XML 47 R32.htm IDEA: XBRL DOCUMENT v3.19.1
Finance Lease Liabilities
 12 Months Ended
Dec. 31, 2018
Finance Lease Liabilities [Abstract]  
Finance Lease Liabilities
27.

Finance Lease Liabilities

 

(1)

Lease contracts

The Company entered into power purchase agreements (“PPA”) with GS EPS and two other providers. The Company recognizes these PPAs as finance leases; under the PPAs, there is no transfer of ownership or bargain purchase option of the plants at the end of the agreement, however, the present value of the future minimum power purchase payments equals substantially all of the plants’ respective fair values over a twenty-year period which makes up the major part of the respective plant’s economic life.

 

(2)

Finance lease liabilities as of December 31, 2017 and 2018 are as follows and are included in current and non-current trade and other payables, 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

    ￦        174,534        131,792        87,709        57,200  

1 ~ 5 years

         272,994        204,069        228,783        170,676  

More than 5 years

         108,748        82,399        65,250        55,930  
     

 

 

     

 

 

     

 

 

     

 

 

  
   ￦        556,276        418,260        381,742        283,806  
     

 

 

     

 

 

     

 

 

     

 

 

  

 

(3)

Current and non-current portion of financial lease liabilities as of December 31, 2017 and 2018 are as follows:

 

            2017      2018  
            In millions of won  

Current finance lease liabilities

    ￦        131,792        57,200  

Non-current finance lease liabilities

         286,468        226,606  
     

 

 

     

 

 

  
   ￦        418,260        283,806  
     

 

 

     

 

 

  

 

(4)

Minimum lease payment and contingent rent payment recognized as an expense as a lessee for the years ended December 31, 2017 and 2018 are as follows:

 

            2017      2018  
            In millions of won  

Minimum lease payment

    ￦        158,859        111,530  

Contingent rent payment

         (21,024 )       (18,872 ) 

 

(5)

Changes in finance lease liabilities for the years ended December 31, 2017 and 2018 are as follows:

 

            2017      2018  
            In millions of won  

Beginning balance

    ￦        541,179        418,260  

Cash flow

         (122,919 )       (134,454 ) 

Acquisition of finance lease assets

         —          —    
     

 

 

     

 

 

  

Ending balance

    ￦        418,260        283,806