Annual Report 2012

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2012
The Group
Assets Liabilities Net balance
2012 2011 2012 2011 2012 2011
RMB millions RMB millions RMB millions RMB millions RMB millions RMB millions
Current
Receivables and inventories 3,292 3,105 — — 3,292 3,105
Accruals 421 1,844 — — 421 1,844
Cash flow hedges 36 7 — — 36 7
Non-current
Fixed assets 7,467 6,163 (15,661) (14,785) (8,194) (8,622)
Tax value of losses carried forward 3,051 1,550 — — 3,051 1,550
Convertible bonds — — (364) (379) (364) (379)
Others 863 729 (18) (17) 845 712
Deferred tax assets/(liabilities) 15,130 13,398 (16,043) (15,181) (913) (1,783)
The Company
Assets Liabilities Net balance
2012 2011 2012 2011 2012 2011
RMB millions RMB millions RMB millions RMB millions RMB millions RMB millions
Current
Receivables and inventories 2,741 2,706 — — 2,741 2,706
Accruals 330 1,780 — — 330 1,780
Non-current
Fixed assets 6,324 5,088 (8,367) (6,954) (2,043) (1,866)
Convertible bonds — — (364) (379) (364) (379)
Others 751 675 (18) (17) 733 658
Deferred tax assets/(liabilities) 10,146 10,249 (8,749) (7,350) 1,397 2,899
At 31 December 2012, certain subsidiaries of the Company did not recognise deferred tax of deductable loss carried forward of RMB 11,510 million
(2011: RMB 8,082 million), of which RMB 3,852 million (2011: RMB 2,936 million) was incurred for the year ended 31 December 2012, because it
was not probable that the related tax benefit will be realised. These deductable losses carried forward of RMB 2,994 million, RMB 825 million, RMB
365 million, RMB 3,474 million and RMB 3,852 million will expire in 2013, 2014, 2015, 2016 and 2017, respectively.
Periodically, management performed assessment on the probability that taxable profit will be available over the period which the deferred tax assets
can be realised or utilised. In assessing the probability, both positive and negative evidence was considered, including whether it is probable that
the operations will have future taxable profits over the periods which the deferred tax assets are deductible or utilised and whether the tax losses
result from identifiable causes which are unlikely to recur. During the year ended 31 December 2012, write-down of deferred tax assets amounted to
RMB 180 million related to the expiration of tax losses (2011: RMB 533 million).
18 OTHER NON-CURRENT ASSETS
The balance of other non-current assets mainly represents prepayments for construction projects and purchases of equipment.
19 DETAILS OF IMPAIRMENT LOSSES
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CHINA PETROLEUM & CHEMICAL CORPORATION Annual Report 2012
Financial Statements (PRC)