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Part A Azalea Limited owns 40% of Poppy Limited. However, Azalea Limited has options to buy a further 25% of Poppy Limited, although they are

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Part A Azalea Limited owns 40% of Poppy Limited. However, Azalea Limited has options to buy a further 25% of Poppy Limited, although they are not exercisable for another 3 years. Also, Azalea Limited does not have the intension and financial capability to exercise the options currently. The remaining 60% of shares in Poppy Limited are owned by the Puuaks, family. Azales Limited does not have a maiority.of seats on Poppy Limited's Board of Directors. Required: Explain how Azalea Limited should scoount for its investment in Poppy Limited, with reference to the definition of control. (5 marks) Type your answer here

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