A. Sypathi, a public limited company, acquired 40% of the voting rights of Humber and the remaining investors hold 5% each. A shareholders’ agreement gives Sypathi the right to appoint, remove and set remuneration for management responsible for key decisions of Humber. To vary the agreement, a two-thirds majority vote of shareholders is needed. Use the IFRS definition of control to determine whether Sypathi controls Humber. 

B. Phoenix, an agrochemical company, acquired 30% of the shares of a leading chemical producer, Chem-Tech. Phoenix is a representative on the Board of Directors and currently provides technical information to Chem-Tech which means that Phoenix will participate in the policymaking process. What is the relationship between Phoenix and Chem-Tech? Use relevant information provided to support your answer.

C. Describe the consolidation process according to IFRS 10. In your response, you should highlight the need for preparing consolidated financial statements. 

D. With the use of relevant Jamaican examples, define the following according to IFRS 10:

i. Parent

ii. Group

iii. Non-controlling interest

iv. Subsidiary

v. Goodwill