William has agreed with Winnie to form a property investment company. According to the agreement, both William and Winnie will own 50% interest in the investment. William will contribute HK$10 million as share capital (at par) to get his 50% interest in the investment. The board of directors will include representatives from both William and Winnie in accordance with their respective shareholding in the investment. All resolutions at the shareholders' or the board of directors' level will be agreed and passed by both William and Winnie according to their ownership interests. All the other operating decisions will be made by the representatives of Winnie and Winnie will purchase all the properties developed by the investment. How will Winnie account for the investment when the investment is formed?

Select one:

a. to consolidate the investment in its consolidated financial statements

b. to equity account for it as a joint venture

c. to recognise it as a joint operation

d. to equity account for the investment as an associate