2019 Annual Report (^125)
19 Deferred tax assets/(liabilities)
(a) Components of recognised deferred tax assets/(liabilities)
(CNY million) 2019 2018
Accruals, provisions and unperformed obligations 7,023 12,466
Depreciation of property, plant and equipment (1,831) (830)
Provision for loss allowances 303 319
Write-down of inventories 372 517
Unrealised profit 3,195 2,935
Tax losses 1,331 1,187
Undistributed profits of subsidiaries (1,6 41) (1,784)
Others 370 510
Total 9,122 15,320
Reconciliation to the consolidated statement of financial position:
(CNY million) 2019 2018
Net deferred tax assets recognised in the summary consolidated
statement of financial position
10,877 17,257
Net deferred tax liabilities recognised in the summary consolidated
statement of financial position
(1,755) (1,937)
9,122 15,320
(b) Deferred tax assets not recognised
Deferred tax assets were not recognised in relation to certain unused tax losses and deductible temporary
differences in accordance with the accounting policy set out in note 3(o).
Based on the business forecast, certain group entities have reduced the estimated future taxable profits,
resulting in an increase in unrecognised tax losses, tax credits and deductible temporary differences as a whole.
Meanwhile, as permitted by the relevant income tax laws in the PRC, a group entity chose to utilise unused tax
losses from current and previous years against taxable income from its foreign operations in the current year, in
priority to utilising overseas withholding tax credits. This resulted in a decrease in unrecognised tax losses with a
corresponding increase in unrecognised overseas withholding tax credits as at December 31, 2019.
The expiry dates of unused tax losses for which no deferred tax asset is recognised are as follows:
(CNY million) 2019 2018
Expiring in:
2020 – 668
2021 281 294
2022 893 399
2023 522 918
2024 and afterwards or no expiry period 14,369 22,884
16,065 25,163
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