By design, changes in the balance sheet have equal components in...

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    By design, changes in the balance sheet have equal components in the P/L account, and vice versa, so that essentially the P/L made by a company is reflected in an equal change in its net book value, measured by the balance sheet. So a non-cash income is recorded in the P/L account to measure the capital gain from the higher value of the oyster stock. Higher Pearl prices not surprisingly increase the market value of the oyster stock.
 
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