Select the image and check that the ICC Profile listed in the Links panel is Document CMYK. If it isn't choose Object>Image Color Settings> Use Document Default. I assume your final destination color is ISO Coated CMYK, so because all of the color is already in that CMYK space, there won't be any color conversions and you don't need to turn on Proof Colors—turn on Overprint/Separation Preview instead:
Thanks Rob, now looks good...
although ive opened another can of worms ..
Whilst in PS, the CMYK working space is Europe ISO coated FOGRA27 and the colour management policies are turned off (as i control colors etc via the work space).
In ID, i have the same workspace as PS, however in color management polices, do i simply 'turn off' or 'convert' to working space so that all project assets are the same?
Once again, thanks in advance
A press can only have one profile so you have to decide what it is, FOGRA27 or ISO Coated v2. Mixing CMYK profiles almost always causes color management problems because at some point in the workflow you will have to force a CMYK to CMYK conversion, which is never ideal.
It sounds like you leave the CMYK CM policy to Off in Photoshop, but when you save you include the FOGRA27 profile? If that's the case you get a profile conflict (and different color) when you place it in an ID document with ISO Coated v2 assigned.
Also, I assume you are only trying to match background colors to demonstrate the CMYK color problem?
Photoshop and InDesign manage color the same way so usually there's not much reason to make CMYK conversions in PS unless you have to make a post CMYK color correction. So you can pick a favorite RGB editing space and set the RGB policies to Preserve Embedded and let the conversion happen to the correct CMYK space on export from InDesign.
In Photoshop you can see the effect of converting to your CMYK working space without actually making the conversion by turning on Proof Colors with the Proof Setup set to Working CMYK. In the Info panel you can see the future CMYK values by setting an eyedropper to Proof Color. Similarly in ID you can turn on Overprint/Separation Preview to see RGB previewed in the document's CMYK profile.