accounting for associates

My confusion: Since this is an upstream transaction (associate selling to investor), I thought the unrealised profit should reduce the “share of profit from associate” in the SPL (using the journal entry: DR Share of profit from associate CR Inventories So why is the unrealised profit deducted from the investment in associate (SOFP) instead? Question: Ulysses Co owns 25% of Grant Co, purchased for $5 million on 1 May 20X8. At acquisition, Grant had retained earnings of $7.4 million, and at 31 Oct 20X8, retained earnings were $8.5 million after a $1 million dividend. On 30 Sept, Grant (the associate) sold $600,000 of goods to Ulysses (the investor) at a 30% profit margin. Ulysses hadn’t resold the goods by year-end. The investment in Grant is reported at $5,230,000, and the working includes: Cost: $5,000,000 25% of post-acquisition retained earnings: $275,000 Less: Unrealised profit: $45,000 --> im confuse why is this here