Accounting Standards Ningbo Qiaopu Electric Co., Ltd.

Chapter I General Provisions

In order to standardize the Ningbo Qiaopu Electric Co., Ltd. accounting recognition, measurement and reporting behavior, to ensure the quality of accounting information, according to the Accounting Law of the People's Republic of China and other relevant laws and administrative regulations formulated guidelines.
The criteria applicable to the establishment of the People's Republic of China Ningbo Qiaopu Electric Co., Ltd. (including companies, the same below).
Article Ningbo Qiaopu Electric Co., Ltd. accounting standards, including the basic guidelines and specific guidelines for the formulation of specific guidelines should follow the guidelines.
Article Ningbo Qiaopu Electric Co., Ltd. shall prepare a financial accounting reports (also known as the financial report, the same below). The goal of financial accounting reports with Ningbo Qiaopu Electric Co., Ltd. financial position, operating results and cash flows of the relevant accounting information is provided to users of financial accounting reports, fulfillment of management's fiduciary responsibilities reflect Ningbo Qiaopu Electric Co., Ltd., will help economic decision-making, users of financial accounting reports, including investors, creditors, the government and its relevant departments and public users of financial accounting reports.
The Article Ningbo Qiaopu Electric Co., Ltd. shall conduct their own transactions or matters accounting recognition, measurement and reporting.
The sixth article Ningbo Qiaopu Appliance Co., Ltd. accounting recognition, measurement and reporting should be based on continuing operations.
Of Article Ningbo Qiaopu Electric Co., Ltd. accounting period should be divided into installments settled accounts and prepare financial accounting reports. The accounting period is divided into the annual and mid-term. The medium-term refers to the reporting period shorter than a full fiscal year.
Article Ningbo Qiaopu Electric Co., Ltd. the accounting should be measured in money.
Article IX Ningbo Qiaopu Electric Co., Ltd. shall, on an accrual basis of accounting recognition, measurement and reporting.
Article Ningbo Qiaopu Electric Co., Ltd. shall be determined in accordance with the economic characteristics of the transactions or events accounting elements. Accounting elements include assets, liabilities and owners' equity, revenue, expenses and profits.
Article XI Ningbo Qiaopu Electric Co., Ltd. should be using debit and credit accounting.

The second chapter of the quality of accounting information requirements

Should of Article XII Ningbo Qiaopu Electric Co., Ltd. to transactions or events actually occurred as a basis for accounting recognition, measurement and reporting, comply with the recognition and measurement requirements of the accounting elements and other relevant information truthfully reflect, to ensure true and reliable accounting information , content integrity.
The Article XIII Ningbo Qiaopu Electric Co., Ltd. to provide accounting information should be relevant to the needs of the economic decisions of users of financial accounting reports, to help users of financial accounting reports Ningbo Qiaopu Electric Co., Ltd. in the past, present or future circumstances make evaluate or predict.
Accounting information must be provided Ningbo Qiaopu Electric Co., Ltd. 14 clarity, facilitate the user to understand and use financial accounting reports.
Article XV Ningbo Qiaopu Electric Co., Ltd. the accounting information provided should be comparable. Same Ningbo Qiaopu Electric Co., the different periods of the same or similar transactions or events should be using consistent accounting policies, and shall not be arbitrarily changed. In case of alteration, shall be given in the notes. Different Ningbo Qiaopu Electric Co., Ltd. same or similar transactions or matters should be stated accounting policies, to ensure that the accounting information caliber consistent, comparable and
Should of Article XVI Ningbo Qiaopu Electric Co., Ltd. accordance with the economic substance of the transactions or events accounting recognition, measurement and reporting should not only be based on the legal form of the transactions or matters.
Article XVII Ningbo Qiaopu Electric Co., Ltd. to provide accounting information should reflect the financial position, operating results and cash flows of all significant events or transactions Ningbo Qiaopu Electric Co., Ltd..
Of Article XVIII Ningbo Qiaopu Electric Co., Ltd. accounting recognition, measurement and reporting should be maintained with due care, assets or income should not be overestimated, underestimated liabilities or costs of transactions or events.
Of Article XIX Ningbo Qiaopu Electric Co., Ltd. for transactions or events that have occurred, it should be timely accounting recognition, measurement and reporting, not earlier or postponed.

