• H owns 80% of A.

• Investment in A at historical cost: 100

• Actual Equity of A: 1000

• Adjustment amount in H related to investment in A =

  (80% * 1000) = 800 – 100 = 700

The EPU adjustment impacts both assets and equity in the holding company.

Investments in A: 700 (Debit)

Equity: 700 (Credit)