Assume that P Limited acquired 80% of the ordinary share capital of S Limited two years ago

(31 December 2015). The tangible non-current assets of § Limited (book value €160,000)

were revalued at €180,000 at the date of acquisition. This revaluation has not been recorded in the books of S Limited. Depreciation has been provided by S Limited at the rate of 10% per annum on the reducing balanced basis since the acquisition. At the reporting date

(31 December 2017), the net book value of these tangible non-current assets in S Limited’s books was €129,600.

Requirement Prepare the necessary journal entries, giving effect to the revaluation and any necessary depreciation adjustment.