Peach Ltd has acquired $45\%$ of ordinary shares in Star Ltd$.$ Another investor has a $10\%$ shareholding in Star Ltd whilst the remaining voting rights are held by thousands of shareholders, none of whom

individually hold more than $1\%$ of the voting rights. Peach Ltd holds convertible debt instrument that, as at $30$ June $2024,$ are convertible into ordinary shares of Star Ltd at a price of $ $25$ per share. At $30$

June $2024,$ the shares of Star Ltd trade at $ $24\mathrm{.}25$ per share. Peach Ltd would hold $65\%$ of the voting rights in Star Ltd if Peach Ltd exercise its right to convert the debt. Both companies operate in the same

industries and would benefit from synergies.

Discuss how Peach Ltd$$s investment in the ordinary shares of Star Ltd should be treated in the consolidated financial statements for the year ended $30$ June $2024.[10$ Marks$]$