>News>Company Announcement>Far Eastern New Century Corporation (FENC) announces its change of depreciation methods and consequently, its accounting estimates.
Far Eastern New Century Corporation (FENC) announces its change of depreciation methods and consequently, its accounting estimates.
From：
SEQ_NO
1
Date of announcement
2010/12/21
Time of announcement
18:56:00
Subject
Far Eastern New Century Corporation (FENC)
announces its change of depreciation methods and
consequently, its accounting estimates.
Date of events
2010/12/21
To which item it meets
article 2 paragraph 49
Statement
1.Date of occurrence of the event:2010/12/21
2.Company name:Far Eastern New Century Corporation
3.Relationship to the Company (please enter ”head office” or
”affiliate company”):head office
4.Reciprocal shareholding ratios:Nil
5.Cause of occurrence:
The board of FENC has resolved that the Company will
alter its depreciation method for fixed assets to
“Straight Line Method” from “Fixed Percentage of
Declining Balance Method,” and that extend the estimated
service lives of the Company’s fixed assets to 15 years,
from originally estimated 5-15 years. In order to 1) in
a relatively reasonable way, report the residual lives of
the fixed assets and estimate economic benefits of such
assets would generate in the future; 2) better manage the
Company; and 3) reconcile the Company’s previous accounting
reporting difference with the industry standard, the
aforesaid resolution is made.
6.Countermeasures:
In accordance with “Securities Issued Guidelines for the
Preparation of Financial Reports Article,” the Company
will submit relevant documents to the regulatory authorities
for approval.
7.Any other matters that need to be specified:NA
