NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 8 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 2022 2021 RM’000 RM’000 Deductible temporary differences on: - Unused tax losses 155,400 245,134 - Unabsorbed capital allowances 119,980 139,873 - Provisions and accruals 269 8,766 - Others 40,777 43,872 316,426 437,645 Deferred tax assets not recognised is based on respective countries tax rate 63,278 69,590 Under the Malaysia Finance Act 2021 gazetted on 31 December 2021, the Group’s accumulated unused tax losses, for which no deferred tax assets were recognised on, can be carried forward for another 10 consecutive years (2021: 10 consecutive years) of assessment (“YA”) effective from YA2018. Group Expiring in 2022 2021 RM’000 RM’000 Unused tax losses - YA2018 YA2028 62,252 63,312 - YA2019 YA2029 38,459 35,638 - YA2020 YA2030 22,547 27,187 - YA2021 YA2031 6,761 2,473 - YA2022 YA2032 187 - 130,206 128,610 9 INVESTMENT IN SUBSIDIARIES Company 2022 2021 RM’000 RM’000 Unquoted shares, at cost 923,730 923,730 Accumulated impairment losses (186,306) (181,650) 737,424 742,080 Advances to subsidiaries (net investment) - 26,345 737,424 768,425 Advances to subsidiaries for long term working capital purposes represent an extension of capital to the subsidiaries and are as such net investment. Wah Seong Corporation Berhad Annual Report 2022 142
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