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This is relevant to Advanced Financial Accounting --- 1) Lannister Ltd owns 35% of Baratheon Ltd. Furthermore, Lannister Ltd has options to buy a further

This is relevant to Advanced Financial Accounting

---

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1) Lannister Ltd owns 35% of Baratheon Ltd. Furthermore, Lannister Ltd has options to buy a further 45% of Baratheon Ltd, which are currently exercisable, although Lannister Ltd does not intend to exercise the options. The remaining 65% of shares in Baratheon Ltd are owned by a large number of investors. Currently, Lannister Ltd controls 2 out of the 5 board of director seats. How should Lannister Ltd account for its investment in Baratheon Ltd? Explain why

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