Read the following cases and answer the questions.

Case 1: Victoria Co and two other investors each hold a third of the voting rights of Geelong Co. Geelong Cos business activity is closely related to Victoria Co. In addition to its equity instruments, Victoria Co also holds debt instruments that are convertible into ordinary shares of Geelong Co at any time for a fixed price that is out of the money (but not deeply out of the money). If the debt were converted, Victoria Co would hold 60 per cent of the voting rights of Geelong Co. Victoria Co would benefit from realising synergies if the debt instruments were converted into ordinary shares.

Case 2: NSW Co holds 45 per cent of the voting rights of Sydney Co. Two other investors each hold 26 per cent of the voting rights of Sydney Co. The remaining voting rights are held by three other shareholders, each holding 1 per cent. There are no other arrangements that affect decision-making.

Required:

(a) Review the information given in Case 1 and explain whether Victoria Co has power over Geelong Co pursuant to AASB 10 Consolidated Financial Statements. (2 marks)

(b) Review the information given in Case 2 and explain whether NSW Co has power over Sydney Co pursuant to AASB 10 Consolidated Financial Statements. (2 marks)