SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2016
Commission File Number: 1-13368
POSCO
(Translation of registrants name into English)
POSCO Center, 440 Teheran-ro, Gangnam-gu, Seoul, Korea, 135-777
(Address of principal executive office)
(Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) Form20-F x Form 40-F ¨
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also
thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
[If Yes is marked, indicate below the file number assigned to the registrant in connection with
Rule 12g3-2(b): 82- .]
POSCO is furnishing under cover of Form 6-K:
Exhibit 99.1: An English-language translation of documents with respect to Separate Financial Statements
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
POSCO
(Registrant)
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Date: March 4, 2016 |
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By |
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/s/ Noh, Min-Yong |
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(Signature)* |
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Name: |
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Noh, Min-Yong |
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Title: |
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Senior Vice President |
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Print the name and title under the signature of the signing officer. |
Exhibit 99.1
POSCO
Separate Financial Statements
December 31, 2015 and 2014
(With Independent
Auditors Report Thereon)
Table of Contents
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Page |
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Independent Auditors Report |
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Separate Financial Statements |
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Separate Statements of Financial Position |
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3 |
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Separate Statements of Comprehensive Income |
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5 |
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Separate Statements of Changes in Equity |
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6 |
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Separate Statements of Cash Flows |
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7 |
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Notes to the Separate Financial Statements |
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9 |
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Independent Auditors Review Report on Internal Accounting Control System |
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90 |
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Report on the Operations of Internal Accounting Control System |
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91 |
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Independent Auditors Report
Based on a report originally issued in Korea
The Board of Directors and Shareholders
POSCO:
We have audited the accompanying separate financial statements of POSCO (the Company), which comprise the separate statements of financial position
as of December 31, 2015 and 2014, the separate statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Separate Financial Statements
Management is responsible for the preparation and fair presentation of these separate financial statements in accordance with Korean International Financial
Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to
express an opinion on these separate financial statements based on our audits. We conducted our audits in accordance with Korean Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the separate financial statements are free from material misstatement.
An audit involves performing
procedures to obtain audit evidence about the amounts and disclosures in the separate financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the separate financial
statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the separate financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the separate
financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2015 and 2014, and its separate financial performance and its separate cash flows for the years then ended in
accordance with Korean International Financial Reporting Standards.
Other Matters
The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied
in other countries. Accordingly, this report and the accompanying separate financial statements are for use by those knowledgeable about Korean auditing standards and their application in practice.
Seoul, Korea
February 25, 2016
This report is effective as of February 25, 2016, the audit report date. Certain subsequent events or
circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should
understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.
2
POSCO
Separate Statements of Financial Position
As of December 31, 2015 and 2014
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(in millions of Won) |
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Notes |
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December 31, 2015 |
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December 31, 2014 |
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Assets |
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Cash and cash equivalents |
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4,5,22 |
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W |
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1,634,106 |
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1,742,767 |
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Trade accounts and notes receivable, net |
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6,22,36 |
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2,740,104 |
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3,157,266 |
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Other receivables, net |
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7,22,36 |
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246,431 |
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562,930 |
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Other short-term financial assets |
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8,22 |
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3,326,012 |
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693,729 |
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Inventories |
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9,33 |
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3,427,011 |
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4,383,568 |
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Assets held for sale |
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10 |
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25,892 |
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1,051,177 |
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Other current assets |
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15 |
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28,083 |
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31,692 |
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Total current assets |
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11,427,639 |
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11,623,129 |
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Long-term trade accounts and notes receivable, net |
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6,22 |
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19,895 |
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23,841 |
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Other receivables, net |
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7,22 |
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93,757 |
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26,360 |
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Other long-term financial assets |
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8,22 |
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1,804,374 |
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1,794,590 |
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Investments in subsidiaries, associates and joint ventures |
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11 |
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15,737,287 |
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16,178,891 |
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Investment property, net |
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12 |
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86,752 |
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90,137 |
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Property, plant and equipment, net |
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13 |
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21,514,150 |
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22,323,215 |
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Intangible assets, net |
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14 |
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490,762 |
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403,907 |
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Other long-term assets |
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15 |
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134,793 |
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133,253 |
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Total non-current assets |
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39,881,770 |
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40,974,194 |
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Total assets |
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W |
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51,309,409 |
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52,597,323 |
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See accompanying notes to the separate financial statements.
3
POSCO
Separate Statements of Financial Position, Continued
As of December 31, 2015 and 2014
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(in millions of Won) |
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Notes |
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December 31, 2015 |
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December 31, 2014 |
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Liabilities |
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Trade accounts and notes payable |
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22,36 |
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W |
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577,856 |
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777,401 |
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Short-term borrowings and current installments of long-term borrowings |
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4,16,22 |
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1,985,722 |
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1,236,290 |
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Other payables |
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17,22,36 |
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946,735 |
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1,032,496 |
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Other short-term financial liabilities |
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18,22 |
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25,676 |
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9,236 |
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Current income tax liabilities |
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34 |
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227,569 |
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304,362 |
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Provisions |
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19 |
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22,840 |
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47,759 |
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Other current liabilities |
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21 |
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31,281 |
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108,508 |
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Total current liabilities |
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3,817,679 |
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3,516,052 |
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Long-term borrowings, excluding current installments |
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4,8,16,22 |
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3,303,105 |
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5,300,927 |
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Other payables |
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17,22 |
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37,656 |
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88,807 |
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Other long-term financial liabilities |
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18,22 |
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81,496 |
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50,574 |
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Defined benefit liabilities, net |
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20 |
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10,472 |
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86,158 |
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Deferred tax liabilities |
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34 |
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994,867 |
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1,047,666 |
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Long-term provisions |
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19 |
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21,954 |
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31,474 |
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Other long-term liabilities |
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21 |
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16,623 |
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234 |
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Total non-current liabilities |
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4,466,173 |
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6,605,840 |
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Total liabilities |
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8,283,852 |
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10,121,892 |
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Equity |
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Share capital |
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23 |
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482,403 |
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482,403 |
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Capital surplus |
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23 |
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1,247,581 |
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1,247,616 |
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Hybrid bonds |
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24 |
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996,919 |
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996,919 |
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Reserves |
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25 |
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(30,018 |
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94,042 |
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Treasury shares |
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26 |
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(1,533,898 |
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(1,534,457 |
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Retained earnings |
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27 |
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41,862,570 |
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41,188,908 |
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Total equity |
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4 |
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43,025,557 |
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42,475,431 |
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Total liabilities and equity |
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W |
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51,309,409 |
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52,597,323 |
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See accompanying notes to the separate financial statements.
4
POSCO
Separate Statements of Comprehensive Income
For the years ended December 31, 2015 and 2014
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(in millions of Won, except per share information) |
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Notes |
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2015 |
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2014 |
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Revenue |
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28,36 |
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W |
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25,607,221 |
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29,218,854 |
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Cost of sales |
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9,20,30,33,36 |
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(21,473,390 |
) |
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(24,955,649 |
) |
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Gross profit |
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4,133,831 |
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4,263,205 |
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Selling and administrative expenses |
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Administrative expenses |
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20,22,29,30,33 |
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(890,446 |
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(933,984 |
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Selling expenses |
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29,33 |
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(1,005,136 |
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(979,186 |
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Operating profit |
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2,238,249 |
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2,350,035 |
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Finance income and costs |
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Finance income |
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22,31 |
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896,406 |
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1,050,794 |
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Finance costs |
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22,31 |
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(734,569 |
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(1,014,269 |
) |
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Other non-operating income and expenses |
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Other non-operating income |
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32,36 |
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465,316 |
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|
46,864 |
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Other non-operating expenses |
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32,33,36 |
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(1,197,119 |
) |
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(712,031 |
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Profit before income tax |
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1,668,283 |
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|
1,721,393 |
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Income tax expense |
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34 |
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(350,012 |
) |
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(582,435 |
) |
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Profit |
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1,318,271 |
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1,138,958 |
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Other comprehensive income (loss) |
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Items that will not be reclassified subsequently to profit or loss: |
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Remeasurements of defined benefit plans, net of tax |
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20 |
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38,910 |
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(42,464 |
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Items that are or may be reclassified subsequently to profit or loss: |
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Net changes in unrealized fair value of available-for-sale investments, net of tax |
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8,22,25 |
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(124,060 |
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(309,897 |
) |
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Total comprehensive income |
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W |
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1,233,121 |
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786,597 |
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Basic and diluted earnings per share (in Won) |
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35 |
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W |
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16,067 |
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|
|
13,858 |
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See accompanying notes to the separate financial statements.
5
POSCO
Separate Statements of Changes in Equity
For the years ended December 31, 2015 and 2014
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(in millions of Won) |
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Share capital |
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Capital surplus |
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Hybrid bonds |
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Reserves |
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Treasury shares |
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Retained earnings |
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Total |
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Balance as of January 1, 2014 |
|
W |
|
|
|
|
482,403 |
|
|
|
1,233,040 |
|
|
|
996,919 |
|
|
|
403,939 |
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(1,579,123 |
) |
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|
40,774,284 |
|
|
|
42,311,462 |
|
Comprehensive income: |
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Profit |
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|
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|
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|
1,138,958 |
|
|
|
1,138,958 |
|
Other comprehensive loss |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Remeasurements of defined benefit plans, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(42,464 |
) |
|
|
(42,464 |
) |
Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(309,897 |
) |
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|
|
|
|
|
|
|
|
|
(309,897 |
) |
Transactions with owners of the Company, recognized directly in equity: |
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Year-end dividends |
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|
|
|
|
|
|
|
|
|
|
|
(478,702 |
) |
|
|
(478,702 |
) |
Interim dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(159,568 |
) |
|
|
(159,568 |
) |
Interest of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,600 |
) |
|
|
(43,600 |
) |
Disposal of treasury shares |
|
|
|
|
|
|
|
|
|
|
14,576 |
|
|
|
|
|
|
|
|
|
|
|
44,666 |
|
|
|
|
|
|
|
59,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2014 |
|
W |
|
|
|
|
482,403 |
|
|
|
1,247,616 |
|
|
|
996,919 |
|
|
|
94,042 |
|
|
|
(1,534,457 |
) |
|
|
41,188,908 |
|
|
|
42,475,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1, 2015 |
|
W |
|
|
|
|
482,403 |
|
|
|
1,247,616 |
|
|
|
996,919 |
|
|
|
94,042 |
|
|
|
(1,534,457 |
) |
|
|
41,188,908 |
|
|
|
42,475,431 |
|
Comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,318,271 |
|
|
|
1,318,271 |
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurements of defined benefit plans, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,910 |
|
|
|
38,910 |
|
Net changes in unrealized fair value of available-for-sale investments, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(124,060 |
) |
|
|
|
|
|
|
|
|
|
|
(124,060 |
) |
Transactions with owners of the Company, recognized directly in equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-end dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(479,958 |
) |
|
|
(479,958 |
) |
Interim dividends |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(159,987 |
) |
|
|
(159,987 |
) |
Interest of hybrid bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,574 |
) |
|
|
(43,574 |
) |
Disposal of treasury shares |
|
|
|
|
|
|
|
|
|
|
(35 |
) |
|
|
|
|
|
|
|
|
|
|
559 |
|
|
|
|
|
|
|
524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2015 |
|
W |
|
|
|
|
482,403 |
|
|
|
1,247,581 |
|
|
|
996,919 |
|
|
|
(30,018 |
) |
|
|
(1,533,898 |
) |
|
|
41,862,570 |
|
|
|
43,025,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
6
POSCO
Separate Statements of Cash Flows
For the years ended December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
|
|
|
2015 |
|
|
2014 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
W |
|
|
|
|
1,318,271 |
|
|
|
1,138,958 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs for defined benefit plans |
|
|
|
|
|
|
|
|
119,183 |
|
|
|
114,372 |
|
Depreciation |
|
|
|
|
|
|
|
|
2,065,521 |
|
|
|
2,067,793 |
|
Amortization |
|
|
|
|
|
|
|
|
70,742 |
|
|
|
74,112 |
|
Finance income |
|
|
|
|
|
|
|
|
(681,205 |
) |
|
|
(773,099 |
) |
Finance costs |
|
|
|
|
|
|
|
|
522,190 |
|
|
|
756,480 |
|
Loss on valuation of inventories |
|
|
|
|
|
|
|
|
15,254 |
|
|
|
24,867 |
|
Gain on disposals of property, plant and equipment |
|
|
|
|
|
|
|
|
(11,000 |
) |
|
|
(8,882 |
) |
Loss on disposals of property, plant and equipment |
|
|
|
|
|
|
|
|
90,852 |
|
|
|
57,777 |
|
Impairment loss on property, plant and equipment |
|
|
|
|
|
|
|
|
70,674 |
|
|
|
30,334 |
|
Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
|
|
327,776 |
|
|
|
209,795 |
|
Gain on disposals of assets held for sale |
|
|
|
|
|
|
|
|
(409,578 |
) |
|
|
|
|
Loss on disposals of assets held for sale |
|
|
|
|
|
|
|
|
209,775 |
|
|
|
14 |
|
Impariment loss on assets held for sale |
|
|
|
|
|
|
|
|
95,737 |
|
|
|
|
|
Contribution to provisions |
|
|
|
|
|
|
|
|
2,174 |
|
|
|
89,844 |
|
Income tax expense |
|
|
|
|
|
|
|
|
350,012 |
|
|
|
582,435 |
|
Others |
|
|
|
|
|
|
|
|
(6,280 |
) |
|
|
106,479 |
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
38 |
|
|
|
|
|
|
998,125 |
|
|
|
197,954 |
|
|
|
|
|
|
Interest received |
|
|
|
|
|
|
|
|
79,847 |
|
|
|
97,441 |
|
Interest paid |
|
|
|
|
|
|
|
|
(263,483 |
) |
|
|
(321,684 |
) |
Dividends received |
|
|
|
|
|
|
|
|
629,435 |
|
|
|
151,150 |
|
Income taxes paid |
|
|
|
|
|
|
|
|
(454,084 |
) |
|
|
(433,055 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
W |
|
|
|
|
5,139,938 |
|
|
|
4,163,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
7
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Notes |
|
|
|
|
2015 |
|
|
2014 |
|
Cash flows from investing activities |
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from disposal of short-term financial instruments |
|
|
|
W |
|
|
|
|
9,273,767 |
|
|
|
4,103,905 |
|
Proceeds from disposal of long-term financial instruments |
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
Proceeds from disposal of available-for-sale financial assets |
|
|
|
|
|
|
|
|
135,236 |
|
|
|
41,740 |
|
Decrease in short-term loans |
|
|
|
|
|
|
|
|
69,443 |
|
|
|
|
|
Decrease in long-term loans |
|
|
|
|
|
|
|
|
514 |
|
|
|
19,751 |
|
Proceeds from disposal of investments in subsidiaries, associates and joint venture |
|
|
|
|
|
|
|
|
4,713 |
|
|
|
427 |
|
Proceeds from disposal of investment property |
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
Proceeds from disposal of intangible assets |
|
|
|
|
|
|
|
|
3,570 |
|
|
|
2,347 |
|
Proceeds from disposal of assets held for sale |
|
|
|
|
|
|
|
|
1,294,908 |
|
|
|
1,291 |
|
Acquisition of short-term financial instruments |
|
|
|
|
|
|
|
|
(11,879,166 |
) |
|
|
(2,478,109 |
) |
Increase in short-term loans |
|
|
|
|
|
|
|
|
(65,208 |
) |
|
|
|
|
Acquisition of available-for-sale investments |
|
|
|
|
|
|
|
|
(1,526 |
) |
|
|
(30,727 |
) |
Increase in long-term loans |
|
|
|
|
|
|
|
|
(139 |
) |
|
|
(26,451 |
) |
Acquisition of investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
|
|
(451,265 |
) |
|
|
(1,209,223 |
) |
Acquisition of investment property |
|
|
|
|
|
|
|
|
(346 |
) |
|
|
(41 |
) |
Acquisition of property, plant and equipment |
|
|
|
|
|
|
|
|
(1,466,910 |
) |
|
|
(1,643,789 |
) |
Payment for disposal of property, plant and equipment |
|
|
|
|
|
|
|
|
(22,732 |
) |
|
|
(15,346 |
) |
Acquisition of intangible assets |
|
|
|
|
|
|
|
|
(37,313 |
) |
|
|
(20,869 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
|
|
|
|
|
|
(3,142,451 |
) |
|
|
(1,255,076 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
|
|
|
|
|
|
23,671 |
|
|
|
1,429,041 |
|
Increase in long-term financial liabilities |
|
|
|
|
|
|
|
|
3,850 |
|
|
|
7,196 |
|
Proceeds from disposal of treasury shares |
|
|
|
|
|
|
|
|
|
|
|
|
43,188 |
|
Repayment of borrowings |
|
|
|
|
|
|
|
|
(1,453,075 |
) |
|
|
(3,350,330 |
) |
Decrease in long-term financial liabilities |
|
|
|
|
|
|
|
|
(4,701 |
) |
|
|
(7,125 |
) |
Payment of cash dividends |
|
|
|
|
|
|
|
|
(639,561 |
) |
|
|
(637,927 |
) |
Payment of interest of hybrid bonds |
|
|
|
|
|
|
|
|
(43,600 |
) |
|
|
(43,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities |
|
|
|
|
|
|
|
|
(2,113,416 |
) |
|
|
(2,559,557 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in cash due to foreign currency translation |
|
|
|
|
|
|
|
|
7,268 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
|
|
|
|
|
|
(108,661 |
) |
|
|
348,452 |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the period |
|
|
|
|
|
|
|
|
1,742,767 |
|
|
|
1,394,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of the period |
|
|
|
W |
|
|
|
|
1,634,106 |
|
|
|
1,742,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the separate financial statements.
8
POSCO
Notes to the Separate Financial Statements
As of December 31, 2015 and 2014
POSCO (the Company) is the largest steel producer in Korea which was
incorporated on April 1, 1968 to manufacture and sell steel rolled products and plates in the domestic and overseas markets.
The shares of the
Company have been listed on the Korea Exchange since 1988. The Company owns and operates two steel plants (Pohang and Gwangyang) and one office in Korea, and it also operates internationally through five overseas liaison offices.
As of December 31, 2015, major shareholders are as follows:
|
|
|
|
|
|
|
|
|
Shareholders name |
|
Number of shares |
|
|
Ownership (%) |
|
National Pension Service |
|
|
7,885,065 |
|
|
|
9.04 |
|
Nippon Steel & Sumitomo Metal Corporation(*1) |
|
|
4,394,712 |
|
|
|
5.04 |
|
Pohang University of Science and Technology |
|
|
1,905,000 |
|
|
|
2.18 |
|
Government of Singapore Investment Corporation Pte Ltd |
|
|
1,862,625 |
|
|
|
2.14 |
|
KB Financial Group Inc. and subsidiaries(*2) |
|
|
1,828,207 |
|
|
|
2.10 |
|
Others |
|
|
69,311,226 |
|
|
|
79.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
87,186,835 |
|
|
|
100.00 |
|
|
|
|
|
|
|
|
|
|
(*1) |
Nippon Steel & Sumitomo Metal Corporation owns American Depository Receipts (ADRs) of the Company, each of which represents 0.25 share of POSCOs common share which has par value of W5,000
per share. |
(*2) |
Includes shares held by subsidiaries pursuant to the Commercial Act. |
As of December 31, 2015, the shares
of the Company are listed on the Korea Exchange, while its depository shares are listed on the New York Stock Exchanges.
2. |
Statement of Compliance |
Statement of compliance
The separate financial statements have been prepared in accordance with Korean International Financial Reporting Standards
(K-IFRS), as prescribed in the Act on External Audits of Corporations in the Republic of Korea.
These
financial statements are separate financial statements prepared in accordance with K-IFRS No. 1027 Separate Financial Statements presented by a parent, an investor with joint control of, or significant influence over, an investee,
in which the investments are accounted for at cost.
9
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
The separate financial statements were authorized for issue by the Board of Directors on January 28, 2016, and will be submitted for approval at the
shareholders meeting to be held on March 11, 2016.
Basis of measurement
The separate financial statements have been prepared on the historical cost basis, except for the following material items in the statement of financial
position, as described in the accounting policy below.
(a) |
Derivatives instruments are measured at fair value |
(b) |
Available-for-sale financial assets are measured at fair value |
(c) |
Defined benefit liabilities are measured at the present value of the defined benefit obligation less the fair value of the plan asset. |
Functional and presentation currency
These separate
financial statements are presented in Korean Won, which is the Companys functional currency and the currency of the primary economic environment in which the Company operates.
Use of estimates and judgments
The preparation of the
separate financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period prospectively.
Information about critical judgments in applying accounting policies that have the
most significant effect on the amounts recognized in the separate financial statements is included in the following notes:
|
|
|
Note 10 - Assets held for sale |
|
|
|
Note 11 - Investments in subsidiaries, associates and joint ventures |
10
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Assumptions and estimation uncertainties |
Information about assumptions and estimation
uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following notes:
|
|
|
Note 8 - Available-for-sale securities |
|
|
|
Note 11 - Investments in subsidiaries, associates and joint ventures |
|
|
|
Note 20 - Employee benefits |
|
|
|
Note 37 - Commitments and contingencies |
(c) |
Measurement of fair value |
The Companys accounting policies and disclosures require the
measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the department manager of finance department.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker
quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of K-IFRS including the level in the fair
value hierarchy in which such valuation techniques should be classified.
When measuring the fair value of an asset or a liability, the
Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
|
|
|
Level 1 unadjusted quoted prices in active markets for identical assets or liabilities. |
|
|
|
Level 2 inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly. |
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Level 3 inputs for the assets or liability that are not based on observable market data. |
If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy,
then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value
hierarchy at the end of the reporting period during which the change has occurred.
11
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Information about the assumptions made in measuring fair values is included in the following note:
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Note 22 Financial instruments |
Changes in accounting policies
The Company has adopted the following amendments to standards and new interpretation with a date of initial application of January 1, 2015.
(a) |
K-IFRS No. 1019, Employee Benefits |
K-IFRS No. 1019, Employee Benefits,
introduced a practical expedient for companies that operate defined benefit plans and when contributions are made by employees or third parties. According to the amendments, the Company is permitted to recognize those contributions as a reduction of
the service cost in the period in which the related service is rendered, instead of forecast future contributions from employees or third parties and attribute them to periods or service as negative benefits.
Impact of changes in accounting policies
As management
believes the impact of K-IFRS No. 1019 on the Companys prior years consolidated financial statement is not significant, the comparative periods consolidated financial statements are not restated.
12
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
3. |
Summary of Significant Accounting Policies |
The significant accounting policies applied by the Company
in preparation of its separate financial statements are included below. The accounting policies set out below have been applied consistently to all periods presented in these financial statements, except for those as disclosed in note 2.
Investments in subsidiaries, associates and joint ventures
These separate financial statements are prepared and presented in accordance with K-IFRS No. 1027 Separate Financial Statements. The Company
applied the cost method to investments in subsidiaries, associates and joint ventures in accordance with K-IFRS No. 1027. Dividends from a subsidiary, associate or joint venture are recognized in profit or loss when the right to receive the
dividend is established.
Foreign currency transactions and translation
Foreign currency transactions are initially recorded using the spot exchange rate between the functional currency and the foreign currency at the date of the
transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at
the date of the original transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date fair value is initially determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated
on initial recognition during the period or in previous financial statements are recognized in profit or loss in the period in which they arise. When gains or losses on non-monetary items are recognized in other comprehensive income, exchange
components of those gains or losses are recognized in other comprehensive income. Conversely, when gains or losses on non-monetary items are recognized in profit or loss, exchange components of those gains or losses are recognized in profit or loss.
Cash and cash equivalents
Cash and cash equivalents
comprise cash on hand, demand deposits, and short-term investments in highly liquid securities that are readily convertible to known amounts of cash with maturities of three months or less from the acquisition date and which are subject to an
insignificant risk of changes in value. Equity investments are excluded from cash and cash equivalents.
13
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Non-derivative financial assets
The Company recognizes
and measures non-derivative financial assets by the following four categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets. The Company
recognizes financial assets in the separate statement of financial position when the Company becomes a party to the contractual provisions of the instrument.
Upon initial recognition, non-derivative financial assets are measured at their fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs that are directly attributable to the assets acquisition or issuance.
(a) |
Financial assets at fair value through profit or loss |
Financial assets are classified at fair
value through profit or loss if they are held for trading or designated as such upon initial recognition. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or
loss are measured at fair value, and changes therein are recognized in profit or loss.
(b) |
Held-to-maturity financial assets |
A non-derivative financial asset with a fixed or
determinable payment and fixed maturity, for which the Company has the positive intention and ability to hold to maturity, is classified as held-to-maturity financial assets. Subsequent to initial recognition, held-to-maturity financial assets are
measured at amortized cost using the effective interest method.
(c) |
Loans and receivables |
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method unless the effect of discounting is immaterial.
