Al-`Aqar Healthcare REIT Annual Report 2020

Financial Reports 143 17. Deferred tax liabilities (cont’d) The components and movements of deferred tax assets and liability during the financial year are as follows: Deferred tax liability - Group Investment properties RM At 1 January 2020 (5,640,120) Recognised in profit or loss 8,389,672 Foreign exchange difference (215,390) At 31 December 2020 2,534,162 At 1 January 2019 (5,703,609) Recognised in profit or loss (13,724) Foreign exchange difference 77,213 At 31 December 2019 (5,640,120) Unrealised loss on foreign exchange RM At 1 January 2020 7,093,128 Recognised in profit or loss (7,336,714) Foreign exchange difference 243,586 At 31 December 2020 - At 1 January 2019 7,666,877 Recognised in other comprehensive income (469,198) Foreign exchange difference (104,551) At 31 December 2019 7,093,128 Deferred tax liability - Fund Investment properties RM At 1 January 2020 - Recognised in profit or loss 2,534,162 At 31 December 2020 2,534,162 The deferred tax liability relates to fair value gain on investment properties which is expected to be recovered through sale. The amount of deferred tax recognised is measured using the tax rates that would apply on the sale of those assets at their carrying values at the reporting date unless the property is held with the objective to consume substantially all the economic bene ts embodied in the property over time, rather than through sale. Based on the Finance Act 2019 which was gazetted in December 2019, it was clari ed that the RPGT rate of 10% is prescribed for disposal of investment properties held for more than 5 years for a trustee of a trust. Notes to the Financial Statements For the Year Ended 31 December 2020