Yinson Annual Report 2018

Notes to the Financial Statements (Cont’d) For the financial year ended 31 January 2018 34. UNFAVOURABLE CONTRACTS Group 2018 2017 RM’000 RM’000 Cost At 1 February 121,612 114,593 Exchange differences (13,572) 7,019 At 31 January 108,040 121,612 Accumulated amortisation At 1 February 73,791 49,791 Amortisation (Note 7) 20,435 19,938 Exchange differences (9,569) 4,062 At 31 January 84,657 73,791 Net carrying amount 23,383 47,821 Amount to be amortised: - Current 18,713 21,258 - Non-current 4,670 26,563 23,383 47,821 The unfavourable contracts represent the fair value of the services contracts embedded in the time charter contracts, determined at the time of the acquisition of subsidiaries, which were recognised as liabilities. Subsequently, these are measured at amortised cost over the contract period. 35. TAX (a) Tax payables Included in tax payables is an income tax liability for a foreign operation subsidiary amounting to RM23,847,000 (2017: RM16,642,000) which is uncertain due to a change in tax administration whereby the income tax computations for prior years of assessment were revised and refiled in the current financial year to the relevant tax authority. Given that the change in tax administration is only recent, there may be potential varying interpretations between the foreign operation subsidiary and the tax authority which would result in the ultimate tax determination for these tax submissions to be uncertain. The income tax liability for these refiled submissions as at 31 January 2018 is as disclosed in Note 5(g). 168 Yinson Holdings Berhad Annual Report 2018 Accountability

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