On 1 July 2021, Kookaburra Ltd acquired 30% of the issued shares of Koala Ltd. On 1 January 2022, Kookaburra Ltd sold inventories to Koala Ltd. Half of these inventories remain in Koala Ltd by 30 June 2022.

During the year ended 30 June 2022, in relation to the unrealised profit of the inventory, the investment in associate account is

: not affected as unrealised profits are only adjusted if it is sold from Koala Ltd to Kookaburra Ltd

not affected as the unrealised profit only applies to parent-subsidiary relationship

increased by the investors share of the unrealised profit in the inventory

decreased by the investors share of the unrealised profit in the inventory