XML 114 R99.htm IDEA: XBRL DOCUMENT

Income tax expense (Tables)

12 Months Ended

Dec. 31, 2017

Income tax expense [Abstract]

Income tax expense

Income tax expense for the years ended December 31, 2015, 2016 and 2017 are as follows:


						2015				2016				2017
						In millions of won
Current income tax expense
Payment of income tax			￦				2,682,779				2,689,640				881,583
Adjustment due to changes in estimates related to prior years							(23,248	)			231,113				4,484
Current income tax directly recognized in equity							37,768				30,059				(56,098	)

							2,697,299				2,950,812				829,969

Deferred income tax expense
Generation and realization of temporary differences							48,878				509,762				1,283,012
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods							71,999				(86,845	)			44,573
Changes in deferred tax on tax losses carryforwards							2,374,237				—				—
Tax credit carryforwards							47,000				(8,588	)			15,270

							2,542,114				414,329				1,342,855

Income tax expense			￦				5,239,413				3,365,141				2,172,824

Reconciliation between actual income tax expense and amount computed by applying the statutory tax rate

Reconciliation between actual income tax expense and amount computed by applying the statutory tax rate to income before income taxes for the years ended December 31, 2015, 2016 and 2017 are as follows:


						2015				2016				2017
						In millions of won
Income before income tax			￦				18,655,786				10,513,468				3,614,218

Income tax expense computed at applicable tax rate of 24.2%							4,514,700				2,544,259				874,641
Adjustments
Effect of applying gradual tax rate							(4,147	)			(5,082	)			(5,082	)
Effect of non-taxable income							(8,047	)			(29,554	)			(32,032	)
Effect of non-deductible expenses							17,734				22,258				15,032
Effects of tax credits and deduction							(103,435	)			(194,731	)			(161,069	)
Recognition (reversal) of unrecognized deferred tax asset, net							71,999				(86,845	)			44,573
Effect of change in deferred tax due to change in tax rate (from 24.2% to 27.5%)							—				—				1,055,154
Deferred income tax related to investments in subsidiaries and associates							784,793				862,956				394,145
Others, net							(10,936	)			20,767				(17,022	)

							747,961				589,769				1,293,699
Adjustment in respect of prior years due to change in estimate							(23,248	)			231,113				4,484

Income tax expense			￦				5,239,413				3,365,141				2,172,824

Effective tax rate							28	%			32	%			60	%

Income tax directly adjusted to shareholders’ equity (except for accumulated other comprehensive income (loss))

Income tax directly adjusted to shareholders’ equity (except for accumulated other comprehensive income (loss)) for the years ended December 31, 2015, 2016 and 2017 are as follows:


						2015				2016				2017
						In millions of won
Dividends of hybrid bond		￦					5,253				5,253				5,248
Gain on disposal of investments in subsidiaries							(14,144	)			(7,006	)			—
Effect of change in effective tax rate							—				—				(25	)

		￦					(8,891)				(1,753	)			5,223

Income tax recognized as other comprehensive income (loss)

Income tax recognized as other comprehensive income (loss) for the years ended December 31, 2015, 2016 and 2017 are as follows:


						2015				2016				2017
						In millions of won
Income tax recognized as other comprehensive income (loss)
Loss on valuation of available-for-sale financial assets		￦					(6,315	)			(8,143	)			(2,551	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax							7,253				(18,335	)			(11,016	)
Remeasurement of defined benefit obligations							42,913				49,986				(80,645	)
Investments in associates							13,648				7,731				8,649
Others							(10,840	)			573				24,242

		￦					46,659				31,812				(61,321	)

Changes in deferred income tax assets (liabilities)

Changes in deferred income tax assets (liabilities) recognized in the statements of financial position for the years ended December 31, 2016 and 2017 are as follows:


