| 13. | Investment Property, Net |
(a) Investment property as of December 31, 2016 and 2017 are as follows:
| 2016 | 2017 | |||||||||||||||||||||||
| Acquisition cost |
Accumulated depreciation and impairment loss |
Book value |
Acquisition cost |
Accumulated depreciation and impairment loss |
Book value |
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| (in millions of Won) | ||||||||||||||||||||||||
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Land |
￦ | 423,910 | (31,187 | ) | 392,723 | 360,402 | — | 360,402 | ||||||||||||||||
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Buildings |
807,657 | (136,118 | ) | 671,539 | 727,022 | (92,982 | ) | 634,040 | ||||||||||||||||
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Structures |
3,148 | (1,001 | ) | 2,147 | 7,717 | (1,436 | ) | 6,281 | ||||||||||||||||
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Construction-in-progress |
51,311 | — | 51,311 | 64,191 | — | 64,191 | ||||||||||||||||||
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| ￦ | 1,286,026 | (168,306 | ) | 1,117,720 | 1,159,332 | (94,418 | ) | 1,064,914 | ||||||||||||||||
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As of December 31, 2017, the fair value of investment property is ￦1,663,682 million, among which the Company believed the fair value of its investment property of six subsidiaries, including POSCO (Dalian) IT Center Development Co., Ltd. approximate its book value of ￦126,026 million. Also, the Company used the prior year’s fair value for some of the investment property since it is believed that the fair value has not changed significantly.
(b) Changes in the carrying amount of investment property for the years ended December 31, 2016 and 2017 were as follows:
1) For the year ended December 31, 2016
| Beginning | Acquisitions | Disposals | Depreciation (*1) | Others (*2) | Ending | |||||||||||||||||||
| (in millions of Won) | ||||||||||||||||||||||||
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Land |
￦ | 346,879 | 24,116 | (8,056 | ) | — | 29,784 | 392,723 | ||||||||||||||||
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Buildings |
696,526 | 7,548 | (3,339 | ) | (24,043 | ) | (5,153 | ) | 671,539 | |||||||||||||||
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Structures |
1,819 | 1 | — | (288 | ) | 615 | 2,147 | |||||||||||||||||
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Construction-in-progress |
39,068 | 13,910 | — | — | (1,667 | ) | 51,311 | |||||||||||||||||
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| ￦ | 1,084,292 | 45,575 | (11,395 | ) | (24,331 | ) | 23,579 | 1,117,720 | ||||||||||||||||
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| (*1) | Impairment loss on investment property amounting to ￦318 million is included. |
| (*2) | Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |
2) For the year ended December 31, 2017
| Beginning | Acquisitions | Disposals | Depreciation | Others (*1) | Ending | |||||||||||||||||||
| (in millions of Won) | ||||||||||||||||||||||||
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Land |
￦ | 392,723 | 20,941 | (37,725 | ) | — | (15,537 | ) | 360,402 | |||||||||||||||
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Buildings |
671,539 | 38,831 | (9,506 | ) | (23,450 | ) | (43,374 | ) | 634,040 | |||||||||||||||
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Structures |
2,147 | — | — | (591 | ) | 4,725 | 6,281 | |||||||||||||||||
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Construction-in-progress |
51,311 | 17,648 | — | — | (4,768 | ) | 64,191 | |||||||||||||||||
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| ￦ | 1,117,720 | 77,420 | (47,231 | ) | (24,041 | ) | (58,954 | ) | 1,064,914 | |||||||||||||||
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| (*1) | Includes reclassification resulting from changing purpose of use, adjustment of foreign currency translation difference and others. |