Meaow! By way of introduction to the response to your question ..

A non-controlling interest is measured for the SoFP as Value at date of acquisition +

share of post-acq retained share of impairment and for the CSoI they are measured
at
Their share of
this years
subsidiary
adjusted,
time apportioned,
translated
profit after tax
In your post, you are asking about accounting for an associate. In an associate, we are
the nci and I have just established above that this is how we account for ncis
So, for the CSoFP, the investment in the associate is calculated as:Cost of acquisition + share of post-acq retained any impairment
and for the CSoI we are measured as follows:Our share of
this years
associate
adjusted,
time apportioned,
translated
profit after tax
Note the use of the word ADJUSTED
Your first question Example 1:At acquisition .. should we debit Consolidated
Reserves and credit Invesment in associate ; as reserves will change by additional
depreciation on revalued amount } NO, its a notional adjustment to the
associates POST acquisition retained earnings of which we are going to account for
our share within consolidated retained earnings and investment in subsidiary.
The assets at date of acquisition are being fair valued at date of acquisition. You
cannot anticipate into the future the effect on depreciation and then bring that
future effect back into assets at date of acquisition. And you cannot argue that the
revalued, fair valued assets should have had more (or less) depreciation charge in the
past. That would be irrelevant because we are being told what the valuation is as at
date of acquisition

I dont know why you are trying to make this so complicated!

Investment in Associate is calculated (again) as Cost of acquisition + share of postacq retained any impairment
In calculating the post acq retained you could well be faced with an adjustment for additional
depreciation on an upwards revaluation not recorded within the associates records but thats F7
stuf
This basis for arriving at Investment in Associate why are you having problems?
Cost of acquisition surely cannot be a problem
Share of post acquisition retained may be an issue but thats simply the F7 way of comparing
retained earnings today as adjusted for matters such as fair value adjustments and additional
depreciation with retained earnings yesterday as adjusted for fair value adjustments
And any impairment since acquisition should equally be within an F7 students abilities