14
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(d) |
Available-for-sale financial assets |
Available-for-sale financial assets are those
non-derivative financial assets that are designated as available-for-sale or are not classified as financial assets at fair value through profit or loss, held-to-maturity financial assets or loans and receivables. Subsequent to initial recognition,
they are measured at fair value, with changes in fair value, net of any tax effect, recorded in other comprehensive income in equity. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured and derivatives that are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost. When a financial asset is derecognized or impairment losses are recognized, the cumulative gain
or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Dividends on an available-for-sale equity instrument are recognized in profit or loss when the Companys right to receive payment is
established.
(e) |
Derecognition of non-derivative financial assets |
The Company derecognizes non-derivative
financial assets when the contractual rights to the cash flows from the financial asset expire, or the Company transfers the rights to receive the contractual cash flows from the financial asset as well as substantially all the risks and rewards of
ownership of the financial asset. Any interest in a transferred financial asset that is created or retained by the Company is recognized as a separate asset or liability.
If the Company retains substantially all the risks and rewards of ownership of the transferred financial assets, the Company continues to
recognize the transferred financial assets and recognizes financial liabilities for the consideration received.
(f) |
Offsetting a financial asset and a financial liability |
Financial assets and financial
liabilities are offset and the net amount is presented in the separate statement of financial position only when the Company currently has a legally enforceable right to offset the recognized amounts, and there is the intention to settle on a net
basis or to realize the asset and settle the liability simultaneously.
15
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Inventories
Inventory costs, except materials-in-transit
in which costs are determined by using specific identification method, are determined by using the moving-weighted average method. The cost of inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the
inventories to their present location and condition. The allocation of fixed production overheads to the costs of finished goods or work in progress are based on the normal capacity of the production facilities.
Inventories are measured at the lower of cost or net realizable value. The amount of any write-down of inventories to net realizable value and all losses of
inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories arising from an increase in net realizable value is recognized as a reduction in the amount of
inventories recognized as a cost of goods sold in the period in which the reversal occurs.
The carrying amount of those inventories is recognized as cost
of goods sold in the period in which the related revenue is recognized.
Non-current assets held for sale
Non-current assets or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing
use are classified as held for sale. In order to be classified as held for sale, the assets or disposal groups must be available for immediate sale in their present condition and their sale must be highly probable. The assets or disposal groups that
are classified as non-current assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell.
The Company
recognizes an impairment loss for any initial or subsequent write-down of an asset or disposal group to fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative impairment loss
previously recognized in accordance with K-IFRS No. 1036 Impairment of Assets.
A non-current asset that is classified as held for sale
or part of a disposal group classified as held for sale is not depreciated (or amortized).
16
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Investment property
Property held to earn rentals or for
capital appreciation or both is classified as investment property. Investment property is measured initially at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost
less any accumulated impairment losses.
Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as
separate items if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day
servicing are recognized in profit or loss as incurred.
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting
date and adjusted, if appropriate. The change is accounted for as a change in an accounting estimate.
Property, plant and equipment
Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and any
accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management and, when the Company has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the item and restoring the site on
which it is located.
The cost of replacing a part of an item is recognized in the carrying amount of the item of property, plant and equipment, if the
following recognition criteria are met:
(a) |
it is probable that future economic benefits associated with the item will flow to the Company and |
(b) |
the cost can be measured reliably. |
The carrying amount of the replaced part is derecognized at the time the
replacement part is recognized. The costs of the day-to-day servicing of the item are recognized in profit or loss as incurred.
17
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Items of property, plant and equipment are depreciated from the date they are available for use or, in respect of self-constructed assets, from the date that
the asset is completed and ready for use. Other than land, the costs of an asset less its estimated residual value are depreciated. Depreciation of property, plant and equipment is recognized in profit or loss on a straight-line basis, which most
closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset, over the estimated useful lives of each component of an item of property, plant and equipment. Leased assets are depreciated over the shorter
of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated.
Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.
The gain or loss arising from the derecognition of an item of property, plant and equipment is included in profit or loss when the item is derecognized.
The estimated useful lives for the current period are as follows:
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Buildings |
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5-40 years |
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Structures |
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5-40 years |
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Machinery and equipment |
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15 years |
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Vehicles |
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4-9 years |
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Tools |
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4 years |
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Furniture and fixtures |
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4 years |
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Lease assets |
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18 years |
|
The estimated residual value, useful lives and the depreciation method are reviewed at least at the end of each reporting
period and, if expectations differ from previous estimates, the changes are accounted for as changes in accounting estimates.
18
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Borrowing costs
The Company capitalizes borrowing costs
directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial
period of time to get ready for its intended use or sale. Financial assets and inventories that are manufactured or otherwise produced over a short period of time are not qualifying assets. Assets that are ready for their intended use or sale when
acquired are not qualifying assets.
To the extent that the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the
Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Company
immediately recognizes other borrowing costs as an expense. To the extent that the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company shall determine the amount of borrowing costs eligible for
capitalization by applying a capitalization rate to the expenditures on that asset. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period,
other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Company capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period.
19
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Intangible assets
Intangible assets are measured
initially at cost and, subsequently, are carried at cost less accumulated amortization and accumulated impairment losses.
Amortization of intangible
assets except for goodwill is calculated on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use. The residual value of intangible assets is zero. However, as there are no
foreseeable limits to the periods over which club memberships are expected to be available for use, this intangible asset is determined as an having an indefinite useful life and not amortized.
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Intellectual property rights |
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7 years |
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Development costs |
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4 years |
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Port facilities usage rights |
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4-75 years |
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Other intangible assets |
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4 years |
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Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at the end of
each reporting period. The useful lives of intangible assets that are not being amortized are reviewed at the end of each reporting period to determine whether events and circumstances continue to support indefinite useful life assessments for those
assets. Changes are accounted for as changes in accounting estimates.
Expenditures on research activities, undertaken with the prospect of gaining new
scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially
feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred.
Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific asset to which they relate. All other
expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.
20
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Government grants
Government grants are not recognized
unless there is reasonable assurance that the Company will comply with the grants conditions and that the grant will be received.
(a) |
Grants related to assets |
Government grants whose primary condition is that the Company
purchase, construct or otherwise acquire long-term assets are deducted from the carrying amount of the assets and recognized in profit or loss on a systematic and rational basis over the life of the depreciable assets.
(b) |
Grants related to income |
Government grants which are intended to compensate the Company for
expenses incurred are deducted from the related expenses.
Leases
The Company classifies and accounts for leases as either a finance or operating lease, depending on the terms. Leases where the Company assumes substantially
all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.
At the commencement of the lease term, the Company recognizes as finance assets
and finance liabilities the lower amount of the fair value of the leased property and the present value of the minimum lease payments, each determined at the inception of the lease. Any initial direct costs are added to the amount recognized as an
asset.
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance
charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.
The depreciable amount of a leased asset is allocated to each accounting period during the period of expected use on a systematic basis
consistent with the depreciation policy the Company adopts for similar depreciable assets that are owned. If there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is fully depreciated over
the shorter of the lease term and its useful life.
21
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Leases obligations under operating leases are recognized as an expense on a
straight-line basis over the lease term. Contingent rents are charged as expenses in the periods in which they are incurred.
Impairment for financial
assets
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective
evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows
of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized.
Objective evidence that a financial asset or group of financial assets are impaired includes:
(a) |
significant financial difficulty of the issuer or obligor |
(b) |
a breach of contract, such as a default or delinquency in interest or principal payments |
(c) |
the lender, for economic or legal reasons relating to the borrowers financial difficulty, granting to the borrower a concession that the lender would not otherwise consider |
(d) |
it becoming probable that the borrower will enter bankruptcy or other financial reorganization |
(e) |
the disappearance of an active market for that financial asset because of financial difficulties |
(f) |
observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be
identified with the individual financial assets in the group. |
In addition, for an investment in an equity security, a significant or
prolonged decline in its fair value below its cost is objective evidence of impairment.
22
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
If there is objective evidence that financial assets are impaired, impairment losses are measured and recognized.
(a) |
Financial assets measured at amortized cost |
An impairment loss in respect of a financial asset
measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the assets original effective interest rate. If it is not practicable to obtain the
instruments estimated future cash flows, impairment losses would be measured by using prices from any observable current market transactions. The Company can recognize impairment losses directly or establish a provision to cover impairment
losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss shall be reversed either
directly or by adjusting an allowance account.
(b) |
Financial assets carried at cost |
If there is objective evidence that an impairment loss has
occurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the
amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such
impairment losses are not reversed.
(c) |
Available-for-sale financial assets |
When a decline in the fair value of an available-for-sale
financial asset has been recognized in other comprehensive income and there is objective evidence that the asset is impaired, the cumulative loss that had been recognized in other comprehensive income shall be reclassified from equity to profit or
loss as a reclassification adjustment even though the financial asset has not been derecognized. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale are not reversed through
profit or loss. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss,
the impairment loss shall be reversed, with the amount of the reversal recognized in profit or loss.
23
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Impairment for non-financial assets
The carrying amounts
of the Companys non-financial assets, other than assets arising from employee benefits, inventories, deferred tax assets and non-current assets held for sale, are reviewed at the end of the reporting period to determine whether there is any
indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. Intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any
indication of impairment, are tested for impairment annually by comparing their recoverable amount to their carrying amount.
Management estimates the
recoverable amount of an individual asset. If it is impossible to measure the individual recoverable amount of an asset, then management estimates the recoverable amount of cash-generating unit (CGU). A CGU is the smallest identifiable
group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
The value in use is estimated by applying a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimated future cash flows have not been adjusted, to the
estimated future cash flows expected to be generated by the asset or CGU.
An impairment loss is recognized if the carrying amount of an asset or a CGU
exceeds its recoverable amount. Impairment losses are recognized in profit or loss.
Any impairment identified at the CGU level is used to reduce the
carrying amount of the other assets in the CGU on a pro rata basis. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
24
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Derivative financial instruments
Derivatives are
initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss.
Embedded derivatives are separated from the host contract and accounted
for separately only if the following criteria have been met: (a) the economic characteristics and risks of the host contract and the embedded derivatives are not clearly and closely related to a separate instrument with the same terms as the
embedded derivative that would meet the definition of a derivative, and (b) the hybrid (combined) instrument is not measured at fair value through profit or loss. Changes in the fair value of separable embedded derivatives from the host
contract are recognized immediately in profit or loss.
Changes in the fair value of a derivative that is not designated as a
hedging instrument are recognized immediately in profit or loss.
Non-derivative financial liabilities
The Company classifies non-derivative financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities in
accordance with the substance of the contractual arrangement and the definitions of financial liabilities. The Company recognizes financial liabilities in the separate statement of financial position when the Company becomes a party to the
contractual provisions of the financial liability.
(a) |
Financial liabilities at fair value through profit or loss |
Financial liabilities at fair value
through profit or loss include financial liabilities held for trading or designated as upon initial recognition. Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair value, and changes
therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the acquisition are recognized in profit or loss as incurred.
25
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Other financial liabilities |
Non-derivative financial liabilities other than financial
liabilities at fair value through profit or loss are classified as other financial liabilities. At the date of initial recognition, other financial liabilities are measured at fair value minus transaction costs that are directly attributable to the
acquisition. Subsequent to initial recognition, other financial liabilities are measured at amortized cost using the effective interest method. The Company derecognizes a financial liability from the consolidated statement of financial position when
it is extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).
Employee benefits
(a) |
Short-term employee benefits |
Short-term employee benefits are employee benefits that are due
to be settled within twelve months after the end of the period in which the employees render the related service. When an employee has rendered service to the Company during an accounting period, the Company recognizes the undiscounted amount of
short-term employee benefits expected to be paid in exchange for that service as profit or loss. If the Company has a legal or constructive obligation which can be reliably measured, the Company recognizes the amount of expected payment for
profit-sharing and bonuses payable as liabilities.
(b) |
Other long-term employee benefits |
Other long-term employee benefits include employee benefits
that are settled beyond 12 months after the end of the period in which the employees render the related service, and are calculated at the present value of the amount of future benefit that employees have earned in return for their service in the
current and prior periods, less the fair value of any related assets. The present value is determined by discounting the expected future cash flows using the interest rate of corporate bonds that have maturity dates approximating the terms of the
Companys obligations and that are denominated in the same currency in which the benefits are expected to be paid. Any actuarial gains and losses are recognized in profit or loss in the period in which they arise.
26
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(c) |
Retirement benefits: Defined contribution plans |
For defined contribution plans, when an
employee has rendered service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as an accrued expense, after deducting any contributions already paid. If the
contributions already paid exceed the contribution due for service before the end of the reporting period, the Company recognizes that excess as an asset (prepaid expense) to the extent that the prepayment will lead to a reduction in future payments
or a cash refund.
(d) |
Retirement benefits: Defined benefit plans |
A defined benefit plan is a post-employment benefit
plan other than a defined contribution plan. The Companys net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and
prior periods; that benefit is discounted to determine its present value. The fair value of plan assets is deducted. The calculation is performed annually by an independent actuary using the projected unit credit method.
The discount rate is the yield at the reporting date on corporate bonds that have maturity dates approximating the terms of the Companys
obligations and that are denominated in the same currency in which the benefits are expected to be paid. The Company recognizes all actuarial gains and losses arising from actuarial assumption changes and experiential adjustments in other
comprehensive income when incurred.
When the fair value of plan assets exceeds the present value of the defined benefit obligation, the
Company recognizes an asset, to the extent of the total of cumulative unrecognized past service cost and present value of any economic benefits available in the form of refunds from the plan or reduction in the future contributions to the plan.
Remeasurements of net defined benefit liabilities, which comprise actuarial gains and losses, the return on plan assets (excluding interest)
and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by
applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during
the period as a result of contributions and benefit payments, net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.
27
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain
or loss in curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.
Provisions
Provisions are recognized when the Company
has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation.
The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a
provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.
Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement shall be recognized
when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of
resources embodying economic benefits will be required to settle the obligation, the provision is reversed.
Provision for restoration related to
contaminated area is recognized when the area meets the Companys policy and legal standards of contamination.
A provision is used only for
expenditures for which the provision was originally recognized.
28
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Emission Rights
The Company accounts for greenhouse gases
emission right and the relevant liability as below pursuant to the Act on the Allocation and Trading of Greenhouse Gas Emission Permits which became effective in Korea in 2015.
(a) |
Greenhouse Gases Emission Right |
Greenhouse Gases Emission Right consists of emission
allowances which are allocated from the government free of charge or purchased from the market. The cost includes any directly attributable costs incurred during the normal course of business.
Emission rights held for the purpose of performing the obligation are classified as intangible asset and are initially measured at cost and
subsequent to initial recognition, are carried at cost less accumulated impairment losses. Emission rights held for short-swing profits are classified as current asset and are measured at fair value with any changes in fair value recognized as
profit or loss in the respective reporting period.
The Company derecognizes an emission right asset when the emission allowance is
unusable, disposed or submitted to government in which the future economic benefits are no longer expected to be probable.
Emission liability is a present obligation of submitting emission rights to
the government with regard to emission of greenhouse gas. Emission liability is recognized when there is a high possibility of outflows of resources in performing the obligation and the costs required to perform the obligation are reliably
estimable. Emission liability is an amount of estimated obligation for emission rights to be submitted to the government for the performing period. The emission liability is measured based on the expected quantity of emission for the performing
period in excess of emission allowance in possession, and the unit price for such emission rights in the market as of the end of the reporting period.
29
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Equity instruments
Common stock is classified as equity and the incremental costs arising directly
attributable to the issuance of common stock less their tax effects are deducted from equity.
If the Company reacquires its own equity
instruments, the amount of those instruments (treasury shares) are presented as a contra equity account. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of its own equity instruments. When
treasury shares are sold or reissued subsequently, the amount received is recognized as an increase to equity, and the resulting surplus or deficit on the transaction is recorded in capital surplus.
Debt and equity instruments issued by the Company are classified as either
financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of financial liability and an equity instrument. When the Company has an unconditional right to avoid delivering cash or another
financial asset to settle a contractual obligation, the instruments are classified as equity instruments.
Revenue
Revenue from the sale of goods, services provided and the use of assets is measured at the fair value of the consideration received or receivable, net of
returns and allowances, trade discounts and volume rebates, which are not significant for all periods presented.
Revenue from the sale of goods in the ordinary course of activities is measured
at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks
and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and
the amount of revenue can be measured reliably. The appropriate timing for transfer of risks and rewards varies depending on the individual terms and conditions of the sales contract. For international sales, this timing depends on the type of
international commercial terms of the contract.
Rental income from investment property, net of lease incentives granted, is
recognized in profit or loss on a straight-line basis over the term of the lease.
30
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Finance income and finance costs
Finance income comprises
interest income on funds invested (including available-for-sale financial assets), dividend income, gains on the disposal of available-for-sale financial assets and changes in the fair value of financial assets at fair value through profit or loss.
Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Companys right to receive payment is established.
Finance costs comprise interest expense on borrowings and changes in the fair value of financial assets at fair value through profit or loss. Borrowing costs
are recognized in profit or loss using the effective interest rate method.
Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to
items recognized directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable profit or
loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since
the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit of future periods, and non-taxable or non-deductible items from the accounting profit.
31
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
The measurement of deferred tax liabilities and deferred tax assets reflects the
tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. The Company recognizes a deferred tax liability for all
taxable temporary differences associated with investments in subsidiaries, associates, and joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. The Company recognizes a deferred tax asset for deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. However, deferred tax is not recognized for the following temporary
differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor
taxable income.
The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the
related current tax liabilities and assets, and they relate to income taxes levied by the same tax authority and they intend to settle current tax liabilities and assets on a net basis.
Earnings per share
Management calculates basic earnings
per share (EPS) data for the Companys ordinary shares, which is presented at the end of the statement of comprehensive income. Basic EPS is calculated by dividing profit attributable to ordinary shareholders of the Company by the
weighted average number of ordinary shares outstanding during the period, adjusted for own shares held.
32
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
New standards and interpretations not yet adopted
The
following new standards, interpretations and amendments to existing standards have been published and are mandatory for the Company for annual periods beginning after January 1, 2015, and the Company has not early adopted them.
(a) |
Amendments to K-IFRS No. 1027 Separate Financial Statements |
Amendments to
K-IFRS No. 1027 introduced the equity method of accounting for investments in subsidiaries, associates and joint ventures as a third option in the entitys separate financial statements, in addition to the existing cost and fair value
options. This amendment is effective for annual periods beginning on or after January 1, 2016.
Management believes there is no impact
of the amendments on the companys separate financial statements, because management plan not to adopt the equity method of accounting.
(b) |
Amendments to K-IFRS No. 1109 Financial Instruments |
K-IFRS No. 1109,
published in December 2015, replaces the existing guidance in K-IFRS No. 1039 Financial Instruments: Recognition and Measurement. K-IFRS No. 1109 includes revised guidance on the classification and measurement of financial
instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from K-IFRS
No. 1039. K-IFRS No. 1109 is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted.
As of December 31, 2015, the Company couldnt estimate the impact on its separate financial statements resulting from the application
of K-IFRS No. 1109.
(c) |
Establishment of K-IFRS No. 1115 Revenue from Contracts with Customers |
K-IFRS
No. 1115, published in January 2016, establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including K-IFRS No. 1018 Revenue,
K-IFRS No. 1011 Construction Contracts and K-IFRS No. 2113 Customer Loyalty Programs. K-IFRS No. 1115 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption
permitted.
As of December 31, 2015, the Company couldnt estimate the impact on its separate financial statements resulting from
the application of K-IFRS No. 1115.
33
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
The Company has exposure to the following risks from its use of financial instruments:
This note presents information about the Companys exposure to each of the above risks, the
Companys objectives, policies and processes for measuring and managing risk, and the Companys management of capital. Further quantitative disclosures are included throughout these separate financial statements.
(a) |
Financial risk management |
1) |
Risk management framework |
The Board of Directors has overall responsibility for the
establishment and oversight of the Companys risk management framework. The Companys risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to
monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companys activities.
The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment
in which all employees understand their roles and obligations.
Credit risk is the risk of financial loss to the Company if a customer or
counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers and investment securities. In addition, credit risk arises from finance guarantees.
34
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain
level of credit rate evaluated based on financial condition, historical experience, and other factors. The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. The default risk of a nation
or an industry in which a customer operates its business does not have a significant influence on credit risk. The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables.
The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for companies of similar assets in respect of losses that have been incurred but not
yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Debt securities are analyzed individually, and an expected loss shall be directly deducted from debt securities.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash
equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have high international credit ratings. The Companys
treasury department authorizes, manages, and overseas new transactions with financial institutions with whom the Company has no previous relationship. Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by
strictly evaluating their necessity based on internal decision making processes, such as the approval of the board of directors.
3) |
Liquidity risk management |
Liquidity risk is the risk that the Company will encounter
difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
The Companys cash flow from business, borrowing or financing is sufficient to meet the cash requirements for the Companys strategy
investments. Management believes that the Company is capable of raising funds by borrowing or financing if the Company is not able to generate cash flow requirements from its operations. The Company has committed borrowing facilities with various
banks.
35
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
4) |
Market risk management |
Market risk means that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.
The Company is exposed to currency risk on sales, purchases and borrowings that
are denominated in a currency other than the functional currency of the Company, Korean Won.
The Companys policy in respect of
foreign currency risks is a natural hedge whereby foreign currency income is offset with foreign currency expenditures. The remaining net exposures after the natural hedge have been hedged using derivative contracts such as forward exchange
contracts. In addition, the Companys derivative transactions are limited to hedging actual foreign currency transactions and speculative hedging is not permitted. The Company has excessive foreign currency inflows converted from lack, reduces
the foreign currency exposure by repayment of foreign currency borrowings subjected to investment in overseas when its maturities come.
The Company manages the exposure to interest rate risk by adjusting of
borrowing structure ratio between borrowings at fixed interest rates and variable interest rate. The Company monitors interest rate risks regularly in order to avoid exposure to interest rate risk on borrowings at variable interest rate.
Equity price risk arises from listed equity securities among
available-for-sale equity securities. Management of the Company measures regularly the fair value of listed equity securities and the risk of variance in future cash flow caused by market price fluctuations. Significant investments are managed
separately and all buy and sell decisions are approved by management of the Company.
36
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Management of capital risk |
The fundamental goal of capital management is the maximization of
shareholders value by means of the stable dividend policy and the retirement of treasury shares. The capital structure of the Company consists of equity and net debt, deducting cash and cash equivalents and current financial instruments from
borrowings. The Company applied the same financial risk management strategy that was applied in the previous period.
