GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 136 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 18. 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 (cont’d): Deferred tax assets of the Company Others Total RM RM Balance as at 1 January 2019 (129,282) (129,282) Recognised in profit or loss 129,282 129,282 Balance as at 31 December 2019 - - Balance as at 1 January 2018 (69,277) (69,277) Recognised in profit or loss (60,005) (60,005) Balance as at 31 December 2018 (before offsetting) (129,282) (129,282) Offsetting 129,282 129,282 Balance as at 31 December 2018 (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 2019 2018 2019 2018 RM RM RM RM Unused tax losses, expired by 31 December 2025 17,569,992 16,158,458 - - Unused tax losses, expired by 31 December 2026 4,207,968 - 3,378,340 - Unabsorbed capital allowances 9,447,834 7,824,521 781,722 304,437 Other deductible temporary differences 4,347,047 1,293,889 728,400 559,921 35,572,841 25,276,868 4,888,462 864,358 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. For the Malaysian entities, the unused tax losses up to the year of assessment 2018 shall be deductible until year of assessment of 2025. The unutilised tax losses of the year of assessment 2019 onwards will expire in 7 years. The amount and availability of these items to be carried forward up to the periods as disclosed above are subject to the agreement of the respective local tax authorities.