IFRS3 Business Combination

Hi, I want to ask something relating to the accounting treatment of Fair value adjustments for subsidiary’s NCA at acquition date. As far as I know, under IFRS3, for the purpose of consolidation and calculation of Goodwill, if there is an increase in the fair value of the subsidiary’s non-current asset at the acquisition date, the amount of incease of the fair value of the Subsidiary’s NCA will be accounted as : Dr. NCA Cr. Subsidiary’s Retained Earnings However, according to the IAS16 Revaluation Model, for instance, if PPE has an increase in their fair value, the amount of increae will be charged to Revaluation Reserves and recorded as: Dr. NCA Cr. RR Thus, what I want to know is why it should be recorded as RE, not RR? and if it is because it has to be at fair value, what if it goes to RR? What is the effect on calculating the FairValueNetAsset of the Subsidiary? Also, I want to know why should I use RE when I recognise the fairvalue of assets from Subsidiary upon consolidation at year end. For example, In a question, it says Parent's and Subsidiary's equity investments are carried at their fairvalues as at 31.3.2008 which is last year. The fairvalue of these investments at 31.3.2009 is increased by $20 million and decreased by $3 million respectively. In given answer, the entries are In Parent's book, Dr. Equity Investment Cr. RE In Subsidiary's book, Dr. RE Cr. Equity Investment I don't understand why it goes to RE... I’ll wait for your answer. Thanks :)