The Investment Income account recorded in the equity method of accounting does not fit the definition of realized revenue

The Equity method of accounting is followed for investments where the stake holdings range more than 20% to 50%. Under this method, the initial recognition would be the same as the cost method wherein the closing balance of investments is restated at the end of every reporting period and also it is adjusted for any dividends and profits earned/distributed during the period respectively.

And realized revenue means the revenue which is received by the entity either in cash (or) cash equivalent. The investment income account doesn't fit the realized revenue because the profit (or) loss of an entity in which we hold more than 20% is adjusted in the investment account itself. Any increase or decrease is reflected in the investment account, rather than the income statement.