This question has 3 separate elements. They are not related to each other and should be answered independently of each other. a) Crossley plc's Chief Financial Officer is preparing disclosures for the draft financial statements. She is unsure how to treat the following relationships. - A senior manager of Crossley plc owns 25% of the share capital of Swift Ltd. The senior manager has a 1% shareholding in Crossley plc - A house owned by Crossley plc, shown at its carrying value of 650,000, had a market value of 875,000. It was sold to a (different) director of Crossley plc for 725,000. The director took out a loan for the purchase which was guaranteed by Crossley plc - Crossley plc's largest supplier is Crabb Ltd. Purchases are on an arm's length basis and at the year end, Crabb Ltd was owed 1,200,000 by Crossley plc Required: Under IAS 24 Related Party Disclosures (and any other relevant IFRS standards) explain how each item should be treated in the financial statements of Crossley plc. indicating what (if anything) should be disclosed in the notes to the financial statements. 8 marks b) Robinson plc is considering acquiring Wilson Ltd, a competitor that manufactures electric vehicle parts. The following information is available from Wilson Ltd's financial statements and the industry association website. Required: Using the information above, analyse Wilson Ltd's performance against the industry average, suggesting reasons for differences and indicating what further information is needed to enhance your analysis. 8 marks c) Give two reasons why corporate governance is relevant to financial reporting. 4 marks Total 20 marks