Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 127 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 15. DEFERRED TAX ASSETS/LIABILITIES The Group 2021 2020 RM RM Deferred tax assets At 1 January 2,602,639 2,295,497 Transfer from profit or loss (Note 9) (819,663) 180,908 Transfer to other comprehensive expenses 7,499 16,849 Foreign currency translation differences 119,269 109,385 At 31 December 1,909,744 2,602,639 Deferred tax liabilities At 1 January 447,902 407,841 Transfer to profit or loss (Note 9) 151,715 27,208 Foreign currency translation differences 15,538 12,853 At 31 December 615,155 447,902 The net deferred tax liabilities and assets are in respect of the tax effects of the following:- The Group Deferred Tax (Assets)/Liabilities 2021 2020 RM RM Temporary differences arising from property, plant and equipment 9,132 86,173 Others (1,303,721) (2,240,910) (1,294,589) (2,154,737) As mentioned in Note 3, the tax effects of deductible temporary differences, unused tax losses and unused tax credits which would give rise to deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. As of 31 December 2021, the estimated amount of net deferred tax assets, calculated at the current tax rate which has not been recognised in the financial statements of the Group due to uncertainty of its realisation, is as follows:- The Group Deferred Tax (Assets)/Liabilities 2021 2020 RM RM Unutilised tax losses 757,409 682,498 Temporary differences arising from property, plant and equipment 193,920 193,920 951,329 876,418 The unutilised tax losses and unabsorbed capital allowances are subject to the agreement of the tax authorities.
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