KENANGA ANNUAL REPORT 2019

211 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 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 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 At 1 January 2018 1,220 12,409 - 13,629 Recognised in profit or loss - (1,822) - (1,822) Recognised in other comprehensive income (1,907) - - (1,907) At 31 December 2018 (687) 10,587 - 9,900 Deferred tax assets have not been recognised in respect of the following items: Group 2019 RM’000 2018 RM’000 Unutilised tax losses carried forward 5,650 3,878 Unutilised capital allowances carried forward 1,761 1,730 7,411 5,608 The Public Ruling No.6/2016 Group Relief for Companies states that the provision of group relief allows a company in a group to surrender not more than 70% of its adjusted losses in the basis period for a year of assessment to one or more related companies within the same group. The Bank’s subsidiaries’ have surrendered tax losses amounting to a total of RM2,047,860 to the Bank for set-off against the aggregate income for year of tax assessment 2018.