The adjustment to recognize an entity's share of the asset revaluation reserve relating to an associate based on the on application of the equity method involves a debit to

Question

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The adjustment is made to Investment in associate account and it involves debiting the account. This adjustment is made to recognize the entity's share of the asset revaluation reserve of the associate, which increases the carrying amount of the investment. The other options are not relevant to this adjustment.

The Adjustment to Recognize an Entity's Share of the Asset