235 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 KENANGA INVESTMENT BANK BERHAD Annual Report 2022 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 Unabsorbed capital allowances and tax losses RM’000 Impairment allowance and provisions RM’000 Lease liabilities RM’000 Total RM’000 At 1 January 2022 - - 23,257 4,044 27,301 Recognised in profit or loss - 7,205 (13,878) 1,568 (5,105) Recognised in other comprehensive income 2,154 - - - 2,154 At 31 December 2022 2,154 7,205 9,379 5,612 24,350 At 1 January 2021 - - 19,142 5,146 24,288 Recognised in profit or loss - - 4,115 (1,102) 3,013 At 31 December 2021 - - 23,257 4,044 27,301 Deferred tax assets have not been recognised in respect of the following items: Group 2022 RM’000 2021 RM’000 Unutilised tax losses carried forward 10,793 8,101 Unutilised capital allowances carried forward 2,280 2,180 13,073 10,281 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 is restricted to a maximum period of ten (10) consecutive years. The unabsorbed capital allowances for the Group are not subject to 10 year limitation period and available for offsetting against future taxable profits of the Group. These utilisation of carried forward tax losses and allowances are also subject to no substantial change in shareholding of the Group under the Income Tax Act. 1967 and guidelines issued by the tax authority.
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