At the end of 2014, a parent company, P plc, with one subsidiary, had a holding representing $10 \%$ of the equity of $R$ Ltd, a clothing company. It had cost $£ 80,000$ when purchased at the start of 2013. At the time of that investment, R Ltd had net assets of $£ 560,000$ which increased to $£ 840,000$ by the end of that year. At the start of the current year, the investment was increased by a further $11 \%$ of the equity at a cost of $£ 110,000$.

Required:

(a) How would the investment be shown in the financial statements if it were treated as an investment, i.e. as neither an associate nor as a subsidiary?

(b) How would the investment be shown in the financial statements if it were treated as an associate? 

Tangible non-current assets