Case 6-1 China Petroleum and Chemical Corporation
Chapter 6 (Case 6-1 CHINA PETROLEUM AND CHEMICAL CORPORATION)
1.The net profit figure reported under PRC GAAP is RMB 19,011 million. This is RMB 2,592 million lower than the amount under IFRS, and RMB 6,566 million lower than the amount under U.S. GAAP. The net profit figure of RMB 19,011 reported under PRC GAAP was increased to RMB 21,593 under IFRS. The increase of RMB 2,582 under IFRS was due to the following reasons:
Dep. and disposal of oil and gas properties RMB3,044
Acquisition of subsidiaries 443 Capitalization of general borrowing costs 389
Gain from issuance of shares by subsidiary 136
Gain from debt restructuring 82
Revaluation of land use rights 18 4,112
Unrecognized losses of subsidiaries (182)
Pre-operating expenditures (169)
Effect on taxation (1,179)(1,530) 2,582
The net profit figure of RMB 21,593 reported under IFRS was increased to RMB 25,577 under U.S. GAAP. The increase of RMB 3,984 under U.S. GAAP was due to the following reasons:
Dep. of revalued PPE RMB 3,998
Disposal of PPE 1,316
Capitalized interest on invest.in associates 141
Reversal of deficits on revaluation of PPE 86
Foreign exchange gains and losses76
Reversal of impairment of long-lived assets 47
Exchange of assets23
Capitalization of PPE12 5,699
Deferred tax effect of U.S. GAAP adjustments (1,715) 3,984
2.The differences for CPCC between PRC GAAP and IFRS, and between IFRS and U.S. GAAP are given in the case. As mentioned in the case, treatments of the following items under PRC GAAP and IFRS are different:
Depreciation and disposal of oil and gas properties
Capitalization of general borrowing costs
Acquisition of subsidiaries
Gains from issuance of shares by a subsidiary
Gains from debt restructuring
Revaluation of land use rights
Unrecognized losses of subsidiaries
Pre-operating expenditures
Impairment loses on long-lived assets
Government grants (Refer pp.5-72 -
1.The net profit figure reported under PRC GAAP is RMB 19,011 million. This is RMB 2,592 million lower than the amount under IFRS, and RMB 6,566 million lower than the amount under U.S. GAAP. The net profit figure of RMB 19,011 reported under PRC GAAP was increased to RMB 21,593 under IFRS. The increase of RMB 2,582 under IFRS was due to the following reasons:
Dep. and disposal of oil and gas properties RMB3,044
Acquisition of subsidiaries 443 Capitalization of general borrowing costs 389
Gain from issuance of shares by subsidiary 136
Gain from debt restructuring 82
Revaluation of land use rights 18 4,112
Unrecognized losses of subsidiaries (182)
Pre-operating expenditures (169)
Effect on taxation (1,179)(1,530) 2,582
The net profit figure of RMB 21,593 reported under IFRS was increased to RMB 25,577 under U.S. GAAP. The increase of RMB 3,984 under U.S. GAAP was due to the following reasons:
Dep. of revalued PPE RMB 3,998
Disposal of PPE 1,316
Capitalized interest on invest.in associates 141
Reversal of deficits on revaluation of PPE 86
Foreign exchange gains and losses76
Reversal of impairment of long-lived assets 47
Exchange of assets23
Capitalization of PPE12 5,699
Deferred tax effect of U.S. GAAP adjustments (1,715) 3,984
2.The differences for CPCC between PRC GAAP and IFRS, and between IFRS and U.S. GAAP are given in the case. As mentioned in the case, treatments of the following items under PRC GAAP and IFRS are different:
Depreciation and disposal of oil and gas properties
Capitalization of general borrowing costs
Acquisition of subsidiaries
Gains from issuance of shares by a subsidiary
Gains from debt restructuring
Revaluation of land use rights
Unrecognized losses of subsidiaries
Pre-operating expenditures
Impairment loses on long-lived assets
Government grants (Refer pp.5-72 -