Nature Ltd and Sky Ltd own 35% and 40% respectively of the ordinary shares that carry voting rights at the general meetings of shareholders of House Ltd. The remaining 25% is owned by various small shareholders. Nature Ltd, Sky Ltd and most of the small shareholders have attended and voted at past general meetings. At House Ltds most recent general meeting, Sky Ltd did not vote and Nature Ltd had sufficient votes to elect three directors to the board of nine. All other matters put to a vote of the shareholders were for routine business and the proposals of the executive management were carried.

Required:

Using each component of the definition of control in AASB 10 Consolidated Financial Statements, explain whether House Ltd is a subsidiary of any of the other entities and why you reached this decision. Your answer must evaluate each component of the definition of control under the relevant accounting standards.