GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 99 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 17. DEFERRED TAX (a) The deferred tax assets and liabilities are made up of the following: Group Company 2017 2016 2017 2016 RM RM RM RM Balance as at 1 January 928,178 (348,808) - - Recognised in profit or loss (Note 8) 260,474 1,381,701 136,020 - Exchange differences (417,384) (104,715) - - Balance as at 31 December 771,268 928,178 136,020 - Presented after appropriate offsetting: Deferred tax assets, net (1,499,727) (1,206,797) - - Deferred tax liabilities, net 2,270,995 2,134,975 136,020 - 771,268 928,178 136,020 - (b) The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows: Deferred tax liabilities of the Group Property, plant and equipment Intangible assets Others Total RM RM RM RM Balance as at 1 January 2017 6,992,654 169,012 111,818 7,273,484 Recognised in profit or loss 48,581 (6,244) (57,435) (15,098) Balance as at 31 December 2017 (before offsetting) 7,041,235 162,768 54,383 7,258,386 Offsetting (4,770,240) (162,768) (54,383) (4,987,391) Balance as at 31 December 2017 (after offsetting) 2,270,995 - - 2,270,995 Balance as at 1 January 2016 5,512,121 169,012 183,646 5,864,779 Recognised in profit or loss 1,480,533 - (71,828) 1,408,705 Balance as at 31 December 2016 (before offsetting) 6,992,654 169,012 111,818 7,273,484 Offsetting (4,857,679) (169,012) (111,818) (5,138,509) Balance as at 31 December 2016 (after offsetting) 2,134,975 - - 2,134,975