Accounting for Joint Ventures

Company A and Company B formed a joint venture to develop a new technology product. The joint venture, called Tech Innovations LLC, is structured such that both companies share control and profits equally.

As of the end of the reporting period, Company A has invested $1 million in cash and has provided engineering services worth $500,000 to Tech Innovations LLC. Company B has contributed $1.2 million in assets and will also provide marketing services worth $300,000.

In accordance with IFRS, Company A needs to determine how to reflect its share of the joint venture's financial results. Which of the following accounting methods should Company A use to account for its interest in Tech Innovations LLC?