Net
borrowing-to-equity ratio as of December 31, 2015 and 2014 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Total borrowings |
|
W |
|
|
|
|
5,288,827 |
|
|
|
6,537,217 |
|
Less: Cash and cash equivalents |
|
|
|
|
|
|
1,634,106 |
|
|
|
1,742,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings |
|
|
|
|
|
|
3,654,721 |
|
|
|
4,794,450 |
|
Total equity |
|
W |
|
|
|
|
43,025,557 |
|
|
|
42,475,431 |
|
Net borrowings-to-equity ratio |
|
|
|
|
|
|
8.49 |
% |
|
|
11.29 |
% |
37
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
5. |
Cash and Cash Equivalents |
Cash and cash equivalents as of December 31, 2015 and 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Demand deposits and checking accounts |
|
W |
|
|
|
|
1,480 |
|
|
|
867 |
|
Time deposits |
|
|
|
|
|
|
390,000 |
|
|
|
545,000 |
|
Other cash equivalents(*1) |
|
|
|
|
|
|
1,242,626 |
|
|
|
1,196,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,634,106 |
|
|
|
1,742,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Mainly include money market trust and others. |
6. |
Trade Accounts and Notes Receivable |
Trade accounts and notes receivable as of December 31, 2015
and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
W |
|
|
|
|
2,749,056 |
|
|
|
3,166,238 |
|
Less: Allowance for doubtful accounts |
|
|
|
|
|
|
(8,952 |
) |
|
|
(8,972 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,740,104 |
|
|
|
3,157,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
W |
|
|
|
|
30,034 |
|
|
|
32,247 |
|
Less: Present value discount |
|
|
|
|
|
|
(7,852 |
) |
|
|
(7,396 |
) |
Less: Allowance for doubtful accounts |
|
|
|
|
|
|
(2,287 |
) |
|
|
(1,010 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
19,895 |
|
|
|
23,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Other receivables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans |
|
W |
|
|
|
|
|
|
|
|
4,748 |
|
Other accounts receivable |
|
|
|
|
|
|
233,415 |
|
|
|
564,765 |
|
Others |
|
|
|
|
|
|
13,341 |
|
|
|
3,950 |
|
Less: Allowance for doubtful accounts |
|
|
|
|
|
|
(325 |
) |
|
|
(10,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
246,431 |
|
|
|
562,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans |
|
W |
|
|
|
|
24,293 |
|
|
|
21,229 |
|
Long-term other accounts receivable |
|
|
|
|
|
|
66,541 |
|
|
|
2,334 |
|
Others |
|
|
|
|
|
|
2,923 |
|
|
|
2,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
93,757 |
|
|
|
26,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
8. |
Other Financial Assets |
(a) |
Other financial assets as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Short term derivatives assets held for trading |
|
W |
|
|
|
|
12,591 |
|
|
|
708 |
|
Available-for-sale securities (bonds) |
|
|
|
|
|
|
15,000 |
|
|
|
|
|
Short-term financial instruments(*1,2) |
|
|
|
|
|
|
3,291,828 |
|
|
|
609,584 |
|
Cash deposits(*3,4) |
|
|
|
|
|
|
6,593 |
|
|
|
83,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,326,012 |
|
|
|
693,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term derivatives assets held for trading(*5) |
|
W |
|
|
|
|
78,292 |
|
|
|
9,525 |
|
Available-for-sale securities (equity instruments) |
|
|
|
|
|
|
1,723,082 |
|
|
|
1,767,621 |
|
Available-for-sale securities (others) |
|
|
|
|
|
|
2,967 |
|
|
|
17,408 |
|
Cash deposits(*6) |
|
|
|
|
|
|
33 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,804,374 |
|
|
|
1,794,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Short-term financial instruments amounting to W1,384 million are levied in relation to pending litigations as of December 31, 2015 and 2014. |
(*2) |
Short-term financial instruments amounting to W5,200 million are provided as collateral in relation to long term borrowings from National Forestry Cooperatives Federation as of December 31, 2014.
|
(*3) |
Deposits amounting to W6,593 million and W5,465 million as of December 31, 2015 and 2014, respectively, are restricted in relation to government assigned project.
|
(*4) |
As of December 31, 2014, W77,972 million of deposits have been provided as collateral for disposal of investments in subsidiaries. |
(*5) |
The Company assessed the values of its put option and earn-out consideration in relation to the residual equity upon the Companys disposal of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel
Co., Ltd). Accordingly, the Company has recognized derivatives assets for the values of both amounting to W63,300 million and W14,992 million, respectively, as of December 31, 2015. |
(*6) |
The Company is required to provide deposits to maintain checking accounts and accordingly the withdrawal of these deposits is restricted. |
40
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Available-for-sale equity securities as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
2015 |
|
|
2014 |
|
|
|
Number of shares |
|
|
Ownership (%) |
|
|
|
|
|
Acquisition cost |
|
|
Fair value |
|
|
Net changes in fair value
of available-for-sale investments |
|
|
Accumulated impairment loss |
|
|
Book value |
|
|
Book value |
|
Marketable equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hana Financial group Inc. |
|
|
2,430,498 |
|
|
|
0.82 |
|
|
W |
|
|
|
|
15,633 |
|
|
|
57,359 |
|
|
|
41,726 |
|
|
|
|
|
|
|
57,359 |
|
|
|
77,776 |
|
Nippon Steel & Sumitomo Metal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporation |
|
|
23,835,200 |
|
|
|
2.51 |
|
|
|
|
|
|
|
719,622 |
|
|
|
559,740 |
|
|
|
(159,882 |
) |
|
|
|
|
|
|
559,740 |
|
|
|
659,926 |
|
Hyundai Heavy Industries Co., Ltd.(*1) |
|
|
1,477,000 |
|
|
|
1.94 |
|
|
|
|
|
|
|
343,506 |
|
|
|
129,681 |
|
|
|
|
|
|
|
(213,825 |
) |
|
|
129,681 |
|
|
|
169,855 |
|
Shinhan Financial group Inc. |
|
|
4,369,881 |
|
|
|
0.92 |
|
|
|
|
|
|
|
228,778 |
|
|
|
172,829 |
|
|
|
50,193 |
|
|
|
(106,142 |
) |
|
|
172,829 |
|
|
|
194,241 |
|
KB Financial group Inc.(*1) |
|
|
11,590,550 |
|
|
|
3.00 |
|
|
|
|
|
|
|
536,516 |
|
|
|
384,227 |
|
|
|
|
|
|
|
(152,289 |
) |
|
|
384,227 |
|
|
|
418,998 |
|
Seoul Semiconductor Co., Ltd.(*1) |
|
|
591,000 |
|
|
|
1.01 |
|
|
|
|
|
|
|
24,999 |
|
|
|
9,279 |
|
|
|
887 |
|
|
|
(16,607 |
) |
|
|
9,279 |
|
|
|
11,938 |
|
SAMWONSTEEL Co., Ltd. |
|
|
5,700,000 |
|
|
|
14.25 |
|
|
|
|
|
|
|
8,930 |
|
|
|
20,748 |
|
|
|
18,221 |
|
|
|
(6,403 |
) |
|
|
20,748 |
|
|
|
23,513 |
|
Others (10 companies)(*1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92,110 |
|
|
|
60,617 |
|
|
|
9,005 |
|
|
|
(40,498 |
) |
|
|
60,617 |
|
|
|
64,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,970,094 |
|
|
|
1,394,480 |
|
|
|
(39,850 |
) |
|
|
(535,764 |
) |
|
|
1,394,480 |
|
|
|
1,620,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-marketable equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Congonhas Minerios S.A.(*3,4) |
|
|
3,658,394 |
|
|
|
2.02 |
|
|
|
|
|
|
|
221,535 |
|
|
|
221,535 |
|
|
|
|
|
|
|
|
|
|
|
221,535 |
|
|
|
|
|
Dongbu Metal Co., Ltd.(*1,4) |
|
|
3,000,000 |
|
|
|
10.00 |
|
|
|
|
|
|
|
98,242 |
|
|
|
|
|
|
|
|
|
|
|
(98,242 |
) |
|
|
|
|
|
|
17,295 |
|
Poongsan Special Metal Corp.(*5) |
|
|
315,790 |
|
|
|
5.00 |
|
|
|
|
|
|
|
7,657 |
|
|
|
7,657 |
|
|
|
|
|
|
|
|
|
|
|
7,657 |
|
|
|
7,657 |
|
Intellectual Discovery(*5) |
|
|
1,000,000 |
|
|
|
14.27 |
|
|
|
|
|
|
|
5,000 |
|
|
|
5,000 |
|
|
|
|
|
|
|
|
|
|
|
5,000 |
|
|
|
5,000 |
|
Tuwaurqi Steel Mill(*2) |
|
|
129,600,000 |
|
|
|
16.18 |
|
|
|
|
|
|
|
17,015 |
|
|
|
|
|
|
|
|
|
|
|
(17,015 |
) |
|
|
|
|
|
|
17,015 |
|
Others (37 companies)(*2,5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
109,508 |
|
|
|
94,410 |
|
|
|
250 |
|
|
|
(15,348 |
) |
|
|
94,410 |
|
|
|
100,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
458,957 |
|
|
|
328,602 |
|
|
|
250 |
|
|
|
(130,605 |
) |
|
|
328,602 |
|
|
|
147,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,429,051 |
|
|
|
1,723,082 |
|
|
|
(39,600 |
) |
|
|
(666,369 |
) |
|
|
1,723,082 |
|
|
|
1,767,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
During the year ended December 31, 2015, the Company has recognized additional impairment losses of W40,174 million, W12,170 million, W3,546 million,
W2,975 million, W628 million and W17,295 million on securities of Hyundai Heavy Industries Co., Ltd., KB Financial Group Inc., Seoul Semiconductor Co., Ltd., PT. Krakatau Steel, Steel Flower Co.,
Ltd. and Dongbu Metal Co., Ltd, respectively, due to the prolonged decline in the fair value of the shares. |
(*2) |
During the year ended December 31, 2015, the Company has recognized impairment losses of W17,015 million and W6,554 million on securities of Tuwaurqi Steel Mill and Troika Foreign
Resource Development Fund due to the significant decline in the fair value of the shares. |
41
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(*3) |
The Company exchanged shares of Nacional Minerios S.A. with shares of Congonhas Minerios S.A., the corporation newly established by a merger. The shares of Congonhas Minerios S.A. were measured at fair value because the
Company decided that the transaction has commercial substance. The 0.67% of the shares were disposed to Companhia Siderurgica Nacional according to the merger agreement, and the Company recognized W57,937 million of gain on disposal
of available-for-sale investments (Note 10). |
(*4) |
Fair value is based on an analysis performed by an external professional evaluation agency. |
(*5) |
Non-marketable financial assets whose fair values cannot be reliably measured are recorded at cost. |
(a) |
Inventories as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Finished goods |
|
W |
|
|
|
|
717,320 |
|
|
|
901,524 |
|
Semi-finished goods |
|
|
|
|
|
|
964,062 |
|
|
|
1,207,143 |
|
By-products |
|
|
|
|
|
|
5,983 |
|
|
|
21,439 |
|
Raw materials |
|
|
|
|
|
|
656,117 |
|
|
|
822,273 |
|
Fuel and materials |
|
|
|
|
|
|
523,796 |
|
|
|
510,508 |
|
Materials-in-transit |
|
|
|
|
|
|
574,409 |
|
|
|
944,966 |
|
Others |
|
|
|
|
|
|
578 |
|
|
|
582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,442,265 |
|
|
|
4,408,435 |
|
Less: Allowance for inventories valuation |
|
|
|
|
|
|
(15,254 |
) |
|
|
(24,867 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,427,011 |
|
|
|
4,383,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
The changes of allowance for inventories valuation for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Beginning |
|
W |
|
|
|
|
24,867 |
|
|
|
4,532 |
|
Loss on valuation of inventories |
|
|
|
|
|
|
15,254 |
|
|
|
24,867 |
|
Realization on disposal of inventories |
|
|
|
|
|
|
(24,867 |
) |
|
|
(4,532 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
W |
|
|
|
|
15,254 |
|
|
|
24,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Assets held for sale as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Available-for-sale securities(*1) |
|
W |
|
|
|
|
|
|
|
|
580,062 |
|
Investments in subsidiaries(*2,3,4,5,6) |
|
|
|
|
|
|
|
|
|
|
468,443 |
|
Property, plant and equipment(*7) |
|
|
|
|
|
|
25,892 |
|
|
|
2,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
25,892 |
|
|
|
1,051,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
During the year ended December 31, 2014, the Company determined to dispose of its shares in Nacional Minerios S.A. (which was an available-for-sale investment of the Company) in exchange for shares in the newly
incorporated entity as Nacional Minerios S.A. entered into a merger agreement with another entity. Accordingly, the Company reclassified its investment in Nacional Minerios S.A. as assets held for sale, and the Company has recognized
W95,737 million of impairment loss on assets held for sale. Exchange of the asset held for sale was completed during the year ended December 31, 2015, and the Company has recognized W188,927 million of loss on
disposal of assets held for sale. |
(*2) |
The Company determined to dispose of 52.2% of shares of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd) to SeAH Besteel Corp. and reclassified the investment in subsidiaries of
W454,943 million as assets held for sale during the year ended December 31, 2014. Disposal of the asset held for sale was completed during the year ended December 31, 2015, and the Company has recognized
W20,133 million of loss on disposal of the asset held for sale. |
(*3) |
The Company determined to dispose of 29.4% of shares of POSCO ENGINEERING & CONSTRUCTION., LTD., a subsidiary of the Company, to special purpose company established by PIF, Saudi Arabia National Fund, and
reclassified the investment in subsidiaries of W496,402 million as assets held for sale. Disposal of the asset held for sale was completed during the year ended December 31, 2015 and the Company has recognized
W346,221 million of gain on disposal of the asset held for sale. |
(*4) |
The Company determined to dispose of the shares of POSFINE Co., Ltd, a subsidiary of the Company, to Hahn & Company PRIVATE EQUITY FUND No.1, and reclassified the investment in the subsidiary of
W13,500 million as assets held for sale. Disposal of the asset held for sale was completed during the year ended December 31, 2015, and the Company has recognized W33,577 million of gain on disposal of the
asset held for sale. |
43
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(*5) |
The Company determined to dispose of the shares of POREKA Co., Ltd. a subsidiary of the Company, to COMM.TOGETHER Co., LTD. and entered into a disposal contract during the year ended December 31, 2015. Accordingly,
the Company reclassified the accompanying investment in the subsidiary amounting to W1,000 million as assets held for sale. Disposal of the asset held for sale was completed during the year ended December 31, 2015 and the
Company has recognized W1,798 million of gain on disposal of the asset held for sale. |
(*6) |
The Company determined to dispose of the shares of POSCO-Uruguay S.A, a subsidiary of the Company, during the year ended December 31, 2015, and reclassified the investment in subsidiaries of
W20,803 million as assets held for sale. Disposal of the asset held for sale was completed and the Company has recognized W715 million of loss on disposal of the asset held for sale. |
(*7) |
The Company determined to make a contribution of 1 FINEX facilities in kind to a new joint venture, and has signed in Memorandum of Association (MOA) with Uttam Galva Steels Limited. in India. The Company has classified
the relating facilities of W25,892 million as assets held for sale. |
11. |
Investments in Subsidiaries, Associates and Joint ventures |
(a) |
Investments in subsidiaries, associates and joint ventures as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Subsidiaries |
|
W |
|
|
|
|
12,502,042 |
|
|
|
13,257,282 |
|
Associates |
|
|
|
|
|
|
948,006 |
|
|
|
647,973 |
|
Joint ventures |
|
|
|
|
|
|
2,287,239 |
|
|
|
2,273,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
15,737,287 |
|
|
|
16,178,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
There are no significant restrictions on the ability of subsidiaries, associates and joint ventures to transfer
funds to the controlling company, such as in the forms of cash dividends and repayment of loans or payment of advances.
44
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Details of subsidiaries and carrying values as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership (%) |
|
|
|
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book Value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Daewoo International Corporation |
|
Korea |
|
Trading |
|
|
68,681,566 |
|
|
|
60.31 |
|
|
W |
|
|
|
|
3,371,481 |
|
|
|
2,366,913 |
|
|
|
3,371,481 |
|
|
|
3,371,481 |
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
Korea |
|
Engineering and construction |
|
|
22,073,568 |
|
|
|
52.80 |
|
|
|
|
|
|
|
1,014,314 |
|
|
|
3,505,079 |
|
|
|
1,014,314 |
|
|
|
1,510,716 |
|
POSCO Green Gas Technology |
|
Korea |
|
Gas production and sales |
|
|
13,652 |
|
|
|
100.00 |
|
|
|
|
|
|
|
682,600 |
|
|
|
664,313 |
|
|
|
682,600 |
|
|
|
682,600 |
|
POSCO ENERGY CO., LTD. |
|
Korea |
|
Power generation |
|
|
40,234,508 |
|
|
|
89.02 |
|
|
|
|
|
|
|
658,176 |
|
|
|
1,563,353 |
|
|
|
658,176 |
|
|
|
658,176 |
|
POSCO Processing & Service |
|
Korea |
|
Steel sales and trading |
|
|
20,340,136 |
|
|
|
96.01 |
|
|
|
|
|
|
|
624,678 |
|
|
|
872,001 |
|
|
|
624,678 |
|
|
|
624,678 |
|
POSCO PLANTEC Co., Ltd.(*1) |
|
Korea |
|
Other structural metal product manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
341,293 |
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*2) |
|
Korea |
|
Special steel manufacturing and sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
173,899 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
Korea |
|
Coated steel manufacturing and sales |
|
|
3,412,000 |
|
|
|
56.87 |
|
|
|
|
|
|
|
108,421 |
|
|
|
181,969 |
|
|
|
108,421 |
|
|
|
108,421 |
|
POSCO Capital Co., Ltd. |
|
Korea |
|
Investment in venture companies |
|
|
19,700,000 |
|
|
|
95.00 |
|
|
|
|
|
|
|
103,780 |
|
|
|
113,406 |
|
|
|
103,780 |
|
|
|
103,780 |
|
POSCO CHEMTECH |
|
Korea |
|
Refractory Manufacturing and sales |
|
|
35,442,000 |
|
|
|
60.00 |
|
|
|
|
|
|
|
100,535 |
|
|
|
540,129 |
|
|
|
100,535 |
|
|
|
100,535 |
|
POSMATE |
|
Korea |
|
Business facility maintenance |
|
|
902,946 |
|
|
|
57.25 |
|
|
|
|
|
|
|
73,374 |
|
|
|
177,108 |
|
|
|
73,374 |
|
|
|
72,804 |
|
POSCO ICT |
|
Korea |
|
Computer hardware and software distribution |
|
|
99,403,282 |
|
|
|
65.38 |
|
|
|
|
|
|
|
70,990 |
|
|
|
354,585 |
|
|
|
70,990 |
|
|
|
70,990 |
|
POSCO M-TECH(*3,4) |
|
Korea |
|
Packing materials manufacturing and sales |
|
|
20,342,460 |
|
|
|
48.85 |
|
|
|
|
|
|
|
107,278 |
|
|
|
76,418 |
|
|
|
53,651 |
|
|
|
66,067 |
|
POSCO Family Strategy Fund |
|
Korea |
|
Investment in venture companies |
|
|
460 |
|
|
|
69.90 |
|
|
|
|
|
|
|
45,273 |
|
|
|
46,102 |
|
|
|
45,273 |
|
|
|
40,000 |
|
Busan E&E Co,. Ltd.(*5) |
|
Korea |
|
Refuse derived fuel and power generation |
|
|
6,029,660 |
|
|
|
70.00 |
|
|
|
|
|
|
|
30,148 |
|
|
|
42,631 |
|
|
|
30,148 |
|
|
|
30,148 |
|
Others (10 companies) |
|
Korea |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
216,999 |
|
|
|
306,607 |
|
|
|
162,547 |
|
|
|
134,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,208,047 |
|
|
|
10,810,614 |
|
|
|
7,099,968 |
|
|
|
8,089,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PT. KRAKATAU POSCO |
|
Indonesia |
|
Steel manufacturing and sales |
|
|
739,900 |
|
|
|
70.00 |
|
|
|
|
|
|
|
813,431 |
|
|
|
439,978 |
|
|
|
813,431 |
|
|
|
855,110 |
|
POSCO WA PTY LTD |
|
Australia |
|
Iron ore sales and mine development |
|
|
603,179,311 |
|
|
|
100.00 |
|
|
|
|
|
|
|
623,258 |
|
|
|
427,328 |
|
|
|
623,258 |
|
|
|
611,248 |
|
POSCO Maharashtra Steel Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
260,506,032 |
|
|
|
100.00 |
|
|
|
|
|
|
|
536,860 |
|
|
|
201,308 |
|
|
|
536,860 |
|
|
|
465,788 |
|
POSCO AUSTRALIA PTY LTD |
|
Australia |
|
Iron ore sales and mine development |
|
|
761,775 |
|
|
|
100.00 |
|
|
|
|
|
|
|
330,623 |
|
|
|
623,177 |
|
|
|
330,623 |
|
|
|
330,623 |
|
Zhangjiagang Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing and sales |
|
|
|
|
|
|
58.60 |
|
|
|
|
|
|
|
283,845 |
|
|
|
404,829 |
|
|
|
283,845 |
|
|
|
284,392 |
|
POSCO Thainox Public Company Limited(*6) |
|
Thailand |
|
Stainless steel manufacturing and sales |
|
|
6,620,532,219 |
|
|
|
84.93 |
|
|
|
|
|
|
|
500,740 |
|
|
|
293,993 |
|
|
|
251,812 |
|
|
|
329,756 |
|
POSCO SS-VINA |
|
Vietnam |
|
Steel manufacturing and sales |
|
|
|
|
|
|
100.00 |
|
|
|
|
|
|
|
241,426 |
|
|
|
154,230 |
|
|
|
241,426 |
|
|
|
|
|
POSCO-China Holding Corp. |
|
China |
|
Investment management |
|
|
|
|
|
|
100.00 |
|
|
|
|
|
|
|
240,430 |
|
|
|
230,749 |
|
|
|
240,430 |
|
|
|
240,430 |
|
POSCO-India Private Limited |
|
India |
|
Steel manufacturing and sales |
|
|
764,999,999 |
|
|
|
99.99 |
|
|
|
|
|
|
|
184,815 |
|
|
|
121,474 |
|
|
|
184,815 |
|
|
|
184,815 |
|
POSCO MEXICO S.A. DE C.V. |
|
Mexico |
|
Plate steel manufacturing and sales |
|
|
2,686,705,272 |
|
|
|
84.84 |
|
|
|
|
|
|
|
180,069 |
|
|
|
223,046 |
|
|
|
180,069 |
|
|
|
182,110 |
|
POSCO America Corporation |
|
USA |
|
Steel trading |
|
|
415,530 |
|
|
|
99.45 |
|
|
|
|
|
|
|
167,285 |
|
|
|
59,620 |
|
|
|
167,285 |
|
|
|
167,285 |
|
POSCO-VIETNAM Co., Ltd. |
|
Vietnam |
|
Steel manufacturing |
|
|
|
|
|
|
100.00 |
|
|
|
|
|
|
|
160,572 |
|
|
|
11,460 |
|
|
|
160,572 |
|
|
|
156,778 |
|
45
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership (%) |
|
|
|
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book Value |
|
POSCO VST CO., LTD. |
|
Vietnam |
|
Stainless steel manufacturing and sales |
|
|
|
|
|
|
95.65 |
|
|
|
|
|
|
|
144,573 |
|
|
|
19,571 |
|
|
|
144,573 |
|
|
|
145,049 |
|
POSCO(Guangdong) Automotive Steel Co., Ltd. |
|
China |
|
Plate steel manufacturing and sales |
|
|
117,187,089 |
|
|
|
83.64 |
|
|
|
|
|
|
|
130,751 |
|
|
|
112,410 |
|
|
|
130,751 |
|
|
|
131,051 |
|
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
Thailand |
|
Plate steel manufacturing and sales |
|
|
36,000,000 |
|
|
|
100.00 |
|
|
|
|
|
|
|
121,592 |
|
|
|
116,294 |
|
|
|
121,592 |
|
|
|
90,012 |
|
POSCO ASSAN TST STEEL INDUSTRY |
|
Turkey |
|
Stainless steel manufacturing and sales |
|
|
144,579,160 |
|
|
|
60.00 |
|
|
|
|
|
|
|
92,800 |
|
|
|
43,548 |
|
|
|
92,800 |
|
|
|
95,213 |
|
POSCO Investment Co., Ltd. |
|
Hong Kong |
|
Finance |
|
|
5,000,000 |
|
|
|
100.00 |
|
|
|
|
|
|
|
85,521 |
|
|
|
122,818 |
|
|
|
85,521 |
|
|
|
86,775 |
|
POSCO JAPAN Co., Ltd. |
|
Japan |
|
Steel trading |
|
|
90,438 |
|
|
|
100.00 |
|
|
|
|
|
|
|
68,436 |
|
|
|
114,708 |
|
|
|
68,436 |
|
|
|
68,436 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
China |
|
Stainless steel manufacturing |
|
|
|
|
|
|
70.00 |
|
|
|
|
|
|
|
65,982 |
|
|
|
83,968 |
|
|
|
65,982 |
|
|
|
65,982 |
|
POSCO(Suzhou) Automotive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing Center Co., Ltd. |
|
China |
|
Steel manufacturing and sales |
|
|
|
|
|
|
90.00 |
|
|
|
|
|
|
|
62,494 |
|
|
|
123,536 |
|
|
|
62,494 |
|
|
|
62,494 |
|
POSCO Electrical Steel India Private Limited |
|
India |
|
Electrical steel processing and sales |
|
|
25,817,932 |
|
|
|
100.00 |
|
|
|
|
|
|
|
57,119 |
|
|
|
27,029 |
|
|
|
57,119 |
|
|
|
58,441 |
|
POSCO AFRICA (PROPRIETARY) LIMITED |
|
South Africa |
|
Trading |
|
|
1,390 |
|
|
|
100.00 |
|
|
|
|
|
|
|
50,297 |
|
|
|
33,504 |
|
|
|
50,297 |
|
|
|
50,297 |
|
POSCO-Malaysia SDN. BHD. |
|
Malaysia |
|
Steel manufacturing and sales |
|
|
144,772,000 |
|
|
|
81.79 |
|
|
|
|
|
|
|
45,479 |
|
|
|
(19,477 |
) |
|
|
45,479 |
|
|
|
45,479 |
|
POSCO China Dalian |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plate Processing Center Co., Ltd. |
|
China |
|
Heavy plate processing and sales |
|
|
|
|
|
|
80.00 |
|
|
|
|
|
|
|
32,992 |
|
|
|
4,423 |
|
|
|
32,992 |
|
|
|
32,992 |
|
POSCO Asia Co., Ltd. |
|
Hong Kong |
|
Steel and raw material trading |
|
|
9,360,000 |
|
|
|
100.00 |
|
|
|
|
|
|
|
32,189 |
|
|
|
51,137 |
|
|
|
32,189 |
|
|
|
32,189 |
|
POSCO(Guangdong) Steel Co., Ltd. |
|
China |
|
Plate steel sheet manufacturing and sales |
|
|
|
|
|
|
87.04 |
|
|
|
|
|
|
|
31,299 |
|
|
|
32,463 |
|
|
|
31,299 |
|
|
|
31,299 |
|
POSCO-Uruguay S.A(* 7) |
|
Uruguay |
|
Wood manufacturing and sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,243 |
|
Others (33 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
375,173 |
|
|
|
509,655 |
|
|
|
366,124 |
|
|
|
333,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,660,051 |
|
|
|
4,566,779 |
|
|
|
5,402,074 |
|
|
|
5,167,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,868,098 |
|
|
|
15,377,393 |
|
|
|
12,502,042 |
|
|
|
13,257,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
On September 30, 2015, in order to improve its financial standing and normalize operation, the associate reached a workout agreement with its Creditor Financial Institutions Committee. As a result, the Company lost
its control and classified its shares as the investment in an associate. |
(*2) |
During the year ended December 31, 2015, the Company disposed of 52.2% of shares of SeAH Changwon Integrated Special Steel Corp. (formerly, POSCO Specialty Steel Co., Ltd), which resulted in the Companys loss
of control, and the Company classified the remaining investment as investment in an associate. |
(*3) |
It was classified as an investment in a subsidiary as the Company has control over more than half of the voting rights by virtue of an agreement with Postech, which has 4.72% of ownership in POSCO M-TECH.
