EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 101 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 28. DEFERRED TAXATION (CONT’D) Deferred tax assets have not been recognised in respect of the following items: Group Company 2020 2019 2020 2019 RM RM RM RM Unused tax losses 748,913 1,300,896 - - Other deductible temporary differences 1,532,808 322,342 1,532,808 322,342 2,281,721 1,623,238 1,532,808 322,342 Deferred tax assets have not been recognised in respect of these items as they may not have sufficient taxable profits to be used to offset or they have arisen in subsidiary company that have a recent history of losses. With effect from year of assessment 2019, unused tax losses are allowed to be carried forward up to maximum of seven consecutive years of assessment under the current year legislation. The other temporary differences do not expire under current tax legislation. 29. EARNINGS PER SHARE (a) Basic earnings per share The basic earnings per share are calculated based on the consolidated profit for the financial year attributable to the owners of the parent and the weighted average number of ordinary shares in issue during the financial year as follows: Group 2020 2019 RM RM Profit attributable to owners of the parent 10,766,107 6,471,450 Weighted average number of ordinary shares in issue: Issued ordinary shares at the beginning of the financial year 580,378,375 414,481,950 Shares issued during the financial year - 56,622,508 Less: Treasury shares (17,898,630) (3,597,260) 562,479,745 467,507,198 Basic earnings per ordinary share (in sen) 1.91 1.38 (b) Diluted earnings per share The Group has no dilution in their earnings per ordinary shares as there are no dilutive potential ordinary shares. There have been no other transactions involving ordinary shares or potential ordinary shares since the end of the financial year and before the authorisation of these financial statements.