MISC Annual Report 2019

27. OTHER RESERVES (CONT’D.) The nature and purpose of each category of reserves are as follows: (a) Revaluation reserve Revaluation reserve represents surplus arising from revaluation of certain freehold land. (b) Capital reserve Capital reserve represents reserve arising from bonus issue by subsidiaries. (c) Other capital reserve Other capital reserve represents the Group’s share of its subsidiaries’ reserve. (d) Statutory reserve Statutory reserve is maintained by overseas subsidiaries and joint ventures in accordance with the laws of the host countries. (e) Hedging reserve Hedging reserve represents the effective portion of the gain or loss on hedging instruments in the Group’s cash flow hedges and includes the Group’s share of hedging reserve of joint ventures. (f) Currency translation reserve Currency translation reserve comprises all foreign exchange differences arising from translation of the financial statements of the Corporation and foreign operations with different functional currencies from that of the Group’s presentation currency. 28. DEFERRED TAX Group 2019 2018 RM’000 RM’000 At 1 January (71,961) (68,342) Recognised in income statement (Note 10): In Malaysia (229) (6,506) Outside Malaysia 78 2,420 (151) (4,086) Currency translation differences (480) 467 At 31 December (72,592) (71,961) Presented after appropriate offsetting as follows: Deferred tax assets (103,499) (104,379) Deferred tax liabilities 30,907 32,418 (72,592) (71,961) 28. DEFERRED TAX (CONT’D.) 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: Accelerated capital allowances Others Total RM’000 RM’000 RM’000 At 1 January 2019 91,733 22,140 113,873 Recognised in income statement: In Malaysia 7,353 – 7,353 Outside Malaysia – (567) (567) At 31 December 2019 99,086 21,573 120,659 At 1 January 2018 81,904 21,093 102,997 Recognised in income statement: In Malaysia 9,829 – 9,829 Outside Malaysia – 1,047 1,047 At 31 December 2018 91,733 22,140 113,873 Deferred tax assets of the Group: Tax losses, investment tax allowance and unabsorbed Other capital payables allowances Others Total RM’000 RM’000 RM’000 RM’000 At 1 January 2019 (17,965) (145,460) (22,409) (185,834) Recognised in income statement: In Malaysia 372 (9,181) 1,227 (7,582) Outside Malaysia 645 – – 645 Currency translation differences (532) – 52 (480) At 31 December 2019 (17,480) (154,641) (21,130) (193,251) At 1 January 2018 (1,765) (152,064) (17,510) (171,339) Recognised in income statement: In Malaysia (18,040) 6,604 (4,899) (16,335) Outside Malaysia 1,373 – – 1,373 Currency translation differences 467 – – 467 At 31 December 2018 (17,965) (145,460) (22,409) (185,834) NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 330 331