Based on the information provided above, how would GH’s investment in JK be accounted for in its consolidated financial statements?

GH acquired 3,000,000 of the 12,000,000 equity shares of JK. All shares carried equal voting rights and no other single shareholder of JK held more than 10% of the equity shares. GH has the power to participate in the financial and operating policy decisions but not control them.

Based on the information provided above, how would GH’s investment in JK be accounted for in its consolidated financial statements?
A . Associate
B . Joint venture
C . Joint arrangement
D . Financial asset

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Answer: A