NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 8 DEFERRED TAX ASSETS/(LIABILITIES) 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 statements of financial position: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Deferred tax assets 50,117 37,447 4,310 3,942 Deferred tax liabilities (8,267) (9,506) - - 41,850 27,941 4,310 3,942 At 1 January 27,941 25,618 3,942 3,605 Credited/(Charged) to profit or loss (Note 34): - Unused tax losses 10,482 621 - - - Property, plant and equipment (7) (79) (36) 43 - Provisions and accruals 3,912 1,463 404 294 - Unrealised foreign exchange 385 (447) - - - Others (542) 361 - - 14,230 1,919 368 337 Acquisition of subsidiaries (281) - - - Effect of exchange rate changes (40) 404 - - At 31 December 41,850 27,941 4,310 3,942 Subject to income tax Deferred tax assets (before offsetting) - Unused tax losses 38,165 27,729 - - - Property, plant and equipment 258 292 - 25 - Provisions and accruals 16,683 12,794 4,321 3,917 - Unrealised foreign exchange losses 244 46 - - - Others 1,297 1,374 - - 56,647 42,235 4,321 3,942 Offsetting (6,530) (4,788) (11) - Deferred tax assets (after offsetting) 50,117 37,447 4,310 3,942 Deferred tax liabilities (before offsetting) - Property, plant and equipment (9,439) (9,465) (11) - - Unrealised foreign exchange gains (150) (336) - - - Others (5,208) (4,493) - - (14,797) (14,294) (11) - Offsetting 6,530 4,788 11 - Deferred tax liabilities (after offsetting) (8,267) (9,506) - - The Group concluded that the deferred tax assets will be recoverable using the estimated future taxable income of the subsidiaries of the Company. It is estimated that the secured project and unsecured project with high probabilities of successful award which will contribute to the future taxable income at the subsidiaries. Annual Report 2022 Wah Seong Corporation Berhad 141
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