Pearl Bhd is having a 55% interest in Jade Bhd since the year 2018. Jade Bhd is a newly formed company to manage a textile business owned by Pearl Bhd, Silky Bhd, and Sateen Bhd. The ownership of the business was divided according to the capital contribution. Each of the owners is having the right to the net assets of Jade Bhd in proportion to the agreed ratio as stipulated in their agreement with sharing of control.

Required:

Based on the above scenario, determine whether Pearl Bhd is having control in Jade Bhd as per MFRS 3 Business Combination or MFRS 11 Joint Arrangements. Provide justification for your answer.