Mars Limited has acquired 60% shareholdings and obtained control of its main competitor, Jupiter Limited, and purchased 30% shareholdings of its main supplier, Saturn Limited, on 1 January 2020.

Miss Venus, the director of Mars Limited, understands that the company needs to prepare its first consolidated financial statements starting from the year ended 31 December 2020 in accordance with HKFRSs. She would like to ask you the accounting treatment of the following.

1. As per HKFRS 3 (Revised) Business Combinations, Miss Venus would like to know how Mars Limited accounts for its acquisitions of the controlling interest in Jupiter Limited. (3 marks)

2. Jupiter Limited had an unrecognised intangible asset amounted HK$120,000 on 1 January 2020. Assume that the unrecognised intangible assets fulfil the recognition criteria, advise Miss Venus how the unrecognized intangible assets should be accounted for at and after the acquisition date in the consolidated financial statements. (3 marks)

3. Assume Saturn Limited had a property with an excess of fair value over book value as at 1 January 2020. Discuss how the fair value adjustment on the property of the associate should be accounted for at and after the acquisition date in the consolidated financial statements. (4 marks)