Wah Seong Corporation Berhad Annual Report 2020

128 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 8 DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) The Group did not recognise deferred tax assets arising from the following temporary differences of certain subsidiaries as it is not probable that future taxable profit will be available against which the deferred tax assets can be utilised in these subsidiaries. Group 2020 2019 RM’000 RM’000 Deductible temporary differences on: - Unused tax losses 284,599 228,202 - Unabsorbed capital allowances 151,262 118,623 - Provisions and accruals 31,831 10,787 - Others 66,798 64,554 534,490 422,166 Deferred tax assets not recognised is based on respective countries tax rate 116,862 96,066 Under the Malaysia Finance Act 2018, the Group’s accumulated unused tax losses, for which no deferred tax assets were recognised on, can be carried forward for another 7 consecutive years of assessment (YA) as follows: Group 2020 2019 Unused tax losses Expiring in RM’000 RM’000 - YA2018 YA2025 75,472 63,656 - YA2019 YA2026 43,453 2,579 - YA2020 YA2027 23,121 - 142,046 66,235 9 INVESTMENT IN SUBSIDIARIES Company 2020 2019 RM’000 RM’000 Unquoted shares, at cost 923,730 858,730 Accumulated impairment losses (173,526) (127,526) 750,204 731,204 Advances to subsidiaries (net investment) 32,393 32,393 782,597 763,597 Advances to subsidiaries for long term working capital purposes represent an extension of capital to the subsidiaries and are as such net investment. During the financial year, an amount due by a subsidiary amounting to RM65,000,000 has been capitalised as investment in subsidiary.