Q3. (22 marks) Adam Hamshere, the nance director of Washington Oil Investments Ltd (WOIL), is unsure whether he should consolidate some of the investments that the company owns. He has asked your advice as business adviser to WOIL. The details of the investments are as follows: (a) Gill and Tony Girth are founders of Creamy Eats, an up-market French food home delivery company. They both sit on the board and own 60 per cent of the shares. They have recently retired from actively running the company and have sold the other 40 per cent of the shares to WOIL who manages the company on their behalf, holding the other three seats on the board. Although Gill and Tony keep a close eye on the business, they let WOIL make the major decisions. (4 marks) (b) Get Rich App Ltd (GRAL) is part funded by WOIL, which owns 50% of the shares, and by Where's Your Money Ltd (WYML) which owns the other 50%. The votes of the ordinary shares in the annual general meetings and the board representation are shared equally between WOIL and WYML. WYML and WOIL have agreed that WOIL will provide the nance on a standard commercial basis with the loan being secured by a mortgage on GRAL's property. The agreement also stipulates that WYML will provide the necessary managerial and entrepreneurial expertise in return for a management fee. The management fee will be paid out of GRAL's net prots after providing for all WOIL's loan interest payments. Where GRAL does not make a prot the interest payments will still take place, but no management fee will be paid. (4 marks) (c) WOIL had provided a loan to Gambler Ltd (GL) some years ago. When it looked as if GL would be unable to repay the loan it was converted into equity which gave WOIL a 70% holding in GL. GL continues to have a substantial accumulated losses balance and the company's results have been consolidated with WOIL for some time. WOIL does not take an active role in the day-to-day operations of GL as it has no directors on the board, and it takes no part in the operating or financing decisions of the company. (4 marks) (d) WOIL has also provided a loan to the Draw A Long Bow Company Ltd (DALBCL). Unfortunately, due to the COVlD-19 industrial economic downturn the DALBCL has failed to meet its loan repayments as required by the loan contract. The board of WOIL is Asia Pacic College of Business and Law ACT503 Corporate Accounting Assignment Semester 2, 2021 Page 1 of 5 concerned that not only would the DALBCL continue to have problems but also that the whole of the loan would become unrecoverable. The board of DALBCL has agreed, as part of a bailout package, that WOIL would take charge of DALBCL's nances for the next four years. The WOIL deputy chief nance ofcer would control all payments made by DALBCL and no payments would be made without prior approval. WOIL does not have board representation on DALBCL which is appointed by the DALBCL shareholders. (4 marks) REQUIRED Write a report to Adam, advising him how the control requirements of AASB 10 apply in each of the abov investments. State, for each investment, where the control rests, citing and explaining how the releval paragraphs of AASB1O apply, and whether Adam should include the results of the investments within th consolidated accounts explaining the reasons for your decision. (16 marks) The report should take the format of a formal business report, written by your rm with yourself as lead auth Marks will be awarded for presentation style and an appropriate business format. A formal business rep! format includes Title (To whom is the report addressed), Executive Summary/ Introduction, Each situati dealt with, Business English and Conclusion. (6 marks)