Extracts from the group's statements of financial position as at 31 December 2020 are set out below. ASSETS Non-current assets Property, plant and equipment Investment in S1 Ltd Investment in S2 Ltd Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Equity Ordinary share capital ($1 per share) Retained earnings/ (loss) P Ltd $ 1,000,000 120,000 230,000 1,350,000 400,000 200,000 20,000 620,000 1,970,000 1,000,000 600,000 1,600,000 S1 Ltd $ 270,000 0 0 270,000 200,000 300,000 22,000 522,000 792,000 200,000 (120,000) 80,000 S2 Ltd $ 450,000 0 0 450,000 28,000 30,000 2,000 60,000 510,000 400,000 29,000 429,000 Current liabilities Trade payables Tax payable Total equity and liabilities Required: 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. (a) (b) C Ltd provides key management personnel services to P Ltd. P Ltd purchased 100% ordinary shares in S1 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. (c) (d) P Ltd 170,000 200,000 370,000 1,970,000 100% S1 Ltd 614,000 98,000 712,000 792,000 50% 70,400 10,600 81,000 510,000 ABC Ltd 50% S2 Ltd According to HKFRS 11, define "Joint Control." (4 marks) With reference to relevant financial reporting and accounting standards, (6 marks) explain if: (i) C Ltd (ii) S2 Ltd (iii) ABC Ltd are related parties of P Ltd in its financial statement. 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 S1 Ltd and S2 Ltd. 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 S2 Ltd.