Foshan Guoxing Optoelectronics Co., Ltd. (hereinafter referred to as “the companyâ€) recently received the “Special Balance Fund for the Provincial Technical Renovation in 2015†issued by the Foshan Municipal Bureau of Economic and Information Technology and the Foshan Municipal Finance Bureau. Batch) Notice of the Supplementary Plan of the Project (Buddha Letter [2017] No. 268). According to the content of the notice, the company “shows the technology innovation and key packaging equipment technology transformation project with small-pitch LED packaging technology†will receive the subsidy fund for the technical transformation project, the subsidy amount is 3,590,100 yuan. According to the relevant provisions of the “Accounting Standards for Business Enterprises No. 16 – Government Subsidy†(amended in 2017), the company intends to recognize the above subsidy as deferred income and accrue it to profit or loss in a reasonable and systematic manner within the useful life of the relevant assets. The specific accounting treatment shall be based on the results of the annual audit confirmation of the accountant.
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