Frontken Berhad Annual Report 2020

Annual Report 2020 109 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 15. DEFERRED TAX ASSETS/LIABILITIES The Group 2020 2019 RM RM Deferred tax assets At 1 January 2,295,497 2,155,621 Transfer from profit or loss (Note 9) 180,908 91,083 Transfer to other comprehensive expenses 16,849 30,336 Foreign currency translation differences 109,385 18,457 At 31 December 2,602,639 2,295,497 Deferred tax liabilities At 1 January 407,841 680,550 Transfer to profit or loss (Note 9) 27,208 (275,424) Foreign currency translation differences 12,853 2,715 At 31 December 447,902 407,841 The net deferred tax liabilities and assets are in respect of the tax effects of the following:- The Group Deferred Tax (Assets)/Liabilities 2020 2019 RM RM Temporary differences arising from property, plant and equipment 86,173 224,549 Others (2,240,910) (2,112,205) (2,154,737) (1,887,656) 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 2020, 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) 2020 2019 RM RM Unutilised tax losses 682,498 1,020,037 Temporary differences arising from property, plant and equipment 193,920 254,880 876,418 1,274,917 The unutilised tax losses and unabsorbed capital allowances are subject to the agreement of the tax authorities.