GHL System Berhad Annual Report 2020

134 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 ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 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 Group Unabsorbed capital allowances Unused tax losses Others Total RM RM RM RM Balance as at 1 January 2020 (3,535,030) (991,269) (4,252,709) (8,779,008) Recognised in profit or loss 3,651 (2,390) 1,168,764 1,170,025 Recognised in other comprehensive income - - (156,398) (156,398) Exchange differences - - (32,647) (32,647) Balance as at 31 December 2020 (before offsetting) (3,531,379) (993,659) (3,272,990) (7,798,028) Offsetting 3,531,379 993,659 318,280 4,843,318 Balance as at 31 December 2020 (after offsetting) - - (2,954,710) (2,954,710) Balance as at 1 January 2019 (3,597,477) (999,326) (2,274,749) (6,871,552) Recognised in profit or loss 62,447 8,057 (1,839,847) (1,769,343) Recognised in other comprehensive income - - (102,505) (102,505) Exchange differences - - (35,608) (35,608) Balance as at 31 December 2019 (before offsetting) (3,535,030) (991,269) (4,252,709) (8,779,008) Offsetting 3,535,030 991,269 503,386 5,029,685 Balance as at 31 December 2019 (after offsetting) - - (3,749,323) (3,749,323) The Group revisited the assumptions used for the forecasted taxable profits and assessed the likelihood of these subsidiaries being able to recover the amount of deductible temporary differences due to the impact of the COVID-19 pandemic.