Question · Taxable temporary differences and deferred tax liabilities

On acquiring Ternelle, the Sauvigal group recognises a brand in its consolidated financial statements at fair value, 500,000. In Ternelle, taxed separately, the internally created brand has no tax base (case data). The finance director considers that no deferred tax should be recognised, since the transaction 'does not go through profit or loss'. Which analysis should be adopted?