On 1 March 2019, Heckle Ltd acquired 40% of the voting shares of Jeckle Ltd. Under the company's constitution, each share is entitled to one vote. On the basis of past experience, only 65% of the eligible votes are typically cast at the annual general meetings of Jeckle Ltd. No other shareholder holds a major block of shares in Jeckle Ltd.

The financial year of Jeckle Ltd ends on 30 June each year. The directors of Heckle Ltd argue that they are not required under AASB 10 to include Jeckle Ltd as a subsidiary in Heckle Ltd's consolidated financial statements at 30 June 2019 as there is no conclusive evidence that Heckle Ltd can control the financial and operating policies of Jeckle Ltd. The auditors of Heckle Ltd disagree, referring specifically to past years voting figures.

Required:

Provide a report to Heckle Ltd on whether it should regard Jeckle Ltd as a subsidiary in its preparation of consolidated financial statements at 30 June 2019.