GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 101 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 17. DEFERRED TAX (cont’d) (b) The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows (continued): Deferred tax assets of the Company Unabsorbed capital allowances Unused tax losses Others Total RM RM RM RM Balance as at 1 January 2017 - - (154,703) (154,703) Recognised in profit or loss - - 85,426 85,426 Balance as at 31 December 2017 (before offsetting) - - (69,277) (69,277) Offsetting - - 69,277 69,277 Balance as at 31 December 2017 (after offsetting) - - - - Balance as at 1 January 2016 (22,211) (61,604) (184,835) (268,650) Recognised in profit or loss 22,211 61,604 30,132 113,947 Balance as at 31 December 2016 (before offsetting) - - (154,703) (154,703) Offsetting - - 154,703 154,703 Balance as at 31 December 2016 (after offsetting) - - - - (c) The amounts of temporary differences for which no deferred tax assets have been recognised in the statements of financial position are as follows: Group Company 2017 2016 2017 2016 RM RM RM RM Unused tax losses 11,118,904 7,065,981 - - Unabsorbed capital allowances 5,948,750 10,759,368 - - Other deductible temporary differences 379,798 176,787 - - 17,447,452 18,002,136 - - Deferred tax assets of certain subsidiaries and of the Company have not been recognised in respect of these items as it is not probable that taxable profits of the subsidiaries and of the Company would be available against which the deductible temporary differences could be utilised.