Forgot to mention that I was just trying to emerge gnome-light. Managed to solve my problem by researching what dependencies are required by adwaita-icon-theme and found them in this link. Apparently librsvg is required and was not present in my system so a simple emerge librsvg and then emerge x11-themes/adwaita-icon-theme was successful. I also ran emerge gtk+ after emerge librsvg just to be sure that the gtk+ dependency was satisifed.
New to Funtoo Linux, got the system installed and running yesterday. Now trying to get a GUI running but get stuck on this problem. Sadly very new to compiling of source programs so I have not much clues about how to troubleshoot this kind of problem. See attached files for details. Any help with this will be most appreciated. emergeinfo.txt emergepqv.txt buildlog.txt