As an intern working for an audit firm, you are required to make judgement about the existence of parent-subsidiary relationship in three hypothetical scenarios as follows. 1. Canterbury Ltd is a company that was hurt by a recent global financial crisis. As a result, it experienced major trading difficulties. It previously obtained a significant loan from Fremantle Bank, and when Canterbury Ltd was unable to make its loan repayments, the bank made an agreement with Canterbury Ltd to become involved in the management of that company. Under the agreement between the two entities, the bank had authority for spending within Canterbury Ltd. Canterbury Ltd.'s managers had to obtain authority from the bank for acquisitions over $10000, and was required to have bank approval for its budgets. 2. Broome Ltd owns 80% of the equity shares of Shark Bay Ltd, which owns 100% of the shares of Geraldton Ltd. All companies prepare reports under IFRS standards. Although the shares of Shark Bay Ltd are not traded on any stock exchange, its debt instruments are publicly traded. 3. Regis Ltd is a major financing company whose interest in investing is return on the investment. Regis Ltd does not get involved in the management of its investments. If the investees are not managed properly, Regis Ltd sells its shares in that investee and selects a more profitable investee to invest in. It previously held a 35% interest in Esperance Ltd as well as providing substantial convertible debt finance to that entity. Recently, Esperance Ltd was having cash flow difficulties and persuaded Regis Ltd to convert some of the convertible debt into equity so as to ease the effects of interest payments on cash flow. As a result, Regis Ltd.'s equity interest in Esperance Ltd increased to