On January 1, 2013, P Company purchased net assets of S Company. You have the following Data:

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On January 1, 2013, P Company purchased net assets of S Company. You have the following Data:
1- The Book Values of acquiree's (S Company) assets and liabilities are as follows: Equipment (net) £500,000, Furniture (net) 200,000, Current assets £600,000, Long-term Loan £300,000 and AP £200,000.
2- The fair values of the acquiree's assets and liabilities are equal to the book values except the following: Equipment £1,000,000, Furniture £450,000 and Current assets £1,550,000.
3- Acquirer (P Company) paid £200,000 in cash and issued bonds payable with a face value £1,450,000 and issue price £1,400,000 and issued 10,000 common stocks with a par value £10 and market value £15 to acquiree's shareholders.
4- In-process development project of the acquiree of £300,000 although its success probabilities are very low.
5- Acquiree (P Company) should pay £40,000 cash under an earlier contract to its employees in the event that it is acquired in a business combination.
6- The combination agreement includes a commitment to the acquiree's shareholders to pay £150,000 in cash if the average profits for the next two years will exceed £1000,000.
7- An acquiree has a restructuring plan of £300,000, implementation is conditional upon its being acquired in a business combination.
8- With respect to the merger, S company incurred £20,000 of accounting and consulting costs. S company incurred cost related to the issuance of stocks £40,000.
2
Required:
1- Record the combination on the acquirer Corporation's books under revised IFRS (3) on January 1, 2013.
2- Assume that on August 1, 2013 new information revealed that due to further negotiation with the employees, the earlier contract should be revalued at £30,000 and the contingent liability could be revalued at £160,000. In addition, In-process development project should revalued at 325,000. Prepare the relevant journal entry.
3- Refer to the original information in (1), assume that the contingent liability is met, prepare the relevant journal entry.
4- Assume that on August 1, 2014 new information revealed that in-process development project should revalued at 225,000. Prepare the relevant journal entry.