|
46
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(*4) |
As of December 31, 2015, there is an objective evidence of impairment due to the prolonged decline in the fair value of POSCO M-TECH below their costs. Recoverable amount was determined based on fair value less
cost to sell, which was calculated by adding a 18% control premium and reflecting cost to sell to its stock price as of December 31, 2015. As a result, the Company recognized an impairment loss of W12,416 million as carrying
values were higher than their recoverable amount. |
(*5) |
As of December 31, 2015, the investment in a subsidiary amounting to W30,148 million were provided as collateral in relation to the loan agreements of Busan E&E Co,. Ltd. |
(*6) |
As of December 31, 2015, there is an objective evidence of impairment due to the prolonged decline in the fair value of POSCO Thainox Public Company Limited below their costs. Recoverable amount was determined
based on value in use, which was calculated by applying a discount rate of 8.4% and a perpetual growth rate of 2.5%. As a result, the Company recognized an impairment loss of W77,944 million as carrying values were higher than their
recoverable amount. |
(*7) |
The Company recognized an impairment loss of W9,441 million as the carrying value of shares of POSCO-Uruguay S.A. was higher than its recoverable amount. Liquidation of the shares was completed in the
year ended December 31, 2015. |
(c) |
Details of associates and carrying values as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership (%) |
|
|
|
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book value |
|
[Domestic] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQP POSCO Global NO1 Natural Resources PEF |
|
Korea |
|
Mine investment |
|
|
169,106,080,000 |
|
|
|
27.40 |
|
|
W |
|
|
|
|
169,106 |
|
|
|
608,379 |
|
|
|
169,106 |
|
|
|
169,106 |
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*1,2,3) |
|
Korea |
|
Specialty steel manufacturing and sales |
|
|
7,190,000 |
|
|
|
19.94 |
|
|
|
|
|
|
|
173,899 |
|
|
|
728,084 |
|
|
|
159,978 |
|
|
|
|
|
POSCO PLANTEC Co., Ltd.(*4,5) |
|
Korea |
|
Other structural metal product manufacturing |
|
|
110,027,475 |
|
|
|
60.84 |
|
|
|
|
|
|
|
520,588 |
|
|
|
(115,132 |
) |
|
|
140,890 |
|
|
|
|
|
SNNC Co., Ltd. |
|
Korea |
|
STS material Manufacturing and sales |
|
|
18,130,000 |
|
|
|
49.00 |
|
|
|
|
|
|
|
100,655 |
|
|
|
241,072 |
|
|
|
100,655 |
|
|
|
100,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others (5 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,747 |
|
|
|
130,160 |
|
|
|
23,746 |
|
|
|
21,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
987,995 |
|
|
|
1,592,563 |
|
|
|
594,375 |
|
|
|
291,628 |
|
[Foreign] |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nickel Mining Company SAS |
|
New |
|
Raw material |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Caledonia |
|
manufacturing and Sales |
|
|
3,234,698 |
|
|
|
49.00 |
|
|
|
|
|
|
|
189,197 |
|
|
|
206,989 |
|
|
|
189,197 |
|
|
|
189,197 |
|
7623704 Canada Inc.(* 1) |
|
Canada |
|
Mine investment |
|
|
114,452,000 |
|
|
|
10.40 |
|
|
|
|
|
|
|
124,341 |
|
|
|
1,301,614 |
|
|
|
124,341 |
|
|
|
124,341 |
|
Zhongyue POSCO (Qinhuangdao) Tinplate Industrial Co., Ltd |
|
China |
|
Tinplate manufacturing and sales |
|
|
|
|
|
|
24.00 |
|
|
|
|
|
|
|
11,003 |
|
|
|
62,340 |
|
|
|
11,003 |
|
|
|
11,003 |
|
Others (6 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,089 |
|
|
|
22,434 |
|
|
|
29,090 |
|
|
|
31,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
355,630 |
|
|
|
1,593,377 |
|
|
|
353,631 |
|
|
|
356,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,343,625 |
|
|
|
3,185,940 |
|
|
|
948,006 |
|
|
|
647,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2015, it was classified as an associate even though the Companys ownership percentage is less than 20% of ownership since the Company has significant influence over the investee when
considering its structure of the Board of Directors and others. |
(*2) |
During the year ended December 31, 2015, POSCO Specialty Steel Co., Ltd changed its corporate name to SeAH Changwon Integrated Special Steel. |
47
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(*3) |
During the year ended December 31, 2015, there is an objective evidence of impairment including receipt of dividend upon disposal contract of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel
Co., Ltd), and, accordingly, the impairment test was performed. Recoverable amounts were determined based on value in use, which was calculated by applying a discount rate of 7.9% and a perpetual growth rate of 1.0%. As a result, the Company
recognized an impairment loss of W13,921 million as the carrying values were higher than their recoverable amounts as of December 31, 2015. |
(*4) |
On September 30, 2015, in order to improve its financial standing and normalize operation, the associate reached a workout agreement with its Creditor Financial Institutions Committee. As a result, the Company lost
its control and classified its share as the investment in an associate. |
(*5) |
As of December 31, 2015, there is objective evidence of impairment due to the prolonged decline at fair value of POSCO PLANTEC Co., Ltd, and, accordingly, the impairment test was performed. Recoverable amounts were
determined based on fair value less cost to sell, and the Company has recognized an impairment loss of W200,403 million as the carrying values were higher than its recoverable amount. |
(d) |
Details of joint ventures and carrying values as of December 31, 2014 and 2015 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
Country |
|
Principal operations |
|
Number of shares |
|
|
Ownership (%) |
|
|
|
|
|
Acquisition cost |
|
|
Net asset value |
|
|
Book value |
|
|
Book value |
|
Roy Hill Holdings Pty Ltd(* 1) |
|
Australia |
|
Mine development |
|
|
10,494,377 |
|
|
|
10.00 |
|
|
W |
|
|
|
|
1,225,464 |
|
|
|
2,710,956 |
|
|
|
1,225,464 |
|
|
|
1,225,464 |
|
CSP - Compania Siderurgica do Pecem |
|
Brazil |
|
Steel manufacturing and sales |
|
|
827,771,230 |
|
|
|
20.00 |
|
|
|
|
|
|
|
469,891 |
|
|
|
529,977 |
|
|
|
488,200 |
|
|
|
469,891 |
|
POSCO-NPS Niobium LLC |
|
USA |
|
Mine development |
|
|
325,050,000 |
|
|
|
50.00 |
|
|
|
|
|
|
|
364,609 |
|
|
|
762,719 |
|
|
|
364,609 |
|
|
|
364,609 |
|
KOBRASCO |
|
Brazil |
|
Facilities lease |
|
|
2,010,719,185 |
|
|
|
50.00 |
|
|
|
|
|
|
|
98,962 |
|
|
|
164,787 |
|
|
|
98,962 |
|
|
|
98,962 |
|
Others (4 companies) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,004 |
|
|
|
455,048 |
|
|
|
110,004 |
|
|
|
114,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,268,930 |
|
|
|
4,623,487 |
|
|
|
2,287,239 |
|
|
|
2,273,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2015 and 2014, the investments in joint ventures amounting to W1,225,464 million were provided as collateral in relation to loan from project financing of Roy Hill Holdings Pty
Ltd. |
48
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
12. |
Investment Property, Net |
(a) |
Investment property as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Acquisition cost |
|
|
Accumulated depreciation |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated depreciation |
|
|
Book value |
|
Land |
|
W |
|
|
|
|
35,557 |
|
|
|
|
|
|
|
35,557 |
|
|
|
36,020 |
|
|
|
|
|
|
|
36,020 |
|
Buildings |
|
|
|
|
|
|
94,592 |
|
|
|
(47,193 |
) |
|
|
47,399 |
|
|
|
95,568 |
|
|
|
(45,456 |
) |
|
|
50,112 |
|
Structures |
|
|
|
|
|
|
6,919 |
|
|
|
(3,123 |
) |
|
|
3,796 |
|
|
|
7,009 |
|
|
|
(3,004 |
) |
|
|
4,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
137,068 |
|
|
|
(50,316 |
) |
|
|
86,752 |
|
|
|
138,597 |
|
|
|
(48,460 |
) |
|
|
90,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of investment property as of December 31, 2015 is W398,067 million.
(b) |
Changes in the carrying value of investment property for the years ended December 31, 2015 and 2014 were as follows: |
|
1) |
For the year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Acquisitions |
|
|
Depreciation(*1) |
|
|
Transfer(*2) |
|
|
Ending |
|
Land |
|
W |
|
|
|
|
36,020 |
|
|
|
|
|
|
|
|
|
|
|
(463 |
) |
|
|
35,557 |
|
Buildings |
|
|
|
|
|
|
50,112 |
|
|
|
346 |
|
|
|
(2,382 |
) |
|
|
(677 |
) |
|
|
47,399 |
|
Structures |
|
|
|
|
|
|
4,005 |
|
|
|
|
|
|
|
(164 |
) |
|
|
(45 |
) |
|
|
3,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
90,137 |
|
|
|
346 |
|
|
|
(2,546 |
) |
|
|
(1,185 |
) |
|
|
86,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The useful life and depreciation method of investment property are identical to those of property, plant and equipment. |
(*2) |
Mainly includes assets transferred to property, plant and equipment in relation to change in rental ratio and the purpose of use. |
|
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation(*1) |
|
|
Transfer(*2) |
|
|
Ending |
|
Land |
|
W |
|
|
|
|
36,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,020 |
|
Buildings |
|
|
|
|
|
|
52,682 |
|
|
|
41 |
|
|
|
(18 |
) |
|
|
(2,404 |
) |
|
|
(189 |
) |
|
|
50,112 |
|
Structures |
|
|
|
|
|
|
4,177 |
|
|
|
|
|
|
|
|
|
|
|
(160 |
) |
|
|
(12 |
) |
|
|
4,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
92,879 |
|
|
|
41 |
|
|
|
(18 |
) |
|
|
(2,564 |
) |
|
|
(201 |
) |
|
|
90,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The useful life and depreciation method of investment property are identical to those of property, plant and equipment. |
(*2) |
Mainly includes assets transferred to property, plant and equipment in relation to change in rental ratio and the purpose of use. |
49
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
13. |
Property, Plant and Equipment, Net |
(a) |
Property, plant and equipment as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Acquisition cost |
|
|
Accumulated depreciation |
|
|
Accumulated impairment |
|
|
Government grants |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated depreciation |
|
|
Accumulated impairment |
|
|
Government grants |
|
|
Book value |
|
Land |
|
W |
|
|
|
|
1,412,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,412,715 |
|
|
|
1,420,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,420,994 |
|
Buildings |
|
|
|
|
|
|
5,848,256 |
|
|
|
(3,271,738 |
) |
|
|
(10,350 |
) |
|
|
|
|
|
|
2,566,168 |
|
|
|
5,801,650 |
|
|
|
(3,036,496 |
) |
|
|
(4,312 |
) |
|
|
|
|
|
|
2,760,842 |
|
Structures |
|
|
|
|
|
|
4,706,714 |
|
|
|
(2,177,873 |
) |
|
|
(8,975 |
) |
|
|
|
|
|
|
2,519,866 |
|
|
|
4,617,918 |
|
|
|
(1,996,823 |
) |
|
|
(8,542 |
) |
|
|
|
|
|
|
2,612,553 |
|
Machinery and equipment |
|
|
|
|
|
|
35,754,426 |
|
|
|
(21,661,048 |
) |
|
|
(79,299 |
) |
|
|
|
|
|
|
14,014,079 |
|
|
|
35,056,496 |
|
|
|
(20,530,303 |
) |
|
|
(22,927 |
) |
|
|
|
|
|
|
14,503,266 |
|
Vehicles |
|
|
|
|
|
|
199,773 |
|
|
|
(188,150 |
) |
|
|
|
|
|
|
|
|
|
|
11,623 |
|
|
|
197,467 |
|
|
|
(184,514 |
) |
|
|
|
|
|
|
|
|
|
|
12,953 |
|
Tools |
|
|
|
|
|
|
193,116 |
|
|
|
(169,396 |
) |
|
|
|
|
|
|
|
|
|
|
23,720 |
|
|
|
187,712 |
|
|
|
(164,388 |
) |
|
|
|
|
|
|
|
|
|
|
23,324 |
|
Furniture and fixtures |
|
|
|
|
|
|
256,980 |
|
|
|
(224,823 |
) |
|
|
(337 |
) |
|
|
|
|
|
|
31,820 |
|
|
|
261,846 |
|
|
|
(223,942 |
) |
|
|
(320 |
) |
|
|
|
|
|
|
37,584 |
|
Finance lease assets |
|
|
|
|
|
|
11,466 |
|
|
|
(5,733 |
) |
|
|
|
|
|
|
|
|
|
|
5,733 |
|
|
|
11,466 |
|
|
|
(5,096 |
) |
|
|
|
|
|
|
|
|
|
|
6,370 |
|
Construction-in-progress |
|
|
|
|
|
|
933,426 |
|
|
|
|
|
|
|
|
|
|
|
(5,000 |
) |
|
|
928,426 |
|
|
|
950,329 |
|
|
|
|
|
|
|
|
|
|
|
(5,000 |
) |
|
|
945,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
49,316,872 |
|
|
|
(27,698,761 |
) |
|
|
(98,961 |
) |
|
|
(5,000 |
) |
|
|
21,514,150 |
|
|
|
48,505,878 |
|
|
|
(26,141,562 |
) |
|
|
(36,101 |
) |
|
|
(5,000 |
) |
|
|
22,323,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Changes in the carrying value of property, plant and equipment for the years ended December 31, 2015 and 2014 were as follows: |
|
1) |
For the year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Impairment(*1) |
|
|
Others(*2) |
|
|
Ending |
|
Land |
|
W |
|
|
|
|
1,420,994 |
|
|
|
|
|
|
|
(3,869 |
) |
|
|
|
|
|
|
|
|
|
|
(4,410 |
) |
|
|
1,412,715 |
|
Buildings |
|
|
|
|
|
|
2,760,842 |
|
|
|
3,350 |
|
|
|
(4,544 |
) |
|
|
(243,678 |
) |
|
|
(7,926 |
) |
|
|
58,124 |
|
|
|
2,566,168 |
|
Structures |
|
|
|
|
|
|
2,612,553 |
|
|
|
4,339 |
|
|
|
(2,826 |
) |
|
|
(192,301 |
) |
|
|
(473 |
) |
|
|
98,574 |
|
|
|
2,519,866 |
|
Machinery and equipment |
|
|
|
|
|
|
14,503,266 |
|
|
|
76,768 |
|
|
|
(45,843 |
) |
|
|
(1,593,413 |
) |
|
|
(59,485 |
) |
|
|
1,132,786 |
|
|
|
14,014,079 |
|
Vehicles |
|
|
|
|
|
|
12,953 |
|
|
|
1,669 |
|
|
|
|
|
|
|
(6,302 |
) |
|
|
|
|
|
|
3,303 |
|
|
|
11,623 |
|
Tools |
|
|
|
|
|
|
23,324 |
|
|
|
6,824 |
|
|
|
(15 |
) |
|
|
(11,091 |
) |
|
|
|
|
|
|
4,678 |
|
|
|
23,720 |
|
Furniture and fixtures |
|
|
|
|
|
|
37,584 |
|
|
|
3,934 |
|
|
|
(23 |
) |
|
|
(15,553 |
) |
|
|
(18 |
) |
|
|
5,896 |
|
|
|
31,820 |
|
Finance lease assets |
|
|
|
|
|
|
6,370 |
|
|
|
|
|
|
|
|
|
|
|
(637 |
) |
|
|
|
|
|
|
|
|
|
|
5,733 |
|
Construction-in-progress |
|
|
|
|
|
|
945,329 |
|
|
|
1,436,840 |
|
|
|
|
|
|
|
|
|
|
|
(2,772 |
) |
|
|
(1,450,971 |
) |
|
|
928,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
22,323,215 |
|
|
|
1,533,724 |
|
|
|
(57,120 |
) |
|
|
(2,062,975 |
) |
|
|
(70,674 |
) |
|
|
(152,020 |
) |
|
|
21,514,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company has recognized an impairment loss since recoverable amounts on magnesium smelting plant in Gangneung and facilities which are related to the project for replacement deteriorated hot-rolling mill (1st and 2nd) in Pohang and electric furnace of high mill (1st) in Pohang are less than
their carrying values for the year ended December 31, 2015. |
(*2) |
Represents assets transferred from construction-in-progress to intangible assets and other property, plant and equipment and assets transferred from property, plant and equipment to investment property and assets
held-for-sale. |
50
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Depreciation |
|
|
Impairment(*1) |
|
|
Others(*2) |
|
|
Ending |
|
Land |
|
W |
|
|
|
|
1,397,271 |
|
|
|
39 |
|
|
|
(392 |
) |
|
|
|
|
|
|
|
|
|
|
24,076 |
|
|
|
1,420,994 |
|
Buildings |
|
|
|
|
|
|
2,637,774 |
|
|
|
5,941 |
|
|
|
(1,912 |
) |
|
|
(249,792 |
) |
|
|
(3,681 |
) |
|
|
372,512 |
|
|
|
2,760,842 |
|
Structures |
|
|
|
|
|
|
2,469,046 |
|
|
|
11,239 |
|
|
|
(1,750 |
) |
|
|
(194,088 |
) |
|
|
(8,072 |
) |
|
|
336,178 |
|
|
|
2,612,553 |
|
Machinery and equipment |
|
|
|
|
|
|
13,202,710 |
|
|
|
125,297 |
|
|
|
(29,430 |
) |
|
|
(1,574,903 |
) |
|
|
(18,543 |
) |
|
|
2,798,135 |
|
|
|
14,503,266 |
|
Vehicles |
|
|
|
|
|
|
10,769 |
|
|
|
792 |
|
|
|
(8 |
) |
|
|
(7,884 |
) |
|
|
|
|
|
|
9,284 |
|
|
|
12,953 |
|
Tools |
|
|
|
|
|
|
25,680 |
|
|
|
5,795 |
|
|
|
(54 |
) |
|
|
(15,996 |
) |
|
|
|
|
|
|
7,899 |
|
|
|
23,324 |
|
Furniture and fixtures |
|
|
|
|
|
|
47,394 |
|
|
|
7,150 |
|
|
|
(5 |
) |
|
|
(21,929 |
) |
|
|
(38 |
) |
|
|
5,012 |
|
|
|
37,584 |
|
Finance lease assets |
|
|
|
|
|
|
7,007 |
|
|
|
|
|
|
|
|
|
|
|
(637 |
) |
|
|
|
|
|
|
|
|
|
|
6,370 |
|
Construction-in-progress |
|
|
|
|
|
|
3,442,952 |
|
|
|
1,628,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,125,948 |
) |
|
|
945,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
23,240,603 |
|
|
|
1,784,578 |
|
|
|
(33,551 |
) |
|
|
(2,065,229 |
) |
|
|
(30,334 |
) |
|
|
(572,852 |
) |
|
|
22,323,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company has recognized an impairment loss since the recoverable amounts of FINEX 1 plant and STS 1 steelmaking plant were lower than their carrying value. |
(*2) |
Represents assets transferred from construction-in-progress to investment in subsidiary (W558,915 million) and other property, plant and equipment, from investment property, to intangible assets, and to
assets held-for-sale. |
(c) |
Borrowing costs capitalized and the capitalized interest rate for the years ended December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Weighted average expenditure |
|
W |
|
|
|
|
665,138 |
|
|
|
1,227,496 |
|
Borrowing costs capitalized |
|
|
|
|
|
|
28,181 |
|
|
|
51,428 |
|
Capitalization rate |
|
|
|
|
|
|
4.24 |
% |
|
|
4.19 |
% |
14. |
Intangible Assets, Net |
(a) |
Intangible assets as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Acquisition cost |
|
|
Accumulated amortization |
|
|
Accumulated impairment |
|
|
Book value |
|
|
Acquisition cost |
|
|
Accumulated amortization |
|
|
Accumulated impairment |
|
|
Book value |
|
Intellectual property rights |
|
W |
|
|
|
|
29,824 |
|
|
|
(9,827 |
) |
|
|
|
|
|
|
19,997 |
|
|
|
24,829 |
|
|
|
(7,235 |
) |
|
|
|
|
|
|
17,594 |
|
Membership |
|
|
|
|
|
|
57,428 |
|
|
|
|
|
|
|
(5,370 |
) |
|
|
52,058 |
|
|
|
59,949 |
|
|
|
|
|
|
|
(6,795 |
) |
|
|
53,154 |
|
Development expense |
|
|
|
|
|
|
257,211 |
|
|
|
(159,173 |
) |
|
|
|
|
|
|
98,038 |
|
|
|
242,747 |
|
|
|
(114,806 |
) |
|
|
|
|
|
|
127,941 |
|
Port facilities usage rights |
|
|
|
|
|
|
626,765 |
|
|
|
(361,190 |
) |
|
|
|
|
|
|
265,575 |
|
|
|
511,212 |
|
|
|
(349,184 |
) |
|
|
|
|
|
|
162,028 |
|
Construction-in-progress |
|
|
|
|
|
|
31,951 |
|
|
|
|
|
|
|
|
|
|
|
31,951 |
|
|
|
16,756 |
|
|
|
|
|
|
|
|
|
|
|
16,756 |
|
Other intangible assets |
|
|
|
|
|
|
275,298 |
|
|
|
(252,155 |
) |
|
|
|
|
|
|
23,143 |
|
|
|
296,112 |
|
|
|
(269,678 |
) |
|
|
|
|
|
|
26,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,278,477 |
|
|
|
(782,345 |
) |
|
|
(5,370 |
) |
|
|
490,762 |
|
|
|
1,151,605 |
|
|
|
(740,903 |
) |
|
|
(6,795 |
) |
|
|
403,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Changes in the carrying value of intangible assets for the years ended December 31, 2015 and 2014 were as follows: |
|
1) |
For the year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment(*2) |
|
|
Transfer(*3) |
|
|
Ending |
|
Intellectual property rights |
|
W |
|
|
|
|
17,594 |
|
|
|
|
|
|
|
(126 |
) |
|
|
(2,829 |
) |
|
|
|
|
|
|
5,358 |
|
|
|
19,997 |
|
Membership(*1) |
|
|
|
|
|
|
53,154 |
|
|
|
2,861 |
|
|
|
(3,680 |
) |
|
|
|
|
|
|
(11 |
) |
|
|
(266 |
) |
|
|
52,058 |
|
Development expense |
|
|
|
|
|
|
127,941 |
|
|
|
1,172 |
|
|
|
|
|
|
|
(48,154 |
) |
|
|
|
|
|
|
17,079 |
|
|
|
98,038 |
|
Port facilities usage rights |
|
|
|
|
|
|
162,028 |
|
|
|
|
|
|
|
|
|
|
|
(12,006 |
) |
|
|
|
|
|
|
115,553 |
|
|
|
265,575 |
|
Construction-in-progress |
|
|
|
|
|
|
16,756 |
|
|
|
36,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(21,668 |
) |
|
|
31,951 |
|
Other intangible assets |
|
|
|
|
|
|
26,434 |
|
|
|
2,422 |
|
|
|
|
|
|
|
(7,753 |
) |
|
|
|
|
|
|
2,040 |
|
|
|
23,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
403,907 |
|
|
|
43,318 |
|
|
|
(3,806 |
) |
|
|
(70,742 |
) |
|
|
(11 |
) |
|
|
118,096 |
|
|
|
490,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Economic useful life of membership is indefinite. |
(*2) |
The company have recognized an impairment loss on some memberships since the recoverable amounts were less than carrying value. |
(*3) |
Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment. |
|
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Acquisitions |
|
|
Disposals |
|
|
Amortization |
|
|
Impairment(*2) |
|
|
Transfer(*3) |
|
|
Ending |
|
Intellectual property rights |
|
W |
|
|
|
|
13,812 |
|
|
|
|
|
|
|
(217 |
) |
|
|
(2,261 |
) |
|
|
|
|
|
|
6,260 |
|
|
|
17,594 |
|
Membership(*1) |
|
|
|
|
|
|
48,877 |
|
|
|
5,896 |
|
|
|
(2,209 |
) |
|
|
|
|
|
|
590 |
|
|
|
|
|
|
|
53,154 |
|
Development expense |
|
|
|
|
|
|
29,468 |
|
|
|
381 |
|
|
|
|
|
|
|
(48,766 |
) |
|
|
|
|
|
|
146,858 |
|
|
|
127,941 |
|
Port facilities usage rights |
|
|
|
|
|
|
172,209 |
|
|
|
|
|
|
|
|
|
|
|
(12,018 |
) |
|
|
|
|
|
|
1,837 |
|
|
|
162,028 |
|
Construction-in-progress |
|
|
|
|
|
|
153,719 |
|
|
|
16,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(153,377 |
) |
|
|
16,756 |
|
Other intangible assets |
|
|
|
|
|
|
20,698 |
|
|
|
13,577 |
|
|
|
|
|
|
|
(11,067 |
) |
|
|
|
|
|
|
3,226 |
|
|
|
26,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
438,783 |
|
|
|
36,268 |
|
|
|
(2,426 |
) |
|
|
(74,112 |
) |
|
|
590 |
|
|
|
4,804 |
|
|
|
403,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Economic useful life of membership is indefinite. |
(*2) |
The Company reversed accumulated impairment loss up to the carrying value before recognition of any impairment loss since recoverable amounts of some memberships were higher than the carrying value. |
(*3) |
Represents assets transferred from construction-in-progress to intangible assets and assets transferred from property, plant and equipment. |
52
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Other current assets and other long-term assets as of December 31, 2015 and 2014 are
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Advance payments |
|
W |
|
|
|
|
7,912 |
|
|
|
9,828 |
|
Prepaid expenses |
|
|
|
|
|
|
19,722 |
|
|
|
21,864 |
|
Others |
|
|
|
|
|
|
449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
28,083 |
|
|
|
31,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term prepaid expenses |
|
W |
|
|
|
|
6,215 |
|
|
|
6,344 |
|
Others(*1) |
|
|
|
|
|
|
128,578 |
|
|
|
126,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
134,793 |
|
|
|
133,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
As of December 31, 2015 and 2014, the Company recognized tax assets amounting to W124,787 million and W123,110 million, respectively, based on the Companys best estimate of
the tax amounts to be refunded when the result of the Companys appeal in connection with the additional income tax payment for prior years as a result of tax audits that were finalized in 2014 and claim for rectification are finalized.
