MARZI AG CASE:

Marzi AG had the following investments in shares of other companies on December 31, Year 1:

COMPANYSTATUS% VOTING RIGHTSCOMMENTS

AriyaDomestic100%Operations differ from those of

Marzi AG and other subsidiaries

JighilDomestic45%No other shareholder owns more

than 0.1% of the voting rights

ArinaForeign30%Arina has incurred a net operating

loss three years in a row

SophiaDomestic100%Sophia is under jurisdiction of

bankruptcy court

KristenDomestic100%Operations are immaterial to those of

Marzi AG

LaylaDomestic40%Management control contract

provides Marzi AG with effective control

SaraDomestic90%Marzi AG intends to sell one-half of

its investment in Sara but not yet actively seeking a buyer

SaharForeign50%Sahar is jointly owned with another

company

SepeedForeign15%No other shareholder owns more

than 10% of the voting shares

ShaghiForeign70%Marzi AG can no longer bring home

its dividends due to the host government passed a ban on repatriation of dividends

ZohrehDomestic51%Remaining 49% is owned by another

company.

Determine the appropriate method for including each of these investments in Marzi AG's consolidate financial statements in accordance with:

a)IFRS

b)U.S. GAAP