News: SOL Norway sovereign fund excludes three more firms from portfolio, page-38

@madamswer I'm sorry but you are wrong.
https://www.asx.com.au/asxpdf/20181023/pdf/43zj5528w0d5r4.pdf
Look at page 57: See "net movement in the fair value of long term equity investments..."?


You refer me to a certain page in the Annual Report, yet it is clear that you failed to properly read what was written on that page.

The Statement of Other Comprehensive Income includes items that "may be classified subsequent to the Income Statement" (see yellow highlighted section below):




The Statement of Comprehensive Income contains items that are reflected in the Balance Sheet (i.e., in the Asset Revaluation Reserve Account that forms part of Stockholder Equity), but do not form part of the P&L of a company.

But don't take my financial accountant, experienced word for it: check with other qualified and experienced financial accountants if you don't believe me (along the company's own financial statements, evidently).

Or, if you want a quicker answer, trying googling a free online accounting resource, such as "Accounting Coach", through which you might be able to improve your accounting knowledge to a workable level.

As a case in point, from Accounting Coach, in relation to Other Comprehensive Income (https://www.accountingcoach.com/blog/what-is-other-comprehensive-income) :






"I did look at note 11 and googled your quote "Changes in the value of long-term equity investments are recognised in equity through the asset revaluation reserve". Bottom line is, they are arbitrarily apportioning what flows through the PnL and what doesn't. The question is why?"

Because the company's financial managers, directors and the company's auditors are adhering to the accounting standards, which expressly provide for doing it that way.

That you find that to be arbitrary reflects, I suspect, overwhelmingly lack of understanding and/or experience in the field of financial accounting. If you really understood control provisions in accounting governance terms, then you'd find that accounting for investments in controlled entities differently to accounting for investments in equity-accounted associate entities, is all really perfectly intuitive.

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