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I’ve just got a quick question re the above:
In calculating the associate (Clarity), I understand why we revalue the original investment to fair value, so that’s fine.
My issue is that this appears to have been taken into account in the individual statements, as Clarity is held at $20m (ie original investment 8 + fv uplift 1 + purchase of new shares 11).
If this is the case, why does the answer incorporate the gain into retained earnings? Surely this has already been done if Clarity is being held at revised cost?
Thanks.
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