CHINA SOUTHERN AIRLINES CO LTD (ifrs-full:DisclosureOfTemporaryDifferenceUnusedTaxLossesAndUnusedTaxCreditsExplanatory)

(a)

Movements of net deferred tax assets are as follows:


	At the beginning of the year			Acquired in business combination			(Charged)/ credited to consolidated income statements			Charged to other comprehensive income			At the end of the year
	RMB million			RMB million			RMB million			RMB million			RMB million
For the year ended December 31, 2017
Deferred tax assets:
Accrued expenses		1,065			—			(45	)		—			1,020
Provision for major overhauls		505			—			186			—			691
Deferred revenue		87			—			1			—			88
Provision for impairment losses		174			—			74			—			248
Provision for tax losses		—			—			10			—			10
Change in fair value of derivative financial instruments		—			—			16			—			16
Others		86			—			(4	)		—			82

		1,917			—			238			—			2,155

Deferred tax liabilities:
Provision for major overhauls		(261	)		—			45			—			(216	)
Depreciation allowances under tax in excess of the related depreciation under accounting		(659	)		—			26			—			(633	)
Change in fair value of derivative financial instruments		(5	)		—			—			(6	)		(11	)
Change in fair value of available-for-sale equity securities		(110	)		—			—			(31	)		(141	)
Fair value remeasurement of identifiable assets in business combination		—			(30	)		4			—			(26	)
Others		(38	)		—			(11	)		—			(49	)

		(1,073	)		(30	)		64			(37	)		(1,076	)

Net deferred tax assets		844			(30	)		302			(37	)		1,079


	At the beginning of the year			Credited/ (charged) to consolidated income statements			Charged to other comprehensive income			At the end of the year
	RMB million			RMB million			RMB million			RMB million
For the year ended December 31, 2016
Deferred tax assets:
Accrued expenses		751			314			—			1,065
Provision for major overhauls		472			33			—			505
Deferred revenue		82			5			—			87
Provision for impairment losses		201			(27	)		—			174
Others		62			24			—			86

		1,568			349			—			1,917

Deferred tax liabilities:
Provision for major overhauls		(384	)		123			—			(261	)
Depreciation allowances under tax in excess of the related depreciation under accounting		(687	)		28			—			(659	)
Change in fair value of derivative financial instruments		(3	)		—			(2	)		(5	)
Change in fair value of available-for-sale equity securities		(20	)		—			(90	)		(110	)
Others		(25	)		(13	)		—			(38	)

		(1,119	)		138			(92	)		(1,073	)

Net deferred tax assets		449			487			(92	)		844

CHINA SOUTHERN AIRLINES CO LTD | CIK:0001041668 |