This is the ninth 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 information disclosure guidelines on hydraulic engineering, environment, public facilities management, wholesale, retail, real estate and other industries.

Listed companies are requested to disclose such non-financial information: the equity of dominant stockholders and actual controllers 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 such as commercial banks, insurance and 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, discussion and analysis of corporate cooperation.  

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 listed companies from aviation transportation industry, key focus should be paid on impact from politics, economy, oil prices and exchange rate as well as the sensitivity analysis; for listing companies from chemical and environmental protection industries, impact analysis of the macropolicy and industry standards. For critical resources, enterprises from agricultural, animal, husbandry and fishery industries should disclose ownership regarding production and operation; wine companies should pay more attention to disclosure of brand structure and sales channels. As for strategic planning of profitability, broadcast transmission companies should disclose their development strategy and risks they face with a combination of construction of next generation online broadcast and television network, layouts of integration of three networks(telecommunication, broadcast and television network and the internet).

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 hydraulic engineering, environment, public facility management, wholesale and retail industries include revenue recognition, accounts receivable and provision of bad debt; for real estate industry, revenue recognition and inventory impairment.

Grant Thornton’s industry study focuses on disclosure requirements from perspectives of authorities, listed companies as well as auditors. We hope you find this series helpful.  

Please read the Chinese version to learn more.