Tesco 2004 Annual Report Download - page 56

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54 TESCO PLC
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
NOTE 34 Acquisitions
The net assets and results of acquired businesses are included in the consolidated accounts from their respective dates of acquisition.
The following tables set out the effect of the material acquisitions by the Group in the year to 28 February 2004 on the
consolidated balance sheet. Acquisition accounting has been applied in all cases. The fair values currently established for all acquisitions
made in the year to 28 February 2004 are provisional. Fair values will be reviewed based on additional information up to
26 February 2005. The Directors do not believe that any net adjustments resulting from such a review would have a material
effect on the Group. The goodwill arising on these acquisitions has been capitalised and is being amortised over 20 years.
C Two-Network
C Two-Network was acquired on 17 July 2003 and included in the consolidated balance sheet at 28 February 2004. The purchase
consideration was £176m. The net assets of C Two-Network on acquisition and the provisional fair values were as follows:
Adjustments
Book values to align Fair values
of acquired accounting at date of
business policies Revaluations acquisition
£m £m £m £m
Fixed assets 13 2 (3) 12
Stock 88
Debtors 2424
Cash 3131
Creditors (30) (2)  (32)
Net assets acquired 46 (3) 43
Consideration
Cash 176
Goodwill 133
The principal fair value adjustment made to the net book values of the assets and liabilities of C Two-Network was the revaluation
of Þxed assets.
For the year ended 31 March 2003, C Two-Network reported an audited proÞt after tax and minority interest of £11m, and for
the period 1 April 2003 to 16 July 2003 an unaudited post-tax proÞt of £5m based on its then accounting policies.