Can someone solve all these points a), b), c)

Question 3 Power plc is a firm that produces electricity using solar power. Power plc's share capital comprises 20,000 ordinary shares. Power plc has only two shareholders, Utility plc and Rainbow plc, which own 10,000 ordinary shares each. Utility plc and Rainbow plc have a contractual agreement that governs their investment in Power plc. The key terms of the agreement are: - Decisions about the relevant activities of Power plc require approval by a majority of the voting rights; Power plc can sell electricity only to its shareholders. Each shareholder has a right to purchase 50% of Power plc's output; - Power plc's management can be authorised to sell its output to third parties, but such authorisation must be unanimously approved by both shareholders. Past experience indicates that the entire output of Power plc is usually purchased by its two shareholders. You are helping the management of Utility plc to understand the accounting consequences of their investment in Power plc. Required: a) Explain whether Utility plc's investment in Power plc meets the IFRS definition of a joint arrangement. 6 marks b) Describe how the investment in Power plc should be accounted in Utility plc's consolidated financial statements, explaining the related IFRS rules. 12 marks c) Utility plc's management have expressed their preference for applying joint venture (JV) accounting in relation to the investment in Power plc, because "in our view, JV accounting has favourable financial reporting consequences for Utility plc". Speculate about the possible reasons for such a preference. 7 marks Question 3 Power plc is a firm that produces electricity using solar power. Power plc's share capital comprises 20,000 ordinary shares. Power plc has only two shareholders, Utility plc and Rainbow plc, which own 10,000 ordinary shares each. Utility plc and Rainbow plc have a contractual agreement that governs their investment in Power plc. The key terms of the agreement are: - Decisions about the relevant activities of Power plc require approval by a majority of the voting rights; Power plc can sell electricity only to its shareholders. Each shareholder has a right to purchase 50% of Power plc's output; - Power plc's management can be authorised to sell its output to third parties, but such authorisation must be unanimously approved by both shareholders. Past experience indicates that the entire output of Power plc is usually purchased by its two shareholders. You are helping the management of Utility plc to understand the accounting consequences of their investment in Power plc. Required: a) Explain whether Utility plc's investment in Power plc meets the IFRS definition of a joint arrangement. 6 marks b) Describe how the investment in Power plc should be accounted in Utility plc's consolidated financial statements, explaining the related IFRS rules. 12 marks c) Utility plc's management have expressed their preference for applying joint venture (JV) accounting in relation to the investment in Power plc, because "in our view, JV accounting has favourable financial reporting consequences for Utility plc". Speculate about the possible reasons for such a preference. 7 marks