Adjustments made for the purpose of calculating the incremental adjustment to the share of profit of an associate are:

A) recognised in the books of the investee.
B) recognised in the books of the investor.
C) notional adjustments and not recorded in the books of the investee.
D) relate to realised transactions and so are recognised directly by the investee.

Incremental Adjustment

A modification made to accounts or values in small stages, often used for accounting adjustments or to refine estimates.

Investee

An entity in which an investor holds an interest, and typically has significant influence over, but does not control.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns, encompassing a broad range of investment strategies and vehicles.