case study question: grange(dec-2009)

hi guys
i am stuck in grange question on disposal part of sitin. it said that there is $36 million identifiable net assets when dispose sitin’s 60% equity for 39 million and there is $32 million when parent acquire 100% sitin’s interest. of the increase in net assets, $ 3m reported to profit or loss and $1 MILLION HAD BEEN REPORTED IN OTHER COMPREHENSIVE INCOME AS PROFIT ON AN EQUITY INSTRUMENT (WITH IRRECOVERABLE OF ELECTION). what i don’t understand is that $1 million was deducted from net assets to derive gain/loss on disposal? why it is deducted and what the terms “with irrecoverable of election” means? please help meout