attention to business information of different industries during the period of audit in addition to focusing on financial data of the financial statement, and examine the corresponding relationship between financial data and operation situation. For agriculture, forestry, animal husbandry and fishery industries, key focus should be paid on industry policies, production and operation qualifications, forms of ownership for farm and base, and ways of requirements and etc; for real estate industry, reserves, development and investment and financing etc; for coal industry, the reserves; for power industry, installed capability, electric quantity and prices, consumption rate for station use, capital expenditure and etc; for retail industry, marketing network, commercial activity, monthly store sales, commodity categories; for environmental protection industry, business model, up and downstream industries, product orders and project operation stages.

On the basis of complying to requirements of China Certified Public Accountant Audit Standards No. 1521 and No. 1504, auditors should focus on key audit issues. According to disclosure of 2017 audit report of China main board, key audit issues for transportation, storage and postal services include revenue recognition, devaluation of fixed assets and etc; revenue recognition and goodwill impairments for culture, sports and entertainment industries; revenue recogonition and devaluation of fixed assets for power and heating, fuel gas, water production and supply. 

Grant Thornton’s industry study focuses on disclosure requirements from perspectives of authorities, listed companies as well as auditors. In next article, we will look at hydraulic engineering, environment, public facility management, wholesale and retail, real estate industries.

Please read the Chinese version to learn more.