						2016
						Beginning balance				Amounts recognized in profit or loss				Amount recognized in other comprehensive income (loss)				Amounts recognized directly in equity				Ending balance
						In millions of won
Deferred income tax on temporary differences
Employee benefits		￦					407,342				36,003				49,986				—				493,331
Cash flow hedge							(29,013	)			(6,235	)			(18,335	)			—				(53,583	)
Investments in associates or subsidiaries							(6,449,998	)			(717,072	)			7,731				(7,006	)			(7,166,345	)
Property, plant and equipment							(5,495,786	)			(31,532	)			—				—				(5,527,318	)
Finance lease							(272,430	)			(73,001	)			—				—				(345,431	)
Intangible assets							9,420				(433	)			—				—				8,987
Financial assets at fair value through profit or loss							(4	)			(58	)			—				—				(62	)
Available-for-sale financial assets							(49,199	)			(11,005	)			(8,143	)			—				(68,347	)
Deferred revenue							215,361				(1,502	)			—				—				213,859
Provisions							3,372,423				210,948				—				—				3,583,371
Doubtful receivables							1,405				1,291				—				—				2,696
Other finance liabilities							26,298				(1,302	)			—				5,253				30,249
Gains or losses on foreign exchange translation							128,714				10,224				—				—				138,938
Allowance for doubtful accounts							18,976				(1,724	)			—				—				17,252
Accrued income							(11,231	)			5,864				—				—				(5,367	)
Special deduction for property, plant and equipment							(194,347	)			38				—				—				(194,309	)
Reserve for research and human development							(20,688	)			7,805				—				—				(12,883	)
Others							576,585				118,712				573				—				695,870

							(7,766,172	)			(452,979	)			31,812				(1,753	)			(8,189,092	)

Deferred income tax on unused tax losses and tax credit
Tax losses							(3	)			3				—				—				—
Tax credit							27,115				8,588				—				—				35,703

							27,112				8,591				—				—				35,703

		￦					(7,739,060	)			(444,388	)			31,812				(1,753	)			(8,153,389	)


						2017
						Beginning balance				Amounts recognized in profit or loss				Amount recognized in other comprehensive income (loss)				Amounts recognized directly in equity				Ending balance
						In millions of won
Deferred income tax on temporary differences
Employee benefits		￦					493,331				86,008				(80,645	)			—				498,694
Cash flow hedge							(53,583	)			130,044				(11,016	)			—				65,445
Investments in associates or subsidiaries							(7,166,345	)			(1,510,295	)			8,649				(25	)			(8,668,016	)
Property, plant and equipment							(5,527,318	)			(1,333,122	)			—				—				(6,860,440	)
Finance lease							(345,431	)			(81,518	)			—				—				(426,949	)
Intangible assets							8,987				(1,339	)			—				—				7,648
Financial assets at fair value through profit or loss							(62	)			952				—				—				890
Available-for-sale financial assets							(68,347	)			62,055				(2,551	)			—				(8,843	)
Deferred revenue							213,859				16,852				—				—				230,711
Provisions							3,583,371				1,239,462				—				—				4,822,833
Doubtful receivables							2,696				(2,637	)			—				—				59
Other finance liabilities							30,249				(2,742	)			—				5,248				32,755
Gains or losses on foreign exchange translation							138,938				(140,292	)			—				—				(1,354	)
Allowance for doubtful accounts							17,252				25,679				—				—				42,931
Accrued income							(5,367	)			3,542				—				—				(1,825	)
Special deduction for property, plant and equipment							(194,309	)			(6,618	)			—				—				(200,927	)
Reserve for research and human development							(12,883	)			9,842				—				—				(3,041	)
Others							695,870				232,642				24,242				—				952,754

							(8,189,092	)			(1,271,485	)			(61,321	)			5,223				(9,516,675	)

Deferred income tax on unused tax losses and tax credit
Tax losses							—				—				—				—				—
Tax credit							35,703				(15,272	)			—				—				20,431

							35,703				(15,272	)			—				—				20,431

		￦					(8,153,389	)			(1,286,757	)			(61,321	)			5,223				(9,496,244	)

Deferred income tax assets (liabilities)

Deferred income tax assets (liabilities) recognized in the statements of financial position as of December 31, 2016 and 2017 are as follows:


						2016				2017
						In millions of won
Deferred income tax assets		￦					795,131				919,153
Deferred income tax liabilities							(8,948,520	)			(10,415,397	)

		￦					(8,153,389	)			(9,496,244	)

Details of deductible temporary differences, tax losses and unused tax credits for which no deferred income tax assets were recognized

Details of deductible temporary differences, tax losses and unused tax credits for which no deferred income tax assets were recognized as of December 31, 2016 and 2017 are as follows:

2016

2017

In millions of won

Deductible temporary differences

￦

426,718

444,426