Talenti Gelato And Sorbetto Case Study

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Executive Summary of Talenti Gelato and Sorbetto Introduction-Background on Talenti Talenti Gelato and Sorbeto (Talenti) is a U.S. based manufacturer of a wide assortment of ice creams, sorbets and gelatos. They are known for their delicious flavours, extensive range and the quality of their products. In order to make sure that their quality remains of the finest caliber, they produce it all in the United States of America. They also have dairy farms located around the globe, namely the United States, Jersey and South Africa. This allows Talenti to maintain a level of quality as well as allowing them to have significant control over the supply chain. Talenti’s leading products has generated interest from high profile companies looking to purchase …show more content…

According to IFRS for SME’s section 14, Investments in Associates, An associate is an entity, including an unincorporated entity such as a partnership, over which the investor has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the associate but is not control or joint control over those policies. If an investor holds 20% or more of the voting power of the associate, it is presumed that the investor has significant influence, unless it can be clearly demonstrated that this is not the case. Unilever’s 38% share is more than the 20% related with associates, so they do have significant influence however it is less than 50% so they would not have control, making Talenti an associate of Unilever at this time. • Acquisition by Alberto Culver: In addition to Unilever acquiring 38% of ordinary shares in Talenti, Unilever’s subsidiary, Alberto Culver, acquired 40% worth of ordinary equity in Talenti. Again, Alberto Culver would not have control as it did not acquire 50% or more. Talenti would be an associate of Alberto Culver at this time as it has significant influence at 40%. The remaining 22% of ordinary equity will be retained by the Non-Controlling Interest (NCI) in

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