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Trade and Other Receivables

12 Months Ended

Dec. 31, 2017

Trade and Other Receivables [Abstract]

8.	Trade and Other Receivables

(1)

Trade and other receivables as of December 31, 2016 and 2017 are as follows:


		2016
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,260,227		(71,985	)		—			7,188,242
Other receivables			652,782		(50,071	)		(2,077	)		600,634

			7,913,009		(122,056	)		(2,077	)		7,788,876

Non-current assets
Trade receivables			491,509		—			—			491,509
Other receivables			1,455,860		(37,590	)		(6,264	)		1,412,006

			1,947,369		(37,590	)		(6,264	)		1,903,515

	￦		9,860,378		(159,646	)		(8,341	)		9,692,391


		2017
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,499,285		(173,583	)		—			7,325,702
Other receivables			614,212		(9,199	)		(1,743	)		603,270

			8,113,497		(182,782	)		(1,743	)		7,928,972

Non-current assets
Trade receivables			449,191		—			(414	)		448,777
Other receivables			1,380,983		(68,809	)		(6,154	)		1,306,020

			1,830,174		(68,809	)		(6,568	)		1,754,797

	￦		9,943,671		(251,591	)		(8,311	)		9,683,769

(2)

Other receivables as of December 31, 2016 and 2017 are as follows:


		2016
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		360,021		(50,071	)		—			309,950
Accrued income			62,063		—			—			62,063
Deposits			193,720		—			(2,077	)		191,643
Finance lease receivables			12,225		—			—			12,225
Others			24,753		—			—			24,753

			652,782		(50,071	)		(2,077	)		600,634

Non-current assets
Non-trade receivables			80,393		(26,942	)		—			53,451
Accrued income			174		—			—			174
Deposits			320,935		—			(6,264	)		314,671
Finance lease receivables			960,649		—			—			960,649
Others			93,709		(10,648	)		—			83,061

			1,455,860		(37,590	)		(6,264	)		1,412,006

	￦		2,108,642		(87,661	)		(8,341	)		2,012,640


		2017
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		314,256		(9,199	)		—			305,057
Accrued income			54,002		—			—			54,002
Deposits			228,317		—			(1,743	)		226,574
Finance lease receivables			13,067		—			—			13,067
Others			4,570		—			—			4,570

			614,212		(9,199	)		(1,743	)		603,270

Non-current assets
Non-trade receivables			112,983		(59,117	)		—			53,866
Accrued income			182		—			—			182
Deposits			331,071		—			(6,154	)		324,917
Finance lease receivables			849,554		—			—			849,554
Others			87,193		(9,692	)		—			77,501

			1,380,983		(68,809	)		(6,154	)		1,306,020

	￦		1,995,195		(78,008	)		(7,897	)		1,909,290

(3)

Trade and other receivables are classified as loans and receivables, and are measured using the effective interest method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. But once trade receivables are overdue, the Company imposes a monthly interest rate of 1.5% on the overdue trade receivables. The Company holds deposits of three months’ expected electricity usage for customers requesting temporary usage and customers with past defaulted payments.

(4)

Aging analysis of trade receivables as of December 31, 2016 and 2017 are as follows:


		2016			2017
		In millions of won
Trade receivables: (not overdue, not impaired)	￦		7,592,363			7,698,604

Trade receivables: (overdue, not impaired)			820			7,117

Less than 60 days			820			7,117

Trade receivables: (impairment reviewed)			158,553			242,755

60 ~ 90 days			44,277			39,070
90 ~ 120 days			18,917			17,502
120 days ~ 1year			42,534			55,242
Over 1 year			52,825			130,941

			7,751,736			7,948,476
Less: allowance for doubtful accounts			(71,985	)		(173,583	)
Less: present value discount			—			(414	)

	￦		7,679,751			7,774,479

The Company assesses at the end of each reporting period whether there is any objective evidence that trade receivables are impaired, and provides allowances for doubtful accounts which includes impairment for trade receivables that are individually significant. The Company considers receivables as overdue if the receivables are outstanding 60 days after the maturity and sets an allowance based on past experience of collection.

(5)

Aging analysis of other receivables as of December 31, 2016 and 2017 are as follows:


		2016			2017
		In millions of won
Other receivables: (not overdue, not impaired)	￦		1,887,620			1,810,075

Other receivables: (overdue, not impaired)			46,887			47,532

Less than 60 days			46,887			47,532

Other receivables: (impairment reviewed)			174,135			137,588

60 ~ 90 days			7,352			44
90 ~ 120 days			2,160			1,017
120 days ~ 1year			17,613			11,042
Over 1 year			147,010			125,485

			2,108,642			1,995,195
Less: allowance for doubtful accounts			(87,661	)		(78,008	)
Less: present value discount			(8,341	)		(7,897	)

	￦		2,012,640			1,909,290

(6)

Changes in the allowance for doubtful accounts for the years ended December 31, 2015, 2016 and 2017 are as follows:


		2015						2016						2017
		Trade receivables			Other receivables			Trade receivables			Other receivables			Trade receivables			Other receivables
		In millions of won
Beginning balance	￦		80,644			67,932			51,956			91,746			71,985			87,661
Bad debt expense			1,308			18,473			38,719			233			126,714			1,778
Write-off			(28,978	)		(888	)		(18,939	)		(928	)		(32,995	)		(3,129	)
Reversal			(1,018	)		(413	)		—			(5,489	)		—			(2,166	)
Others			—			6,642			249			2,099			7,879			(6,136	)

Ending balance	￦		51,956			91,746			71,985			87,661			173,583			78,008