1. In the following situation, discuss which entity, if any, may be a parent required to prepare consolidated financial statements under AASB 10/IFRS 10.

Runner Ltd owns 80% of the shares of Beep Beep Ltd, which owns 100% of the shares of Looney Ltd. All companies prepare their own financial reports under AASB/IFRS accounting standards. Although the shares of Beep Beep Ltd are not traded on any public stock exchange, its debt instruments are publicly traded.