Page 130 - HRC_AR2020

128 I 2020 ANNUAL REPORT I financial reports

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 (CONTINuED)

27 DeferreD taXation (continued)
The movements in deferred tax during the financial year are as follows: (continued)
2020 2019
rM’000 rM’000
Deferred tax assets (before offsetting):
- unused tax losses 62,332 71,618
- inventories - 88
- other payables and accruals 4,286 2,789
- derivative financial liabilities 16,319 35,727
- lease liabilities 5,644 7,381
- receivables 6,286 -
94,867 117,603
Offsetting (94,867) (117,603)

As at 31 December (after offsetting) - -

The analysis of deferred tax assets and deferred tax liabilities is as follows:
Deferred tax liabilities:
- to be settled after more than 12 months (163,646) (164,422)
- to be settled within 12 months (46,057) (94,403)
(209,703) (258,825)

Deferred tax assets:
- to be recovered after more than 12 months 76,221 80,304
- to be recovered within 12 months 18,646 37,299
94,867 117,603

Deferred tax liabilities, net (114,836) (141,222)
The benefits of unutilised tax losses can be carried for seven consecutive years of assessment (“YA”) i.e. YA2019 to YA2025
based on the Malaysia Finance Act 2018. The benefits will be obtained when the Company derives future assessable income
of a nature and of an amount sufficient for these carried forward tax losses to be utilised.
In the previous financial year, deferred tax assets has not been recognised in respect of unutilised tax losses amounted
to RM188,300,000 because it is not probable that sufficient taxable profit will be available within the first six years
(i.e. YA2020 to YA2025) against which the tax losses can be utilised.