Adam Hamshere, the finance director of Snake Oil Investments Ltd (SOIL), is unsure whether he should consolidate some of the investments that the company owns. He has asked your advice as business adviser to SOIL. The details of the investments are as follows: (a) Gill and Tony Girth are founders of Creamy Eats, an up-market French food home delivery company. They both sit on the board and own 60 per cent of the shares. They have recently retired from actively running the company and have sold the other 40 per cent of the shares to SOIL who manages the company on their behalf, holding the other three seats on the board. Although Gill and Tony keep a close eye on the business, they let SOIL make the major decisions. (b) Get Rich App Ltd (GRAL) is part funded by SOIL, which owns 50% of the shares, and by Where's Your Money Ltd (WYML) which owns the other 50%. The votes of the ordinary shares in the annual general meetings and the board representation are shared equally between SOIL and WYML. WYML and SOIL have agreed that SOIL will provide the finance on a standard commercial basis with the loan being secured by a mortgage on GRAL's property. The agreement also stipulates that WYML will provide the necessary managerial and entrepreneurial expertise in return for a management fee. The management fee will be paid out of GRAL's net profits after providing for all SOIL's loan interest payments. Where GRAL does not make a profit the interest payments will still take place, but no management fee will be paid. (c) SOIL had provided a loan to Gambler Ltd (GL) some years ago. When it looked as if GL would be unable to repay the loan it was converted into equity which gave SOIL a 70% holding in GL. GL continues to have a substantial accumulated losses balance and the company's results have been consolidated with SOIL for some time. SOIL does not take an active role in the day to day operations of GL as it has no directors on the board, and it takes no part in the operating or financing decisions of the company. (d) SOIL has also provided a loan to the Draw A Long Bow Company Ltd (DALBCL). Unfortunately, due to the COVID-19 industrial economic downturn the DALBCL has failed to meet its loan repayments as required by the loan contract. The board of SOIL is concerned that not only would the DALBCL continue to have problems but also that the whole of the loan would become unrecoverable. The board of DALBCL has agreed, as part of a bailout package, that SOIL would take charge of DALBCL's finances for the next four years. The SOIL deputy chief finance officer would control all payments made by DALBCL and no payments would be made without prior approval. SOIL does not have board representation on DALBCL which is appointed by the DALBCL shareholders. Asia Pacific College of Business and Law ACT305 Corporate Accounting Assignment 5 of 5 REQUIRED A report to Adam, advising him how the control requirements of AASB 10 apply in each of the above investments. State, for each investment, where the control rests, citing and explaining how the relevant paragraphs of AASB10 apply, and whether Adam should include the results of the investments within the consolidated accounts explaining the reasons for your decision. (18 marks) The report should take the format of a formal business report, written by your firm with yourself as lead author. Marks will be awarded for presentation style and an appropriate business format. (10 marks)