Dagang NeXchange Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DAGANG NeXCHANGE BERHAD 148 10. DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) Deferred tax assets/(liabilities) have not been recognised in respect of the following items: Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Unutilised tax losses 43,498 24,867 - - Unabsorbed capital allowances 6,949 6,157 - - Property, plant and equipment, intangible assets (7,140) (11,877) (1) (47) Provisions 4,141 9,708 406 406 Others - 448 - - 47,448 29,303 405 359 Unrecognised deferred tax assets 11,388 7,033 97 86 (a) Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits will be allowable against which the Group and the Company can utilise the benefits. (b) The comparative figures have been restated to reflect the actual tax losses and capital allowances available to the Group and to the Company. (c) With effect from year of assessment 2019, the unutilised tax losses in a year of assessment of the Group and the Company can only be carried forward for a maximum period of 7 consecutive years of assessment to be utilised against income from any business source. The unabsorbed capital allowances do not expire under the current tax legislation. 11. INVENTORIES Group 2019 2018 RM’000 RM’000 Trading merchandise in transit 1,207 632 Goods held for resale 109 1,910 Consumables - 479 1,316 3,021 Recognised in profit or loss: Inventories recognised as cost of sales 38,042 33,945 Write-down to net realisable value 904 - Due to slow-moving and obsolete consumables, the Group tested the related product line for impairment and also wrote down the related inventories to their net realisable value, which resulted in a loss of RM904,000.