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Gum Pty Ltd (Gum) is a private company with many strategic investments. The finance director Adam William is concerned that he might be required to
Gum Pty Ltd (Gum) is a private company with many strategic investments. The finance director Adam William is concerned that he might be required to consolidate some of these investments, pursuant to AASB 10. Details of the investment relationships are as follows: I. Gum has a 25% interest in the share capital of Wattle Pty Ltd (Wattle), which is a company involved in the same industry as Gum. The remaining 75% of the share capital is owned by Wattles founders, Mr and Mrs Rose. Mr and Mrs Rose are unfamiliar with the industry and so have given Gum three of the five seats available on the board of directors. Gum takes the lead on all decisions, but the
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