News: SOL Norway sovereign fund excludes three more firms from portfolio, page-31

This is complete garbage.
The unrealised capital gains/(losses) do indeed flow through the income statement.
Otherwise the balance sheet would show the 'portfolio' at cost not financial assets at fair value.


If what I posted is garbage, then it is only because I was using the company's audited financial statements and the accompanying detailed notes as my reference source.

And those financial statements and accompanying detailed notes state that, besides for a few small items (i.e,. investments in investment properties (valued at $158m) and trading equities (worth 70m), unrealised capital gains/(losses) on the remainder of SOL's $4.3bn of Non-Current Assets do not flow through the Income Statement.

Instead, the changes in fair value of investments are matched by movements in the asset revaluation reserve account (for Investments in Associates and Long-Term Equity Investments), or not at all (Investments in Controlled Entities and Joint Operations/Joint Ventures).


Fee free to refer to the notes to the accounts to correct your misunderstanding, notably:

Note 8: Investments in Controlled Entities (i.e., NHC+ a few other small entities) - not recognised as individual investment; instead, "...assets and liabilities of each controlled entity are recognised in SOL's Statement of Financial Position", so no P&L impact on change in fair value of controlled entities

Note 9: Investments in Joint Operations and Joint Ventures (same accounting treatment as for Investments in Controlled Entities)

Note 10: Investments in Associates (Carrying Value @ 30 June 2018 = $1.517bn; Fair Value = $2.836bn) - Equity accounted. "Carrying value does not reflect the fair value of the Group's investment in the associates."

Note 11: Other Equity Investments (Carrying Value (reflected at fair value) of at $732m) - "Changes in the value of long-term equity investments are recognised in equity through the asset revaluation reserve...", i.e., not through the P&L.


Summary:

The only changes in asset fair values that are booked to SOL's P&L relate to SOL's "trading equities" and "investment properties". But, together, these represent only $230m, out of Total Assets of $5.3 billion, so quite insignificant in the scheme of things.