GHL System Berhad Annual Report 2020

136 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 18. DEFERRED TAX (cont’d) (c) The amounts of temporary differences for which no deferred tax assets have been recognised in the statements of financial position are as follows: (cont’d) For the Malaysian entities, the unused tax losses up to the year of assessment 2019 shall be deductible until year of assessment of 2026. The unused tax losses of the year of assessment 2020 onwards will expire in 7 years. The amount and availability of these items to be carried forward up to the periods as disclosed above are subject to the agreement of the respective local tax authorities. 19. INVENTORIES Group Company 2020 2019 2020 2019 RM RM RM RM At NRV EDC equipment 1,112,439 11,186,138 - - Others 103,546 - - - At Cost Prepaid airtime PINS 57,760,031 48,783,974 - - Others 896,043 3,925,353 103,399 55,519 59,872,059 63,895,465 103,399 55,519 (a) Inventories are stated at lower of cost and net realisable value. (b) Cost of inventories is determined using the first-in, first-out formula. (c) During the financial year, inventories of the Group and of the Company other than prepaid airtime PINS recognised as cost of sales amounted to RM121,955,162 and RM42,714 (2019: RM128,304,802 and RM1,165,635) respectively. (d) In addition, the amounts recognised in the other operating expenses include the following: Group Company 2020 2019 2020 2019 RM RM RM RM Inventories written off 1,353,402 689,769 - 552,608 (e) In the previous financial year, inventories of the Group amounting to RM90,043 were written back due to the sales of inventories previously written off. (f) During the financial year, inventories of the Group amounting to RM12,063,393 (2019: RM7,174,766) have been capitalised as property, plant and equipment as disclosed in Note 12 to the financial statements as the inventories are no longer held for sale.