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Question 3: Related party disclosure (14 marks) The following statements identify the relationships among various parties related to FBE Limited (FBE). 1) FBE is an
Question 3: Related party disclosure (14 marks) The following statements identify the relationships among various parties related to FBE Limited ("FBE"). 1) FBE is an 80% owned subsidiary of HKU limited ("HKU"). 2) Telsa Limited ("Telsa") holds 10% of FBE's shares and 15% of HKU's shares; 3) Fusion Limited ("Fusion") holds 5% of shares of FBE; 4) Individual investor, Jason Lim holds 5% of FBE. He is also an independent director of FBE but does not involve in the day-to-day operations of the company. 5) Rachel Lim is the wife of Jason Lim. Rachel is the executive director of FBE, and also the independent director of Fusion, which is a significant customer of FBE, buying 35% of FBE's annual output. 6) Michael Chow is the chairman of HKU limited. His wife is Jessica Chow. Required: In accordance with HKAS 24 Related Party Disclosures, identify whether the entities/persons are related parties of FBE. Provide your justifications
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