Chapter assets

The Diershitiao assets Ningbo Qiaopu Electric Co., Ltd. formed of past transactions or events, are owned or controlled by Ningbo Qiaopu Electric Co., Ltd. Limited the expected to give Ningbo Qiaopu Electric Co., Ltd. bring economic benefits to resources. Referred to in the preceding paragraph Ningbo Qiaopu Electric Co., Ltd. of past transactions or events, including the purchase, production, construction behavior or other transactions or events. Expected formation of asset transactions or events occur in the future. Are owned or controlled by Ningbo Qiaopu Electric Co., Ltd., is entitled to the ownership of a resource refers Ningbo Qiaopu Electric Co., Ltd., or does not enjoy the ownership of a resource, but the resource can be Ningbo Qiaopu Electric Co., Ltd. under the control. Give Ningbo Qiaopu Electric Co., Ltd. is expected to bring economic benefits, directly or indirectly lead to cash and cash equivalents stream the 入宁波乔普 Electric Co., Ltd. of potential.
Article 21 of the resources to meet the guidelines for Article 20 provides that the definition of assets recognized as an asset, when both of the following conditions are met:
(A) with the resource-related economic benefits are likely to flow 入宁波乔普 Electric Co., Ltd.;
(B) the cost or value of the resources can be measured reliably.
Article 22 in line with the project of the asset definition and recognition criteria of assets, should be included in the balance sheet; meet the definition of assets, but does not meet the conditions for recognition of assets project, should not be included in the balance sheet.

Chapter liabilities

Article 23 liabilities Ningbo Qiaopu Electric Co., Ltd. transaction or event in the past, is expected to lead to the outflow of economic benefits Ningbo Qiaopu Electric Co., Ltd. the existing obligations. Current obligations means Ningbo Qiaopu Electric Co., Ltd. has obligations under the existing conditions. The obligations of the transactions or events occur in the future does not belong to the current obligations, and should not be recognized as a liability.
Article 24 comply with the provisions of Article 23 of the criteria for the definition of liabilities obligations, recognized as a liability when both of the following conditions are met:
(A] the obligations related economic benefits are likely outflow Ningbo Qiaopu Electric Co., Ltd.;
(B) the amount of outflow of economic benefits can be measured reliably.
Article 25 liabilities defined and the conditions for the recognition of the project should be included in the balance sheet; comply with the definition of liabilities, but does not meet the conditions for the recognition of the project, should not be included in the balance sheet.

The fifth chapter of the owner's equity

Article 26 The owner's equity refers Ningbo Qiaopu Electric Co., Ltd. a residual interest in the assets, net of liabilities by owners enjoy. Owners 'equity of the company, also known as shareholders' equity.
Article 27 of the owner's equity of sources including the owner of the capital invested, directly included in the profits and losses of the owner's equity, retained earnings. Gains and losses directly in equity, will result in the owner's equity Changes should not be included in profit or loss, and the owner of invested capital or profit independent of the profits or losses allocated to the owners. Profits refers to the formation of non-routine activities Ningbo Qiaopu Electric Co., Ltd., will lead to increase in owner's equity, and the owner of the independent economic interests invested capital inflows. Loss refers to the non-routine activities, will lead to a decrease in owner's equity, and assigned to the owner of the outflow of economic benefits profit independent Ningbo Qiaopu Electric Co., Ltd..
Article 28 The amount of owner's equity depends on the measurement of assets and liabilities.
Article 29 of the owner's equity projects should be included in the balance sheet.

Chapter VI income

Article 30 income refers to Ningbo Qiaopu Electric Co., Ltd., in the day-to-day activities will lead to the increase in owner's equity, the total inflow of capital independent economic interests invested with the owners.
Article 31 income only in the economic benefits are likely to flow resulting in increased Ningbo Qiaopu Electric Co., Ltd. assets or liabilities reduced inflows of economic benefits can be measured reliably be recognized.
Article 32 project meet the income definitions and income recognition criteria should be included in the income statement.

