Yinson Annual Report 2020

292 Notes to the financial statements (cont’d) For the financial year ended 31 January 2020 Yinson Holdings Berhad SECTION 7 ACCOUNTABILITY 34. Unfavourable contracts (CONTINUED) 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. Deferred taxation 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 statement of financial position: Group 2020 2019 RM’000 RM’000 Deferred tax assets 1,171 - Deferred tax liabilities (1,440) (546) (269) (546) Group 2020 2019 RM’000 RM’000 At 1 February (546) (42) Recognised in profit or loss (Note 13) 62 (498) Exchange differences 215 (6) At 31 January (269) (546)