Wah Seong Corporation Berhad Annual Report 2019

128 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 9 DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) The Group did not recognise deferred tax assets arising from the following temporary differences of certain subsidiaries as it is not probable that future taxable profit will be available against which the deferred tax assets can be utilised in these subsidiaries. Group 2019 2018 RM’000 RM’000 Deductible temporary differences on: - Unused tax losses 217,199 220,618 - Unabsorbed capital allowances 115,494 118,406 - Provisions and accruals 6,306 5,412 - Others 40,411 40,411 379,410 384,847 Deferred tax assets not recognised is based on respective countries tax rate 61,986 65,048 Under the Malaysia Finance Act 2018, the Group’s unused tax losses are imposed with a time limit of utilisation. Any accumulated unutilised tax losses can be carried forward for another 7 consecutive years of assessment (YA) as follows: YA 2018 (expiring in YA 2025) YA 2019 (expiring in YA 2026) RM’000 RM’000 Unused tax losses 63,656 2,579 10 INVESTMENT IN SUBSIDIARIES Company 2019 2018 RM’000 RM’000 Unquoted shares, at cost 858,730 858,730 Accumulated impairment losses (127,526) (127,526) 731,204 731,204 Advances to subsidiaries (net investment) 32,393 32,393 763,597 763,597 Advances to subsidiaries for long term working capital purposes represent an extension of capital to the subsidiaries and are as such net investment.