| 7. | Trade and Other Receivables |
| (1) | Details of trade and other receivables as of December 31, 2017 and 2016 are as follows: |
| (In millions of won) | ||||||||||||
| December 31, 2017 | ||||||||||||
| Gross amount |
Allowances for doubtful accounts |
Carrying amount |
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Current assets: |
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Accounts receivable — trade |
￦ | 2,365,270 | (239,263 | ) | 2,126,007 | |||||||
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Short-term loans |
63,380 | (550 | ) | 62,830 | ||||||||
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Accounts receivable — other |
1,336,247 | (75,412 | ) | 1,260,835 | ||||||||
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Accrued income |
3,979 | — | 3,979 | |||||||||
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Others |
3,927 | — | 3,927 | |||||||||
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| 3,772,803 | (315,225 | ) | 3,457,578 | |||||||||
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Non-current assets: |
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Long-term loans |
97,635 | (46,761 | ) | 50,874 | ||||||||
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Long-term accounts receivable — other |
287,048 | — | 287,048 | |||||||||
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Guarantee deposits |
292,590 | — | 292,590 | |||||||||
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Long-term accounts receivable — trade |
12,933 | (185 | ) | 12,748 | ||||||||
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| 690,206 | (46,946 | ) | 643,260 | |||||||||
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| ￦ | 4,463,009 | (362,171 | ) | 4,100,838 | ||||||||
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| (In millions of won) | ||||||||||||
| December 31, 2016 | ||||||||||||
| Gross amount | Allowances for doubtful accounts |
Carrying amount |
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Current assets: |
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|
Accounts receivable — trade |
￦ | 2,482,502 | (241,576 | ) | 2,240,926 | |||||||
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Short-term loans |
59,526 | (547 | ) | 58,979 | ||||||||
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Accounts receivable — other |
1,200,421 | (78,977 | ) | 1,121,444 | ||||||||
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Accrued income |
2,780 | — | 2,780 | |||||||||
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Others |
3,937 | — | 3,937 | |||||||||
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| 3,749,166 | (321,100 | ) | 3,428,066 | |||||||||
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Non-current assets: |
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Long-term loans |
113,456 | (47,980 | ) | 65,476 | ||||||||
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Long-term accounts receivable — other |
149,669 | — | 149,669 | |||||||||
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Guarantee deposits |
298,964 | — | 298,964 | |||||||||
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Long-term accounts receivable — trade |
20,637 | (252 | ) | 20,385 | ||||||||
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| 582,726 | (48,232 | ) | 534,494 | |||||||||
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| ￦ | 4,331,892 | (369,332 | ) | 3,962,560 | ||||||||
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| (2) | Changes in allowances for doubtful accounts of trade and other receivables for the years ended December 31, 2017 and 2016 are as follows: |
| (In millions of won) | ||||||||
| 2017 | 2016 | |||||||
|
Balance at January 1 |
￦ | 369,332 | 344,016 | |||||
|
Bad debt expense |
40,377 | 78,132 | ||||||
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Write-offs |
(70,802 | ) | (79,891 | ) | ||||
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Other |
23,264 | 27,075 | ||||||
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Balance at December 31 |
￦ | 362,171 | 369,332 | |||||
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| (3) | Details of overdue but not impaired, and impaired trade and other receivables as of December 31, 2017 and 2016 are as follows: |
| (In millions of won) | ||||||||||||||||
| December 31, 2017 | December 31, 2016 | |||||||||||||||
| Accounts receivable - trade |
Other receivables |
Accounts receivable - trade |
Other receivables |
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Neither overdue nor impaired |
￦ | 1,585,714 | 1,930,261 | 1,715,966 | 1,617,349 | |||||||||||
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Overdue but not impaired |
29,304 | 3,113 | 41,613 | 5,663 | ||||||||||||
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Impaired |
763,185 | 151,432 | 745,560 | 205,741 | ||||||||||||
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| 2,378,203 | 2,084,806 | 2,503,139 | 1,828,753 | |||||||||||||
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Allowances for doubtful accounts |
(239,448 | ) | (122,723 | ) | (241,828 | ) | (127,504 | ) | ||||||||
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| ￦ | 2,138,755 | 1,962,083 | 2,261,311 | 1,701,249 | ||||||||||||
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The Group establishes allowances for doubtful accounts based on the likelihood of recoverability of trade and other receivables based on their aging at the end of the period, past customer default experience, customer credit status, and economic and industrial factors.
| (4) | The aging of overdue but not impaired accounts receivable as of December 31, 2017 and 2016 are as follows: |
| (In millions of won) | ||||||||||||||||
| December 31, 2017 | December 31, 2016 | |||||||||||||||
| Accounts receivable - trade |
Other receivables |
Accounts receivable - trade |
Other receivables |
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|
Less than 1 month |
￦ | 7,150 | 2,679 | 11,543 | 2,838 | |||||||||||
|
1 ~ 3 months |
1,663 | 44 | 9,144 | 140 | ||||||||||||
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3 ~ 6 months |
1,576 | 124 | 4,643 | 1 | ||||||||||||
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More than 6 months |
18,915 | 266 | 16,283 | 2,684 | ||||||||||||
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| ￦ | 29,304 | 3,113 | 41,613 | 5,663 | ||||||||||||
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