ABC Ltd owns 25% interest in D Ltd. which are in the same industry. the remaining 75% of share capital is owned by Mr and Mrs Holden. They are unfamiliar with the industry and have given ABC 3 out of 5 seats on the board of directors.. ABC takes the lead on all decisions however the business is closley monitored by mr and mrs holden, who hold the other two.

Advise abc ltd if its required to prepare consolidated financial statements - does control exist?