CERTYNEX IFRS ACADEMY

In the Escandor group, the North subsidiary, which had acquired land for 500,000, sold it for 650,000 to the South subsidiary. Both subsidiaries are taxed separately, with no consolidated return; in South's return, the tax base of the land is 650,000 (case data). On consolidation, the intragroup gain is eliminated. Which temporary difference arises in the consolidated financial statements?

None, since the intragroup gain was eliminated on consolidation.

A difference of 150,000 in South's separate accounts, then eliminated on consolidation.

A difference of 150,000 between the consolidated carrying amount (500,000) and South's tax base (650,000).

None, because the tax base to use is the original cost borne by North.