| 30 | DEFERRED TAXATION |
Deferred taxation is calculated on temporary differences under the liability method using a principal tax rate of 25%.
The movements in the deferred taxation account are as follows:
| Year Ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| RMB | RMB | RMB | ||||||||||
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At beginning of the year |
(6,720 | ) | (3,807 | ) | 905 | |||||||
|
Transfer to profit and loss (Note 12) |
(7,539 | ) | (3,994 | ) | (3,272 | ) | ||||||
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Credit to other comprehensive income |
195 | 1,081 | (1,449 | ) | ||||||||
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Acquisition of subsidiaries |
— | — | 9 | |||||||||
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At end of the year |
(14,064 | ) | (6,720 | ) | (3,807 | ) | ||||||
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Deferred tax balances before offset are attributable to the following items:
| December 31, 2017 |
December 31, 2016 |
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| RMB | RMB | |||||||
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Deferred tax assets: |
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Receivables and inventories |
10,387 | 7,786 | ||||||
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Tax losses |
27,911 | 30,438 | ||||||
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Impairment of long-term assets |
9,712 | 7,551 | ||||||
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Other |
7,613 | 7,184 | ||||||
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Total deferred tax assets |
55,623 | 52,959 | ||||||
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Deferred tax liabilities: |
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Accelerated tax depreciation |
27,539 | 32,639 | ||||||
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Other |
14,020 | 13,600 | ||||||
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Total deferred tax liabilities |
41,559 | 46,239 | ||||||
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Net deferred tax assets |
14,064 | 6,720 | ||||||
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Tax losses that can be carried forward to future years include deferred tax assets arising from the losses of the branches in the eastern region. The tax expenses of its branches in the eastern and western regions were paid in aggregate according to the requirements of the competent tax authority.
Deferred tax balances after offset are listed as follows:
| December 31, 2017 |
December 31, 2016 |
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| RMB | RMB | |||||||
|
Deferred tax assets |
26,724 | 20,360 | ||||||
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Deferred tax liabilities |
12,660 | 13,640 | ||||||