7. At balance date, Company A has 40% of the voting rights in Company B. In addition, Company A holds potential voting rights in Company B amounting to 6% that are currently exercisable, and a further 9% of voting rights in Company B that can be exercised in two years time. Which of the following statements is correct?

a) consolidated financial statements must be prepared for company A and B in the current year.

b) consolidated financial statements need not be prepared for company A and B for the current year.

c) consolidated financial statements must be prepared as company A controls company b at balance date.

d) consolidated financial statements must be prepared as company A has more than half of the voting rights in company B at the balance date.