LG Display Co., Ltd. | CIK:0001290109 |

Filed: 4/27/2018

Entity registrant name: LG Display Co., Ltd. (CIK: 0001290109)

Generator: Donnelley Financial Solutions

SEC filing page: http://www.sec.gov/Archives/edgar/data/1290109/000119312518136619/0001193125-18-136619-index.htm

XBRL Instance: http://www.sec.gov/Archives/edgar/data/1290109/000119312518136619/lpl-20171231.xml

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24.	Deferred Tax Assets and Liabilities

 

(a)

Unrecognized deferred tax liabilities

As of December 31, 2016 and 2017, in relation to the temporary differences on investments in subsidiaries amounting to W149,616 million and W103,946 million, the Controlling Company did not recognize deferred tax liabilities since the Controlling Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future.

 

(b)

Unused tax credit carryforwards for which no deferred tax asset is recognized

Realization of deferred tax assets related to tax credit carryforwards is dependent on whether sufficient taxable income will be generated prior to their expiration. As of December 31, 2017, the Controlling Company recognized deferred tax assets of W268,926 million, in relation to tax credit carryforwards, to the extent that management believes the realization is probable. The amount of unused tax credit carryforwards for which no deferred tax asset is recognized and their expiration dates are as follows:

 

(In millions of won)

December 31, 2018

December 31, 2019

December 31, 2020

December 31, 2021

December 31, 2022

Tax credit carryforwards

W

—

—

—

58,391

91,862

 

(c)

Deferred tax assets and liabilities are attributable to the following:

 

(In millions of won)		Assets								Liabilities								Total
		December, 31, 2016				December, 31, 2017				December, 31, 2016				December, 31, 2017				December, 31, 2016				December, 31, 2017
Other accounts receivable, net		W	—				—				(1,190	)			(1,441	)			(1,190	)			(1,441	)
Inventories, net			35,771				34,550				—				—				35,771				34,550
Defined benefit liabilities, net			10,817				2,375				—				—				10,817				2,375
Unrealized gain or loss and others			34,777				29,061				—				—				34,777				29,061
Accrued expenses			122,998				183,903				—				—				122,998				183,903
Property, plant and equipment			338,860				409,928				—				—				338,860				409,928
Intangible assets			744				3,457				(31,771	)			(24,646	)			(31,027	)			(21,189	)
Provisions			15,051				27,018				—				—				15,051				27,018
Gain or loss on foreign currency translation, net			11				13				—				—				11				13
Others			21,435				27,562				—				—				21,435				27,562
Tax credit carryforwards			287,400				268,926				—				—				287,400				268,926
Deferred tax assets (liabilities)		W	867,864				986,793				(32,961	)			(26,087	)			834,903				960,706

 

(d)

Changes in deferred tax assets and liabilities for the years ended December 31, 2016 and 2017 are as follows:

 

(In millions of won)
		January 1, 2016				Profit or loss				Other compre- hensive income (loss)				December 31, 2016				Profit or loss				Other compre- hensive income				December 31, 2017
Other accounts receivable, net		W	(2,388	)			1,198				—				(1,190	)			(251	)			—				(1,441	)
Inventories, net			46,449				(10,678	)			—				35,771				(1,221	)			—				34,550
Available-for-sale financial assets			(19	)			—				19				—				—				—				—
Defined benefit liabilities, net			58,962				(10,551	)			(37,594	)			10,817				(17,701	)			9,259				2,375
Unrealized gain or loss and others			9,121				25,656				—				34,777				(5,716	)			—				29,061
Accrued expenses			122,002				996				—				122,998				60,905				—				183,903
Property, plant and equipment			271,252				67,608				—				338,860				71,068				—				409,928
Intangible assets			(33,846	)			2,819				—				(31,027	)			9,838				—				(21,189	)
Provisions			14,152				899				—				15,051				11,967				—				27,018
Gain or loss on foreign currency translation, net			11				—				—				11				2				—				13
Others			25,253				(3,818	)			—				21,435				6,127				—				27,562
Tax credit carryforwards			385,017				(97,617	)			—				287,400				(18,474	)			—				268,926
Deferred tax assets (liabilities)		W	895,966				(23,488	)			(37,575	)			834,903				116,544				9,259				960,706

Statutory tax rate applicable to the Controlling Company is 24.2% for the year ended December 31, 2017. During the year ended December 31, 2017, certain amendments to corporate income tax rules in Korea were enacted and effective on January 1, 2018 that resulted in application of 27.5% for taxable income in excess of W300,000 million. Accordingly, the Controlling Company recorded the impact from the amendment in 2017.