FGV Audited Financial Statements 2019

201 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 51 DEFERRED TAXATION (CONTINUED) Group Company 2019 RM’000 2018 RM’000 (Restated) 2019 RM’000 2018 RM’000 (Restated) Deferred tax liabilities - intangible assets (14,364) (15,869) - - - property, plant and equipment (1,369,353) (1,366,942) 478 6,719 - biological assets (9,840) (10,187) - - - receivables (2,379) (873) - - - inventories (3,266) (3,666) - - - others (2,732) (10,908) - - Amount before offsetting (1,401,934) (1,408,445) 478 6,719 Offsetting 729,980 673,075 (478) (6,719) (671,954) (735,370) - - Under the Malaysia Finance Act 2018, the Group’s unused tax losses as at 31 December 2019 for which no deferred tax assets were recognised based on the year of assessment (“YA”) expiry for the Group and Company are as follows: Group Company 31.12.2019 RM’000 31.12.2018 RM’000 1.1.2018 RM’000 31.12.2019 RM’000 31.12.2018 RM’000 1.1.2018 RM’000 No expiry - - 398,843 - - 228,703 Expiring in YA 2026 367,329 - - - - - Expiring in YA 2025 831,731 979,085 - 161,914 117,006 - 1,199,060 979,085 398,843 161,914 117,006 228,703 In the previous financial year, the significant increase in unused tax losses with no deferred tax assets being recognised was due to the tax loss expiry introduced in the previous financial year, resulting in deferred tax assets reversal of a refinery business of RM21,292,000 as the tax benefits are not expected to be utilised by 2025. In addition, a reversal of RM53,290,000 relating to APL’s deferred tax assets was recognised in the previous financial year as the amount relating to unabsorbed tax losses is not expected to be utilised subsequent to the impairment assessment done on APL (Note 20).