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Trade and Other Receivables

12 Months Ended

Dec. 31, 2019

Trade and Other Receivables [Abstract]

8.	Trade and Other Receivables

(1)

Trade and other receivables as of December 31, 2018 and 2019 are as follows:


		2018
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,303,065		(215,775	)		—			7,087,290
Other receivables			728,560		(20,231	)		(2,027	)		706,302

			8,031,625		(236,006	)		(2,027	)		7,793,592

Non-current assets
Trade receivables			415,318		(93	)		(448	)		414,777
Other receivables			1,496,464		(84,495	)		(6,901	)		1,405,068

			1,911,782		(84,588	)		(7,349	)		1,819,845

	￦		9,943,407		(320,594	)		(9,376	)		9,613,437


		2019
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,147,683		(208,505	)		—			6,939,178
Other receivables			792,147		(27,579	)		(2,294	)		762,274

			7,939,830		(236,084	)		(2,294	)		7,701,452

Non-current assets
Trade receivables			338,261		(4,254	)		(382	)		333,625
Other receivables			1,759,930		(86,576	)		(4,682	)		1,668,672

			2,098,191		(90,830	)		(5,064	)		2,002,297

	￦		10,038,021		(326,914	)		(7,358	)		9,703,749

(2)

Other receivables as of December 31, 2018 and 2019 are as follows:


		2018
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		298,587		(19,940	)		—			278,647
Accrued income			102,023		—			—			102,023
Deposits			228,466		—			(2,027	)		226,439
Finance lease receivables			84,688		(291	)		—			84,397
Others			14,796		—			—			14,796

			728,560		(20,231	)		(2,027	)		706,302

Non-current assets
Non-trade receivables			136,432		(77,475	)		—			58,957
Deposits			376,211		—			(6,901	)		369,310
Finance lease receivables			898,658		(842	)		—			897,816
Others			85,163		(6,178	)		—			78,985

			1,496,464		(84,495	)		(6,901	)		1,405,068

	￦		2,225,024		(104,726	)		(8,928	)		2,111,370


		2019
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		376,438		(27,201	)		—			349,237
Accrued income			68,921		—			—			68,921
Deposits			273,887		—			(2,294	)		271,593
Finance lease receivables			60,304		(378	)		—			59,926
Others			12,597		—			—			12,597

			792,147		(27,579	)		(2,294	)		762,274

Non-current assets
Non-trade receivables			196,821		(78,654	)		—			118,167
Accrued income			2,222		—			—			2,222
Deposits			338,989		—			(4,682	)		334,307
Finance lease receivables			1,118,537		(484	)		—			1,118,053
Others			103,361		(7,438	)		—			95,923

			1,759,930		(86,576	)		(4,682	)		1,668,672

	￦		2,552,077		(114,155	)		(6,976	)		2,430,946

(3)

Trade and other receivables measured at amortized cost

No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. However, 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 delinquent payments.

(4)

Aging analysis of trade receivables as of December 31, 2018 and 2019 are as follows:


		2018			2019
		In millions of won
Trade receivables: (not overdue)	￦		7,419,648			7,338,757

Trade receivables: (overdue, not impaired)			—			—

Less than 60 days			—			—

Trade receivables: (impairment reviewed)			298,735			147,187

Less than 60 days			2,525			6,555
60 ~ 90 days			37,266			1,899
90 ~ 120 days			16,033			2,106
120 days ~ 1 year			46,204			37,357
Over 1 year			196,707			99,270

			7,718,383			7,485,944
Less: allowance for doubtful accounts			(215,868	)		(212,759	)
Less: present value discount			(448	)		(382	)

	￦		7,502,067			7,272,803

At the end of each reporting period, the Company assesses whether the credit to trade receivables is impaired. The Company recognizes loss allowances for trade receivables individually when there is any objective evidence that trade receivables are impaired and significant and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, from January 1, 2018, the Company recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(5)

Aging analysis of other receivables as of December 31, 2018 and 2019 are as follows:


		2018			2019
		In millions of won
Other receivables: (not overdue)	￦		2,075,601			2,327,640

Other receivables: (overdue, not impaired)			—			—

Less than 60 days			—			—

Other receivables: (impairment reviewed)			149,423			224,437

Less than 60 days			24,782			98,220
60 ~ 90 days			1,007			2,034
90 ~ 120 days			10,997			14,135
120 days ~ 1 year			23,991			26,212
Over 1 year			88,646			83,836

			2,225,024			2,552,077
Less: allowance for doubtful accounts			(104,726	)		(114,155	)
Less: present value discount			(8,928	)		(6,976	)

	￦		2,111,370			2,430,946

At the end of each reporting period, the Company assesses whether the credit to other receivables is impaired. The Company recognizes loss allowances for other receivables individually when there is any objective evidence that trade receivables are impaired and significant, and classifies the other receivables that are not individually assessed as the other receivables subject to be assessed on a collective basis. Also, from January 1, 2018, the Company recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(6)

Changes in the allowance for doubtful accounts for the years ended December 31, 2017, 2018 and 2019 are as follows:


		2017						2018						2019
		Trade receivables			Other receivables			Trade receivables			Other receivables			Trade receivables			Other receivables
		In millions of won
Beginning balance	￦		71,985			87,661			173,583			78,008			215,868			104,726
Effect of change in accounting policy			—			—			6,641			128			—			—
Loss allowance as at January 1 under IFRS 9			—			—			180,224			78,136			215,868			104,726
Bad debt expense			126,714			1,778			41,498			17,817			29,221			19,206
Write-off			(32,995	)		(3,129	)		(7,696	)		(244	)		(10,106	)		(1,146	)
Reversal			—			(2,166	)		(1,726	)		(143	)		(41,940	)		—
Others			7,879			(6,136	)		3,568			9,160			19,716			(8,631	)

Ending balance	￦		173,583			78,008			215,868			104,726			212,759			114,155