What definition of control in aasb

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Old Ltd owns 40% of the shares in New Ltd. There are four other shareholders in New Ltd each with approximately a 15% ownership interest in the company. There are five directors in New Ltd and two of these have been appointed by Old Ltd. The other directors were appointed by three of the other four shareholders who have an interest in New Ltd. One of the other shareholders in New Ltd lives outside Australia and rarely attends meetings of New Ltd.

Required:

Question 1: Using each component of the definition of control in AASB 10 Consolidated Financial Statements, explain whether or not Old Ltd has control of New Ltd and why you reached this decision. Your answer must evaluate each component of the definition of "control" under the relevant accounting standards.

Reference no: EM132563409

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