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adjustments to fair value for prior year acquisitions and minor acquisitions
Carrying values
at acquisition
provisional
fair value
adjustment
fair value of net
assets acquired
£’000 £’000 £’000
Intangible assets 450 - 450
Inventories 200 - 200
Trade and other receivables 113 - 113
Trade and other payables (374) - (374)
Deferred tax liability - (6,402) (6,402)
389 (6,402) (6,013)
The provisional acquisition accounting for Everlast has been adjusted to reflect the effective rate of taxation for this company at the point of acquisition. It is the Group’s
policy to make material adjustments and revisions retrospectively. The adjustment to deferred taxation has been processed through the current year.
Cash flows arising from the acquisition are as follows:
26 april 2009
Cash consideration 790
Net cash outflow in the cash flow statement 790
The goodwill is attributable to the premium paid to strengthen the Group’s existing business segments of retail and brand, which is in line with the Group’s strategy.
purchase of minority interests
Lonsdale Sport 23 December 2008 (1)
This was an additional acquisition which takes the cumulative holding up to 100%
date of acquisition percentage of
equity acquired
£’000
nature of
activity
20 Wholesale
Carrying values
at acquisition
Minority interests 340
Cash flows arising from the acquisition are as follows:
£’000
340
26 april 2009
Cash consideration 5,818
Net cash outflow in the cash flow statement 5,818
£’000
Sports Direct International PLC Annual Report 2009 63