Accounting for Joint Ventures

XYZ Corporation and ABC Enterprises entered into a joint venture to expand their market reach in sustainable energy solutions. Under the terms of their agreement, each company contributed equal capital and resources to create Green Innovations LLC, which will operate as a separate entity. The joint venture is structured such that both companies have equal voting rights and share profits and losses equally. At the end of the fiscal year, Green Innovations LLC reported significant net income, and each parent company must consolidate its share of the joint venture on its financial statements.

Regarding the accounting treatment for this joint venture, which of the following statements accurately describes XYZ Corporation's and ABC Enterprises' reporting obligations as it pertains to their investment in Green Innovations LLC?