Intel, STMicro, and Francisco partners are going into business together taking equity shares in the new venture of, respectively, 45.1%, 48.6% and 6.3%. Assuming no other control-related factors are present, under International accounting principles,
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a. only Intel should account for the new venture as a joint venture.
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b. Intel and STMicro should account for their interests in the new venture as a joint venture.
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c. Intel and STMicro should consolidate the new venture.
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d. only STMicro should consolidate the new venture as a joint venture.
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e. The information provided here is insufficient to determine who should (1) consolidate or (2) account for the new venture as a joint venture.
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