diff --git a/project_inheritance/app/controllers/reports_controller.rb b/project_inheritance/app/controllers/reports_controller.rb
index cca0b37ab..3f150522c 100644
--- a/project_inheritance/app/controllers/reports_controller.rb
+++ b/project_inheritance/app/controllers/reports_controller.rb
@@ -43,7 +43,7 @@ class ReportsController < ApplicationController
       render :template => "reports/issue_report_details"   
     when "category"
       @field = "category_id"
-      @rows = @project.issue_categories
+      @rows = @project.assignable_categories
       @data = issues_by_category
       @report_title = l(:field_category)
       render :template => "reports/issue_report_details"   
@@ -63,7 +63,7 @@ class ReportsController < ApplicationController
       @trackers = @project.trackers
       @versions = @project.assignable_versions
       @priorities = Enumeration::get_values('IPRI')
-      @categories = @project.issue_categories
+      @categories = @project.assignable_categories
       @authors = @project.members.collect { |m| m.user }
       @subprojects = @project.active_children
       issues_by_tracker
diff --git a/project_inheritance/app/models/project.rb b/project_inheritance/app/models/project.rb
index ea369c0bf..35442cb73 100644
--- a/project_inheritance/app/models/project.rb
+++ b/project_inheritance/app/models/project.rb
@@ -164,10 +164,16 @@ class Project < ActiveRecord::Base
   
   def assignable_versions
     v = versions
-    v +=  parent.versions if Setting.subprojects_inherit_versions? && parent
+    v += parent.versions if Setting.subprojects_inherit_versions? && parent
     v.sort
   end
   
+  def assignable_categories
+    c = issue_categories
+    c += parent.issue_categories if Setting.subprojects_inherit_categories? && parent
+    c.sort
+  end
+  
   # Returns the mail adresses of users that should be always notified on project events
   def recipients
     members.select {|m| m.mail_notification? || m.user.mail_notification?}.collect {|m| m.user.mail}
diff --git a/project_inheritance/app/models/query.rb b/project_inheritance/app/models/query.rb
index afdae5946..368ce83c4 100644
--- a/project_inheritance/app/models/query.rb
+++ b/project_inheritance/app/models/query.rb
@@ -155,7 +155,7 @@ class Query < ActiveRecord::Base
   
     if project
       # project specific filters      
-      @available_filters["category_id"] = { :type => :list_optional, :order => 6, :values => @project.issue_categories.collect{|s| [s.name, s.id.to_s] } }
+      @available_filters["category_id"] = { :type => :list_optional, :order => 6, :values => @project.assignable_categories.collect{|s| [s.name, s.id.to_s] } }
       @available_filters["fixed_version_id"] = { :type => :list_optional, :order => 7, :values => @project.assignable_versions.collect{|s| [s.name, s.id.to_s] } }
       unless @project.active_children.empty?
         @available_filters["subproject_id"] = { :type => :list_one_or_more, :order => 13, :values => @project.active_children.collect{|s| [s.name, s.id.to_s] } }
diff --git a/project_inheritance/app/views/issues/_bulk_edit_form.rhtml b/project_inheritance/app/views/issues/_bulk_edit_form.rhtml
index e9e1cef86..de5814dc2 100644
--- a/project_inheritance/app/views/issues/_bulk_edit_form.rhtml
+++ b/project_inheritance/app/views/issues/_bulk_edit_form.rhtml
@@ -9,7 +9,7 @@
 <label><%= l(:field_priority) %>: 
 <%= select_tag('priority_id', "<option value=\"\">#{l(:label_no_change_option)}</option>" + options_from_collection_for_select(Enumeration.get_values('IPRI'), :id, :name)) %></label>
 <label><%= l(:field_category) %>: 
-<%= select_tag('category_id', "<option value=\"\">#{l(:label_no_change_option)}</option>" + options_from_collection_for_select(@project.issue_categories, :id, :name)) %></label>
+<%= select_tag('category_id', "<option value=\"\">#{l(:label_no_change_option)}</option>" + options_from_collection_for_select(@project.assignable_categories, :id, :name)) %></label>
 </p>
 <p>
 <label><%= l(:field_assigned_to) %>: 
@@ -17,7 +17,7 @@
                                  content_tag('option', l(:label_nobody), :value => 'none') +
                                  options_from_collection_for_select(@project.assignable_users, :id, :name)) %></label>
 <label><%= l(:field_fixed_version) %>: 
-<%= select_tag('fixed_version_id', "<option value=\"\">#{l(:label_no_change_option)}</option>" + options_from_collection_for_select(@project.versions, :id, :name)) %></label>
+<%= select_tag('fixed_version_id', "<option value=\"\">#{l(:label_no_change_option)}</option>" + options_from_collection_for_select(@project.assignable_versions, :id, :name)) %></label>
 </p>
 
 <p>
diff --git a/project_inheritance/app/views/issues/_form.rhtml b/project_inheritance/app/views/issues/_form.rhtml
index fbf0a98f0..52e4b8041 100644
--- a/project_inheritance/app/views/issues/_form.rhtml
+++ b/project_inheritance/app/views/issues/_form.rhtml
@@ -10,7 +10,7 @@
 
 <p><%= f.select :priority_id, (@priorities.collect {|p| [p.name, p.id]}), :required => true %></p>
 <p><%= f.select :assigned_to_id, (@issue.assignable_users.collect {|m| [m.name, m.id]}), :include_blank => true %></p>
-<p><%= f.select :category_id, (@project.issue_categories.collect {|c| [c.name, c.id]}), :include_blank => true %>
+<p><%= f.select :category_id, (@project.assignable_categories.collect {|c| [c.name, c.id]}), :include_blank => true %>
 <%= prompt_to_remote(l(:label_issue_category_new),
                      l(:label_issue_category_new), 'category[name]', 
                      {:controller => 'projects', :action => 'add_issue_category', :id => @project},
diff --git a/project_inheritance/app/views/settings/_projects.rhtml b/project_inheritance/app/views/settings/_projects.rhtml
index 5dabba13c..886d7e4d1 100644
--- a/project_inheritance/app/views/settings/_projects.rhtml
+++ b/project_inheritance/app/views/settings/_projects.rhtml
@@ -8,6 +8,10 @@
 <p><label><%= l(:setting_subprojects_inherit_versions) %></label>
 <%= check_box_tag 'settings[subprojects_inherit_versions]', 1, Setting.subprojects_inherit_versions? %>
 <%= hidden_field_tag 'settings[subprojects_inherit_versions]', 0 %></p>
+
+<p><label><%= l(:setting_subprojects_inherit_categories) %></label>
+<%= check_box_tag 'settings[subprojects_inherit_categories]', 1, Setting.subprojects_inherit_categories? %>
+<%= hidden_field_tag 'settings[subprojects_inherit_categories]', 0 %></p>
 </div>
 
 <%= submit_tag l(:button_save) %>
diff --git a/project_inheritance/config/settings.yml b/project_inheritance/config/settings.yml
index d93c08c76..109a2ce23 100644
--- a/project_inheritance/config/settings.yml
+++ b/project_inheritance/config/settings.yml
@@ -109,3 +109,5 @@ subprojects_inherit_members:
   default: 1
 subprojects_inherit_versions:
   default: 1
+subprojects_inherit_categories:
+  default: 1