In an Acquisition of Land by a Parent from a Subsidiary

Multiple Choice

In an acquisition of land by a parent from a subsidiary, the realization of profit acquired on the land acquisition is recorded in the consolidated financial statements?

A) In the first year that the group's consolidated financial statements are prepared.
B) When the asset is subsequently sold to a party outside of the group.
C) As it is amortized over the period of the life of the other assets.
D) No profit will be realized because land is not amortized.