Basis of Preparation (Tables)

12 Months Ended

Dec. 31, 2019

Explanation of initial application of IFRS 16

The impacts on the Company’s consolidated statements of financial position on the date of initial application (January 1, 2019) of IFRS 16 are as follows:


		Carrying amount under IAS 17		Adjustment			Carrying amount under IFRS 16
		In millions of won
Assets
Current assets
Cash and cash equivalents	￦		1,358,345		—			1,358,345
Current financial assets, net			2,359,895		—			2,359,895
Trade and other receivables, net			7,793,592		—			7,793,592
Inventories, net			7,188,253		—			7,188,253
Income tax refund receivables			143,214		—			143,214
Current non-financial assets			878,888		(3,021	)		875,867
Assets held-for-sale			22,881		—			22,881

Total current assets			19,745,068		(3,021	)		19,742,047

Non-current assets
Non-current financial assets, net			2,113,613		—			2,113,613
Non-current trade and other receivables, net			1,819,845		(10	)		1,819,835
Property, plant and equipment, net			152,743,194		4,947,947			157,691,141
Investment properties, net			159,559		—			159,559
Goodwill			2,582		—			2,582
Intangible assets other than goodwill, net			1,225,942		—			1,225,942
Investments in associates			4,064,820		—			4,064,820
Investments in joint ventures			1,813,525		—			1,813,525
Deferred tax assets			1,233,761		—			1,233,761
Non-current non-financial assets			327,152		(1,332	)		325,820

Total non-current assets			165,503,993		4,946,605			170,450,598

Total Assets	￦		185,249,061		4,943,584			190,192,645


		Carrying amount under IAS 17		Adjustment		Carrying amount under IFRS 16
		In millions of won
Liabilities
Current liabilities
Trade and other payables, net	￦		6,405,395		510,304		6,915,699
Current financial liabilities, net			7,981,879		—		7,981,879
Income tax payables			285,420		—		285,420
Current non-financial liabilities			5,574,041		—		5,574,041
Current provisions			1,594,798		—		1,594,798

Total current liabilities			21,841,533		510,304		22,351,837

Non-current liabilities
Non-current trade and other payables, net			2,941,696		4,433,280		7,374,976
Non-current financial liabilities, net			53,364,911		—		53,364,911
Non-current non-financial liabilities			8,160,033		—		8,160,033
Employee benefits liabilities, net			1,645,069		—		1,645,069
Deferred tax liabilities			9,617,309		—		9,617,309
Non-current provisions			16,585,748		—		16,585,748

Total non-current liabilities			92,314,766		4,433,280		96,748,046

*Total Liabilities()**	￦		114,156,299		4,943,584		119,099,883

Equity
Contributed capital	￦		4,053,578		—		4,053,578
Retained earnings			51,519,119		—		51,519,119
Other components of equity			14,171,228		—		14,171,228

Equity attributable to owners of the controlling company			69,743,925		—		69,743,925
Non-controlling interests			1,348,837		—		1,348,837

Total Equity	￦		71,092,762		—		71,092,762

Total Liabilities and Equity	￦		185,249,061		4,943,584		190,192,645

(*) The adjustment from the total liabilities amounting to ￦4,943,584 is a present value of operating lease payment as of December 31, 2018, discounted by the weighted average interest rate of the lessee’s incremental borrowing rates as of January 1, 2019, and deducted by the present value of short-term leases and low-value asset leases payments.