Page 10 - Financial Accounting 2.1 ITC Preparation June 2018
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ITC EXAM PREP – JUNE 2018
Discussion Questions - example
Sushi Stars Ltd prepares sushi for seafood restaurants using its own
ingredients. However, Sushi Stars Ltd decided that they no longer have
the capacity to catch tuna on a large scale and identified Tuna Ltd as a
main supplier of tuna.
Tuna Ltd signed a contract with Sushi Stars Ltd in which they agreed that
they will only supply tuna to the last mentioned company and that the
board of directors will be appointed by Sushi Stars Ltd. Sushi Stars Ltd also
acquired 15% of the share capital and voting rights of Tuna Ltd in terms of
the contract.
Discuss, with reasons, whether Sushi Stars Ltd exercises control over
Tuna Ltd
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