Subsidary ?

Yes (IFRS 10) … I believe

Here’s an extract from the IASPLUS website on IFRS 10

“An investor considers all relevant facts and circumstances when assessing whether it controls an investee. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. [IFRS 10:5-6; IFRS 10:8]

An investor controls an investee if and only if the investor has all of the following elements: [IFRS 10:7]

power over the investee, i.e. the investor has existing rights that give it the ability to direct the relevant activities (the activities that significantly affect the investee’s returns)

exposure, or rights, to variable returns from its involvement with the investee

the ability to use its power over the investee to affect the amount of the investor’s returns.”

I believe that the parent has the power and the ability to exercise that power by dint of the convertible 20% but I have to say that satisfying those three criteria is not clear cut

On balance, I’m saying ‘Yes, it’s a subsidiary”

Probably!