Independent Auditors Report
Based on a report originally issued in Korean
To the Board of Directors and Shareholders
LG Display Co.,
Ltd.:
Opinion
We have audited the
accompanying separate financial statements of LG Display Co., Ltd. (the Company), which comprise the separate statements of financial position of the Company as of December 31, 2019 and 2018, the related separate statements of
comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the separate financial statements comprising significant accounting policies and other explanatory information.
In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of
December 31, 2019 and 2018, and its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards
(K-IFRS).
We also have audited, in accordance with the Standards on Auditing, the Companys
Internal Control over Financial Reporting as of December 31, 2019, based on criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control
over Financial Reporting in Korea, and our report dated March 11, 2020 expressed an unqualified opinion on the effectiveness of the Companys internal control over financial reporting.
Basis for Opinion
We conducted our audits in accordance
with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirements that are relevant to our audit of the separate financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate financial statements as of and
for the year ended December 31, 2019. These matters were addressed in the context of our audit of the separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
(i) Assessment of impairment of non-financial assets including goodwill
As discussed in Notes 3 (k), 9 and 10, the Companys non-financial assets, including goodwill amounts to
W13,472,222 million as of December 31, 2019. Due to the significant changes in the Companys business during 2019, the Company determined that a change in its cash generating units (CGU) is appropriate. As
a result, the Companys CGU was changed from a single CGU to three CGUs, namely Display, Display (AD PO) and Lighting, with goodwill allocated to Display and Lighting CGUs, respectively. For CGUs to which goodwill is allocated, the Company
performs impairment test on an annual basis regardless of whether an indicator for impairment exists. For CGUs to which goodwill is not allocated, the Company performs impairment test when there is an indication of impairment. The recoverable amount
used in impairment tests as of December 31, 2019 is value in use based on discounted cash flow model which uses the expected future cash flows including assumptions that involved a high degree of management judgment. In 2019, the Company
recognized impairment losses of W1,004,229 million and W230,867 million for the Display (AD PO) CGU and Lighting CGU, respectively.