Question:
Compare and contrast the presentation of balance sheet with company A and company B, analyse its financial performance and operation results with recommendation.
Company A - Balance Sheet CONSOLIDATED BALANCE SHEET As of December 31, 2019 (Expressed in RMB] As of December 31, Note 2019 2018 RMB'000 RMB'000 Assets Non-current assets Land use rights 3,402,968 Property and equipment 14 6,992,331 5,068,053 Intangible assets 15 1,672,002 2,061,192 Investments accounted for using the equity method 11 (b) 9,300, 507 8,639,238 Long-term investments measured at fair value through profit or loss 19 20,679,363 18,636,208 Deferred income tax assets 34 1,283,415 1,312,245 Other non-current assets 17 6,162,503 95,485 46,090, 121 39,215,389 Current assets Inventories 23 32,585,438 29,480,685 Trade receivables 21 6,948,567 5,598,443 Loan receivables 20 12,723,503 10,293,645 Prepayments and other receivables 22 19,837,018 20,914,946 Short-term investments measured at fair value through profit or loss 19 16,463,390 6,648,526 Short-term bank deposits 24(c) 21,523,043 1,365,991 Restricted cash 24 (b ) 1,538,266 1,480, 178 Cash and cash equivalents 24(a) 25,919,861 30,230, 147 137,539,086 106,012,561 Total assets 183,629,207 145,227,950 Equity and liabilities Equity attributable to owners of the Company Share capital 25 388 377 Reserves 81,330, 186 71,322,608 81,330,574 71.322,985 Non-controlling interests 327, 102 (72,856) Total equity 81,657,676 71,250, 129Company B - Balance Sheet CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of December 31, 2019 2018 Note RMB' 000 RMB' 000 ASSETS Non-current assets Property, plant and equipment 15 5,376,217 3,978,815 Intangible assets 16 32,699,575 33,876,004 Deferred tax assets 18 590,054 445,041 Investments accounted for using the equity method 12 2,283,590 2,103,403 Financial assets at fair value through profit or loss 19 7,166,122 6,241,972 Prepayments, deposits and other assets 21 1,762,312 866,884 49,877,870 47,512, 119 Current assets Inventories 22 275,227 400,244 Trade receivables 23 676,762 466,340 Prepayments, deposits and other assets 21 9,591,157 9,064,945 Short-term investments 20 49,435,599 41,829,964 Restricted cash 24 8,760,115 4,256, 120 Cash and cash equivalents 24 13,396,185 17,043,692 Assets classified as held for sale 88,087 82,135,045 73,149,392 Total assets 132,012,915 120,661,511 EQUITY Share capital 25 389 384 Share premium 25 260,359,929 258,284,687 Other reserves 26 (4,447,252) (5,741,347) Accumulated losses (163,800,621) (166,039,390) Equity attributable to equity holders of the Company 92,112,445 86,504,334 Non-controlling interests 58,051) 5.438 Total equity 92,054,394 86,509,772 152 Meituan Dianping 2019 Annual ReportCompany A - Balance Sheet (Continue) CONSOLIDATED BALANCE SHEET As of December 31, 2019 (Expressed in RMB] As of December 31, Note 2019 2018 RMB'000 RMB'000 Liabilities Non-current liabilities Borrowings 33 4,786,856 7,856, 143 Deferred income tax liabilities 34 579,902 777,645 Warranty provision 667,857 559,016 Other non-current liabilities 29 3,756,211 2,844,859 9,790,826 12,037,663 Current liabilities Trade payables 30 59,527,940 46,287,271 Other payables and accruals 31 9,101,343 6,312,770 Advance from customers 32 8,237, 119 4,479,522 Borrowings 33 12,836,555 3,075, 194 Income tax liabilities 479,350 661,816 Warranty provision 1,998,398 1, 123,585 92,180,705 61,940, 158 Total liabilities 101,971,531 73,977,821 Total equity and liabilities 183,629,207 145,227,950 The notes on pages 191 to 325 are an integral part of these consolidated financial statements. The consolidated financial statements on pages 183 to 325 were approved by the Board of Directors on March 31, 2020 and were signed on its behalf: Lei Jun Lin BinCompany B - Balance Sheet (Continue) As of December 31, 2019 2013 Note RM 3' 000 RMB' 000 LIABILITIES Non-current liabilities Deferred tax liabilities 13 1.333.469 1.195.369 Deferred revenues 27 339.023 624.999 Borrowings 31 466.676 470.056 Lease liabilities 2.29 992.233 * Other non~current liabilities 129.552 35.759 3.365.953 2.326.633 Current liabilities Trade payabies 29 6.766.253 5.340.963 Payables to merchants 7.495.262 7.596.333 Advances from transacting users 3.355.559 3.226.407 Deposits from transacting users 2.14 2.491.947 3.341.276 Other payables and accruals 30 7.237.412 7.303.407 Borrowings 31 3.552.537 1 300.000 Deferred revenues 27 4.567.171 3.102.332 Lease liabilities 2.29 534.566 Income tax liabilities 91.306 53.223 Liabilities directly associated with assets classified as held for sale 55.510 36.592.563 31 325.056 Total liabilities 39.953.521 34.151 .739 Total equity and liabilities 132.012.915 120.661.511 The notes on pages 153 to 272 are an integral part of these consolidated financial statements. The consolidated financial statements on pages 150 to 272 were approved by the Board of Directors on March 30. 2020 and were signed on its behalf: Wang Xing Mu Fiongiun Director Director 2019 Annual Report Meituan Dianping
