IFRS3 Fair value adjustment

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?

I’ll wait for your answer.