This is from the CFAI text on FRA, eg 6 on Page 30. I dont understand the "Jone’s share of the unrealized profit =16000*25%=4000? This sale belongs to Jones and not Jason. As I understand if Jason sells the goods then Jones will have a 25% share in its proift?
sale belongs to jones, jones is a subsidiary (associate) of Jonas. Jones is providing net income to Jonas - (Parent). so if you do not remove portion not included - you would be double counting the profit, since Net Income includes the profit already.