Financial Reporting for Joint Ventures

XYZ Corporation and ABC Limited have formed a joint venture to produce renewable energy solutions. Under this arrangement, both companies contribute equally to capital and operational management. For financial reporting purposes, the joint venture must maintain consistent accounting treatment regardless of how the investment is structured (i.e., equity method vs. proportionate consolidation).

In the context of this joint venture, which of the following statements is true regarding the relevant financial reporting considerations for joint ventures?