Equity MethodSince they own 25% of Canopy Rivers they have to use the equity method. Meaning that they record % gains or loss from their earnings (net income/loss), not gains on the market value of the asset. If they used the fair value method, then it would be recorded in the income statement as unrealized gains or loss in the non-operating income section or the other comprehensive income section.
In the balance sheet any changes in the fair value of the asset will be balanced in the equity section. So any earnings gains or loss will be added or deducted in the balance sheet.