Bank Islam Integrated Annual Report 2020

11. DEFERRED TAX ASSETS (CONTINUED) Deferred tax assets have not been recognised in respect of the following items: Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Unabsorbed capital allowance 131,819 131,819 131,784 131,784 Unutilised tax losses 1,251 1,251 – – Deductible temporary differences 329 329 – – 133,399 133,399 131,784 131,784 Under the current tax legislation, the unutilised tax losses will expire in year 2025 where the unutilised capital allowance do not expire. The Bank’s unabsorbed capital allowances of RM131,784,000 (2019: RM131,784,000) is in respect of its leasing business, whereby management considered it is uncertain whether the Bank is able to utilise the benefits in the future. As such, deferred tax assets have not been recognised. 12. RIGHTS-OF-USE ASSETS AND LEASE LIABILITIES The statement of financial position shows the following amounts relating to leases: Group and Bank 2020 RM’000 2019 RM’000 Right-of-use assets: Buildings 209,736 229,135 Lease liabilities 312,429 325,559 The statement of profit or loss shows the following amounts relating to leases: Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Depreciation charge on right-of-use assets 18,348 15,141 18,317 15,141 Finance cost 17,836 18,040 17,835 18,040 Expenses relating to short-term leases 35,192 36,119 35,477 35,979 Notes to the financial statements for the financial year ended 31 December 2020 234 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion