KUB Malaysia Berhad Annual Report 2021

28. DEFERRED TAX LIABILITIES (cont’d) The components and movements of deferred tax liabilities and assets during the financial period/year prior to offsetting are as follows: Deferred tax liabilities of the Group: Property, plant and equipment RM’000 As at 1 January 2019 12,532 Recognised in profit or loss 1,053 As at 31 December 2019/1 January 2020 13,585 Recognised in profit or loss 3,125 As at 30 June 2021 16,710 Deferred tax assets of the Group: Provisions Others Total RM’000 RM’000 RM’000 As at 1 January 2019 - - - Recognised in profit or loss (313) (69) (382) As at 31 December 2019/1 January 2020 (313) (69) (382) Recognised in profit or loss 313 (925) (612) As at 30 June 2021 - (994) (994) Deferred tax assets have not been recognised in respect of the following items due to the uncertainty of their recoverability: Group Company 30.6.2021 31.12.2019 30.6.2021 31.12.2019 RM’000 RM’000 RM’000 RM’000 Unutilised tax losses 96,272 94,813 14,566 16,975 Unabsorbed capital allowances 25,109 27,539 3,204 3,204 Other deductible temporary differences 112 811 - - 121,493 123,163 17,770 20,179 Effect of disposal of a subsidiary on unutilised business losses and unabsorbed capital allowances (15,593) - - - 105,900 123,163 17,770 20,179 The benefits of these tax losses and tax credits will only be obtained if the relevant subsidiaries derive future assessable income of a nature and amount sufficient for the benefits to be utilised. 121 ANNUAL REPORT 2021 FINANCIAL STATEMENTS