XML 62 R49.htm IDEA: XBRL DOCUMENT v3.19.1
Changes in accounting policies (Tables)
12 Months Ended
Dec. 31, 2018
Text block [abstract]  
Summary of Impact of Transition to IFRS 9 on Opening Balance of Reserves and Retained Earnings

The following table explains the impact of transition to IFRS 9 on the opening balance of reserves and retained earnings as at January 1, 2018.

 

(In millions of won)             
     Reserves     Retained earnings  

Reclassification of available-for-sale financial assets to financial assets at fair value through profit or loss(“FVTPL”)

   (5,336     947  

Reclassification of available-for-sale financial assets to financial assets at fair value through other comprehensive income (“FVOCI”)

     (84,881     90,322  

Recognition of loss allowances on accounts receivable — trade and others

           (13,049

Related income tax

     21,413       (18,194
  

 

 

   

 

 

 
   (68,804     60,026  
  

 

 

   

 

 

 
Summary of Effects Resulting from Classification and Measurement of Financial Instruments

The following table explains the original measurement categories under IAS 39 and the changes in measurement categories under IFRS 9 for each class of the Group’s financial assets as at the date of initial application, January 1, 2018:

 

(In millions of won)                              
    Original
classification

under IAS 39
    New
classification
under IFRS 9
    Original carrying
amount under
IAS 39
    New carrying
amount under

IFRS 9
    Difference  

Short-term financial assets:

 

Cash and cash equivalents

    Amortized cost       Amortized cost     1,457,735       1,457,735        

Short-term financial instruments

    Amortized cost       Amortized cost       616,780       616,780        

Short-term investment securities(*1)

    Available-for-sale       FVTPL       47,383       47,383        

Short-term investment securities

   
Designated as at
FVTPL
 
 
    FVTPL       97,003       97,003        

Accounts receivable — trade

    Amortized cost       Amortized cost       2,126,007       2,113,057       (12,950

Short-term loans

    Amortized cost       Amortized cost       62,830       62,830        

Accounts receivable — other(*3)

    Amortized cost       FVTPL       830,321       830,321        

Accounts receivable — other

    Amortized cost       Amortized cost       430,514       430,415       (99

Accrued revenue

    Amortized cost       Amortized cost       3,979       3,979        

Guarantee deposits

    Amortized cost       Amortized cost       3,927       3,927        
     

 

 

   

 

 

   

 

 

 
        5,676,479       5,663,430       (13,049
     

 

 

   

 

 

   

 

 

 

Long-term financial assets:

         

Long-term financial instruments

    Amortized cost       Amortized cost       1,222       1,222        

Long-term investment securities(*1)

    Available-for-sale       FVTPL       173,394       169,005       (4,389

Long-term investment securities(*2)

    Available-for-sale       FVOCI       713,613       719,054       5,441  

Long-term accounts receivable — trade

    Amortized cost       Amortized cost       12,748       12,748        

Long-term loans

    Amortized cost       Amortized cost       50,874       50,874        

Long-term accounts receivable — other(*3)

    Amortized cost       FVTPL       243,742       243,742        

Long-term accounts receivable — other

    Amortized cost       Amortized cost       43,306       43,306        

Guarantee deposits

    Amortized cost       Amortized cost       292,590       292,590        

Derivative financial assets

   

Derivatives
hedging
instrument
 
 
 
   

Derivatives
hedging
instrument
 
 
 
    21,902       21,902        

Derivative financial assets(*1)

   
Designated as at
FVTPL
 
 
    FVTPL       231,311       9,054       (222,257

Long-term investment securities(*1)

   
Designated as at
FVTPL
 
 
    FVTPL             222,257       222,257  
     

 

 

   

 

 

   

 

 

 
        1,784,702       1,785,754       1,052  
     

 

 

   

 

 

   

 

 

 
      7,461,181       7,449,184       (11,997
     

 

 

   

 

 

   

 

 

 

 

 

(*1)   As of January 1, 2018, available-for-sale financial assets such as beneficiary certificates and equity investments amounting to ₩205,435 million were reclassified to financial assets measured at FVTPL. In addition, as derivatives embedded in contracts where the host is a financial asset in the scope of IFRS 9 are never separated, the available-for-sale financial assets related to the redeemable convertible preferred shares of ₩15,342 million and the related derivative financial assets of ₩222,257 million were reclassified to financial assets measured at FVTPL which were not designated as financial assets measured at amortized cost as the contractual terms of these assets do not give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates. As a result of this reclassification, as at January 1, 2018, accumulated OCI of ₩5,336 million was reclassified to retained earnings, and due to its reclassification to financial assets measured at FVTPL, retained earnings was decreased by ₩4,389 million in relation to fair value measurement. In addition, change in the fair value of these financial assets of ₩1,984 million was recognized in profit before income tax during the year ended December 31, 2018.

