Haydn Ltd and Ravel Ltd own 51% and 49% respectively of the ordinary shares that carry equal voting rights at a general meeting of shareholders of Verdi Ltd. Ravel Ltd also holds some options of Haydn Ltd, once exercised, allow Ravel Ltd to acquire half of Haydn Ltds voting rights. These options are exercisable for the next three years, but the exercise price is deeply out of the money (and is expected to remain so for the next three-year period).

Required:

Determine whether Haydn Ltd is a parent of Verdi Ltd by referring to the primary criterion provided by IFRS 10 / AASB 10 Consolidated Financial Statements.

(6 marks)