Page 129 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 127

27 DeferreD taXation

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 movements in deferred tax during the financial year are as follows:
2020 2019
rM’000 rM’000
As at 1 January as previously stated - (38,192)
Effects of transitioning to MFRS 16 - 341
At 1 January/As restated as at 1 January (141,222) (37,851)
Credited/(charged) to profit or loss (Note 10):
- property, plant and equipment 1,039 (35,458)
- unrealised foreign exchange 954 (3,062)
- derivative financial assets 12,011 (18,361)
- inventories (694) 88
- trade receivables 6,286 -
- unused tax losses (9,286) (40,472)
- other payables and accruals 1,497 (645)
- derivative financial liabilities (16,542) 27,705
- unabsorbed capital allowances - (40,918)
- right-of-use assets 1,771 1,951
- lease liabilities (1,737) (1,801)
(4,701) (110,973)
Credited to other comprehensive income (Note 23)
- cash flow hedge reserve and cost of hedging reserve 31,087 7,216
Effect of exchange rate changes - 386

As at 31 December (114,836) (141,222)

Deferred tax liabilities (before offsetting):
- property, plant and equipment (169,364) (170,403)
- unrealised foreign exchange (2,171) (3,125)
- derivative financial assets (32,317) (78,281)
- right-of-use assets (5,245) (7,016)
- inventories (606) -
(209,703) (258,825)
Offsetting 94,867 117,603
As at 31 December (after offsetting) (114,836) (141,222)