 

(*2)   As of January 1, 2018, available-for-sale financial assets such as marketable equity instruments amounting to ₩713,613 million were reclassified to equity investments at FVOCI and debt instrument at FVOCI of ₩713,399 million and ₩214 million, respectively. As a result of this reclassification, as at January 1, 2018, retained earnings of ₩ (-)90,322 million was reclassified to accumulated OCI and accumulated OCI was increased by ₩5,441 million due to the fair value measurement of financial assets which were stated at cost under IAS 39. The Group designated equity instruments that are not held for trading as FVOCI on initial application of IFRS 9 with no subsequent recycling of amounts from OCI to profit and loss.

 

(*3)   As of January 1, 2018, accounts receivable — other of ₩1,074,063 million were reclassified to financial assets at FVTPL. Upon the initial application of IFRS 9, the Group reclassified the debt instruments to financial assets at FVTPL whose objectives of the business model are not achieved both by collecting contractual cash flows and selling financial assets. There was no material impact on retained earnings as at January 1, 2018 as the fair values of these debt instruments were not significantly different from the carrying amounts as of December 31, 2017.
Summary of Impacts of Adopting IFRS 15 and 9 on Statement of Financial Position

(3)    The following table explains the impacts of adopting IFRS 15 and 9 on the Group’s statement of financial position as of January 1, 2018.

 

(In millions of won)                         
     December 31,
2017
    Adjustments     January 1,
2018
 
   As reported     IFRS 15     IFRS 9     Restated  

Current Assets:

   6,201,799       1,804,080       (13,049     7,992,830  

Accounts receivable — trade, net

     2,126,007       (4,314     (12,950     2,108,743  

Accounts receivable — other, net

     1,260,835             (99     1,260,736  

Prepaid expenses

     197,046       1,695,704             1,892,750  

Contract assets

           112,690             112,690  

Others

     2,617,911                   2,617,911  

Non-Current Assets:

     27,226,870       718,898       1,052       27,946,820  

Long-term investment securities

     887,007             223,309       1,110,316  

Long-term prepaid expenses

     90,834       693,393             784,227  

Long-term contract assets

           30,363             30,363  

Deferred tax assets

     88,132       (4,858           83,274  

Long-term derivative financial assets

     253,213             (222,257     30,956  

Others

     25,907,684                   25,907,684  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   33,428,669       2,522,978       (11,997     35,939,650  
  

 

 

   

 

 

   

 

 

   

 

 

 

Current Liabilities:

     7,109,123       12,485             7,121,608  

Provisions

     52,057       (215           51,842  

Contract liabilities

           114,284             114,284  

Receipts in advance

     161,266       (161,266            

Unearned revenue

     175,732       (175,732            

Withholdings

     961,501       235,414             1,196,915  

Others

     5,758,567                   5,758,567  

Non-Current Liabilities:

     8,290,351       610,444       (3,219     8,897,576  

Long-term contract liabilities

           19,100             19,100  

Long-term unearned revenue

     7,052       (7,052            

Other non-current liabilities

     44,094       (919           43,175  

Deferred tax liabilities

     978,693       599,315       (3,219     1,574,789  

Others

     7,260,512                   7,260,512  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

   15,399,474       622,929       (3,219     16,019,184  
  

 

 

   

 

 

   

 

 

   

 

 

 

Share capital

     44,639                   44,639  

Capital surplus and others

     196,281                   196,281  

Retained earnings

     17,835,946       1,900,049       60,026       19,796,021  

Reserves

     (234,727           (68,804     (303,531

Non-controlling interests

     187,056                   187,056  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

   18,029,195       1,900,049       (8,778     19,920,466  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   33,428,669       2,522,978       (11,997     35,939,650