2006 Interim Report－A Share.pdf - 中国银行

13. Deferred income taxes assets/liabilities
Deferred income taxes are calculated on the timing differences under the liability method using the relevant local tax
rates applicable to the Group's operation. The movement on the deferred income tax account is as follows:
2006 2005
At 1 January 17,377 18,647
Charge in the income statement (Note III.28) (226) (1,252)
Exchange differences 5 (18)
At 30 June /31December 17,156 17,377
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The table below
includes the Group's deferred income tax assets and liabilities after offsetting qualifying amounts:
30 June 2006 31 December 2005
Deferred income tax assets 17,410 17,561
Deferred income tax liabilities (254) (184)
Total 17,156 17,377
Deferred income tax assets and liabilities are attributable to the following items:
Deferred income tax assets
30 June 2006 31 December 2005
Asset impairment provision 18,012 17,744
Fair value changes of trading and other
fair value through profit or loss securities
and derivative financial instruments
3,902 3,046
Other timing differences 602 696
Sub-total 22,516 21,486
Deferred income tax liabilities
Fair value changes of trading and other fair value
through profit or loss securities and
derivative financial instruments (4,319) (3,643)
Depreciation of fixed assets (445) (424)
Other timing differences(1) (596) (42)
Sub-total (5,360) (4,109)
Total 17,156 17,377
(1) Mainly includes the deferred tax liabilities of RMB 545 million in relation to the supplementary tax on overseas income
generated from the profit of certain overseas subsidiaries owned by the Group for the six month period ended 30
June 2006.
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