Wah Seong Corporation Berhad Annual Report 2020

127 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 8 DEFERRED TAX ASSETS/(LIABILITIES) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in the statements of financial position: Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Deferred tax assets 35,364 52,567 3,605 2,455 Deferred tax liabilities (9,746) (11,915) - - 25,618 40,652 3,605 2,455 At 1 January 40,652 29,540 2,455 2,423 Credited/(Charged) to profit or loss (Note 34): - Unused tax losses (15,574) 14,833 - - - Property, plant and equipment (6,987) (3,223) (138) 127 - Provisions and accruals 3,424 583 1,288 (95) - Unrealised foreign exchange 798 (12) - - - Others (637) (845) - - (18,976) 11,336 1,150 32 Disposal of subsidiaries 3,507 - - - Effect of exchange rate changes 435 (224) - - At 31 December 25,618 40,652 3,605 2,455 Subject to income tax Deferred tax assets (before offsetting) - Unused tax losses 26,665 42,069 - - - Property, plant and equipment 272 6,783 - 120 - Provisions and accruals 11,278 7,659 3,623 2,335 - Unrealised foreign exchange losses 230 198 - - - Others 838 704 - - 39,283 57,413 3,623 2,455 Offsetting (3,919) (4,846) (18) - Deferred tax assets (after offsetting) 35,364 52,567 3,605 2,455 Deferred tax liabilities (before offsetting) - Property, plant and equipment (9,367) (12,648) (18) - - Unrealised foreign exchange gains (74) (612) - - - Others (4,224) (3,501) - - (13,665) (16,761) (18) - Offsetting 3,919 4,846 18 - Deferred tax liabilities (after offsetting) (9,746) (11,915) - - The Group concluded that the deferred tax assets will be recoverable using the estimated future taxable income of the subsidiaries of the Company. There are secured project and unsecured project with high probabilities which contributed to the future taxable income at the subsidiaries.