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Finance Lease Receivables
 12 Months Ended
Dec. 31, 2018
Finance Lease Receivables [Abstract]  
Finance Lease Receivables
17.

Finance Lease Receivables

 

(1)

Finance lease contracts

The Company entered into a power purchase agreement (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25 year lease term, and accounts for the PPA as a finance lease. Also, the Company has fly-ash pipe conduit finance leases with an average lease term of 7 years. In addition, the Company provides 31 energy storage system installation projects and 44 energy efficiency contracts as finance leases with a lease term of 2 to 10 years. Also, the Company entered into a PPA with the Comision Federal de Electricidad in Mexico to provide for 25 years (December 2013 to November 2038) of all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

 

(2)

Finance lease receivables as of December 31, 2017 and 2018 are as follows and included in current and non-current trade and other receivables, net, in the consolidated statements of financial position:

 

            2017      2018  
            Minimum lease
payments		      Present value of
minimum
lease payments		      Minimum lease
payments		      Present value
of minimum
lease payments		  
            In millions of won  

Less than 1 year

    ￦        49,542        13,067        124,918        84,688  

1 ~ 5 years

         381,181        203,990        467,518        223,622  

More than 5 years

         1,398,449        645,564        1,333,016        675,036  
     

 

 

     

 

 

     

 

 

     

 

 

  
   ￦        1,829,172        862,621        1,925,452        983,346  
     

 

 

     

 

 

     

 

 

     

 

 

  

Allowance for doubtful accounts

            —             (1,133 ) 
        

 

 

        

 

 

  
         ￦ 862,621           982,213  
        

 

 

        

 

 

  

 

(3)

There are no impaired finance lease receivables as of December 31, 2016 and 2017, and changes in the allowance for doubtful accounts of finance lease receivables for the year ended December 31, 2018 are as follows:

 

     2018  
     In millions of won  

Beginning balance

    ￦ —    

Bad debt expense

      1,133  

Write-off

      —    

Other

      —    
  

 

 

  

Ending balance

    ￦ 1,133