Prague Limited commenced trading on 1 April 2017 and the company's non-current assets include two properties (Praha 1 and Praha 2), which are let to tenants who are not con- nected with the company. Prague Limited has decided to adopt the fair value model in accounting for its investment properties, which were professionally valued for the first time on 31 December 2017. Details of the valuation are as follows:

Requirement:

Explain and show the journal entries needed to record the change in value of each of the properties for the nine months ended 31 December 2017.

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Cost Fair Value Property 000 000 Praha 1 Praha 2 1,000 1,400 1,300 1,100