The statements of financial position for Medusa Ltd, Stheno Ltd and Euryale Ltd as at December 2016 are as follows: Statement of Financial Position as at 31 December 2016 Stheno Ltd Euryale Ltd 350,000 40,000 Medusa Ltd Non-current asset (land) 720,000 230,000 40,000 35,000 Inventories Trade Receivables Dividend receivable from group companies Inter-company Inter-company loans receivable from Euryale Ltd Cash 150,000 15,000 12,000 80,000 30,000 143,000 50,000 loans receivable from Stheno Ltd 75,000 1,530.000 380.000 480,000 100,000 226,000 40,000 500,000 250,000 Share capital (1 nominal value) Retained profits Revaluation reserve Trade payables 200,000 190,000 40,000 10,000 20,000 20,000 480,000 730,000 14,000 30,000 10,000 Inter-company loans payable to Medusa Ltd 50,000 1,530.000 380,000 Dividend payable Medusa Ltd acquired 70% of Steno Ltd for f260,000 on 1 January 2012 when Steno Ltd's share capital and reserves stood at 200,000. At this date the fair value of Stheno Ltd's non-current assets was 280,000 but they were recorded at their historical cost of 240,000. Stheno Ltd has not incorporated this revaluation in its books. Medusa Ltd acquired 25% of Euryale Ltd for 80,000 on 1 January 2014. At this date the fair value of Euryale Ltd's non-current assets was f300,000 and Euryale Ltd incorporated this revaluation into its accounts. The share capital and reserves on 1 January 2014 of Euryale Ltd, including the revaluation reserve, stood at f260,000 No changes to the share capital of Stheno Ltd and Euryale Ltd have occurred since their acquisition by At the year-end, all group companies declare a dividend of 10p per share. These dividends have been Medusa Ltd's inventory figure includes 15,000 of inventory which had been bought from Stheno Ltd. Medusa Ltd's inventory figure also includes 20,000 of inventory which has been bought from Goodwill is to be capitalised. Impairment of 65,000 is seen against the value of the goodwill of Medusa Ltd. accounted for corectl y. Stheno Ltd had paid f9,000 for these goods. Euryale Ltd. Euryale Ltd had paid 10,000 for these goods. Stheno Ltd in 2016. 2 I P a ge Required (a) Define a subsidiary and an associate company. Outline the differences in how such companies are accounted for. Refer to the applicable IFRS and IAS. (5 marks) Definition of subsidiary and control (1 mark) Definition of associate and significant influence (1 mark) Relevant standards and brief description of accounting methods (3 marks) - (b) Prepare the group's consolidated statement of financial position as at 31 December 2016. (20 marks)