CERTYNEX IFRS ACADEMY

The Calvereau group and its three domestic subsidiaries are under a tax consolidation regime: a single consolidated return is filed by the parent (case data). For a machine held by one of the subsidiaries, how is the tax base used in the consolidated financial statements determined?

By reference to the consolidated return filed for the tax group.

By reference to the separate return the subsidiary would file if it were taxed alone.

By using the carrying amount of the machine in the consolidated financial statements.

By using the average of the tax bases of the subsidiary and of the parent.