Yinson Annual Report 2021

284 YINSON HOLDINGS BERHAD SECTION 07 : ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2021 34. Unfavourable contracts Group 2021 2020 RM million RM million Cost At 1 February 113 113 Exchange differences (2) - At 31 January 111 113 Accumulated amortisation At 1 February 113 108 Amortisation (Note 7) - 5 Exchange differences (2) - At 31 January 111 113 Net carrying amount - - 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. The contract period of these services contracts expired in the prior financial year. 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 2021 2020 RM million RM million Deferred tax assets 3 1 Deferred tax liabilities (95) (1) (92) - At 1 February - (1) Acquisition of a subsidiary (Note 46(b)) (1) - Recognised in profit or loss (Note 13) (94) - Exchange differences 3 1 At 31 January (92) -