7 Entity B is a first-time adopter of IFRS. Entity B has previously accounted for an investment that is classified as a joint operation under IFRS 11 using the equity method of accounting under other GAAP. What is one of the steps that Entity B is required to take when changing from the equity method to accounting for assets and liabilities in respect of its interest in a joint operation? Derecognize the equity method investment and recognize any difference from the amount recognized for the joint operation as an offset against any goodwill only. Retain the investment that was accounted for using the equity method and adjust the carrying amount through profit or loss. Determine its interest in the assets and liabilities relating to the joint operation on the basis of its rights and obligations in a specified proportion in accordance with the contractual arrangement. Determine its interest in the assets and liabilities related to the joint operation on the basis of the relative fair value of its equit