In the following independent situations, determine whether a parent-subsidiary relationship exists and which entity, if any, is a parent required to prepare consolidated financial statements under IFRS 10.
1. Albany Ltd and Busselton Ltd each hold 50% of the shares in Dunsborough Ltd, all companies being involved in the computer software industry. Albany Ltd agrees that Busselton Ltd should provide the management of Dunsborough Ltd because of the expertise provided by its managing director, Bob Gates. Busselton Ltd receives a management fee for providing its expertise.
2. Alice Ltd has recently acquired a 35% interest in Springs Ltd, a company that has discovered large deposits of iron ore. Alice Ltd has extensive experience in the mining industry and, as a result, has been able to have four of its directors elected to the board of Springs Ltd, which has six directors in total.
3. Darwin Ltd holds 30% of the shares issued by Arnhem Ltd. The other shareholders come from mixed backgrounds, but each holds on average 10% of shares in Darwin Ltd. There are seven directors of Arnhem Ltd. Four of these are appointed by Darwin Ltd. The other three directors are appointed by three of the other shareholders who have an interest in the management of the company. Most of the remaining shareholders live outside Australia and rarely attend board meetings of Darwin Ltd unless they have other business to attend to in Australia around the same time as the board meetings are held.