The following are independent cases:

a) SPG Ltd, a supplier of sailing equipment, was incorporated 10 years ago and is 60 percent owned by GPS Ltd. SPG has been a very successful business, averaging annual profits of $500 000. However, during the past two years, the company has run into financial difficulties and has defaulted on its loan with its bank. Consequently, the bank has used the powers in the loan agreement to monitor the company's activities closely to obtain repayment of its debt. The company must now obtain the bank's authorization for any expenditure over $5000 and no changes in operations of the company are permitted without the bank's approval.

b) ZYX Pty Ltd is a family-run book publisher that has purposely refrained from using high technology equipment over the past five years as the directors (the L family) considered it to be a 'fad' and a waste of the company's resources. As a result, the company's antiquated equipment has failed to produce quality material and has been very inefficient compared with ZYX's competitors. During the current year, the company's bankers took possession of the company's assets, converted all the debt into equity, and two directors of the bank were appointed to ZYX's board, which now totals four people. The bank is undecided on whether it should sell the company's assets, which have little recoverable value or inject further equity into the company, purchase more advanced equipment and attempt to trade on and sell the business as a going concern.

c) M Ltd is a 30 percent shareholder of Investment Co. Pty Ltd. The other shareholders have smaller shareholdings (around 8 to 12 percent) and are always too busy to attend annual general meetings. M Ltd has two non-executive seats on the board and the remaining three are held by other shareholdersone chief executive officer who is a shareholder and two non-executiveswho attempt to attend board meetings

d) B Ltd is a 51 percent shareholder in C Ltd and currently has two out of five board seats. R Ltd is the remaining 49 percent shareholder and currently has the other three seats. B Ltd is a passive shareholder as it is happy with the way R Ltd has been running the company.

e) A Ltd, B Ltd, and C Ltd are each 33.3 percent shareholders of XY Pty Ltd, a small proprietary company that is involved in the music industry. C Ltd and A Ltd are passive shareholders with one board seat each out of a total of three. B Ltd has one board seat and is also involved in the day-to-day running of the business.

For each of the above independent situations, determine whether or not control exists and, if so, by which party (under IFRS 10). Discuss the reasons for your answers.