|
(a) |
Borrowings as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Short-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term borrowings |
|
W |
|
|
|
|
126,579 |
|
|
|
236,553 |
|
Current portion of loans from foreign financial institutions |
|
|
|
|
|
|
401 |
|
|
|
418 |
|
Current portion of debentures |
|
|
|
|
|
|
1,859,610 |
|
|
|
1,000,000 |
|
Less: Current portion of discount on debentures issued |
|
|
|
|
|
|
(868 |
) |
|
|
(681 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,985,722 |
|
|
|
1,236,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings |
|
W |
|
|
|
|
141,868 |
|
|
|
447,437 |
|
Loans from foreign financial institutions |
|
|
|
|
|
|
200 |
|
|
|
627 |
|
Debentures |
|
|
|
|
|
|
3,175,406 |
|
|
|
4,871,627 |
|
Less: Discount on debentures issued |
|
|
|
|
|
|
(14,369 |
) |
|
|
(18,764 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,303,105 |
|
|
|
5,300,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
Current portion of long-term borrowings as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Lenders |
|
Issuance date |
|
Maturity date |
|
Annual interest rate (%) |
|
|
|
|
2015 |
|
|
2014 |
|
Borrowings |
|
Woori Bank and others |
|
2006.10.31~ 2011.04.28 |
|
2017.03.15~ 2024.06.15 |
|
0.75 ~ 1.75 |
|
W |
|
|
|
|
15,532 |
|
|
|
15,532 |
|
Borrowings |
|
Export-Import Bank of Korea |
|
2010.02.18~ 2010.07.26 |
|
2017.02.18~ 2017.07.26 |
|
4.09 ~ 4.50 |
|
|
|
|
|
|
111,047 |
|
|
|
221,021 |
|
Loans from foreign financial institutions |
|
NATIXIS(*1) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
|
|
|
|
401 |
|
|
|
418 |
|
Debentures |
|
Domestic debentures 297 and others |
|
2011.03.04~ 2011.09.07 |
|
2016.03.04~ 2016.09.07 |
|
3.78 ~ 4.56 |
|
|
|
|
|
|
1,299,507 |
|
|
|
999,319 |
|
Debentures |
|
Euro Bond 1 and others |
|
2006.08.10~ 2013.12.11 |
|
2016.08.10~ 2016.12.08 |
|
0.93 ~ 5.88 |
|
|
|
|
|
|
559,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,985,722 |
|
|
|
1,236,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
(c) |
Long-term borrowings excluding current portion, as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Lenders |
|
Issuance date |
|
Maturity date |
|
Annual interest rate (%) |
|
|
|
|
2015 |
|
|
2014 |
|
Borrowings |
|
Woori Bank and others |
|
2006.10.31~ 2011.04.28 |
|
2017.03.15~ 2024.06.15 |
|
0.75 ~ 1.75 |
|
W |
|
|
|
|
36,522 |
|
|
|
55,662 |
|
Borrowings |
|
Korea National Oil Corporation |
|
2007.12.27~ 2012.12.28 |
|
2022.06.25~ 2026.12.29 |
|
3 year Government bond |
|
|
|
|
|
|
14,472 |
|
|
|
14,159 |
|
|
|
Export-Import Bank of Korea |
|
2010.07.26~ 2013.07.03 |
|
2017.02.18~ 2017.07.26 |
|
4.09 ~ 4.50 |
|
|
|
|
|
|
90,874 |
|
|
|
377,616 |
|
Loans from foreign financial institutions |
|
NATIXIS(* 1) |
|
1986.03.31 |
|
2017.03.31 |
|
2.00 |
|
|
|
|
|
|
200 |
|
|
|
627 |
|
Debentures |
|
Domestic debentures 304-1 and others |
|
2011.11.28~ 2013.10.04 |
|
2018.10.04~ 2023.10.04 |
|
3.35 ~ 4.12 |
|
|
|
|
|
|
997,745 |
|
|
|
2,295,585 |
|
Debentures |
|
Samurai Bond 13 and others |
|
2010.10.28~ 2013.12.11 |
|
2018.12.10~ 2021.12.22 |
|
1.35 ~ 5.25 |
|
|
|
|
|
|
2,163,292 |
|
|
|
2,557,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
3,303,105 |
|
|
|
5,300,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Korea Development Bank has provided guarantees to the Company for loans from foreign financial institutions. |
54
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Other payables as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
W |
|
|
|
|
546,884 |
|
|
|
627,337 |
|
Accrued expenses |
|
|
|
|
|
|
380,383 |
|
|
|
386,014 |
|
Dividend payable |
|
|
|
|
|
|
9,882 |
|
|
|
9,523 |
|
Finance lease liabilities |
|
|
|
|
|
|
1,349 |
|
|
|
1,218 |
|
Withholdings |
|
|
|
|
|
|
8,237 |
|
|
|
8,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
946,735 |
|
|
|
1,032,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term accounts payable |
|
W |
|
|
|
|
|
|
|
|
54,131 |
|
Accrued expenses |
|
|
|
|
|
|
26,250 |
|
|
|
22,767 |
|
Finance lease liabilities |
|
|
|
|
|
|
2,889 |
|
|
|
4,006 |
|
Long-term withholdings |
|
|
|
|
|
|
8,517 |
|
|
|
7,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
37,656 |
|
|
|
88,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18. |
Other Financial Liabilities |
Other financial liabilities as of December 31, 2015 and 2014 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities(*1) |
|
W |
|
|
|
|
8,118 |
|
|
|
|
|
Financial guarantee liabilities |
|
|
|
|
|
|
17,558 |
|
|
|
9,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
25,676 |
|
|
|
9,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Financial guarantee liabilities |
|
W |
|
|
|
|
81,496 |
|
|
|
50,574 |
|
(*1) |
The Company assessed the values of call option of SeAH Besteel Corp. in relation to the residual equity held by the Company upon the disposal of SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel
Co., Ltd). Accordingly, the Company has recognized derivatives liabilities amounting to W8,118 million during the year ended December 31, 2015. |
55
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(a) |
Provisions as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Current |
|
|
Non-current |
|
|
Current |
|
|
Non-current |
|
Provision for bonus payments(* 1) |
|
W |
|
|
|
|
7,271 |
|
|
|
|
|
|
|
8,423 |
|
|
|
|
|
Provision for restoration(* 2) |
|
|
|
|
|
|
15,569 |
|
|
|
21,543 |
|
|
|
39,336 |
|
|
|
31,063 |
|
Provision for litigation(* 3) |
|
|
|
|
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
22,840 |
|
|
|
21,954 |
|
|
|
47,759 |
|
|
|
31,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Represents the provision for bonuses limited to 100% of annual salaries for executives. |
(*2) |
Due to contamination of land near the Companys magnesium smelting plant located in Gangneung province, a provision has been recognized with a present value of estimated costs for recovery. In order to compute the
estimated costs, the Company has assumed that it would use all of technologies and materials available for now to recover the land. In addition, the Company has applied a discount rate of 2.67% to assess present value of these costs.
|
(*3) |
The Company has recognized provisions for certain litigations for the year ended December 31, 2015. |
(b) |
Changes in provisions for the years ended December 31, 2015 and 2014 were as follows: |
1) |
For the year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
Provision for bonus payments |
|
W |
|
|
|
|
8,423 |
|
|
|
13,233 |
|
|
|
(14,385 |
) |
|
|
7,271 |
|
Provision for restoration |
|
|
|
|
|
|
70,399 |
|
|
|
2,174 |
|
|
|
(35,461 |
) |
|
|
37,112 |
|
Provision for litigation |
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
79,233 |
|
|
|
15,407 |
|
|
|
(49,846 |
) |
|
|
44,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Beginning |
|
|
Increase |
|
|
Utilization |
|
|
Ending |
|
Provision for bonus payments |
|
W |
|
|
|
|
8,501 |
|
|
|
10,643 |
|
|
|
(10,721 |
) |
|
|
8,423 |
|
Provision for restoration |
|
|
|
|
|
|
|
|
|
|
89,433 |
|
|
|
(19,034 |
) |
|
|
70,399 |
|
Provision for litigation |
|
|
|
|
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,501 |
|
|
|
100,487 |
|
|
|
(29,755 |
) |
|
|
79,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(a) |
Defined contribution plans |
The expense related to post-employment benefit plans under defined
contribution plans for the years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Expense related to post-employment benefit plans under defined contribution plans |
|
W |
|
|
|
|
19,763 |
|
|
|
18,229 |
|
(b) |
Defined benefit plans |
1) |
The amounts recognized in relation to net defined benefit liabilities in the statements of financial position as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Present value of funded obligations |
|
W |
|
|
|
|
1,023,071 |
|
|
|
1,017,164 |
|
Fair value of plan assets |
|
|
|
|
|
|
(1,012,599 |
) |
|
|
(931,006 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net defined benefit liabilities |
|
W |
|
|
|
|
10,472 |
|
|
|
86,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
Changes in present value of defined benefit obligations for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Defined benefit obligation at the beginning of period |
|
W |
|
|
|
|
1,017,164 |
|
|
|
905,918 |
|
Current service costs |
|
|
|
|
|
|
118,770 |
|
|
|
113,688 |
|
Interest costs |
|
|
|
|
|
|
29,743 |
|
|
|
32,595 |
|
Remeasurement: |
|
|
|
|
|
|
(58,397 |
) |
|
|
47,604 |
|
- Loss (gain) from change in financial assumptions |
|
|
|
|
|
|
(43,377 |
) |
|
|
36,238 |
|
- Gain from change in demographic assumptions |
|
|
|
|
|
|
(6,586 |
) |
|
|
(3,288 |
) |
- Loss (gain) from change in others |
|
|
|
|
|
|
(8,434 |
) |
|
|
14,654 |
|
Transfer-in |
|
|
|
|
|
|
283 |
|
|
|
1,959 |
|
Benefits paid |
|
|
|
|
|
|
(84,492 |
) |
|
|
(84,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit obligation at the end of period |
|
W |
|
|
|
|
1,023,071 |
|
|
|
1,017,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
3) |
Changes in the fair value of plan assets for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Fair value of plan assets at the beginning of period |
|
W |
|
|
|
|
931,006 |
|
|
|
805,268 |
|
Interest on plan assets |
|
|
|
|
|
|
29,330 |
|
|
|
31,911 |
|
Remeasurement of plan assets |
|
|
|
|
|
|
(7,064 |
) |
|
|
(8,417 |
) |
Contributions to plan assets |
|
|
|
|
|
|
128,000 |
|
|
|
146,000 |
|
Transfer-in |
|
|
|
|
|
|
283 |
|
|
|
1,959 |
|
Benefits paid |
|
|
|
|
|
|
(68,956 |
) |
|
|
(45,715 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets at the end of period |
|
W |
|
|
|
|
1,012,599 |
|
|
|
931,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company expects to make an estimated contribution of W128,000 million to the defined
benefit plan assets in 2016.
4) |
The fair value of plan assets as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Debt instruments |
|
W |
|
|
|
|
83,540 |
|
|
|
125,353 |
|
Deposits |
|
|
|
|
|
|
857,343 |
|
|
|
749,749 |
|
Others |
|
|
|
|
|
|
71,716 |
|
|
|
55,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,012,599 |
|
|
|
931,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5) |
The amounts recognized in the statements of comprehensive income for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current service costs |
|
W |
|
|
|
|
118,770 |
|
|
|
113,688 |
|
Net interest costs(*1) |
|
|
|
|
|
|
413 |
|
|
|
684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
119,183 |
|
|
|
114,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The actual return on plan assets amounted to W22,266 million and W23,494 million for the years ended December 31, 2015 and 2014, respectively. |
The above expenses by function were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Cost of sales |
|
W |
|
|
|
|
91,130 |
|
|
|
90,993 |
|
Selling and administrative expenses |
|
|
|
|
|
|
27,680 |
|
|
|
23,121 |
|
Others |
|
|
|
|
|
|
373 |
|
|
|
258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
119,183 |
|
|
|
114,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
6) |
Remeasurements of defined benefit plans, net of tax recognized in other comprehensive income (loss) for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Beginning |
|
W |
|
|
|
|
(200,926 |
) |
|
|
(158,462 |
) |
Remeasurements of defined benefit plans |
|
|
|
|
|
|
51,333 |
|
|
|
(56,021 |
) |
Tax effects |
|
|
|
|
|
|
(12,423 |
) |
|
|
13,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
W |
|
|
|
|
(162,016 |
) |
|
|
(200,926 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
7) |
The principal actuarial assumptions as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
Discount rate |
|
|
2.47 |
% |
|
|
2.96 |
% |
Expected future increases in salaries(*1) |
|
|
1.80 |
% |
|
|
2.80 |
% |
(*1) |
The expected future increases in salaries are based on the average salary increase rate for the past three years. |
All assumptions are reviewed at the end of the reporting period. Additionally, the total estimated defined benefit obligation includes
actuarial assumptions associated with the long-term characteristics of the defined benefit plan.
8) |
Reasonably possible changes at the reporting date to one of the relevant actuarial assumption, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
1% Increase |
|
|
1% Decrease |
|
|
|
|
|
|
Amount |
|
|
Percentage (%) |
|
|
Amount |
|
|
Percentage (%) |
|
Discount rate |
|
W |
|
|
|
|
(76,382 |
) |
|
|
(7.5 |
) |
|
|
88,411 |
|
|
|
8.6 |
|
Expected future increases in salaries |
|
|
|
|
|
|
88,079 |
|
|
|
8.6 |
|
|
|
(77,508 |
) |
|
|
(7.6 |
) |
9) |
As of December 31, 2015 the maturity of the expected benefit payments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Within 1 year |
|
|
1 year - 5 years |
|
|
5 years - 10 years |
|
|
10 years - 20 years |
|
|
After 20 years |
|
|
Total |
|
|
|
|
|
|
|
|
Benefits to be paid |
|
W |
|
|
|
|
1,384 |
|
|
|
208,277 |
|
|
|
487,874 |
|
|
|
403,864 |
|
|
|
149,296 |
|
|
|
1,250,695 |
|
The maturity analysis of the defined benefit obligation were nominal amounts of defined benefit obligations
using expected remaining working lives of employees.
59
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Other liabilities as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current |
|
|
|
|
|
|
|
|
|
|
|
|
Advances received |
|
W |
|
|
|
|
8,811 |
|
|
|
88,880 |
|
Withholdings |
|
|
|
|
|
|
20,847 |
|
|
|
18,417 |
|
Unearned revenue |
|
|
|
|
|
|
1,623 |
|
|
|
1,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,281 |
|
|
|
108,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current |
|
|
|
|
|
|
|
|
|
|
|
|
Unearned revenue |
|
W |
|
|
|
|
16,623 |
|
|
|
234 |
|
22. |
Financial Instruments |
(a) |
Classification of financial instruments |
|
1) |
Financial assets as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives assets held for trading |
|
W |
|
|
|
|
90,883 |
|
|
|
10,233 |
|
Available-for-sale financial assets |
|
|
|
|
|
|
1,741,049 |
|
|
|
1,785,029 |
|
Loans and receivables |
|
|
|
|
|
|
7,954,222 |
|
|
|
6,024,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
9,786,154 |
|
|
|
7,820,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
Financial liabilities as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
W |
|
|
|
|
8,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities measured at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable |
|
|
|
|
|
|
577,856 |
|
|
|
777,401 |
|
Borrowings |
|
|
|
|
|
|
5,288,827 |
|
|
|
6,537,217 |
|
Financial guarantee liabilities(*1) |
|
|
|
|
|
|
99,054 |
|
|
|
59,810 |
|
Others |
|
|
|
|
|
|
978,648 |
|
|
|
1,036,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,944,385 |
|
|
|
8,410,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
6,952,503 |
|
|
|
8,410,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(*1) |
Financial liabilities were recognized in connection with financial guarantee contracts as of December 31, 2015. The details of the amount of guarantees provided are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
Guarantee limit |
|
|
Guarantee amount |
|
Guarantee beneficiary |
|
Financial institution |
|
Foreign currency |
|
|
Won equivalent |
|
|
Foreign currency |
|
|
Won equivalent |
|
POSCO (Guangdong) |
|
SMBC |
|
|
USD |
|
|
|
35,000,000 |
|
|
|
41,020 |
|
|
|
35,000,000 |
|
|
|
41,020 |
|
Automotive Steel Co., Ltd. |
|
BOA |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
Zhangjiagang Pohang |
|
MIZUHO |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
Stainless Steel Co., Ltd. |
|
Credit Agricole |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
BTMU |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
POSCO Maharashtra Steel Private Limited |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
193,000,000 |
|
|
|
226,196 |
|
|
|
169,800,000 |
|
|
|
199,006 |
|
|
|
HSBC |
|
|
USD |
|
|
|
110,000,000 |
|
|
|
128,920 |
|
|
|
90,000,000 |
|
|
|
105,480 |
|
|
|
DBS |
|
|
USD |
|
|
|
100,000,000 |
|
|
|
117,200 |
|
|
|
90,000,000 |
|
|
|
105,480 |
|
|
|
SCB |
|
|
USD |
|
|
|
73,069,000 |
|
|
|
85,637 |
|
|
|
53,762,100 |
|
|
|
63,009 |
|
|
|
Citi |
|
|
USD |
|
|
|
60,000,000 |
|
|
|
70,320 |
|
|
|
45,000,000 |
|
|
|
52,740 |
|
|
|
ING |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
|
|
18,000,000 |
|
|
|
21,096 |
|
POSCO ASSAN TST |
|
SMBC |
|
|
USD |
|
|
|
62,527,500 |
|
|
|
73,282 |
|
|
|
56,274,750 |
|
|
|
65,954 |
|
STEEL INDUSTRY |
|
ING |
|
|
USD |
|
|
|
60,000,000 |
|
|
|
70,320 |
|
|
|
54,000,000 |
|
|
|
63,288 |
|
|
|
BNP |
|
|
USD |
|
|
|
24,000,000 |
|
|
|
28,128 |
|
|
|
21,600,000 |
|
|
|
25,315 |
|
POSCO Electrical Steel |
|
ING |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
India Private Limited |
|
SCB |
|
|
USD |
|
|
|
33,784,000 |
|
|
|
39,595 |
|
|
|
33,784,000 |
|
|
|
39,595 |
|
POSCO Investment Co., Ltd. |
|
HSBC |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
JP Morgan |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
NAB |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
BOA |
|
|
USD |
|
|
|
45,000,000 |
|
|
|
52,740 |
|
|
|
29,250,000 |
|
|
|
34,281 |
|
|
|
BTMU |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
|
|
14,250,000 |
|
|
|
16,701 |
|
|
|
ING |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
|
|
14,250,000 |
|
|
|
16,701 |
|
|
|
SMBC |
|
|
USD |
|
|
|
30,000,000 |
|
|
|
35,160 |
|
|
|
14,250,000 |
|
|
|
16,701 |
|
POSCO MEXICO S.A. DE C.V |
|
SMBC |
|
|
USD |
|
|
|
109,725,000 |
|
|
|
128,598 |
|
|
|
96,265,000 |
|
|
|
112,823 |
|
|
|
Korea Development Bank |
|
|
USD |
|
|
|
50,000,000 |
|
|
|
58,600 |
|
|
|
36,468,000 |
|
|
|
42,740 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
45,000,000 |
|
|
|
52,740 |
|
|
|
32,819,000 |
|
|
|
38,464 |
|
|
|
BOA |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
|
|
29,173,000 |
|
|
|
34,191 |
|
|
|
HSBC |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
POSCO SS-VINA |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
249,951,050 |
|
|
|
292,943 |
|
|
|
249,951,050 |
|
|
|
292,943 |
|
|
|
BOA |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
|
|
BTMU |
|
|
USD |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
|
|
40,000,000 |
|
|
|
46,880 |
|
|
|
DBS |
|
|
USD |
|
|
|
24,400,000 |
|
|
|
28,597 |
|
|
|
24,400,000 |
|
|
|
28,597 |
|
POSCO-VIETNAM Co., Ltd. |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
196,000,000 |
|
|
|
229,712 |
|
|
|
196,000,000 |
|
|
|
229,712 |
|
POSCO VST CO., LTD. |
|
ANZ |
|
|
USD |
|
|
|
25,000,000 |
|
|
|
29,300 |
|
|
|
15,625,000 |
|
|
|
18,313 |
|
|
|
HSBC |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,440 |
|
|
|
12,500,000 |
|
|
|
14,650 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,440 |
|
|
|
12,500,000 |
|
|
|
14,650 |
|
PT. KRAKATAU POSCO |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
567,000,000 |
|
|
|
664,524 |
|
|
|
520,130,435 |
|
|
|
609,593 |
|
|
|
SMBC |
|
|
USD |
|
|
|
140,000,000 |
|
|
|
164,080 |
|
|
|
128,617,391 |
|
|
|
150,740 |
|
|
|
BTMU |
|
|
USD |
|
|
|
119,000,000 |
|
|
|
139,468 |
|
|
|
107,617,392 |
|
|
|
126,128 |
|
|
|
SCB |
|
|
USD |
|
|
|
107,800,000 |
|
|
|
126,342 |
|
|
|
99,497,391 |
|
|
|
116,611 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
105,000,000 |
|
|
|
123,060 |
|
|
|
94,956,522 |
|
|
|
111,289 |
|
|
|
Credit Suisse AG |
|
|
USD |
|
|
|
91,000,000 |
|
|
|
106,652 |
|
|
|
82,295,652 |
|
|
|
96,451 |
|
|
|
HSBC |
|
|
USD |
|
|
|
91,000,000 |
|
|
|
106,652 |
|
|
|
82,295,652 |
|
|
|
96,451 |
|
|
|
ANZ |
|
|
USD |
|
|
|
73,500,000 |
|
|
|
86,142 |
|
|
|
68,478,261 |
|
|
|
80,257 |
|
|
|
BOA |
|
|
USD |
|
|
|
35,000,000 |
|
|
|
41,020 |
|
|
|
31,652,174 |
|
|
|
37,096 |
|
|
|
CTBC |
|
|
USD |
|
|
|
21,000,000 |
|
|
|
24,612 |
|
|
|
18,991,305 |
|
|
|
22,258 |
|
61
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
Guarantee limit |
|
|
Guarantee amount |
|
Guarantee beneficiary |
|
Financial institution |
|
Foreign currency |
|
|
Won equivalent |
|
|
Foreign currency |
|
|
Won equivalent |
|
POSCO COATED STEEL (THAILAND) CO., LTD. |
|
The Great & Co Co., Ltd. (SPC) |
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
178,672 |
|
|
|
5,501,000,000 |
|
|
|
178,672 |
|
LLP POSUK Titanium |
|
KB Bank |
|
|
USD |
|
|
|
15,000,000 |
|
|
|
17,580 |
|
|
|
15,000,000 |
|
|
|
17,580 |
|
CSP - Compania Siderurgica do Pecem |
|
Export-Import Bank of Korea |
|
|
USD |
|
|
|
182,000,000 |
|
|
|
213,304 |
|
|
|
161,460,798 |
|
|
|
189,232 |
|
|
|
Santander |
|
|
USD |
|
|
|
47,600,000 |
|
|
|
55,787 |
|
|
|
42,332,179 |
|
|
|
49,613 |
|
|
|
BNP |
|
|
USD |
|
|
|
47,600,000 |
|
|
|
55,787 |
|
|
|
42,332,179 |
|
|
|
49,613 |
|
|
|
MIZUHO |
|
|
USD |
|
|
|
47,600,000 |
|
|
|
55,787 |
|
|
|
42,332,179 |
|
|
|
49,613 |
|
|
|
HSBC |
|
|
USD |
|
|
|
35,200,000 |
|
|
|
41,254 |
|
|
|
31,081,521 |
|
|
|
36,428 |
|
|
|
Credit Agricole |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,440 |
|
|
|
17,860,946 |
|
|
|
20,933 |
|
|
|
SOCIETE GENERALE |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,440 |
|
|
|
17,860,946 |
|
|
|
20,933 |
|
|
|
KfW |
|
|
USD |
|
|
|
20,000,000 |
|
|
|
23,440 |
|
|
|
17,860,946 |
|
|
|
20,933 |
|
|
|
BNDES |
|
|
BRL |
|
|
|
464,060,000 |
|
|
|
137,366 |
|
|
|
274,129,418 |
|
|
|
81,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD |
|
|
|
4,011,756,550 |
|
|
|
4,701,779 |
|
|
|
3,597,575,769 |
|
|
|
4,216,362 |
|
|
|
|
|
|
BRL |
|
|
|
464,060,000 |
|
|
|
137,366 |
|
|
|
274,129,418 |
|
|
|
81,145 |
|
|
|
|
|
|
THB |
|
|
|
5,501,000,000 |
|
|
|
178,672 |
|
|
|
5,501,000,000 |
|
|
|
178,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3) |
Finance income and costs by category of financial instrument for the years ended December 31, 2015 and 2014 were as follows: |
|
① |
For the year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Finance income and costs |
|
|
|
|
|
|
Interest income (expense) |
|
|
Dividend income(*1) |
|
|
Gain and loss on foreign currency |
|
|
Gain and loss on disposal |
|
|
Impairment loss |
|
|
Others |
|
|
Total |
|
|
Other comprehensive income (loss) |
|
Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(438 |
) |
|
|
|
|
|
|
36,766 |
|
|
|
36,328 |
|
|
|
|
|
Available-for-sale financial assets |
|
|
|
|
|
|
50 |
|
|
|
176,717 |
|
|
|
|
|
|
|
58,089 |
|
|
|
(100,357 |
) |
|
|
|
|
|
|
134,499 |
|
|
|
(124,060 |
) |
Loans and receivables |
|
|
|
|
|
|
91,300 |
|
|
|
|
|
|
|
60,313 |
|
|
|
|
|
|
|
|
|
|
|
(645 |
) |
|
|
150,968 |
|
|
|
|
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,078 |
|
|
|
14,078 |
|
|
|
|
|
Financial liabilities at amortized cost |
|
|
|
|
|
|
(232,130 |
) |
|
|
|
|
|
|
(216,120 |
) |
|
|
|
|
|
|
|
|
|
|
(43 |
) |
|
|
(448,293 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(140,780 |
) |
|
|
176,717 |
|
|
|
(155,807 |
) |
|
|
57,651 |
|
|
|
(100,357 |
) |
|
|
50,156 |
|
|
|
(112,420 |
) |
|
|
(124,060 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Finance income in the statement of comprehensive income includes the dividends from subsidiaries, associates, and joint ventures of W274,257 million for the year ended December 31, 2015.
