Question 1 (b)

You have been asked by one of your friends to explain some of the items included in the Balance Sheet of Synlait and A2 Milk. For each of the items listed and using the Question 1 (b) Template provided, you are required to:

1. describe what each item represents (provide an answer that covers both companies, you do not need to answer it for each company).
2. indicate according to accounting policy how each of the items is measured (in some cases no answer is required for that item).
3. provide the total value of the item from the 2020 financial statements for both companies,
4. give details (including the note number) of where the information on each item is located within both consolidated financial statements of the companies.
5. provide reasons for its classification as either current or non-current asset/liability or equity using only the information provided in the financial statements or lecture recordings.
6. discuss one difference found in the notes to the items between the two companies (in some cases no answer is required for that item).

Your answers should relate specifically to these two companies, and not a general description of each item.

1. Inventory (types of inventory)
2. Share capital
3. Loans and Borrowings
4. Intangible Assets

2. Measurement 1. Description of the item 5. Reasons for the classification 3. Value of the 4. Location in item for the 2020 in the Financial Financial statements Statements and related (per notes company) 6. Discuss one difference between the two companies found in the notes Inventory Synlait A2 Milk Share capital Synlait No answer required. A2 Milk Loans & Borrowings Synlait No answer required. A2 Milk Intangible Assets Synlait No answer required. A2 Milk