You overhear another accounting student complain while reading the application guidance in Appendix B to AASB 10: The application of control under AASB 10 is overly complex. The definition of control is vague and leaves too much room for interpretation. It seems that power need not be exercised. It would be better to consider the investors intention and whether the investor actually planned to direct the relevant activities. In my view, where an investor owns a majority of the voting rights and has no experience or resources (ability) or intention to direct the relevant activities, it is not really a controlled investment or part of the economic entity. Required: Evaluate this claim. In your response, you should: (i) explain the difference between active and passive control; (ii) explain how the definition of control is applied in the case of a passive investor; and (iii) discuss the relative merits and drawbacks of consolidation in the case of passive control.