|
62
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
② |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Finance income and costs |
|
|
|
|
|
|
Interest income (expense) |
|
|
Dividend income(*1) |
|
|
Gain and loss on foreign currency |
|
|
Gain and loss on disposal |
|
|
Impairment loss |
|
|
Others |
|
|
Total |
|
|
Other comprehensive income (loss) |
|
Financial assets at fair value through profit or loss |
|
W |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,445 |
|
|
|
2,445 |
|
|
|
|
|
Available-for-sale financial assets |
|
|
|
|
|
|
298 |
|
|
|
41,342 |
|
|
|
|
|
|
|
226,215 |
|
|
|
(352,040 |
) |
|
|
|
|
|
|
(84,185 |
) |
|
|
(309,897 |
) |
Loans and receivables |
|
|
|
|
|
|
92,774 |
|
|
|
|
|
|
|
65,667 |
|
|
|
|
|
|
|
|
|
|
|
(648 |
) |
|
|
157,793 |
|
|
|
|
|
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,123 |
) |
|
|
|
|
|
|
|
|
|
|
(24,123 |
) |
|
|
|
|
Financial liabilities at amortized cost |
|
|
|
|
|
|
(256,636 |
) |
|
|
|
|
|
|
(26,749 |
) |
|
|
(38,596 |
) |
|
|
|
|
|
|
(257 |
) |
|
|
(322,238 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(163,564 |
) |
|
|
41,342 |
|
|
|
38,918 |
|
|
|
163,496 |
|
|
|
(352,040 |
) |
|
|
1,540 |
|
|
|
(270,308 |
) |
|
|
(309,897 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Finance income in the statement of comprehensive income includes the dividends from subsidiaries, associates, and joint ventures of W306,833 million for the year ended December 31, 2014.
|
The carrying amount of financial assets represents the Companys
maximum exposure to credit risk. The maximum exposure to credit risk as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Cash and cash equivalents |
|
W |
|
|
|
|
1,634,106 |
|
|
|
1,742,767 |
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
90,883 |
|
|
|
10,233 |
|
Available-for-sale financial assets |
|
|
|
|
|
|
17,967 |
|
|
|
17,408 |
|
Loans and other receivables |
|
|
|
|
|
|
3,560,117 |
|
|
|
1,100,924 |
|
Trade accounts and notes receivable |
|
|
|
|
|
|
2,740,104 |
|
|
|
3,157,266 |
|
Long-term trade accounts and notes receivable |
|
|
|
|
|
|
19,895 |
|
|
|
23,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
8,063,072 |
|
|
|
6,052,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company provided financial guarantee for the repayment of loans of subsidiaries, associates, and joint
ventures. As of December 31, 2015 and 2014, the maximum exposure to credit risk caused by financial guarantee amounted to W5,017,817 million and W3,779,455 million, respectively.
63
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
2) |
Impairment losses on financial assets |
|
① |
Allowance for doubtful accounts as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Trade accounts and note receivable |
|
W |
|
|
|
|
11,239 |
|
|
|
9,982 |
|
Other accounts receivable |
|
|
|
|
|
|
325 |
|
|
|
10,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
11,564 |
|
|
|
20,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
② |
Impairment losses on financial assets for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Bad debt expenses (reversal of allowance for doubtful account) |
|
|
W |
|
|
|
(7,373 |
) |
|
|
19,605 |
|
Impairment loss on available-for-sale securities |
|
|
|
|
|
|
100,357 |
|
|
|
352,040 |
|
|
③ |
The aging and impairment losses of trade accounts and notes receivable as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Trade accounts and notes receivable |
|
|
Impairment |
|
|
Trade accounts and notes receivable |
|
|
Impairment |
|
Not due |
|
W |
|
|
|
|
2,555,433 |
|
|
|
267 |
|
|
|
3,025,296 |
|
|
|
|
|
Over due less than 1 month |
|
|
|
|
|
|
99,221 |
|
|
|
3 |
|
|
|
46,656 |
|
|
|
57 |
|
1 month - 3 months |
|
|
|
|
|
|
40,871 |
|
|
|
51 |
|
|
|
12,468 |
|
|
|
212 |
|
3 months - 12 months |
|
|
|
|
|
|
42,126 |
|
|
|
3,264 |
|
|
|
8,061 |
|
|
|
46 |
|
Over 12 months |
|
|
|
|
|
|
33,587 |
|
|
|
7,654 |
|
|
|
98,608 |
|
|
|
9,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,771,238 |
|
|
|
11,239 |
|
|
|
3,191,089 |
|
|
|
9,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
④ |
The aging and impairment losses of loans and other account receivable as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Loans and other account receivable |
|
|
Impairment |
|
|
Loans and other account receivable |
|
|
Impairment |
|
Not due |
|
W |
|
|
|
|
228,265 |
|
|
|
|
|
|
|
325,414 |
|
|
|
|
|
Over due less than 1 month |
|
|
|
|
|
|
2,986 |
|
|
|
|
|
|
|
6,120 |
|
|
|
|
|
1 month - 3 months |
|
|
|
|
|
|
822 |
|
|
|
|
|
|
|
58,225 |
|
|
|
|
|
3 months - 12 months |
|
|
|
|
|
|
10,519 |
|
|
|
|
|
|
|
7,764 |
|
|
|
|
|
Over 12 months |
|
|
|
|
|
|
3,132 |
|
|
|
325 |
|
|
|
14,130 |
|
|
|
10,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
245,724 |
|
|
|
325 |
|
|
|
411,653 |
|
|
|
10,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
⑤ |
Changes in the allowance for doubtful accounts for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Beginning |
|
W |
|
|
|
|
20,515 |
|
|
|
35,137 |
|
Bad debt expenses (reversal of allowance for doubtful account) |
|
|
|
|
|
|
(7,373 |
) |
|
|
19,605 |
|
Others |
|
|
|
|
|
|
(1,578 |
) |
|
|
(34,227 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
W |
|
|
|
|
11,564 |
|
|
|
20,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Contractual maturities for non-derivative financial liabilities, including
estimated interest, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Book value |
|
|
Contractual cash flow |
|
|
Within 3 month |
|
|
3 month - 6 months |
|
|
6 months - 1 year |
|
|
1 year - 5 years |
|
|
After 5 years |
|
Trade accounts payable |
|
W |
|
|
|
|
577,856 |
|
|
|
577,856 |
|
|
|
577,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
|
|
|
|
5,288,827 |
|
|
|
5,987,753 |
|
|
|
591,139 |
|
|
|
366,229 |
|
|
|
1,204,907 |
|
|
|
2,426,989 |
|
|
|
1,398,489 |
|
Financial guarantee liabilities(*1) |
|
|
|
|
|
|
99,054 |
|
|
|
4,476,179 |
|
|
|
4,476,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financial liabilities |
|
|
|
|
|
|
978,648 |
|
|
|
987,594 |
|
|
|
939,946 |
|
|
|
422 |
|
|
|
9,082 |
|
|
|
38,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
6,944,385 |
|
|
|
12,029,382 |
|
|
|
6,585,120 |
|
|
|
366,651 |
|
|
|
1,213,989 |
|
|
|
2,465,133 |
|
|
|
1,398,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
For issued financial guarantee contracts, the maximum amount of the guarantee is allocated to the earliest period in which the guarantee could be called. |
|
1) |
The Company has exposure to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in foreign exchange rates. The exposure to currency risk as of
December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Assets |
|
|
Liabilities |
|
|
Assets |
|
|
Liabilities |
|
USD |
|
W |
|
|
|
|
1,536,771 |
|
|
|
2,491,796 |
|
|
|
988,023 |
|
|
|
2,839,040 |
|
JPY |
|
|
|
|
|
|
56,246 |
|
|
|
750,930 |
|
|
|
56,037 |
|
|
|
721,588 |
|
CNH |
|
|
|
|
|
|
149,266 |
|
|
|
7,970 |
|
|
|
|
|
|
|
|
|
INR |
|
|
|
|
|
|
204,740 |
|
|
|
|
|
|
|
365,705 |
|
|
|
|
|
Others |
|
|
|
|
|
|
141,462 |
|
|
|
8,800 |
|
|
|
15,677 |
|
|
|
1,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
2,088,485 |
|
|
|
3,259,496 |
|
|
|
1,425,442 |
|
|
|
3,562,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2) |
As of December 31, 2015 and 2014, provided that functional currency against foreign currencies other than functional currency hypothetically strengthens or weakens by 10%, the changes in gain or loss for the years
ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
10% increase |
|
|
10% decrease |
|
|
10% increase |
|
|
10% decrease |
|
USD |
|
W |
|
|
|
|
(95,503 |
) |
|
|
95,503 |
|
|
|
(185,102 |
) |
|
|
185,102 |
|
JPY |
|
|
|
|
|
|
(69,468 |
) |
|
|
69,468 |
|
|
|
(66,555 |
) |
|
|
66,555 |
|
CNH |
|
|
|
|
|
|
14,130 |
|
|
|
(14,130 |
) |
|
|
|
|
|
|
|
|
INR |
|
|
|
|
|
|
20,474 |
|
|
|
(20,474 |
) |
|
|
36,571 |
|
|
|
(36,571 |
) |
65
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
1) |
The carrying amount of interest-bearing financial instruments as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Fixed rate |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets |
|
W |
|
|
|
|
4,974,288 |
|
|
|
2,478,673 |
|
Financial liabilities |
|
|
|
|
|
|
(5,236,774 |
) |
|
|
(6,469,632 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(262,486 |
) |
|
|
(3,990,959 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Variable rate |
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
W |
|
|
|
|
(52,053 |
) |
|
|
(67,585 |
) |
|
2) |
Sensitivity analysis on the fair value of financial instruments with fixed interest rate |
The
Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Company does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model.
Therefore a change in interest rates at the reporting date would not affect profit or loss.
|
3) |
Sensitivity analysis on the cash flows of financial instruments with variable interest rate |
As
of December 31, 2015 and 2014, provided that other factors remain the same and the interest rate of borrowings with floating rates increases or decreases by 1%, the changes in interest expense for the years ended December 31, 2015 and 2014
were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
1% increase |
|
|
1% decrease |
|
|
1% increase |
|
|
1% decrease |
|
Variable rate financial instruments |
|
W |
|
|
|
|
(521 |
) |
|
|
521 |
|
|
|
(676 |
) |
|
|
676 |
|
66
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
1) |
Fair value and book value |
The carrying amount and the fair value of financial instruments as
of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Book value |
|
|
Fair value |
|
|
Book value |
|
|
Fair value |
|
Assets measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets(* 1) |
|
W |
|
|
|
|
1,622,911 |
|
|
|
1,622,911 |
|
|
|
1,648,567 |
|
|
|
1,648,567 |
|
Derivatives assets held for trading(* 2) |
|
|
|
|
|
|
90,883 |
|
|
|
90,883 |
|
|
|
10,233 |
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,713,794 |
|
|
|
1,713,794 |
|
|
|
1,658,800 |
|
|
|
1,658,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets measured at amortized cost(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
1,634,106 |
|
|
|
1,634,106 |
|
|
|
1,742,767 |
|
|
|
1,742,767 |
|
Trade accounts and note receivable, net |
|
|
|
|
|
|
2,759,999 |
|
|
|
2,759,999 |
|
|
|
3,181,107 |
|
|
|
3,181,107 |
|
Loans and other receivables, net |
|
|
|
|
|
|
3,560,117 |
|
|
|
3,560,117 |
|
|
|
1,100,924 |
|
|
|
1,100,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,954,222 |
|
|
|
7,954,222 |
|
|
|
6,024,798 |
|
|
|
6,024,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities measured at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading(* 2) |
|
|
|
|
|
|
8,118 |
|
|
|
8,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities measured at amortized cost(* 3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and notes payable |
|
|
|
|
|
|
577,856 |
|
|
|
577,856 |
|
|
|
777,401 |
|
|
|
777,401 |
|
Borrowings |
|
|
|
|
|
|
5,288,827 |
|
|
|
5,573,931 |
|
|
|
6,537,217 |
|
|
|
6,918,972 |
|
Financial guarantee liabilities |
|
|
|
|
|
|
99,054 |
|
|
|
99,054 |
|
|
|
59,810 |
|
|
|
59,810 |
|
Others |
|
|
|
|
|
|
978,648 |
|
|
|
978,648 |
|
|
|
1,036,487 |
|
|
|
1,036,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
6,944,385 |
|
|
|
7,229,489 |
|
|
|
8,410,915 |
|
|
|
8,792,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The fair value of available-for-sale financial assets publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted available-for-sale financial
assets is calculated using the valuation results from an external pricing service in which weighted average cost of capital of evaluated companies are used as discount rates. Available-for-sale financial assets which are not measured at fair value
are not included. |
(*2) |
The fair value of derivatives is measured using valuation models such as Black-Scholes model, binominal lattice model and others in which the market yields on government bonds are used as discount rates.
|
(*3) |
The fair value of financial assets and liabilities measured at amortized cost is determined at the present value of estimated future cash flows discounted at the current market interest rate. The fair value is
calculated for the disclosures in the notes. On the other hand, the Company has not performed fair value measurement for the financial assets and liabilities measured at amortized cost except borrowings since their carrying amounts approximate fair
value. |
67
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
2) |
Interest rate for determining fair value |
Interest rates used to discount the estimated cash
flows as of December 31, 2015 and 2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
Borrowings |
|
|
0.64% ~ 3.20 |
% |
|
|
0.74% ~ 3.69 |
% |
|
3) |
The fair value hierarchy |
|
① |
The fair value of financial instruments by fair value hierarchy as of December 31, 2015 and 2014 are as follows: |
a. December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
W |
|
|
|
|
1,394,480 |
|
|
|
|
|
|
|
228,431 |
|
|
|
1,622,911 |
|
Derivatives assets held for trading |
|
|
|
|
|
|
|
|
|
|
12,591 |
|
|
|
78,292 |
|
|
|
90,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,394,480 |
|
|
|
12,591 |
|
|
|
306,723 |
|
|
|
1,713,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives liabilities held for trading |
|
W |
|
|
|
|
|
|
|
|
|
|
|
|
8,118 |
|
|
|
8,118 |
|
b. December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale financial assets |
|
W |
|
|
|
|
1,620,390 |
|
|
|
|
|
|
|
28,177 |
|
|
|
1,648,567 |
|
Derivatives assets held for trading |
|
|
|
|
|
|
|
|
|
|
10,233 |
|
|
|
|
|
|
|
10,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,620,390 |
|
|
|
10,233 |
|
|
|
28,177 |
|
|
|
1,658,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
② |
Changes in financial assets classified as level 3 for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Beginning |
|
W |
|
|
|
|
28,177 |
|
|
|
670,290 |
|
Acquisition |
|
|
|
|
|
|
317,086 |
|
|
|
2,675 |
|
Changes in the fair value of derivatives |
|
|
|
|
|
|
48,487 |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
2,567 |
|
|
|
117,804 |
|
Impairment |
|
|
|
|
|
|
(23,849 |
) |
|
|
(169,519 |
) |
Disposal and others |
|
|
|
|
|
|
(73,863 |
) |
|
|
(593,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
W |
|
|
|
|
298,605 |
|
|
|
28,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
23. |
Share Capital and Capital Surplus |
(a) |
Share capital as of December 31, 2014 and 2015 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Share, in Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Authorized shares |
|
|
|
|
|
|
200,000,000 |
|
|
|
200,000,000 |
|
Par value |
|
W |
|
|
|
|
5,000 |
|
|
|
5,000 |
|
Issued shares(*1) |
|
|
|
|
|
|
87,186,835 |
|
|
|
87,186,835 |
|
Shared capital(*2) |
|
W |
|
|
|
|
482,403,125,000 |
|
|
|
482,403,125,000 |
|
(*1) |
As of December 31, 2015, total shares of ADRs of 49,982,260 are equivalent to 12,495,565 of common stock. |
(*2) |
As of December 31, 2015, the difference between the ending balance of common stock and the par value of issued common stock is W46,469 million due to retirement of 9,293,790 treasury stocks.
|
(b) |
The changes in issued common stock for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Share) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Issued shares |
|
|
Treasury shares |
|
|
Number of outstanding shares |
|
|
Issued shares |
|
|
Treasury shares |
|
|
Number of outstanding shares |
|
Beginning |
|
W |
|
|
|
|
87,186,835 |
|
|
|
(7,193,807 |
) |
|
|
79,993,028 |
|
|
|
87,186,835 |
|
|
|
(7,403,211 |
) |
|
|
79,783,624 |
|
Disposal of treasury shares |
|
|
|
|
|
|
|
|
|
|
2,620 |
|
|
|
2,620 |
|
|
|
|
|
|
|
209,404 |
|
|
|
209,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
W |
|
|
|
|
87,186,835 |
|
|
|
(7,191,187 |
) |
|
|
79,995,648 |
|
|
|
87,186,835 |
|
|
|
(7,193,807 |
) |
|
|
79,993,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
Capital surplus as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Share premium |
|
W |
|
|
|
|
463,825 |
|
|
|
463,825 |
|
Gain on disposal of treasury shares |
|
|
|
|
|
|
783,756 |
|
|
|
783,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,247,581 |
|
|
|
1,247,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(a) |
Hybrid bonds classified as equity as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
Date of issue |
|
|
Date of maturity |
|
|
Rate of interest (%) |
|
|
|
|
2015 |
|
|
2014 |
|
Hybrid bond 1-1(*1) |
|
|
2013-06-13 |
|
|
|
2043-06-13 |
|
|
|
4.30 |
|
|
W |
|
|
800,000 |
|
|
|
800,000 |
|
Hybrid bond 1-2(*1) |
|
|
2013-06-13 |
|
|
|
2043-06-13 |
|
|
|
4.60 |
|
|
|
|
|
200,000 |
|
|
|
200,000 |
|
Issuance cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,081 |
) |
|
|
(3,081 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
996,919 |
|
|
|
996,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Details of hybrid bonds as of December 31, 2015 are as follows: |
|
|
|
|
|
(in millions of Won) |
|
Hybrid bond 1-1 |
|
Hybrid bond 1-2 |
Issue price |
|
800,000 |
|
200,000 |
|
|
|
Maturity date |
|
30 years (The Company has a right to extend the maturity date) |
|
30 years (The Company has a right to extend the maturity date) |
|
|
|
Interest rate |
|
Issue date ~ 2018-06-12: 4.3% |
|
Issue date ~ 2023-06-12: 4.6% |
|
|
|
|
|
reset every 5 years as follows; |
|
reset every 10 years as follows; |
|
|
|
|
|
After 5 years: return on government bond (5 years) + 1.3% |
|
After 10 years: return on government bond (10 years) + 1.4% |
|
|
|
|
|
After 10 years: additionally + 0.25% according to Step-up clauses |
|
After 10 years: additionally + 0.25% according to Step-up clauses |
|
|
|
|
|
After 25 years: additionally + 0.75% |
|
After 30 years: additionally + 0.75% |
|
|
|
Interest payments condition |
|
Quarterly (Optional deferral of interest payment is available to the Company) |
|
Quarterly (Optional deferral of interest payment is available to the Company) |
|
|
|
Others |
|
The Company can call the hybrid bond at year 5 and interest payment date afterwards |
|
The Company can call the hybrid bond at year 10 and interest payment date afterwards |
The interest accumulated but not paid on the hybrid bonds as of December 31, 2015 amounts
to W2,276 million.
