Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 16. DEFERRED TAX LIABILITIES The Group 2018 2017 RM RM At beginning of year 3,768,348 3,750,228 Transfer from profit or loss (Note 8) 917,555 909,874 Transfer from other comprehensive income (Note 8) (2,491,980) (875,763) Effect of foreign currency exchange differences (230,655) (15,991) At end of year 1,963,268 3,768,348 Deferred tax liabilities (before offsetting) Temporary differences arising from revaluation of investment property 7,543,837 7,313,785 Offsetting (5,580,569) (3,545,437) Deferred tax liabilities (after offsetting) 1,963,268 3,768,348 Deferred tax assets (before offsetting) Temporary differences arising from: Accrued expenses 12,142 15,251 Unrealised foreign exchange loss 3,197,773 875,763 Unused tax losses 2,370,654 2,654,423 5,580,569 3,545,437 Offsetting (5,580,569) (3,545,437) Deferred tax assets (after offsetting) - - The availability of the unused tax losses for offsetting against future taxable profit of the Group is subject to agreement with the tax authorities. Al-`Aqar Healthcare REIT • Annual Report 2018 134 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)