BIMB Integrated Annual Report 2017

12. STATUTORY DEPOSITS WITH BANK NEGARA MALAYSIA The non-interest bearing statutory deposits are maintained with Bank Negara Malaysia (“BNM”) in compliance with Section 26(2)(c) of the Central Bank of Malaysia Act, 2009, the amount of which are determined as set percentages of total eligible liabilities. 13. DEFERRED TAX ASSETS Recognised deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: ASSETS LIABILITIES TOTAL 2017 2016 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Property and equipment – – (9,022) (17,050) (9,022) (17,050) Other properties 997 2,320 – – 997 2,320 Unabsorbed capital allowances 13,197 25,299 – – 13,197 25,299 Provisions 33,292 25,018 – – 33,292 25,018 Expense reserves 26,592 18,923 – – 26,592 18,923 Change in fair value reserve 6,967 15,925 – – 6,967 15,925 Tax assets/(liabilities) 81,045 87,485 (9,022) (17,050) 72,023 70,435 Company Tax assets 10 10 – – 10 10 Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items: 2017 2016 RM’000 RM’000 Group Unabsorbed capital allowances 78,475 28,475 Unutilised tax losses 6,701 6,701 Deductible temporary differences 329 329 85,505 35,505 The Group’s unabsorbed capital allowances of RM78,440,000 in respect of its leasing business whereby management considered it uncertain whether Bank Islam is able to utilise the benefits in the future. As such, deferred tax assets have not been recognised. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 203 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis c