CHINA MOBILE LTD /ADR/ (ifrs-full:DisclosureOfDeferredTaxesExplanatory)

20	DEFERRED TAX ASSETS AND LIABILITIES

The analysis of deferred tax assets and liabilities are as follows:


	As of December 31, 2017			As of December 31, 2016
	Million			Million

Deferred tax assets:
- Deferred tax asset to be recovered after 12 months		8,236			6,607
- Deferred tax asset to be recovered within 12 months		25,107			23,160


		33,343			29,767


Deferred tax liabilities:
- Deferred tax liabilities to be settled after 12 months		(258	)		(248	)
- Deferred tax liabilities to be settled within 12 months		(104	)		(44	)


		(362	)		(292	)

Deferred tax assets and liabilities recognized and the movements during 2017


	As of January 1, 2017			(Charged)/ credited to profit or loss			Credited to other comprehensive income		Exchange differences		As of December 31, 2017
	Million			Million			Million		Million		Million

Deferred tax assets arising from:

Write-down for obsolete inventories		175			(55	)		—		—		120
Write-off and impairment of certain network equipment and related assets		4,538			2,544			—		—		7,082
Accrued operating expenses		17,969			965			—		—		18,934
Deferred revenue from Reward Program		5,796			147			—		—		5,943
Impairment loss for doubtful accounts		1,297			(27	)		—		—		1,270
Change in value of available-for-sale financial assets		(8	)		—			2		—		(6	)


		29,767			3,574			2		—		33,343

Deferred tax liabilities arising from:

Depreciation allowance in excess of related depreciation		(292	)		(92	)		—		22		(362	)


Total		29,475			3,482			2		22		32,981

Deferred tax assets and liabilities recognized and the movements during 2016


	As of January 1, 2016			(Charged)/ credited to profit or loss			Charged to other comprehensive income			Exchange differences			As of December 31, 2016
	Million			Million			Million			Million			Million

Deferred tax assets arising from:

Write-down for obsolete inventories		217			(42	)		—			—			175
Write-off and impairment of certain network equipment and related assets		4,152			386			—			—			4,538
Accrued operating expenses		14,125			3,844			—			—			17,969
Deferred revenue from Reward Program		5,350			446			—			—			5,796
Impairment loss for doubtful accounts		1,579			(282	)		—			—			1,297
Change in value of available-for-sale financial assets		—			—			(8	)		—			(8	)


		25,423			4,352			(8	)		—			29,767

Deferred tax liabilities arising from:

Depreciation allowance in excess of related depreciation		(203	)		(73	)		—			(16	)		(292	)


Total		25,220			4,279			(8	)		(16	)		29,475

Deferred tax assets are recognized for deductible temporary differences and tax losses carry-forwards only to the extent that the realization of the related tax benefit through future taxable profits is probable. Certain subsidiaries of the Group did not recognize deferred tax assets of RMB1,716,000,000 (2016: RMB1,562,000,000) and RMB2,079,000,000 (2016: RMB1,349,000,000) in respect of deductible temporary differences and tax losses amounting to RMB6,885,000,000 (2016: RMB6,249,000,000) and RMB8,713,000,000 (2016: RMB5,504,000,000) respectively that can be carried forward against future taxable income as of December 31, 2017. The deductible tax losses are allowed to be carried forward in next five years against the future taxable profits.

CHINA MOBILE LTD /ADR/ | CIK:0001117795 |

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