SeanWest

I vaguely recall this question - if I’m not mistaken, you’ve left out a few key details. In this case, I believe the adjustment to remove the investment in an associate is being made because the analyst had determined that comparable industry participants account for similar investments as available-for-sale. So while you’re removing the investment in an associate from both assets and equity … equity will be increased by any unrealized gain on the investment.
Though, I could be remembering wrong…
Given your basic set of facts - if you are simply “removing” an investment altogether, and not accounting for it some other way (which begs the question… why not?) - then your adjustment would be correct - reduce assets and equity.