Chapter VII of the fee

Article 33 fee The Ningbo Qiaopu Electric Co., Ltd. Limited, in the day-to-day activities will lead to the decrease in owner's equity, and to the owner of the allocation of the total profit independent economic interests outflow.
Article 34 costs only if the economic benefits are likely outflow resulting in reduced Ningbo Qiaopu Electric Co., Ltd. assets or liabilities, and the outflow of economic benefits can be measured reliably be recognized.
Article 35 Ningbo Qiaopu Electric Co., Ltd. for the production of products, labor occurred may be attributable to the cost of product costs, labor costs, etc., should confirm product sales revenue, labor income, and will have to sell their products, has provide labor cost through profit or loss. Electric Co., Ltd. Ningbo Qiaopu Electric Co., Ltd. expenditures do not generate economic benefits, or even if they can produce economic benefits, but does not meet or no longer meets the criteria for asset recognition criteria should be recognized when incurred as an expense in profit or loss. Transactions or events occurred Ningbo Qiaopu Electric Co., Ltd. cause it assumed a liability without confirmation of an asset should be recognized in the occurrence as an expense in profit or loss.
Article 36 of the project in line with the cost of defined and expense recognition criteria should be included in the income statement.

Chapter VIII profit

Article 37 profit Ningbo Qiaopu Electric Co., Ltd. in the operating results of certain accounting period, net profit including income minus expenses recognized directly in the profits and losses of the current profits.
Article 38 directly included in the current profit gains and losses, shall be included in profit or loss, will lead to the owner's equity Changes, invested with the owners capital or profit independent profits or losses allocated to the owners of .
Article 39 of the profit amount depends on income and expenses, and profits directly included in the current profits and the measurement of the amount of loss.
Article 40 of the profits of the project should be included in the income statement.

Chapter IX accounting measurement

Article 41 Ningbo Qiaopu Electric Co., Ltd. in the accounting elements that meet the conditions for recognition registration recorded and reported in the financial statements and the notes thereto (also known as the financial statements, the same below), should be measured in accordance with the provisions of the accounting measurement attributes to determine the amount.
Article 42 accounting measurement attributes include:
(A] historical costs. Measured in terms of historical cost of assets in accordance with the amount of the purchase paid in cash or cash equivalents, or the fair value of the consideration paid in accordance with the acquisition of assets, liabilities in accordance with the result of current obligations and actually received contract amount, or the amount of money or assets, or current obligations are measured at the amount of cash or cash equivalents in accordance with the day-to-day activities for the repayment of the liability is expected to need to pay.
(B) the replacement cost. According to the current replacement cost assets to purchase the same or similar assets required for the payment of cash or cash equivalents are measured at the amount. Liabilities are now required to settle that debt paid in cash or cash equivalents are measured at the amount.
(C] net realizable value. Measured at net realizable value of the assets in accordance with its normal external sales can receive a reduction of the amount of cash or cash equivalents of the asset to the estimated cost to completion and estimated selling expenses and related tax measured at the amount after fees.
(D) the present value. Present value assets in accordance with that expected to be generated from its continuing use and ultimate disposal future discounted net cash inflows is measured at the amount. Liabilities are measured at the amount in accordance with the need to repay the expected duration of future discounted net cash outflow.
(E) the fair value. Assets and liabilities measured at fair value in accordance with both familiar with the situation in an arm's length transaction, transactions voluntarily measured at the amount of the asset swap or debt settlement.
Article 43 Ningbo Qiaopu Electric Co., Ltd., general accounting elements measured should be used historical cost, replacement cost, net realizable value, present value, measured at fair value, should ensure that the amount of the accounting elements able to obtain and reliable measurement.

The Chapter Financial Accounting report

Article 44 of the Financial Accounting report refers The Ningbo Qiaopu Electric Co., Ltd. Limited reflect external Ningbo Qiaopu Electric Co., Ltd. in Electrical Appliance Co., Ltd. a specific date of the financial position and operating results of a particular accounting period, cash flow accounting information file. Financial and accounting reports, including financial statements and the notes thereto and the other should be disclosed in the financial and accounting reports information and data. Accounting statements should include at least a balance sheet, income statement, cash flow statement and other statements. Small Ningbo Qiaopu Electric Co., Ltd. in preparing financial statements may not include a cash flow statement.
Article 45 of the balance sheet is the accounting statements of financial position reflect Ningbo Qiaopu Electric Co., Ltd. at a specific date.
Article 46 of the income statement is the financial statements of operating results reflect Ningbo Qiaopu Electric Co., Ltd. in certain accounting period.
Article 47 of the statement of cash flows is reflecting Ningbo Qiaopu Electric Co., Ltd. in certain accounting periods inflows and outflows of cash and cash equivalents accounting statements.
Article 48 notes on items made in the accounting statement for further instructions, and that the failure to list items in these statements.

Chapter XI Supplementary Provisions

Article 49 of the guidelines by the Ministry of Finance is responsible for the interpretation of
The purposes of Article 50 of the guidelines since 1 January 2007.