70
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(a) |
Reserves as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Accumulated changes in the unrealized fair value of available-for-sale investments, net of tax |
|
W |
|
|
|
|
(30,018 |
) |
|
|
94,042 |
|
(b) |
Changes in the accumulated unrealized fair value of available-for-sale investments for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Beginning balance |
|
W |
|
|
|
|
94,042 |
|
|
|
403,939 |
|
Changes in the unrealized fair value of available-for-sale investments |
|
|
|
|
|
|
(263,972 |
) |
|
|
(523,168 |
) |
Reclassification to profit or loss upon disposal |
|
|
|
|
|
|
(52 |
) |
|
|
(237,708 |
) |
Impairment of available-for-sale investments |
|
|
|
|
|
|
100,357 |
|
|
|
352,040 |
|
Tax effects |
|
|
|
|
|
|
39,607 |
|
|
|
98,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
W |
|
|
|
|
(30,018 |
) |
|
|
94,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on the Board of Directors resolution, the Company holds treasury shares for
the business purposes including price stabilization. The changes in treasury shares for the years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(shares, in millions of Won) |
|
2015 |
|
|
2014 |
|
|
|
Number of shares |
|
|
|
|
|
Amount |
|
|
Number of shares |
|
|
|
|
|
Amount |
|
Beginning |
|
|
7,193,807 |
|
|
W |
|
|
|
|
1,534,457 |
|
|
|
7,403,211 |
|
|
W |
|
|
|
|
1,579,124 |
|
Disposal of treasury shares |
|
|
(2,620 |
) |
|
|
|
|
|
|
(559 |
) |
|
|
(209,404 |
) |
|
|
|
|
|
|
(44,667 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending |
|
|
7,191,187 |
|
|
W |
|
|
|
|
1,533,898 |
|
|
|
7,193,807 |
|
|
W |
|
|
|
|
1,534,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(a) |
Retained earnings as of December 31, 2015 and 2014 are summarized as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Legal reserve |
|
W |
|
|
|
|
241,202 |
|
|
|
241,202 |
|
Reserve for business rationalization |
|
|
|
|
|
|
918,300 |
|
|
|
918,300 |
|
Reserve for research and manpower development |
|
|
|
|
|
|
1,106,667 |
|
|
|
1,600,000 |
|
Appropriated retained earnings for business expansion |
|
|
|
|
|
|
36,710,500 |
|
|
|
35,510,500 |
|
Appropriated retained earnings for dividends |
|
|
|
|
|
|
1,451,783 |
|
|
|
1,806,570 |
|
Unappropriated retained earnings |
|
|
|
|
|
|
1,434,118 |
|
|
|
1,112,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
41,862,570 |
|
|
|
41,188,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Statements of appropriation of retained earnings as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Retained earnings before appropriation |
|
|
|
|
|
|
|
|
|
|
|
|
Unappropriated retained earnings carried over from prior year |
|
W |
|
|
|
|
280,498 |
|
|
|
219,010 |
|
Remeasurements of defined benefit plans |
|
|
|
|
|
|
38,910 |
|
|
|
(42,464 |
) |
Interests of hybrid bonds |
|
|
|
|
|
|
(43,574 |
) |
|
|
(43,600 |
) |
Interim dividends |
|
|
|
|
|
|
(159,987 |
) |
|
|
(159,568 |
) |
(Dividends (ratio) per share |
|
|
|
|
|
|
|
|
|
|
|
|
W2,000 (40%) in 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
W2,000 (40%) in 2014)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
|
|
|
|
|
|
1,318,271 |
|
|
|
1,138,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,434,118 |
|
|
|
1,112,336 |
|
|
|
|
|
Transfer from discretionary reserve |
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for research and manpower development |
|
|
|
|
|
|
380,000 |
|
|
|
493,333 |
|
Appropriated retained earnings for dividends |
|
|
|
|
|
|
310,393 |
|
|
|
354,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
690,393 |
|
|
|
848,120 |
|
|
|
|
|
Appropriation of retained earnings |
|
|
|
|
|
|
|
|
|
|
|
|
Divedends |
|
|
|
|
|
|
479,974 |
|
|
|
479,958 |
|
(Dividends (ratio) per share |
|
|
|
|
|
|
|
|
|
|
|
|
W6,000 (120%) in 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
W6,000 (120%) in 2014)
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriated retained earnings for business expansion |
|
|
|
|
|
|
1,200,000 |
|
|
|
1,200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,679,974 |
|
|
|
1,679,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unappropriated retained earnings carried forward to subsequent year |
|
W |
|
|
|
|
444,537 |
|
|
|
280,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Details of revenue for the years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Sales of goods |
|
W |
|
|
|
|
25,428,226 |
|
|
|
29,105,087 |
|
Others |
|
|
|
|
|
|
178,995 |
|
|
|
113,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
25,607,221 |
|
|
|
29,218,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29. |
Selling and Administrative Expenses |
(a) |
Administrative expenses |
Administrative expenses for the years ended December 31, 2015 and
2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Wages and salaries |
|
W |
|
|
|
|
213,168 |
|
|
|
204,989 |
|
Expenses related to post-employment benefits |
|
|
|
|
|
|
31,521 |
|
|
|
24,224 |
|
Other employee benefits |
|
|
|
|
|
|
45,401 |
|
|
|
53,388 |
|
Travel |
|
|
|
|
|
|
12,466 |
|
|
|
13,599 |
|
Depreciation |
|
|
|
|
|
|
18,738 |
|
|
|
23,430 |
|
Amortization |
|
|
|
|
|
|
52,649 |
|
|
|
52,923 |
|
Rental |
|
|
|
|
|
|
68,569 |
|
|
|
68,859 |
|
Repairs |
|
|
|
|
|
|
9,288 |
|
|
|
10,918 |
|
Advertising |
|
|
|
|
|
|
73,827 |
|
|
|
85,486 |
|
Research & development ● |
|
|
|
|
|
|
94,074 |
|
|
|
137,433 |
|
Service fees |
|
|
|
|
|
|
187,515 |
|
|
|
184,215 |
|
Supplies |
|
|
|
|
|
|
5,162 |
|
|
|
5,269 |
|
Vehicles maintenance |
|
|
|
|
|
|
6,788 |
|
|
|
7,046 |
|
Industry association fee |
|
|
|
|
|
|
7,235 |
|
|
|
7,252 |
|
Training |
|
|
|
|
|
|
16,996 |
|
|
|
10,157 |
|
Conference |
|
|
|
|
|
|
5,364 |
|
|
|
5,209 |
|
Bad debt expenses |
|
|
|
|
|
|
2,811 |
|
|
|
7,976 |
|
Others |
|
|
|
|
|
|
38,874 |
|
|
|
31,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
890,446 |
|
|
|
933,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
73
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Selling expenses for the years ended December 31, 2015 and 2014 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Freight and custody expenses |
|
W |
|
|
|
|
899,440 |
|
|
|
872,594 |
|
Operating expenses for distribution center |
|
|
|
|
|
|
10,367 |
|
|
|
9,823 |
|
Sales commissions |
|
|
|
|
|
|
79,715 |
|
|
|
79,091 |
|
Sales advertising |
|
|
|
|
|
|
3,102 |
|
|
|
4,698 |
|
Sales promotion |
|
|
|
|
|
|
5,781 |
|
|
|
5,161 |
|
Sample |
|
|
|
|
|
|
1,393 |
|
|
|
1,649 |
|
Sales insurance premium |
|
|
|
|
|
|
5,338 |
|
|
|
6,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,005,136 |
|
|
|
979,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30. |
Research and Development Expenditures Recognized as Expenses |
Research and development expenditures
recognized as expenses for the years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
Selling and administrative expenses |
|
W |
|
|
|
|
94,074 |
|
|
|
137,433 |
|
Cost of sales |
|
|
|
|
|
|
341,582 |
|
|
|
343,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
435,656 |
|
|
|
480,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
74
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
31. |
Finance Income and Costs |
Details of finance income and costs for the years ended December 31, 2015
and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Finance income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
W |
|
|
|
|
91,350 |
|
|
|
93,072 |
|
Dividend income |
|
|
|
|
|
|
450,974 |
|
|
|
348,175 |
|
Gain on foreign currency transactions |
|
|
|
|
|
|
215,134 |
|
|
|
276,374 |
|
Gain on foreign currency translations |
|
|
|
|
|
|
22,765 |
|
|
|
79,956 |
|
Gain on derivative transactions |
|
|
|
|
|
|
67 |
|
|
|
22,973 |
|
Gain on disposals of available-for-sale investments |
|
|
|
|
|
|
58,171 |
|
|
|
226,299 |
|
Others |
|
|
|
|
|
|
57,945 |
|
|
|
3,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
896,406 |
|
|
|
1,050,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses |
|
W |
|
|
|
|
232,130 |
|
|
|
256,636 |
|
Loss on foreign currency transactions |
|
|
|
|
|
|
205,698 |
|
|
|
209,787 |
|
Loss on foreign currency translations |
|
|
|
|
|
|
188,008 |
|
|
|
107,625 |
|
Impairment loss on available-for-sale investments |
|
|
|
|
|
|
100,357 |
|
|
|
352,040 |
|
Others |
|
|
|
|
|
|
8,376 |
|
|
|
88,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
734,569 |
|
|
|
1,014,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
32. |
Other Non-Operating Income and Expenses |
Details of other non-operating income and expenses for the
years ended December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Other non-operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposals of property, plant and equipment |
|
W |
|
|
|
|
11,000 |
|
|
|
8,882 |
|
Gain on disposals of assets held for sale |
|
|
|
|
|
|
409,578 |
|
|
|
|
|
Reversal of allowance for doubtful accounts |
|
|
|
|
|
|
10,235 |
|
|
|
14,453 |
|
Premium income |
|
|
|
|
|
|
14,976 |
|
|
|
2,924 |
|
Others |
|
|
|
|
|
|
19,527 |
|
|
|
20,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
465,316 |
|
|
|
46,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Loss on disposals of property, plant and equipment |
|
W |
|
|
|
|
90,852 |
|
|
|
57,777 |
|
Impairment loss on property, plant and equipment |
|
|
|
|
|
|
70,674 |
|
|
|
30,334 |
|
Impairment loss on investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
327,776 |
|
|
|
209,795 |
|
Loss on disposals of assets held for sale |
|
|
|
|
|
|
209,775 |
|
|
|
14 |
|
Impairment loss on assets held for sale |
|
|
|
|
|
|
95,737 |
|
|
|
|
|
Other bad debt expenses |
|
|
|
|
|
|
51 |
|
|
|
26,082 |
|
Contribution to provisions |
|
|
|
|
|
|
2,174 |
|
|
|
89,844 |
|
Donations |
|
|
|
|
|
|
49,854 |
|
|
|
50,654 |
|
Others(*1,2) |
|
|
|
|
|
|
350,226 |
|
|
|
247,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,197,119 |
|
|
|
712,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company recorded litigation expense of W299,037 million in connection of its settlement with Nippon Steel & Sumitomo Metal Corporation for a civil lawsuit regarding improperly acquired
trade secrets and patents during the year ended December 31, 2015 (Note 37). |
(*2) |
As a result of Korea National Tax Services periodic audit of tax payments and refunds of the Company, the Company recognized additional tax payments amounting to W202,739 million, primarily
related to VAT, for the year ended December 31, 2014. |
76
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Expenses that are recorded by nature as cost of sales, selling and administrative
expenses and other non-operating expenses in the statements of comprehensive income for the years ended December 31, 2015 and 2014 were as follows (excluding finance costs and income tax expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Changes in inventories(*1) |
|
W |
|
|
|
|
433,129 |
|
|
|
(81,303 |
) |
Raw materials and consumables used |
|
|
|
|
|
|
13,785,536 |
|
|
|
17,648,525 |
|
Employee benefits expenses(*3) |
|
|
|
|
|
|
1,580,980 |
|
|
|
1,462,675 |
|
Outsourced processing cost |
|
|
|
|
|
|
2,139,554 |
|
|
|
2,204,385 |
|
Depreciation(*2) |
|
|
|
|
|
|
2,065,521 |
|
|
|
2,067,793 |
|
Amortization |
|
|
|
|
|
|
70,742 |
|
|
|
74,112 |
|
Electricity and water expenses |
|
|
|
|
|
|
897,888 |
|
|
|
1,019,769 |
|
Service fees |
|
|
|
|
|
|
255,944 |
|
|
|
240,493 |
|
Rental |
|
|
|
|
|
|
87,589 |
|
|
|
87,466 |
|
Advertising |
|
|
|
|
|
|
73,827 |
|
|
|
85,486 |
|
Freight and custody expenses |
|
|
|
|
|
|
899,440 |
|
|
|
872,594 |
|
Sales commissions |
|
|
|
|
|
|
79,715 |
|
|
|
79,091 |
|
Loss on disposals of property, plant and equipment |
|
|
|
|
|
|
90,852 |
|
|
|
57,777 |
|
Impairment loss on investments in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
327,776 |
|
|
|
209,795 |
|
Contribution to provisions |
|
|
|
|
|
|
2,174 |
|
|
|
89,844 |
|
Other expenses |
|
|
|
|
|
|
1,775,424 |
|
|
|
1,462,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
24,566,091 |
|
|
|
27,580,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Changes in inventories are the changes in products, semi-finished products and by-products. |
(*2) |
Includes depreciation of investment property. |
(*3) |
The details of employee benefits expenses for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Wages and salaries |
|
W |
|
|
|
|
1,432,605 |
|
|
|
1,327,808 |
|
Expenses related to post-employment benefits |
|
|
|
|
|
|
148,375 |
|
|
|
134,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,580,980 |
|
|
|
1,462,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(a) |
Income tax expense for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Current income taxes(*1) |
|
W |
|
|
|
|
375,615 |
|
|
|
461,029 |
|
Deferred income taxes |
|
|
|
|
|
|
(52,799 |
) |
|
|
13,564 |
|
Items credited directly to equity |
|
|
|
|
|
|
27,196 |
|
|
|
107,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
W |
|
|
|
|
350,012 |
|
|
|
582,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Refund (additional payment) of income taxes when filing a final corporation tax return credited (charged) directly to current income taxes. |
(b) |
The calculated income tax expense based on statutory rates compared to the actual amount of taxes recorded by the Company for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Profit before income tax expense |
|
W |
|
|
|
|
1,668,283 |
|
|
|
1,721,393 |
|
Income tax expense computed at statutory rate |
|
|
|
|
|
|
403,263 |
|
|
|
416,115 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit |
|
|
|
|
|
|
(137,294 |
) |
|
|
(31,947 |
) |
Adjustments on prior year tax from tax audit |
|
|
|
|
|
|
|
|
|
|
15,572 |
|
Under (over) provisions from prior years |
|
|
|
|
|
|
(39,785 |
) |
|
|
(2,957 |
) |
Tax effects due to amendments to local income tax law |
|
|
|
|
|
|
|
|
|
|
38,249 |
|
Investment in subsidiaries, associates and joint ventures |
|
|
|
|
|
|
142,412 |
|
|
|
118,993 |
|
Tax effect due to permanent differences |
|
|
|
|
|
|
(20,803 |
) |
|
|
31,132 |
|
Others |
|
|
|
|
|
|
2,219 |
|
|
|
(2,722 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(53,251 |
) |
|
|
166,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
W |
|
|
|
|
350,012 |
|
|
|
582,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (%) |
|
|
|
|
|
|
21.0 |
% |
|
|
33.8 |
% |
78
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(c) |
The income taxes credited (charged) directly to equity for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Net changes in unrealized fair value of available-for-sale investments |
|
W |
|
|
|
|
39,607 |
|
|
|
98,939 |
|
Remeasurements of defined benefit plans |
|
|
|
|
|
|
(12,423 |
) |
|
|
13,557 |
|
Gain on disposal of treasury shares |
|
|
|
|
|
|
12 |
|
|
|
(4,654 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
27,196 |
|
|
|
107,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
The movements in deferred tax assets (liabilities) for the years ended December 31, 2015 and 2014 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
December 31, 2014 |
|
|
Increase (decrease) |
|
|
December 31, 2015 |
|
|
December 31, 2013 |
|
|
Increase (decrease) |
|
|
December 31, 2014 |
|
Deferred income tax due to temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special repairs |
|
W |
|
|
|
|
(12,413 |
) |
|
|
1,364 |
|
|
|
(11,049 |
) |
|
|
(28,462 |
) |
|
|
16,049 |
|
|
|
(12,413 |
) |
Reserve for technology developments |
|
|
|
|
|
|
(255,713 |
) |
|
|
79,860 |
|
|
|
(175,853 |
) |
|
|
(375,100 |
) |
|
|
119,387 |
|
|
|
(255,713 |
) |
PPE - Depreciation |
|
|
|
|
|
|
(39,151 |
) |
|
|
5,922 |
|
|
|
(33,229 |
) |
|
|
(48,133 |
) |
|
|
8,982 |
|
|
|
(39,151 |
) |
Prepaid expenses |
|
|
|
|
|
|
17,427 |
|
|
|
1,723 |
|
|
|
19,150 |
|
|
|
27,680 |
|
|
|
(10,253 |
) |
|
|
17,427 |
|
PPE - Revaluation |
|
|
|
|
|
|
(1,213,709 |
) |
|
|
(173,622 |
) |
|
|
(1,387,331 |
) |
|
|
(1,002,798 |
) |
|
|
(210,911 |
) |
|
|
(1,213,709 |
) |
Gain or loss on foreign currency translation |
|
|
|
|
|
|
(48,414 |
) |
|
|
40,293 |
|
|
|
(8,121 |
) |
|
|
(174,930 |
) |
|
|
126,516 |
|
|
|
(48,414 |
) |
Defined benefit obligations |
|
|
|
|
|
|
216,146 |
|
|
|
8,233 |
|
|
|
224,379 |
|
|
|
184,389 |
|
|
|
31,757 |
|
|
|
216,146 |
|
Plan assets |
|
|
|
|
|
|
(221,216 |
) |
|
|
(23,820 |
) |
|
|
(245,036 |
) |
|
|
(194,925 |
) |
|
|
(26,291 |
) |
|
|
(221,216 |
) |
Accrued revenue |
|
|
|
|
|
|
(878 |
) |
|
|
(1,282 |
) |
|
|
(2,160 |
) |
|
|
(1,932 |
) |
|
|
1,054 |
|
|
|
(878 |
) |
Impairment loss on AFS |
|
|
|
|
|
|
104,911 |
|
|
|
101,003 |
|
|
|
205,914 |
|
|
|
81,816 |
|
|
|
23,095 |
|
|
|
104,911 |
|
Difference in acquisition costs of treasury stocks |
|
|
|
|
|
|
62,139 |
|
|
|
(23 |
) |
|
|
62,116 |
|
|
|
64,213 |
|
|
|
(2,074 |
) |
|
|
62,139 |
|
Others |
|
|
|
|
|
|
95,170 |
|
|
|
26,698 |
|
|
|
121,868 |
|
|
|
144,399 |
|
|
|
(49,229 |
) |
|
|
95,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,295,701 |
) |
|
|
66,349 |
|
|
|
(1,229,352 |
) |
|
|
(1,323,783 |
) |
|
|
28,082 |
|
|
|
(1,295,701 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax from tax credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit carry-forward |
|
|
|
|
|
|
213,911 |
|
|
|
(40,734 |
) |
|
|
173,177 |
|
|
|
368,053 |
|
|
|
(154,142 |
) |
|
|
213,911 |
|
Deferred income taxes recognized directly to equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes in the unrealized fair value of AFS |
|
|
|
|
|
|
(30,023 |
) |
|
|
39,607 |
|
|
|
9,584 |
|
|
|
(128,962 |
) |
|
|
98,939 |
|
|
|
(30,023 |
) |
Remeasurements of defined benefit plans |
|
|
|
|
|
|
64,147 |
|
|
|
(12,423 |
) |
|
|
51,724 |
|
|
|
50,590 |
|
|
|
13,557 |
|
|
|
64,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,124 |
|
|
|
27,184 |
|
|
|
61,308 |
|
|
|
(78,372 |
) |
|
|
112,496 |
|
|
|
34,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
(1,047,666 |
) |
|
|
52,799 |
|
|
|
(994,867 |
) |
|
|
(1,034,102 |
) |
|
|
(13,564 |
) |
|
|
(1,047,666 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(e) |
Deferred tax assets (liabilities) as of December 31, 2015 and 2014 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Assets |
|
|
Liabilities |
|
|
Net |
|
|
Assets |
|
|
Liabilities |
|
|
Net |
|
Deferred income tax due to temporary differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special repairs |
|
W |
|
|
|
|
|
|
|
|
(11,049 |
) |
|
|
(11,049 |
) |
|
|
|
|
|
|
(12,413 |
) |
|
|
(12,413 |
) |
Reserve for technology developments |
|
|
|
|
|
|
|
|
|
|
(175,853 |
) |
|
|
(175,853 |
) |
|
|
|
|
|
|
(255,713 |
) |
|
|
(255,713 |
) |
PPE - Depreciation |
|
|
|
|
|
|
10,314 |
|
|
|
(43,543 |
) |
|
|
(33,229 |
) |
|
|
12,688 |
|
|
|
(51,839 |
) |
|
|
(39,151 |
) |
Prepaid expenses |
|
|
|
|
|
|
19,150 |
|
|
|
|
|
|
|
19,150 |
|
|
|
17,427 |
|
|
|
|
|
|
|
17,427 |
|
PPE - Revaluation |
|
|
|
|
|
|
|
|
|
|
(1,387,331 |
) |
|
|
(1,387,331 |
) |
|
|
|
|
|
|
(1,213,709 |
) |
|
|
(1,213,709 |
) |
Gain or loss on foreign currency translation |
|
|
|
|
|
|
106,067 |
|
|
|
(114,188 |
) |
|
|
(8,121 |
) |
|
|
74,104 |
|
|
|
(122,518 |
) |
|
|
(48,414 |
) |
Defined benefit obligations |
|
|
|
|
|
|
224,379 |
|
|
|
|
|
|
|
224,379 |
|
|
|
216,146 |
|
|
|
|
|
|
|
216,146 |
|
Plan assets |
|
|
|
|
|
|
|
|
|
|
(245,036 |
) |
|
|
(245,036 |
) |
|
|
|
|
|
|
(221,216 |
) |
|
|
(221,216 |
) |
Accrued revenue |
|
|
|
|
|
|
|
|
|
|
(2,160 |
) |
|
|
(2,160 |
) |
|
|
|
|
|
|
(878 |
) |
|
|
(878 |
) |
Impairment loss on AFS |
|
|
|
|
|
|
205,914 |
|
|
|
|
|
|
|
205,914 |
|
|
|
104,911 |
|
|
|
|
|
|
|
104,911 |
|
Difference in acquisition costs of treasury stocks |
|
|
|
|
|
|
62,116 |
|
|
|
|
|
|
|
62,116 |
|
|
|
62,139 |
|
|
|
|
|
|
|
62,139 |
|
Others |
|
|
|
|
|
|
177,030 |
|
|
|
(55,162 |
) |
|
|
121,868 |
|
|
|
186,164 |
|
|
|
(90,994 |
) |
|
|
95,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
804,970 |
|
|
|
(2,034,322 |
) |
|
|
(1,229,352 |
) |
|
|
673,579 |
|
|
|
(1,969,280 |
) |
|
|
(1,295,701 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax from tax credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax credit carry-forward |
|
|
|
|
|
|
173,177 |
|
|
|
|
|
|
|
173,177 |
|
|
|
213,911 |
|
|
|
|
|
|
|
213,911 |
|
Deferred income taxes recognized directly to equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes in the unrealized fair value of AFS |
|
|
|
|
|
|
39,091 |
|
|
|
(29,507 |
) |
|
|
9,584 |
|
|
|
15,509 |
|
|
|
(45,532 |
) |
|
|
(30,023 |
) |
Remeasurements of defined benefit plans |
|
|
|
|
|
|
51,724 |
|
|
|
|
|
|
|
51,724 |
|
|
|
64,147 |
|
|
|
|
|
|
|
64,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,815 |
|
|
|
(29,507 |
) |
|
|
61,308 |
|
|
|
79,656 |
|
|
|
(45,532 |
) |
|
|
34,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,068,962 |
|
|
|
(2,063,829 |
) |
|
|
(994,867 |
) |
|
|
967,146 |
|
|
|
(2,014,812 |
) |
|
|
(1,047,666 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Basic and diluted earnings per share for the years ended December 31, 2015 and
2014 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won except per share information) |
|
|
|
|
2015 |
|
|
2014 |
|
Profit for the period |
|
W |
|
|
|
|
1,318,271,459,610 |
|
|
|
1,138,958,195,448 |
|
Interests of hybrid bonds |
|
|
|
|
|
|
(33,029,632,499 |
) |
|
|
(33,048,799,997 |
) |
Weighted-average number of common shares outstanding(*1) |
|
|
|
|
|
|
79,993,834 |
|
|
|
79,801,539 |
|
Basic and diluted earnings per share |
|
W |
|
|
|
|
16,067 |
|
|
|
13,858 |
|
(*1) |
The weighted-average number of common shares used to calculate basic and diluted earnings per share are as follows: |
|
|
|
|
|
|
|
|
|
(in share) |
|
2015 |
|
|
2014 |
|
Total number of common shares issued |
|
|
87,186,835 |
|
|
|
87,186,835 |
|
Weighted-average number of treasury shares |
|
|
(7,193,001 |
) |
|
|
(7,385,296 |
) |
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding |
|
|
79,993,834 |
|
|
|
79,801,539 |
|
|
|
|
|
|
|
|
|
|
Since there were no potential shares of common stock which had dilutive effects as of December 31, 2015 and 2014, diluted
earnings per share is equal to basic earnings per share.
