NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 235 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 19. DEFERRED TAXATION (CONT’D.) The components and movements of deferred tax assets and liabilities during the financial year prior to offsetting are as follows (cont’d.): Deferred tax assets of the Bank: Fair value reserve RM’000 Unabsorbed capital allowances and tax losses RM’000 Impairment allowance and provisions RM’000 Lease liabilities RM’000 Total RM’000 At 1 January 2023 2,154 7,205 9,379 5,612 24,350 Recognised in profit or loss - (4,920) 1,404 234 (3,282) Recognised in other comprehensive income (2,154) - - - (2,154) At 31 December 2023 - 2,285 10,783 5,846 18,914 At 1 January 2022 - - 23,257 4,044 27,301 Recognised in profit or loss - 7,205 (13,878) 1,568 (5,105) Recognised in other comprehensive income 2,154 - - - 2,154 At 31 December 2022 2,154 7,205 9,379 5,612 24,350 Deferred tax assets have not been recognised in respect of the following items: Group 2023 RM’000 2022 RM’000 Unutilised tax losses carried forward 19,259 21,310 Unutilised capital allowances carried forward 2,573 2,473 21,832 23,783 On 27 December 2018, the Finance Act 2018 was gazetted and section 10 of the Finance Act 2018 made amendments to Section 44 of Income Tax Act 1967 (“ITA”). Effective year of assessment (“YA”) 2019, the ability to carry forward the unabsorbed losses is restricted to a maximum period of ten (10) consecutive years. The unabsorbed capital allowances for the Group are not subject to ten (10) year limitation period and available for offsetting against future taxable profits of the Group. These utilisation of carried forward tax losses and allowances are also subject to no substantial change in shareholding of the Group under the Income Tax Act 1967 and guidelines issued by the tax authority.
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