97
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
15. DEFERRED TAX ASSETS/LIABILITIES
The Group
2014
2013
RM
RM
Deferred tax assets
At beginning of year
665,109
440,887
Transfer from profit or loss (Note 8)
289,118
215,160
Transfer to other comprehensive expenses
95,117
(17,809)
Foreign currency translation differences
13,472
26,871
At end of year
1,062,816
665,109
Deferred tax liabilities
At beginning of year
3,653,351
363,290
Transfer (to)/from profit or loss (Note 8)
(1,164,261)
3,190,582
Arising from acquisition of a subsidiary
48,932
–
Foreign currency translation differences
33,869
99,479
At end of year
2,571,891
3,653,351
The net deferred tax liabilities and assets are in respect of the tax effects of the following:
The Group
Deferred Tax
(Assets)/Liabilities
2014
2013
RM
RM
Temporary differences arising from
property, plant and equipment
2,272,694
3,381,499
Others
(763,619)
(393,257)
1,509,075
2,988,242
As mentioned in Note 3, the tax effects of deductible temporary differences, unused tax losses and unused
tax credits which would give rise to deferred tax assets are recognised to the extent that it is probable that
future taxable profits will be available against which the deductible temporary differences, unused tax losses
and unused tax credits can be utilised. As of 31 December 2014, the estimated amount of net deferred tax
assets, calculated at the current tax rate which has not been recognised in the financial statements of the
Group due to uncertainty of its realisation, is as follows:
The Group
Deferred Tax
(Assets)/Liabilities
2014
2013
RM
RM
Unutilised tax losses
3,545,134
2,512,124
Unabsorbed capital allowances
279,451
737,257
Temporary differences arising from property, plant and equipment
(353,527)
(905,000)
Unutilised reinvestment allowances
148,000
841,000
Others
(143,406)
28,000
3,475,652
3,213,381
The unutilised tax losses and unabsorbed capital allowances are subject to the agreement of the tax authorities.
