Construction Contracts

12 Months Ended

Dec. 31, 2022

20.	Construction Contracts

(1)	Changes in total contract amount in which revenue is not yet recognized for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance

		In millions of won
Nuclear power plant construction in UAE and others	￦		2,735,141		1,229,759		(812,175	)		3,152,725

(*)

For the year ended December 31, 2020, the increased balance of contracts from new orders is ￦1,512,460 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦282,701 million.


		2021
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance

		In millions of won
Nuclear power plant construction in UAE and others	￦		3,152,725		386,208		(754,998	)		2,783,935

(*)

For the year ended December 31, 2021, the increased balance of contracts from new orders is ￦458,635 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦72,427 million.


		2022
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance

		In millions of won
Nuclear power plant construction in overseas and others	￦		2,783,935		3,457,964		(646,953	)		5,594,946

(*)

For the year ended December 31, 2022, the increased balance of contracts from new orders is ￦3,578,599 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦81,401 million.

(2)	Accumulated earned revenue, expense and others related to the Company’s construction contracts in progress as of December 31, 2021 and 2022 are as follows:


		2021
		Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts

		In millions of won
Nuclear power plant construction in UAE and others	￦		22,051,129		20,967,097		1,084,032		23,238


		2022
		Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts

		In millions of won
Nuclear power plant construction in overseas and others	￦		22,507,004		21,666,552		840,452		29,877

(3)	Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Contract assets(*1)		Contract liabilities(*2)		Contract assets(*1)		Contract liabilities(*2)

		In millions of won
Nuclear power plant construction in overseas and others	￦		82,306		5,330		118,983		120,952

(*1)

Included in trade and other receivables, net, in the consolidated statements of financial position.

The balance of trade receivables from construction contracts are ￦57,639 million and ￦85,757 million, as of December 31, 2021 and 2022, respectively.

(*2)

Included in

non-financial

liabilities as advance received in the consolidated statements of financial position. The revenue recognized on December 31, 2022 from the amounts included in contract liabilities at the end of the prior year is ￦5,051 million.

Revenue recognized for the year ended December 31, 2022 from performance obligations satisfied in previous periods is ￦15,663 million.