Question
Ford Ltd has a 25% interest in the share capital of Falcon Ltd, which is a company involved in the same industry as Ford. The
Ford Ltd has a 25% interest in the share capital of Falcon Ltd, which is a company involved in the same industry as Ford. The remaining 75% of the share capital is owned by Mr and Mrs Fairbrother. Mr and Mrs Fairbrother are unfamiliar with the industry and so have given Ford Ltd three out of five seats on the board of directors. Ford Ltd takes the lead on all decisions but the business is closely monitored by Mr and Mrs Fairbrother who hold the other two board positions.
Requirement:
Advise Ford Ltd whether it is required to prepare consolidated financial statements
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