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Question 4 (T his question has 2 parts, I and [[)

Question 4 (This question has 2 parts, Part le 1 and 11) (6 marks + 4 marks = 10 marks)e Sunny Ltd and Snowy Ltd own 51 % and 49% respectively of the ordinary shares that carry equal voting rights at a general meeting of shareholders of Rainy Ltd. Snowy Ltd also holds debt instruments that are convertible into ordinary shares of Rainy Ltd. If the debt were to be converted, Snowy Ltd would hold 75% of the voting rights and Sunny Ltd's interest would be reduced to 25%. However, Snowy Ltd has not shown any intention to convert the debt to ordinary shares yet. Required: Determine whether Snowy Ltd is a parent of Rainy Ltd by referring to the primary criterion provided by IFRS 10 / AASB 10 Consolidated Financial Statements.e (6 marks)e ANSWER HERE: Part lie City of Cookie (The council) has entered into a five-year contract with Fleet Ltd, under which Fleet Ltd supplies the council with ten vehicles for the purposes of community transport. Fleet Ltd owns the relevant vehicle, all ten of which are specified in the contract. The council determines the routes taken for community transport and the charges and eligibility for discounts. The council can choose to use the vehicles for purposes other than community transport. When the vehicles are not being used, they are kept at the council's offices and cannot be retrieved by Fleet Ltd unless the council defaults on payment. If a vehicle needs to be serviced or repaired, Fleet Ltd is obliged to provide a temporary replacement vehicle of the same type. Required: In accordance to IFRSI 6 / AASB 16 Leases, identify whether the contract between City of Cookie and Fleet Ltd contain a lease.