Accounting Treatment of Joint Ventures under IFRS

In the context of financial reporting, a joint venture is defined as an arrangement where two or more parties come together to undertake an economic activity that involves sharing profits, losses, and control. In assessing how a joint venture is reported in consolidated financial statements, it's essential to understand the accounting method applied based on ownership and the degree of control exerted.

Which of the following statements correctly describes the accounting treatment of joint ventures under International Financial Reporting Standards (IFRS)?