GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 112 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 19. DEFERRED TAX (a) The deferred tax assets and liabilities are made up of the following: Group Company 2018 2017 2018 2017 RM RM RM RM Balance as at 1 January 771,268 928,178 136,020 - Acquisition of subsidiaries (Note 15) 4,448 - - - Recognised in profit or loss (Note 9) 1,302,370 260,474 (81,241) 136,020 Exchange differences (22,758) (417,384) - - Balance as at 31 December 2,055,328 771,268 54,779 136,020 Presented after appropriate offsetting: Deferred tax assets, net (2,101,163) (1,499,727) - - Deferred tax liabilities, net 4,156,491 2,270,995 54,779 136,020 2,055,328 771,268 54,779 136,020 (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 2018 7,041,235 162,768 54,383 7,258,386 Recognised in profit or loss 1,712,466 (3,276) (40,696) 1,668,494 Balance as at 31 December 2018 (before offsetting) 8,753,701 159,492 13,687 8,926,880 Offsetting (4,597,210) (159,492) (13,687) (4,770,389) Balance as at 31 December 2018 (after offsetting) 4,156,491 - - 4,156,491 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