CHINA EASTERN AIRLINES CORP LTD (ifrs-full:DisclosureOfDeferredTaxesExplanatory)

38	DEFERRED TAXATION

Deferred tax assets and liabilities are offset when there is a legally enforceable right of offsetting and when the deferred income taxes relate to the same authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated statement of financial position:


	2017			2016
	*RMB million*			*RMB million*
Deferred tax assets		122			79
Deferred tax liabilities		(18	)		(86	)

Net deferred tax assets/(liabilities)		104			(7	)

Movements in the net deferred tax assets/(liabilities) were as follows:


	2017			2016
	*RMB million*			*RMB million*
At 1 January		(7	)		235
Credited/(charged) to profit or loss (note 14)		162			(146	)
Charged to other comprehensive income		(51	)		(96	)

At 31 December		104			(7	)

The deferred tax assets and liabilities (prior to the offsetting of balances within the same tax jurisdiction) were made up of the taxation effects of the following:


	2017			2016
	*RMB million*			*RMB million*
Deferred tax assets:
Impairment provision for obsolete flight equipment spare parts		51			22
Impairment provision for receivables		64			70
Impairment provision for property, plant and equipment		104			11
Derivative financial instruments		82			15
Impairment provision for available-for-sale investments		25			25
Other payables and accruals		29			88
Aged payables		5			7

		360			238

Deferred tax liabilities:
Depreciation and amortization		(56	)		(85	)
Available-for-sale investments		(162	)		(123	)
Derivative financial instruments		(38	)		(37	)

		(256	)		(245	)

		104			(7	)

Movements in the net deferred tax assets/(liabilities) of the Group for the year were as follows:


							(Charged)/
	At the			(Charged)/			credited to other			At the
	beginning of			credited to			comprehensive			end of
	the year			profit or loss			income			the year
	*RMB million*			*RMB million*			*RMB million*			*RMB million*
For the year ended 31 December 2017
Impairment provision for flight equipment spare parts		22			29			—			51
Impairment provision for receivables		70			(6	)		—			64
Impairment provision for property, plant and equipment		11			93			—			104
Derivative financial instruments		15			78			(11	)		82
Impairment provision for available-for-sale investments		25			—			—			25
Other payables and accruals		88			(59	)		—			29
Aged payables		7			(2	)		—			5

		238			133			(11	)		360

Depreciation and amortization		(85	)		29			—			(56	)
Available-for-sale investments		(123	)		—			(39	)		(162	)
Derivative financial instruments		(37	)		—			(1	)		(38	)

		(245	)		29			(40	)		(256	)

Net deferred tax assets/(liabilities)		(7	)		162			(51	)		104


							(Charged)/
	At the			(Charged)/			credited to other			At the
	beginning of			credited to			comprehensive			end of
	the year			profit or loss			income			the year
	*RMB million*			*RMB million*			*RMB million*			*RMB million*
For the year ended 31 December 2016
Impairment provision for flight equipment spare parts		43			(21	)		—			22
Impairment provision for receivables		80			(10	)		—			70
Impairment provision for property, plant and equipment		26			(15	)		—			11
Derivative financial instruments		25			—			(10	)		15
Impairment provision for available-for-sale investments		25			—			—			25
Other payables and accruals		89			(1	)		—			88
Tax losses		133			(133	)		—			—
Aged payables		—			7			—			7

		421			(173	)		(10	)		238

Depreciation and amortization		(136	)		51			—			(85	)
Available-for-sale investments		(39	)		(24	)		(60	)		(123	)
Derivative financial instruments		(11	)		—			(26	)		(37	)

		(186	)		27			(86	)		(245	)

Net deferred tax assets/(liabilities)		235			(146	)		(96	)		(7	)

As at the reporting date, the Group had the following balances in respect of which deferred tax assets have not been recognized:


	2017				2016
	Deferred		Temporary		Deferred		Temporary
	taxation		differences		taxation		differences
	*RMB million*		*RMB million*		*RMB million*		*RMB million*
Tax losses carried forward		42		167		409		1,637
Other deductible temporary differences		6		27		32		128

Total unrecognized deferred tax assets		48		194		441		1,765

In accordance with the PRC tax law, tax losses can be carried forward, for a period of five years, to offset against future taxable income. The Group’s tax losses carried forward will expire between 2018 and 2022.

As at 31 December 2017, management carried out an assessment to determine whether future taxable profits will be available to utilize the tax losses and deductible temporary differences. As there are still uncertainties around the Group’s future operating results, such as future fuel prices and market competition, management assessed that for certain subsidiaries there are significant uncertainties that future taxable profits will be available and the deferred tax assets arising from aforementioned tax losses and deductible temporary differences were not recognized.

CHINA EASTERN AIRLINES CORP LTD | CIK:0001030475 |

ifrs-full:DisclosureOfDeferredTaxesExplanatory