NOTES TO THE CONSOLIDATED FINANCIAL  STATEMENTS  (RMB AND US$ AMOUNTS EXPRESSED IN THOUSANDS, EXCEPT PER SHARE DATA)  9.  Income tax (cont’d) Deferred tax The Group has been granted tax credits in relation to approved research and development costs. According to relevant  laws and regulations in the PRC prior to the new CIT law, the amount of credits relating to the purchase of certain  domestic equipment entitled for deduction each year is limited to the incremental current income tax expense of the  subsidiary for the year compared to the income tax expense of the subsidiary in the year immediately prior to the year  the credit was approved. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between  the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating  loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially  enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected  to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates, if any, is recognized  in the statements of operations in the period that includes the enactment date. Deferred tax relates to the following: Consolidated statement of financial  position Consolidated statement of profit or loss 31.12.2012 31.12.2013 31.12.2013 31.12.2011 31.12.2012 31.12.2013 31.12.2013 Rmb’000 Rmb’000 US$’000 Rmb’000 Rmb’000 Rmb’000 US$’000 Deferred tax liabilities Accelerated tax depreciation (42) (42) (7) —  —  —  —  Unremitted earnings from  overseas source income (441) (412) (68) —  —  —  —  Expenditure currently  deferred for tax purpose 9 9 2 —  —  —  —  PRC withholding tax on  dividend income (118,078) (141,172) (23,067) (23,492) (17,794) (23,094) (3,773) (118,552) (141,617) (23,140) (23,492) (17,794) (23,094) (3,773) Deferred tax assets Accelerated accounting  depreciation 7,860 8,858 1,448 (895) 337 998 163 Write down of inventories 31,104 28,797 4,705 (2,845) (2,155) (2,307) (377) Allowance for doubtful  accounts 6,554 5,505 900 280 (3,598) (1,049) (171) Accruals 214,109 258,949 42,311 38,795 (16,859) 44,840 7,326 Tax value of loss carried  forward —  —  —  (1,685) (823) —  —  Deferred income 84,757 79,685 13,020 33,345 15,743 (5,072) (829) Others 8,998 7,283 1,190 (2,632) 1,412 (1,715) (280) 353,382 389,077 63,574 64,363 (5,943) 35,695 5,832 China Yuchai International Limited | Annual Report 2013 86