CERTYNEX IFRS ACADEMY

In a business combination, the Malvenne group measures the identifiable assets acquired at fair value; the legislation (case data) retains their previous tax bases. Which statement is correct?

No temporary difference: a business combination has no tax consequences.

The differences arise only in the acquiree's separate financial statements.

The gaps are permanent differences, since fair value is never taxed when the assets are used.

Temporary differences arise between the fair values used and the unchanged tax bases.