Annual Report 2012

Notes to the financial statements(Expressed in millions of RMB, unless otherwise stated)34 Goodwill(1) The goodwill is attributable to the expected synergies arising from the acquisition of CCB Asia on 29 December 2006, Jianxin Truston 29 July 2009 and CCB Life on 29 June 2011. Movement of the goodwill is as follows:2012 2011As at 1 January 1,662 1,534Additions through acquisitions – 194Effect of exchange difference (11) (66)As at 31 December 1,651 1,662(2) Impairment test for CGU containing goodwillThe Group calculated the recoverable amount of the CGU using cash flow projections based on financial forecasts approved bymanagement. The average growth rate used by the Group is consistent with the forecasts included in industry reports. The discountrate used reflects specific risks relating to the relevant segments.Based on the result of the impairment test, no impairment losses on goodwill were recognised as at 31 December 2012 (2011: nil).35 Deferred taxGroupBank2012 2011 2012 2011Deferred tax assets 27,051 21,410 27,517 22,003Deferred tax liabilities (332) (358) – (23)Total 26,719 21,052 27,517 21,980(1) Analysed by natureGroup2012 2011Deductible/(taxable)temporarydifferencesDeferredtax assets/(liabilities)Deductible/(taxable)temporarydifferencesDeferredtax assets/(liabilities)Deferred tax assets– Fair value adjustments (5,938) (1,488) (9,066) (2,271)– Allowances for impairment losses 105,164 26,208 86,022 21,386– Early retirement benefits and accrued salaries 25,318 6,321 22,755 5,689– Others (15,056) (3,990) (12,758) (3,394)Total 109,488 27,051 86,953 21,410Deferred tax liabilities– Fair value adjustments (1,235) (297) (1,323) (309)– Allowances for impairment losses 17 4 (46) (11)– Others (176) (39) (148) (38)Total (1,394) (332) (1,517) (358)China Construction Bank Corporation annual report 2012141