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Question 3 Consider the relationships reflected in the following diagram: Mr. W 50% Alpha 50% Director Ltd Mrs. W Holding 20%% Ltd 10% Beta Ltd 25% 55% 10% ABC Ltd 20% Ms. V General Manager 100% 70% 40% 100%% DEF Ltd GHI Lid JKL Ltd Joint Venture XYZ Ltd 10%% 20% 70% MNO Ltd PQR Ltd STU Ltd Required: Identify the following related parties of ABC Lid, the reporting entity, with appropriate explanations: (i) Alpha Ltd (ii) Mr. W (iii) Mrs. W (iv) Holding Ltd (v) DEF Ltd & GHI Ltd (vi) JKL Ltd (vii) Ms. V (viii) XYZ Ltd (ix) Beta Ltd (x) PQR Ltd (xi) MNO Ltd (xii) STU LtdQuestion 2 (Adapted from Chow, L., Kan, S., Taylor, D. & Tsui, C. (2006). Advanced Financial Accounting in Hong Kong. Hong Kong: Longman.) Discuss whether the following events would require disclosure in the financial statements of the RP Group, a public limited company, under HKAS 24 'Related Party Disclosure'. The RP Group, merchant bankers, has a number of subsidiaries, associates and joint ventures in its group structure. During the financial year to 31 October 20X1, the following events occurred: (i) The company agreed to finance a management buyout of a group company, AB, a limited company. In addition to providing loan finance, the company has retained a 25% equity holding in the company and has a main board director on the board of AB. RP received management fees, interest payments and dividends from AB. (ii) On 1 July 20X1, RP sold a wholly owned subsidiary, X, a limited company, to Z, a public limited company. During the year, RP supplied X with second hand office equipment and X leased its factory from RP. The transactions were all contracted for at market rates. 2/3BUS 20281 Topic 5 Tutorial Assignment - Related Party Disclosures (HKAS24) Question 1 (Adapted from Chow, L., Kan, S., Taylor, D. & Tsui, C. (2006). Advanced Financial Accounting in Hong Kong. Hong Kong: Longman.) B Lid is a company within the following group: M Led N Led 50% 35% 10% B Led H Ltd X Lid The directors of the companies are: M Ltd: John Sin, David Sin N Ltd.: Ken Yeung, Paul Yeung B Ltd.: John Sin, Terence Pak H Ltd.: David Sin, Siu Chuen Yip X Ltd.: Arthur Yeung, Ernest Yeung For each of the companies and directors listed in the question, identify which is related party of B Ltd under HKAS 24. Give reasons for your decisions