KENANGA ANNUAL REPORT 2020

220 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 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 Impairment allowance and provisions RM’000 Lease liabilities RM’000 Total RM’000 At 1 January 2020 - 8,534 5,625 14,159 Recognised in profit or loss - 10,608 (479) 10,129 At 31 December 2020 - 19,142 5,146 24,288 At 1 January 2019 (687) 10,587 - 9,900 Recognised in profit or loss - (2,053) 5,625 3,572 Recognised in other comprehensive income 687 - - 687 At 31 December 2019 - 8,534 5,625 14,159 Deferred tax assets have not been recognised in respect of the following items: Group 2020 RM’000 2019 RM’000 Unutilised tax losses carried forward 6,177 3,772 Unutilised capital allowances carried forward 2,000 1,761 8,177 7,411 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 and unutilised allowances ia restricted to a maximum period of seven (7) consecutive years.