Shandong Gold Mining Co., Ltd. (SD GOLD) has formally adopted new accounting policies to incorporate the Ministry of Finance’s Interpretation No. 19 and Interpretation No. 20 of the Accounting Standards for Business Enterprises, according to a board announcement dated 28 August 2026.
The amendments address five key areas under Interpretation No. 19—accounting for compensating assets in business combinations not under common control, treatment of capital reserves upon disposal of subsidiaries acquired through common-control combinations, derecognition of financial liabilities settled via electronic payment systems, assessment of contractual cash-flow characteristics of financial assets, and related equity instrument disclosures. Interpretation No. 20 further refines rules on contractual cash-flow assessments and introduces guidance for accounting in jurisdictions lacking currency convertibility. Interpretation No. 19 becomes effective 1 January 2026, while Interpretation No. 20 applies from 4 June 2026, with immediate adjustments required for transactions occurring earlier in the year.
SD GOLD’s board approved the policy change with eight votes in favor and none against at its 18th meeting of the seventh session on 28 August 2026. The Audit Committee had unanimously endorsed the revisions at its 7th meeting on 13 August 2026, concluding that the new policies will enhance the objectivity and reliability of the company’s financial statements.
Management stated that the revised policies conform to national regulations, accurately reflect the company’s financial position and operating results, and are not expected to have a material impact on financial position, operating performance, or cash flow. Given their regulatory nature, the changes do not require approval from the general meeting of shareholders.
Implementation of the new policies is retroactive to 1 January 2026. SD GOLD will continue to apply the existing Accounting Standards for Business Enterprises for matters not addressed by the new interpretations.