Tesco 2004 Annual Report Download - page 57

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TESCO PLC 55
NOTE 34 Acquisitions continued
Kipa
Kipa was acquired on 11 November 2003 and included in the consolidated balance sheet at 28 February 2004. The purchase
consideration was £96m. The net assets of Kipa 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 403750
Stock 66
Debtors 145
Cash 24 (2)  22
Creditors (19) (7)  (26)
Provisions for liabilities and charges (1) 1
51 (1) 7 57
Minority interest (5)
Net assets acquired 52
Consideration
Cash 93
Other 3
Goodwill 44
The principal fair value adjustments made to the net book values of the assets and liabilities of Kipa comprise the revaluation of
freehold property to market value, based on valuations obtained from independent experts. Adjustments have also been made
to align accounting policies for tangible Þxed assets, debtors, cash, creditors and provisions.
The Turkish economy is subject to hyper-inßation and therefore hyper-inßation accounting under international accounting standards,
is required. The Directors do not consider that it is meaningful to provide details of the results of Kipa for the year ended
31 December 2002 as these accounts were not prepared using hyper-inßation accounting. For the period 1 January 2003 to
10 November 2003, Kipa reported an unaudited provisional proÞt after tax of nil, based on its then accounting policies.