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Business Combination | 12 Months Ended
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Dec. 31, 2019
Disclosure of detailed information about business combination [Abstract] |
Disclosure of business combinations |
51. | Business Combination
(1) | The details of business combinations that occurred for the year ended December 31, 2019 are as follows:
Company |  | Key operation activities |  | Date of merger |  |  | Transfer price |
|  | In millions of won |
Eumseong Natural Gas Power Co., Ltd. |  | Power generation |  |  | 2019.12.23 |  |  |  | 225,758 |
Eumseong Natural Gas Power Co., Ltd. was established in August 2019 by spin-off from Dangjin Eco Power Co., Ltd., and obtained the license for LNG combined power generation under the 8th Basic Plan for Long-Term Electricity Supply and Demand. Korea East-West Power Co., Ltd., a subsidiary of the Company, acquired 100% of its interest in Eumseong Natural Gas Power Co., Ltd. for stable power supply and profit generation through diversification of power sources, and merged with Eumseong Natural Gas Power Co., Ltd. on December 23, 2019.
(2) | Details of the transfer price at fair value given by the acquirer of the business combination for the year ended December 31, 2019 are as follows:
Type |  |  |  |  | Amounts |
|  |  |  |  | In millions of won |
Cash and cash equivalents |  | ￦ |  |  |  |  | 156,700 |
Other trade payables |  |  |  |  |  |  | 10,000 |
Fair value of the shares owned before the acquisition |  |  |  |  |  |  | 59,058 |
|  | ￦ |  |  |  |  | 225,758 |
(3) | The fair values of assets and liabilities acquired through the business combination at the acquisition date for the year ended December 31, 2019 are as follows:
Type |  |  |  |  | Amounts |
|  |  |  |  | In millions of won |
Fair value of the identifiable assets |  | ￦ |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  | 2,389 |
Trade and other receivables |  |  |  |  |  |  | 55 |
Non-current assets |  |  |  |  |  |  |  |
Property, plant and equipment |  |  |  |  |  |  | 54 |
Intangible assets |  |  |  |  |  |  | 172,434 |
Other assets |  |  |  |  |  |  | 60 |
Fair value of the identifiable liabilities |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |
Borrowings |  |  |  |  |  |  | (2,900 | )
Non-current liabilities |  |  |  |  |  |  |  |
Deferred tax liabilities |  |  |  |  |  |  | (41,729 | )
|  | ￦ |  |  |  |  | 130,363 |
(4) | Details of goodwill resulting from the business combination for the year ended December 31, 2019 are as follows:
Type |  |  |  |  | Amounts |
|  |  |  |  | In millions of won |
Fair value of transfer price |  | ￦ |  |  |  |  | 225,758 |
Less : Fair value of the identifiable net assets |  |  |  |  |  |  | (130,363 | )
|  | ￦ |  |  |  |  | 95,395 |
Goodwill arose from the business combination due to the transfer price including the premium to obtain control paid in order to acquire Eumseong Natural Gas Power Co., Ltd. It also includes expectation of synergy effect and future growth in profits derived from business combination with LNG combined power generation project. These business rights can be separated from goodwill which satisfies the recognition requirements and thus the business rights have been recognized as a separate intangible asset. On the contrary, the expected benefits such as direct fuel acquisition and reduce costs for O&M did not satisfy the recognition requirements for identifiable intangible assets and thus were not recognized separately from the goodwill.
(5) | Net cash outflows from the business combination for the year ended December 31, 2019 are as follows:
Type |  |  |  |  | Amounts |
|  |  |  |  | In millions of won |
Cash paid for the acquisition |  | ￦ |  |  |  |  | 156,700 |
Less : Cash and cash equivalents received |  |  |  |  |  |  | (2,389 | )
|  | ￦ |  |  |  |  | 154,311 |
(6) | Fees for legal service, due diligence and others relating to the business combination amounted to ￦24 million.
The fees were excluded from the transfer price and recognized as selling and administrative expenses in the statement of comprehensive income (loss) for the year ended December 31, 2019.
(7) | There is no sale or net profit included in the statement of comprehensive income (loss) for the year ended December 31,2019, in relation to additional business launched by Eumseong Natural Gas Power Co., Ltd.

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- Definition The entire disclosure for business combinations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 3 -IssueDate 2019-01-01 -Section Disclosures -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=3&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS03_g59-63_TI -URIDate 2019-03-27 + Details
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