Wah Seong Corporation Berhad Annual Report 2019

127 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 9 DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 At 1 January 29,540 28,596 2,423 2,062 Credited/(Charged to) to profit or loss (Note 35): - Unused tax losses 14,833 6,461 - - - Property, plant and equipment (3,223) (4,835) 127 25 - Provisions and accruals 583 1,089 (95) 336 - Unrealised foreign exchange (12) (198) - - - Others (845) (1,593) - - 11,336 924 32 361 Effect of exchange rate changes (224) 20 - - At 31 December 40,652 29,540 2,455 2,423 Subject to income tax Deferred tax assets (before offsetting) - Unused tax losses 42,069 27,388 - - - Property, plant and equipment 6,783 10,951 120 - - Provisions and accruals 7,659 7,076 2,335 2,430 - Unrealised foreign exchange losses 198 499 - - - Others 704 866 - - 57,413 46,780 2,455 2,430 Offsetting (4,846) (3,436) - (7) Deferred tax assets (after offsetting) 52,567 43,344 2,455 2,423 Deferred tax liabilities (before offsetting) - Property, plant and equipment (12,648) (13,517) - (7) - Unrealised foreign exchange gains (612) (901) - - - Others (3,501) (2,822) - - (16,761) (17,240) - (7) Offsetting 4,846 3,436 - 7 Deferred tax liabilities (after offsetting) (11,915) (13,804) - - The Group has concluded that the deferred tax assets will be recoverable using the estimated future taxable income based on the approved business plans and budgets for the subsidiaries. The subsidiaries are expected to generate taxable income from year 2020 onwards.