Sun Ltd has a 30% interest in the share capital of Ted Ltd, which is a company involved in the same industry as Sun. The remaining 70% of the share capital is owned by Mr and Mrs Smith. Mr and Mrs Smith are unfamiliar with the industry and so have given Sun Ltd three out of five seats on the board of directors. Sun Ltd takes the lead on all decisions but the business is closely monitored by Mr and Mrs Smith who hold the other two board positions. Explain whether Sun Ltd is required to prepare consolidated financial statements