Exercise 3 (15 Points) HAG has investments in a number of companies: 1) H AG owns 45 % of the voting share of B AG ii) H AG owns 60 % of the voting shares of C AG and C AG owns 30% of the voting shares of D AG. Recently H AG has purchase 70% of the voting shares of E AG and E AG owns 30% of the voting shares of D AG. The accountant does not consider D AG to be a subsidiary of H AG. iii) Recently, H AG has purchased 60% of shares of N AG. Prior to the purchase, N AG had in issue 12,000,000 ordinary shares of 1 each. Each ordinary share carries a single vote. These shares where owned equally by each of the directors of N AG. For the purchase, the directors of N AG sold 4,000,000 ordinary shares to H AG, and N AG issued 4,000,000 preference shares of 1 each to H AG. The preference shares do not carry a vote. Consider and, where appropriate, discuss whether the following companies are subsidiaries of H AG when applying IFRS 10: a) B AG b) D AG c) NAG