(Solved): Extracts from the group's statements of financial position as at 31 December ...

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Extracts from the group's statements of financial position as at 31 December 2020 are set out Additional information: The board of directors of P Ltd includes Peter and John. Amy and Lucy are part of the board of directors of S1 Ltd. C Ltd provides key management personnel services to P Ltd. \( \mathrm{P} \) Ltd purchased 100\% ordinary shares in \( \mathrm{S} 1 \mathrm{Ltd} \) and \( 50 \% \) ordinary shares in S2 Ltd on 31 December 2020 . The rest of \( 50 \% \) of ordinary shares in S2 Ltd is acquired by ABC Ltd. ABC Ltd and P Ltd have joint control over S2 Ltd. P Ltd concludes that S2 Ltd is a joint venture instead of a joint operation. Required: (a) According to HKFRS 11, define "Joint Control." (4 marks) (b) With reference to relevant financial reporting and accounting standards, (6 marks) explain if : (i) C Ltd (ii) S2 Ltd (iii) \( \mathrm{ABC} \mathrm{Ltd} \) are related parties of P Ltd in its financial statement. (c) Prepare journal entries regarding the goodwill of S1 Ltd using the net (4 marks) asset approach on 31 December 2020. 31 December 2020 is the acquisition date of \( \mathrm{S} 1 \mathrm{Ltd} \) and \( \mathrm{S} 2 \mathrm{Ltd} \). (d) Prepare the consolidated statement of financial position as at 31 (11 marks) December 2020. 31 December 2020 is the acquisition date of S1 Ltd and \( \mathrm{S} 2 \mathrm{Ltd} \).