dvise the finance director of FXL Bank of the requirements of AASB10 in respect of the control criterion. Indicate where the control rests and whether or not consolidation will be required. ZXY Pty Ltd is a family run book publishing company that has purposely refrained from using high technology equipment over the past five years as the directors 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 bank (FXL Bank) too 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 whether to 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.
Advise the finance director of FXL Bank of the requirements of AASB10 in respect of the control criterion. Indicate where the control rests and whether or not consolidation will be required.
ZXY Pty Ltd is a family run book publishing company that has purposely refrained from using high technology equipment over the past five years as the directors 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 bank (FXL Bank) too 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 whether to 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.
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