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
	2021 US$’000		2020 US$’000		2021 US$’000			2020 US$’000			2021 US$’000			2020 US$’000
Property, plant and equipment		477		733		(11	)		(9	)		466			724
Intangible assets		-		-		(3,969	)		(4,072	)		(3,969	)		(4,072	)
Inventories		620		750		-			-			620			750
Provisions		1,871		2,159		-			-			1,871			2,159
Tax value of loss carry-forwards		1,016		433		-			-			1,016			433
Other items		117		110		(878	)		(824	)		(761	)		(714	)

Deferred tax assets/(liabilities)		4,101		4,185		(4,858	)		(4,905	)		(757	)		(720	)

The deferred tax asset in 2021 is mainly due to deductible temporary differences relating to provisions, loss carry-forwards, property, plant and equipment and the elimination of unrealised intercompany inventory profit. In 2021, the deferred tax asset decreased by US$84,000 mainly due to a reduction in deductible temporary differences principally attributable to property, plant and equipment, provisions and inventories.

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$47,000 in 2021, 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, 2021 and at December 31, 2020 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.

Most temporary differences are expected to reverse after 2023.

Movement in temporary differences during the year

	Balance January, 1 2021			Recognised in income			Balance December 31, 2021
	US$’000			US$’000			US$’000
Property, plant and equipment		724			(258	)		466
Intangible assets		(4,072	)		103			(3,969	)
Inventories		750			(130	)		620
Provisions		2,159			(288	)		1,871
Tax value of loss carry-forwards		433			583			1,016
Other items		(714	)		(47	)		(761	)

		(720	)		(37	)		(757	)

	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	)

Unrecognised deferred tax assets

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

	December 31, 2021		December 31, 2020
	US$’000		US$’000
Capital losses		8,293		8,293
Net operating losses		73,893		85,198
US alternative minimum tax credits		1,704		1,848
Other temporary timing differences		21,301		21,878
US state credit carry-forwards		1,664		802

		106,855		118,019

There was a decrease of US$11,164,000 in the unrecognised deferred tax assets during the year ended December 31, 2021. The above amounts are the gross values and have not been tax effected.