Case Study Information The Directors of Garden Ltd (a listed company) have come to your accounting firm to seek advice on how to account for the investments they have in the five (5) entities-- Alyssum Ltd, Sunflower Ltd, Pansy Ltd, Nasturtium Ltd and Violet Ltd. All shares issued by each of the entities are ordinary shares with normal voting rights. All key facts as known to the company are provided below Nasturtium Ltd Pansy Ltd Garden Ltd owns 70% of the issued capital. Garden Ltd owns 20% of the issued The remaining shares are owned by three capital. institutional investors who each own 10% of Nasturtium Ltd owns 20% of the issued the issued capital. They take a keen interest in capital. the running of the company and attend all Two institutional investors equally hold meetings. 50% of the issued capital. These The current board of directors of Nasturtium shareholders regularly attend meetings Ltd has five members. Three directors on the and vote. board of Nasturtium Ltd are appointed by The remaining 10% of the issued capital Garden Ltd. are owned by a geographically diverse group of investors who each hold a small parcel of shares, many of whom are unlikely to attend meetings. Sunflower Ltd Alyssum Ltd Garden Ltd owns 30% of the issued capital. Garden Ltd owns 40% of the issued Nasturtium Ltd owns 40% of the issued capital. capital. The remaining shares are owned by a small . The remaining shares are owned by two group of investors who each own no more than institutional investors who each own 30% 5% of the issued shares. of the issued capital. Garden Ltd and Nasturtium Ltd each have two All investors have rights to the net assets appointees on the board of directors which has of Alyssum Ltd. five members. The current board of directors of Alyssum Ltd has five members. One director on the board of Alyssum Ltd is appointed by Garden Ltd. The other directors are appointed by the two institutional investors. Violet Ltd Garden Ltd owns 50% of the issued capital. Mary Ltd owns the remaining 50% of issued capital. Garden Ltd and Mary Ltd have rights to the net assets of Violet Ltd. The shareholders of Violet Ltd have a contractual agreement whereby Garden Ltd or Mary Ltd cannot make any operating, investing or financing decisions without the expressed consent of the other party. Given the information above, the directors of Garden Ltd would particularly like to know: the type of investment for each entity (i.e. you need to clearly identify the investor-investee relationship) including a summary of the identifying criteria and an application of this criterion; the accounting method to be adopted for this type of investment'; and which entities, if any, would form part of the Garden Ltd Group. As a consultant, you are required to give a business oriented presentation for the directors of Garden Ltd to explain the way in which Garden Ltd would account for its investment in the five entities. You must justify your conclusions with suitable referencing to the relevant Australian Accounting Standards. Your presentation should include any assumptions made and is to clearly identify what, if any, additional information Garden Ltd would need to make a final determination if there is any uncertainty