MARZI AG CASE:

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

COMPANY STATUS % VOTING RIGHTS COMMENTS

Ariya Domestic 100% Operations differ from those of

Marzi AG and other subsidiaries

Jighil Domestic 45% No other shareholder owns more

than 0.1% of the voting rights

Arina Foreign 30% Arina has incurred a net operating

loss three years in a row

Sophia Domestic 100% Sophia is under jurisdiction of

bankruptcy court

Kristen Domestic 100% Operations are immaterial to those of

Marzi AG

Layla Domestic 40% Management control contract

provides Marzi AG with effective control

Sara Domestic 90% Marzi AG intends to sell one-half of

its investment in Sara but not yet actively seeking a buyer

Sahar Foreign 50% Sahar is jointly owned with another

company

Sepeed Foreign 15% No other shareholder owns more

than 10% of the voting shares

Shaghi Foreign 70% Marzi AG can no longer bring home

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

Zohreh Domestic 51% Remaining 49% is owned by another

company.

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

IFRS

U.S. GAAP