15. DEFERRED TAX ASSETS AND LIABILITIES

Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities of the Group are attributable to the following:

	Assets			Liabilities					Net
		2020 US$’000	2019 US$’000		2020 US$’000		2019 US$’000			2020 US$’000		2019 US$’000
Property, plant and equipment		733	1,027		(9	)	(9	)		724		1,018
Intangible assets		—	—		(4,072	)	(6,099	)		(4,072	)	(6,099	)
Inventories		750	642		—		—			750		642
Provisions		2,159	3,622		—		—			2,159		3,622
Tax value of loss carry-forwards		433	216		—		—			433		216
Other items		110	745		(824	)	(1,031	)		(714	)	(286	)

Deferred tax assets/(liabilities)		4,185	6,252		(4,905	)	(7,139	)		(720	)	(887	)

The deferred tax asset in 2020 is mainly due to deductible temporary differences relating to provisions, property, plant and equipment and the elimination of unrealised intercompany inventory profit. In 2020, the deferred tax asset decreased by US$2,067,000 mainly due to a reduction in deductible temporary differences principally attributable to interest provisions.

The deferred tax liability is caused by the net book value of non-current assets being greater than the tax written down value of non-current assets, temporary differences due to the acceleration of the recognition of certain charges in calculating taxable income permitted in Ireland and the US. The deferred tax liability decreased by US$2,234,000 in 2020, principally because of the impairment of intangible assets on which the deferred tax liabilities were recognised.

Deferred tax assets and liabilities are only offset when the entity has a legally enforceable right to set off current tax assets against current tax liabilities and where the intention is to settle current tax liabilities and assets on a net basis or to realise the assets and settle the liabilities simultaneously. At December 31, 2020 and at December 31, 2019 no deferred tax assets and liabilities are offset as it is not certain as to whether there is a legally enforceable right to set off current tax assets against current tax liabilities and it is also uncertain as to what current tax assets may be set off against current tax liabilities and in what periods.

The vast majority of temporary differences are expected to reverse after 2022.

Movement in temporary differences during the year

	Balance January, 1 2020			Recognised in income			Balance December 31, 2020
	US$’000			US$’000			US$’000
Property, plant and equipment		1,018			(294	)		724
Intangible assets		(6,099	)		2,027			(4,072	)
Inventories		642			108			750
Provisions		3,622			(1,463	)		2,159
Tax value of loss carry-forwards		216			217			433
Other items		(286	)		(428	)		(714	)
		(887	)		167			(720	)

	Balance January, 1 2019			Recognised in income			Balance December 31, 2019
	US$’000			US$’000			US$’000
Property, plant and equipment		778			240			1,018
Intangible assets		(7,189	)		1,090			(6,099	)
Inventories		668			(26	)		642
Provisions		4,311			(689	)		3,622
Tax value of loss carry-forwards		-			216			216
Other items		(296	)		10			(286	)
		(1,728	)		841			(887	)

Unrecognised deferred tax assets

Deferred tax assets have not been recognised by the Group in respect of the following items:

	December 31, 2020		December 31, 2019
	US$’000		US$’000
Capital losses		8,293		8,293
Net operating losses		85,198		80,577
US alternative minimum tax credits		1,848		1,928
Other temporary timing differences		21,878		7,399
US state credit carryforwards		802		493

		118,019		98,690

There was an increase of US$19,329,000 in the unrecognised deferred tax assets during the year ended December 31, 2020.