01 02 03 Financial Statements 04 13. Taxation continued Deferred tax assets and liabilities as at 31 December and their movements for the year then ended comprise: In the income In the income 31 December 2016 statement 31 December 2017 statement 31 December 2018 Tax effect of deductible temporary differences Tax credits carried forward – – – 21,048 21,048 Insurance premiums receivables 513 (513) – – – Borrowings 87 (87) – – – Other assets 63 (63) – – – Deferred tax assets 663 (663) – 21,048 21,048 Tax effect of taxable temporary differences: Property and equipment 29 (29) – – – Investment in subsidiaries – – – 21,048 21,048 Insurance contract liabilities (35) 35 – – – Intangible assets 360 (360) – – – Deferred tax liabilities 354 (354) – 21,048 21,048 Net deferred tax (liability) asset 309 (309) – – – Deferred income tax assets 309 (309) – – – Deferred income tax liabilities – – – – – 14. Inventory 31 December 2018 31 December 2017 Inventory held by pharma business (“FIFO”) 127,924 111,976 Inventory held by healthcare business (weighted average cost) 18,240 19,873 Total 146,164 131,849 Increase in pharma business inventory y-o-y is mainly caused by growth of pharma business. The Group performed inventory net realisable value test and did not identify impairment of inventory as at 31 December 2018 (2017: GEL 323 was charged to profit or loss).Inventories recognised as an expense during 2018 comprised GEL 420,164 (2017: GEL 373,475). Following an analysis carried out in 2018, the consignment inventory is now presented on a gross basis. As a result, the prior year comparatives have been changed to comply with the current year presentation, which resulted in increase of 2017 year inventory balance by GEL 13,038. Accounts payable for healthcare materials and supplies, as included in the accounts payable caption, also increase with the corresponding amount of GEL 13,038 in 2017. 15. Prepayments Prepayments comprise: 31 December 2018 31 December 2017 Prepayments for inventory 7,053 7,935 Prepayments for property and equipment 2,809 13,906 Prepayments for claims expense 1,344 3,209 Other prepayments 1,858 5,304 Total prepayments 13,064 30,354 The prepayments for property and equipment mainly comprise advances for construction activities. 155