Excel Force MSC Berhad Annual Report 2016

EXCEL FORCE MSC BERHAD ANNUAL REPORT 2016 89 Notes to the Financial Statements 31 December 2016 (cont’d) 20. DEFERRED TAX LIABILITIES (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: Group 2016 2015 RM RM Other temporary differences (31,738) (44,968) Unused tax losses 3,092,263 3,092,263 Unabsorbed capital allowances (9,081) 159,944 3,051,444 3,207,239 Deferred tax assets of certain subsidiary have not been recognised in respect of these items as it is not probable that taxable profit will be available against which the deductible temporary differences can be utilised. The deductible temporary differences do not expire under the current tax legislation. 21. REVENUE Group Company 2016 2015 2016 2015 RM RM RM RM Application solutions: - Software 5,300,111 6,914,293 4,326,399 4,751,942 - Hardware 478,011 716,195 478,011 716,195 Maintenance services 1,931,161 1,968,149 1,884,248 1,924,834 Application service provider 14,763,345 15,681,358 13,398,300 14,397,652 22,472,628 25,279,995 20,086,958 21,790,623 22. COST OF SALES Group Company 2016 2015 2016 2015 RM RM RM RM Hardware sold 391,663 704,849 391,663 704,849 Amortisation of product development costs (Note 8) 1,773,670 1,429,000 1,352,853 1,055,332 Project costs 2,008,744 1,229,064 2,243,665 1,819,327 Data centre and line expenses 1,212,579 1,243,387 1,203,990 1,231,964 Direct technical staff costs 2,167,162 2,634,900 1,540,044 1,601,119 License fees 318,592 306,458 143,430 155,226 Other expenses 757,576 883,771 195,846 115,234 8,629,986 8,431,429 7,071,491 6,683,051