Tech plc and Cap plc have a joint arrangement in which the former contributes PPEs and the later contributes the cash from its loan with a bank. After 10 years, Tech will keep PPEs and Cap will pay off the debt.

Which of the following statements is/are incorrect?

(i) IFRS require that Tech plc shall use full consolidation to account for the joint arrangement.

(ii) IFRS require that Cap plc shall use the equity method to account for the joint arrangement.

(iii) IFRS require that Tech plc and Cap plc shall report their own contributed assets and liabilities on their consolidated statement of financial position.

a.

(i) and (ii)

b.

(i)

c.

(iii)

d.

(ii)

Clear my choice