=+1. TOWER Limited purchased a 75% interest in KITE Limited on 1 January 1994 for

€173 million. There was no difference between the book values and fair values of the net assets of KITE Limited at 1 January 1994, and the statement of financial position of KITE Limited at that date showed:

€ million Share capital (€1 ordinary shares) 100 Retained earnings 104 204 For the purposes of measuring non-controlling interests at the date of acquisition, the proportionate share method equated to the fair value method. The directors ofp TOWER Limited estimate that the goodwill arising during the year ended 31 December 2003 on the acquisition of KITE Limited was impaired by €10 million.