Shenhuo Clarifies No 'Provision Funds' Case, Cites Standards for Impairment Charges

Shenhuo Co. , Ltd. said at its results briefing held on August 7 that it has no "provision funds" situation for certain coal products. In accordance with the requirements of enterprise accounting standards, the company conducts impairment tests on assets showing signs of impairment and makes corresponding asset impairment provisions based on the test results.

The company further explained that there is no situation of "provision funds being over-considered" or "whether excess funds would be re-booked into future profit." The statements are intended to clarify market questions regarding the relevant accounting treatment.