MISC Integrated Annual Report 2020

28. 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. 29. DEFERRED TAX Group 2020 2019 RM’000 RM’000 At 1 January (72,592) (71,961) Recognised in income statement (Note 11): In Malaysia (128) (229) Outside Malaysia (24,061) 78 (24,189) (151) Currency translation differences 169 (480) At 31 December (96,612) (72,592) Presented after appropriate offsetting as follows: Deferred tax assets (104,433) (103,499) Deferred tax liabilities 7,821 30,907 (96,612) (72,592) 29. 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 2020 99,086 21,573 120,659 Recognised in income statement: In Malaysia (12,440) – (12,440) Outside Malaysia (2,412) (19,668) (22,080) At 31 December 2020 84,234 1,905 86,139 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 Deferred tax assets of the Group: Tax losses, investment tax allowances and unabsorbed Other capital payables allowances Others Total RM’000 RM’000 RM’000 RM’000 At 1 January 2020 (17,480) (154,641) (21,130) (193,251) Recognised in income statement: In Malaysia 1,310 13,914 (2,912) 12,312 Outside Malaysia – – (1,981) (1,981) Currency translation differences 69 – 100 169 At 31 December 2020 (16,101) (140,727) (25,923) (182,751) 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) 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 10 418 10 419 /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// Section Section MISC Berhad / Integrated Annual Report 2020 MISC Berhad / Integrated Annual Report 2020