Blanket Co. has gradually been acquiring shares of Towel Co. and now owns 15% of the outstanding voting common shares. The remaining 85% of the shares are widely held. Based on the shareholders' agreement, Blanket has elected 33% of the members of the board of directors. Blanket also has lent one of its management team members to Towel to act as Towel's CEO for the next year. Which of the following describes how the investment in Towel should be reported in the financial statements of Blanket, if Blanket reports under IFRS?

A. Blanket should prepare consolidated financial statements.

B. Blanket should account for the investment as FVPL or FVOCI-elect.

C. Blanket should use the equity method to account for the investment.

D. Blanket should use the equity method or the cost method to account for the investment.