81
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
36. |
Related Party Transactions |
(a) |
Significant transactions with related companies for the years ended December 31, 2015 and 2014 were as follows: |
|
1) |
For the year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Sales and others(*1) |
|
|
Purchase and others(*2) |
|
|
|
|
|
|
Sales |
|
|
Others |
|
|
Purchase of material |
|
|
Purchase of fixed assets |
|
|
Outsourced processing cost |
|
|
Others |
|
Subsidiaries(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
4,441 |
|
|
|
145 |
|
|
|
19 |
|
|
|
427,760 |
|
|
|
2,250 |
|
|
|
37,488 |
|
POSCO Processing & Service |
|
|
|
|
|
|
1,074,826 |
|
|
|
24 |
|
|
|
437,626 |
|
|
|
|
|
|
|
|
|
|
|
2,281 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
|
|
|
|
380,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,359 |
|
|
|
104 |
|
POSCO ICT(*4) |
|
|
|
|
|
|
1,259 |
|
|
|
7 |
|
|
|
|
|
|
|
210,877 |
|
|
|
29,612 |
|
|
|
182,745 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
261,989 |
|
|
|
6,501 |
|
|
|
130 |
|
|
|
22,017 |
|
POSCO CHEMTECH |
|
|
|
|
|
|
436,594 |
|
|
|
30,343 |
|
|
|
519,956 |
|
|
|
9,515 |
|
|
|
297,183 |
|
|
|
1,773 |
|
POSCO ENERGY CO., LTD. |
|
|
|
|
|
|
188,458 |
|
|
|
1,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 |
|
POSCO TMC Co., Ltd. |
|
|
|
|
|
|
263,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,497 |
|
|
|
1,560 |
|
POSCO AST |
|
|
|
|
|
|
362,658 |
|
|
|
15 |
|
|
|
4,115 |
|
|
|
|
|
|
|
39,175 |
|
|
|
1,611 |
|
POSHIMETAL Co., Ltd. |
|
|
|
|
|
|
10,777 |
|
|
|
151 |
|
|
|
145,165 |
|
|
|
|
|
|
|
|
|
|
|
46 |
|
Daewoo International Corporation |
|
|
|
|
|
|
3,505,187 |
|
|
|
34,334 |
|
|
|
46,675 |
|
|
|
|
|
|
|
|
|
|
|
480 |
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*5) |
|
|
|
|
|
|
2,811 |
|
|
|
176,904 |
|
|
|
8,239 |
|
|
|
|
|
|
|
515 |
|
|
|
75 |
|
POSCO PLANTEC Co., Ltd.(*5) |
|
|
|
|
|
|
4,280 |
|
|
|
33 |
|
|
|
2,544 |
|
|
|
125,192 |
|
|
|
15,135 |
|
|
|
13,649 |
|
POSCO Thainox Public Company Limited |
|
|
|
|
|
|
268,576 |
|
|
|
10 |
|
|
|
5,147 |
|
|
|
|
|
|
|
|
|
|
|
34 |
|
PT. KRAKATAU POSCO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
118,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO America Corporation |
|
|
|
|
|
|
624,549 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
725 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Asia Co., Ltd. |
|
|
|
|
|
|
1,822,932 |
|
|
|
960 |
|
|
|
269,086 |
|
|
|
|
|
|
|
513 |
|
|
|
2,273 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
|
|
|
|
118,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
220 |
|
POSCO JAPAN Co., Ltd. |
|
|
|
|
|
|
1,051,910 |
|
|
|
9,383 |
|
|
|
25,957 |
|
|
|
2,278 |
|
|
|
201 |
|
|
|
2,754 |
|
POSCO MEXICO S.A. DE C.V. |
|
|
|
|
|
|
270,184 |
|
|
|
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11 |
|
POSCO Maharashtra Steel Private Limited |
|
|
|
|
|
|
421,244 |
|
|
|
752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
|
Others(*6) |
|
|
|
|
|
|
867,334 |
|
|
|
14,474 |
|
|
|
223,393 |
|
|
|
113,769 |
|
|
|
212,539 |
|
|
|
129,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,680,733 |
|
|
|
268,980 |
|
|
|
2,180,042 |
|
|
|
895,892 |
|
|
|
608,109 |
|
|
|
399,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures(*3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.)(*5) |
|
|
|
|
|
|
6,042 |
|
|
|
|
|
|
|
3,802 |
|
|
|
|
|
|
|
419 |
|
|
|
|
|
POSCO PLANTEC Co., Ltd.(*5) |
|
|
|
|
|
|
147 |
|
|
|
14 |
|
|
|
1,017 |
|
|
|
82,338 |
|
|
|
3,513 |
|
|
|
4,676 |
|
SNNC |
|
|
|
|
|
|
4,673 |
|
|
|
594 |
|
|
|
422,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO-SAMSUNG-Slovakia Processing Center |
|
|
|
|
|
|
26,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others(*7,8) |
|
|
|
|
|
|
28,841 |
|
|
|
40,600 |
|
|
|
51,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,082 |
|
|
|
41,208 |
|
|
|
479,094 |
|
|
|
82,338 |
|
|
|
3,932 |
|
|
|
4,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
11,746,815 |
|
|
|
310,188 |
|
|
|
2,659,136 |
|
|
|
978,230 |
|
|
|
612,041 |
|
|
|
404,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
Sales and others mainly consist of sales of steel products to subsidiaries, associates and joint ventures. |
(*2) |
Purchases and others mainly consist of subsidiaries purchases of construction services and purchases of raw materials to manufacture steel products. |
(*3) |
As of December 31, 2015, the Company provided guarantees to related parties (Note 22). |
(*4) |
Others (purchase) mainly consist of service fees related to maintenance and repair of ERP System. |
(*5) |
Reclassified from subsidiaries to associates (Note 11). |
(*6) |
During the year ended December 31, 2015, the Company borrowed USD 17.42 million from POSCO-Uruguay S.A., a subsidiary of the Company, and the entire amount was repaid as of December 31, 2015.
|
82
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(*7) |
During the year ended December 31, 2015, the Company lent USD 60 million to CSP-Compania Siderurgica do Pecem, an associate of the Company, and the entire amount of loan was collected as of December 31,
2015. |
(*8) |
The Company has recovered loans of USD 3.85 million from LLP POSUK Titanium, an associate of the Company during the year ended December 31, 2015 |
|
2) |
For the year ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Sales and others |
|
|
Purchase and others |
|
|
|
|
|
|
Sales |
|
|
Others |
|
|
Purchase of material |
|
|
Purchase of fixed assets |
|
|
Outsourced processing cost |
|
|
Others |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
22,659 |
|
|
|
16,789 |
|
|
|
544,202 |
|
|
|
247,286 |
|
|
|
3,689 |
|
|
|
30,852 |
|
POSCO Processing & Service |
|
|
|
|
|
|
1,075,567 |
|
|
|
8,649 |
|
|
|
785,943 |
|
|
|
|
|
|
|
|
|
|
|
1,681 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
|
|
|
|
444,513 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
12,313 |
|
|
|
195 |
|
POSCO ICT |
|
|
|
|
|
|
929 |
|
|
|
2,593 |
|
|
|
356 |
|
|
|
209,893 |
|
|
|
26,231 |
|
|
|
161,173 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
297,119 |
|
|
|
10,433 |
|
|
|
137 |
|
|
|
21,073 |
|
POSCO CHEMTECH |
|
|
|
|
|
|
532,973 |
|
|
|
26,537 |
|
|
|
513,759 |
|
|
|
5,449 |
|
|
|
301,149 |
|
|
|
923 |
|
POSCO ENERGY CO., LTD. |
|
|
|
|
|
|
177,517 |
|
|
|
1,230 |
|
|
|
|
|
|
|
2,263 |
|
|
|
|
|
|
|
20 |
|
POSCO TMC Co., Ltd. |
|
|
|
|
|
|
240,318 |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
1,056 |
|
|
|
1,611 |
|
POSCO AST |
|
|
|
|
|
|
503,452 |
|
|
|
5 |
|
|
|
10,396 |
|
|
|
|
|
|
|
57,355 |
|
|
|
2,671 |
|
POSHIMETAL Co., Ltd. |
|
|
|
|
|
|
11,261 |
|
|
|
3,660 |
|
|
|
166,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Daewoo International Corporation |
|
|
|
|
|
|
3,558,652 |
|
|
|
20,652 |
|
|
|
90,361 |
|
|
|
|
|
|
|
|
|
|
|
3,857 |
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
|
|
|
|
5,313 |
|
|
|
201,927 |
|
|
|
40,124 |
|
|
|
|
|
|
|
1,939 |
|
|
|
266 |
|
POSCO America Corporation |
|
|
|
|
|
|
747,933 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,794 |
|
POSCO Canada Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
141,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Asia Co., Ltd. |
|
|
|
|
|
|
2,167,148 |
|
|
|
89 |
|
|
|
169,945 |
|
|
|
|
|
|
|
10,006 |
|
|
|
1,969 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
|
|
|
|
79,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19 |
|
POSCO JAPAN Co., Ltd. |
|
|
|
|
|
|
1,329,947 |
|
|
|
4 |
|
|
|
15,165 |
|
|
|
2,269 |
|
|
|
3 |
|
|
|
2,279 |
|
POSCO MEXICO S.A. DE C.V. |
|
|
|
|
|
|
287,468 |
|
|
|
929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
|
|
|
|
444,407 |
|
|
|
6,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
980,410 |
|
|
|
4,149 |
|
|
|
334,577 |
|
|
|
66,345 |
|
|
|
232,682 |
|
|
|
104,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,610,250 |
|
|
|
293,292 |
|
|
|
3,110,156 |
|
|
|
543,938 |
|
|
|
646,560 |
|
|
|
334,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO PLANTEC Co., Ltd.(*2) |
|
|
|
|
|
|
15,310 |
|
|
|
64 |
|
|
|
3,195 |
|
|
|
119,369 |
|
|
|
15,777 |
|
|
|
22,751 |
|
SNNC |
|
|
|
|
|
|
3,077 |
|
|
|
5,716 |
|
|
|
339,991 |
|
|
|
|
|
|
|
|
|
|
|
5 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO-SAMSUNG-Slovakia Processing Center |
|
|
|
|
|
|
24,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others(*1) |
|
|
|
|
|
|
10,785 |
|
|
|
41,903 |
|
|
|
3,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,231 |
|
|
|
47,683 |
|
|
|
406,095 |
|
|
|
119,369 |
|
|
|
15,777 |
|
|
|
22,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
12,663,481 |
|
|
|
340,975 |
|
|
|
3,516,251 |
|
|
|
663,307 |
|
|
|
662,337 |
|
|
|
357,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*1) |
The Company had made loans of USD 3.85 million from LLP POSUK Titanium, an associate of the Company during the year ended December 31, 2014 |
(*2) |
It was reclassified from an associate to a subsidiary. |
83
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(b) |
The related account balances of significant transactions with related companies as of December 31, 2014 and 2015 are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Receivables |
|
|
Payables |
|
|
|
|
|
|
Trade accounts and notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts and notes payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
508 |
|
|
|
30,368 |
|
|
|
30,876 |
|
|
|
|
|
|
|
42,159 |
|
|
|
1,002 |
|
|
|
43,161 |
|
POSCO Processing & Service |
|
|
|
|
|
|
74,985 |
|
|
|
175 |
|
|
|
75,160 |
|
|
|
10,868 |
|
|
|
603 |
|
|
|
|
|
|
|
11,471 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
|
|
|
|
43,669 |
|
|
|
66 |
|
|
|
43,735 |
|
|
|
|
|
|
|
|
|
|
|
1,262 |
|
|
|
1,262 |
|
POSCO ICT |
|
|
|
|
|
|
|
|
|
|
6,832 |
|
|
|
6,832 |
|
|
|
1,060 |
|
|
|
94,865 |
|
|
|
5,880 |
|
|
|
101,805 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,683 |
|
|
|
14,209 |
|
|
|
12 |
|
|
|
22,904 |
|
POSCO CHEMTECH |
|
|
|
|
|
|
32,670 |
|
|
|
4,500 |
|
|
|
37,170 |
|
|
|
54,636 |
|
|
|
11,398 |
|
|
|
18,062 |
|
|
|
84,096 |
|
POSCO ENERGY CO., LTD. |
|
|
|
|
|
|
18,680 |
|
|
|
2,585 |
|
|
|
21,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO TMC Co., Ltd. |
|
|
|
|
|
|
63,521 |
|
|
|
31 |
|
|
|
63,552 |
|
|
|
|
|
|
|
180 |
|
|
|
195 |
|
|
|
375 |
|
POSCO AST |
|
|
|
|
|
|
54,844 |
|
|
|
54 |
|
|
|
54,898 |
|
|
|
|
|
|
|
1,915 |
|
|
|
3,294 |
|
|
|
5,209 |
|
POSHIMETAL Co., Ltd. |
|
|
|
|
|
|
707 |
|
|
|
9 |
|
|
|
716 |
|
|
|
|
|
|
|
10,148 |
|
|
|
|
|
|
|
10,148 |
|
Daewoo International Corporation |
|
|
|
|
|
|
144,970 |
|
|
|
|
|
|
|
144,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Thainox Public Company Limited |
|
|
|
|
|
|
65,152 |
|
|
|
2 |
|
|
|
65,154 |
|
|
|
542 |
|
|
|
|
|
|
|
|
|
|
|
542 |
|
POSCO America Corporation |
|
|
|
|
|
|
38,715 |
|
|
|
|
|
|
|
38,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Asia Co., Ltd. |
|
|
|
|
|
|
299,608 |
|
|
|
235 |
|
|
|
299,843 |
|
|
|
21,198 |
|
|
|
69 |
|
|
|
|
|
|
|
21,267 |
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
|
|
|
|
16,689 |
|
|
|
|
|
|
|
16,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
|
|
|
|
94,588 |
|
|
|
|
|
|
|
94,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
|
|
|
|
205,390 |
|
|
|
20 |
|
|
|
205,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
172,019 |
|
|
|
5,035 |
|
|
|
177,054 |
|
|
|
18,208 |
|
|
|
45,476 |
|
|
|
23,985 |
|
|
|
87,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,326,715 |
|
|
|
49,912 |
|
|
|
1,376,627 |
|
|
|
115,195 |
|
|
|
221,022 |
|
|
|
53,692 |
|
|
|
389,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
|
|
|
|
1,201 |
|
|
|
|
|
|
|
1,201 |
|
|
|
161 |
|
|
|
15 |
|
|
|
|
|
|
|
176 |
|
POSCO PLANTEC Co., Ltd. |
|
|
|
|
|
|
123 |
|
|
|
19 |
|
|
|
142 |
|
|
|
1,901 |
|
|
|
46,159 |
|
|
|
|
|
|
|
48,060 |
|
SNNC |
|
|
|
|
|
|
298 |
|
|
|
20 |
|
|
|
318 |
|
|
|
639 |
|
|
|
2 |
|
|
|
|
|
|
|
641 |
|
Others |
|
|
|
|
|
|
740 |
|
|
|
12,200 |
|
|
|
12,940 |
|
|
|
|
|
|
|
145 |
|
|
|
|
|
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,362 |
|
|
|
12,239 |
|
|
|
14,601 |
|
|
|
2,701 |
|
|
|
46,321 |
|
|
|
|
|
|
|
49,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,329,077 |
|
|
|
62,151 |
|
|
|
1,391,228 |
|
|
|
117,896 |
|
|
|
267,343 |
|
|
|
53,692 |
|
|
|
438,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
Receivables |
|
|
Payables |
|
|
|
|
|
|
Trade accounts and notes receivable |
|
|
Others |
|
|
Total |
|
|
Trade accounts and notes payable |
|
|
Accounts payable |
|
|
Others |
|
|
Total |
|
Subsidiaries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO ENGINEERING & CONSTRUCTION., LTD. |
|
W |
|
|
|
|
42 |
|
|
|
71,967 |
|
|
|
72,009 |
|
|
|
|
|
|
|
41,878 |
|
|
|
|
|
|
|
41,878 |
|
POSCO Processing & Service |
|
|
|
|
|
|
94,790 |
|
|
|
92 |
|
|
|
94,882 |
|
|
|
15,202 |
|
|
|
867 |
|
|
|
|
|
|
|
16,069 |
|
POSCO COATED & COLOR STEEL Co., Ltd. |
|
|
|
|
|
|
69,314 |
|
|
|
67 |
|
|
|
69,381 |
|
|
|
|
|
|
|
5 |
|
|
|
1,936 |
|
|
|
1,941 |
|
POSCO ICT |
|
|
|
|
|
|
13 |
|
|
|
103 |
|
|
|
116 |
|
|
|
920 |
|
|
|
70,823 |
|
|
|
5,425 |
|
|
|
77,168 |
|
eNtoB Corporation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,564 |
|
|
|
28,432 |
|
|
|
43 |
|
|
|
41,039 |
|
POSCO CHEMTECH |
|
|
|
|
|
|
49,456 |
|
|
|
4,283 |
|
|
|
53,739 |
|
|
|
57,610 |
|
|
|
9,890 |
|
|
|
17,864 |
|
|
|
85,364 |
|
POSCO ENERGY CO., LTD. |
|
|
|
|
|
|
17,326 |
|
|
|
2,809 |
|
|
|
20,135 |
|
|
|
|
|
|
|
|
|
|
|
1,962 |
|
|
|
1,962 |
|
POSCO TMC Co., Ltd. |
|
|
|
|
|
|
27,429 |
|
|
|
30 |
|
|
|
27,459 |
|
|
|
|
|
|
|
117 |
|
|
|
115 |
|
|
|
232 |
|
POSCO AST |
|
|
|
|
|
|
44,281 |
|
|
|
54 |
|
|
|
44,335 |
|
|
|
|
|
|
|
2,458 |
|
|
|
3,364 |
|
|
|
5,822 |
|
POSHIMETAL Co., Ltd. |
|
|
|
|
|
|
1,269 |
|
|
|
14 |
|
|
|
1,283 |
|
|
|
|
|
|
|
12,846 |
|
|
|
|
|
|
|
12,846 |
|
Daewoo International Corporation |
|
|
|
|
|
|
164,029 |
|
|
|
3,178 |
|
|
|
167,207 |
|
|
|
8 |
|
|
|
210 |
|
|
|
1 |
|
|
|
219 |
|
SeAH Changwon Integrated Special Steel (formerly, POSCO Specialty Steel Co., Ltd.) |
|
|
|
|
|
|
822 |
|
|
|
201,823 |
|
|
|
202,645 |
|
|
|
4,800 |
|
|
|
140 |
|
|
|
184 |
|
|
|
5,124 |
|
POSCO America Corporation |
|
|
|
|
|
|
57,164 |
|
|
|
|
|
|
|
57,164 |
|
|
|
|
|
|
|
1,511 |
|
|
|
|
|
|
|
1,511 |
|
POSCO Asia Co., Ltd. |
|
|
|
|
|
|
197,104 |
|
|
|
221 |
|
|
|
197,325 |
|
|
|
10,995 |
|
|
|
|
|
|
|
|
|
|
|
10,995 |
|
POSCO (Thailand) Company Limited |
|
|
|
|
|
|
7,407 |
|
|
|
266 |
|
|
|
7,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Qingdao Pohang Stainless Steel Co., Ltd. |
|
|
|
|
|
|
14,748 |
|
|
|
41 |
|
|
|
14,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO MEXICO S.A. DE C.V. |
|
|
|
|
|
|
96,800 |
|
|
|
|
|
|
|
96,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POSCO Maharashtra Steel Private Limited |
|
|
|
|
|
|
364,899 |
|
|
|
7,714 |
|
|
|
372,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
175,567 |
|
|
|
58,592 |
|
|
|
234,159 |
|
|
|
15,494 |
|
|
|
75,051 |
|
|
|
29,076 |
|
|
|
119,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,382,460 |
|
|
|
351,254 |
|
|
|
1,733,714 |
|
|
|
117,593 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
421,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associates and jointventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SNNC |
|
|
|
|
|
|
219 |
|
|
|
125 |
|
|
|
344 |
|
|
|
7,017 |
|
|
|
|
|
|
|
|
|
|
|
7,017 |
|
POSCHROME (PROPRIETARY) LIMITED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,162 |
|
|
|
|
|
|
|
|
|
|
|
1,162 |
|
LLP POSUK Titanium |
|
|
|
|
|
|
|
|
|
|
4,235 |
|
|
|
4,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
|
|
|
258 |
|
|
|
18 |
|
|
|
276 |
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477 |
|
|
|
4,378 |
|
|
|
4,855 |
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
8,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
1,382,937 |
|
|
|
355,632 |
|
|
|
1,738,569 |
|
|
|
126,006 |
|
|
|
244,228 |
|
|
|
59,970 |
|
|
|
430,204 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) |
For the years ended December 31, 2015 and 2014, details of compensation to key management officers were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Short -term benefits |
|
W |
|
|
|
|
35,459 |
|
|
|
31,984 |
|
Long-term benefits |
|
|
|
|
|
|
11,304 |
|
|
|
12,387 |
|
Retirement benefits |
|
|
|
|
|
|
10,238 |
|
|
|
6,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
57,001 |
|
|
|
50,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key management officers include directors (including non-standing directors), executive officials and fellow
officials who have significant influence and responsibilities in the Companys business and operations.
85
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
37. |
Commitments and Contingencies |
(a) |
Contingent liabilities |
Contingent liabilities may develop in a way not initially expected.
Therefore, management continuously assesses contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. If it becomes probable that an outflow of future economic benefits will be required for
an item previously dealt with as a contingent liability, a provision is recognized in the financial statements of the period in which the change in probability occurs (except in the extremely rare circumstances where no reliable estimate can be
made).
The management makes estimates and assumptions that affect disclosures of commitments and contingencies. All estimates and
assumptions are based on the evaluation of current circumstances and appraisals with the supports of internal specialists or external consultants.
The management regularly analyzes current information about these matters and provides for probable contingent losses including the estimate of
legal expense to resolve the matters. Internal and external lawyers are used for these assessments. In making the decision regarding the need for provisions, management considers whether the Company has an obligation as a result of a past event,
whether it is probable that an outflow or cash or other resources embodying economic benefits will be required to settle the obligation and the ability to make a reliable estimate of the amount of obligation.
The Company entered into long-term contracts to purchase iron ore, coal, nickel
and others. The contracts of iron ore and coal generally have terms of more than three years and the contracts of nickel have terms of more than one year. These contracts provide for periodic price adjustments based on the market price. As of
December 31, 2015, 166 million tons of iron ore and 26 million tons of coal remained to be purchased under such long-term contracts.
The Company entered into an agreement with Tangguh Liquefied Natural Gas (LNG) Consortium in Indonesia to purchase 550 thousand tons of
LNG annually for 20 years commencing in August 2005. The purchase price is subject to change, based on changes of the monthly standard oil price (JCC) and with a price ceiling.
As of December 31, 2015, the Company entered into commitments with Korea National Oil Corporation for long-term foreign currency
borrowings, which enables the Company to borrow up to the amount of USD 24.50 million, USD 8.25 million and USD 6.49 million. The borrowings are related to the Companys exploration of gas hydrates in Aral Sea, Uzbekistan, the
exploration of gas hydrates in Namangan-Chust and the exploration of gas hydrates in Western Fergana-Chenavard, respectively. The repayment of the borrowings depends on the success of the projects. The Company is not liable for the repayment of full
or part of the amount borrowed if the respective projects fail. The Company has agreed to pay a certain portion of its profits under certain conditions, as defined by the borrowing agreements. As of December 31, 2015, the ending balance of the
borrowing amounts to USD 12.35 million.
(c) |
As of December 31, 2015, the Company has provided two blank checks to Korea Resources Corporation as collateral for long-term domestic borrowings, and has provided six blank promissory notes and three blank checks
to Korea National Oil Corporation as collateral for long-term foreign currency borrowings. |
86
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
(d) |
Litigation in progress |
|
1) |
Civil lawsuits with Nippon Steel & Sumitomo Metal Corporation |
In April 2012, Nippon
Steel & Sumitomo Metal Corporation (NSSMC) filed a civil lawsuit in the Tokyo District Court of Japan against POSCO and POSCO JAPAN Co., Ltd., a subsidiary of POSCO, alleging violation of trade secrets and seeking prohibition on
production and sales of grain oriented electrical steel sheets and compensation from the Company of W958.4 billion. On September 30, 2015, pursuant to the agreement between POSCO and NSSMC, the pending lawsuit filed by
NSSMC was withdrawn, along with all related lawsuits to strengthen the strategic partnership between the two companies. On the same date, the Company paid W299 billion as the settlement to NSSMC, therefore all litigations were
withdrawn and closed.
|
2) |
Other lawsuits and claims |
The Company is involved in 36 litigations for alleged damages
aggregating to W128.3 billion as of December 31, 2015 which arose in the ordinary course of business. The Company has recognized provisions for 1 of 36 litigations amounting to W0.4 billion by estimating the
outcome of such litigations reasonably. Except the one litigation, the Company has not recognized any provisions since the Company believes that it does not have a present obligation on other litigations as of December 31, 2015.
(e) |
The Company has provided a supplemental funding agreement, as the largest shareholder, as requested from the creditors, including Norddeutsche Landesbank, for seamless funding to the construction of new power plant by
POSCO Energy Co., Ltd. |
87
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
38. |
Cash Flows from Operating Activities |
Changes in operating assets and liabilities for the years ended
December 31, 2015 and 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Trade accounts and notes receivable, net |
|
W |
|
|
|
|
413,310 |
|
|
|
213,875 |
|
Other accounts receivable |
|
|
|
|
|
|
173,294 |
|
|
|
(84,958 |
) |
Inventories |
|
|
|
|
|
|
941,293 |
|
|
|
(4,956 |
) |
Prepaid expenses |
|
|
|
|
|
|
2,271 |
|
|
|
(317 |
) |
Other current assets |
|
|
|
|
|
|
1,466 |
|
|
|
136,875 |
|
Long-term guarantee deposits |
|
|
|
|
|
|
(142 |
) |
|
|
(297 |
) |
Other long-term assets |
|
|
|
|
|
|
401 |
|
|
|
|
|
Trade accounts and notes payable |
|
|
|
|
|
|
(198,411 |
) |
|
|
42,711 |
|
Other accounts payable |
|
|
|
|
|
|
(180,727 |
) |
|
|
(65,758 |
) |
Accrued expenses |
|
|
|
|
|
|
7,938 |
|
|
|
104,423 |
|
Advances received |
|
|
|
|
|
|
(1,738 |
) |
|
|
67,968 |
|
Withholdings |
|
|
|
|
|
|
2,429 |
|
|
|
2,513 |
|
Unearned revenue |
|
|
|
|
|
|
16,800 |
|
|
|
(385 |
) |
Other long-term liabilities |
|
|
|
|
|
|
(36,523 |
) |
|
|
8,109 |
|
Derivatives liabilities |
|
|
|
|
|
|
|
|
|
|
(36,964 |
) |
Payment severance benefits |
|
|
|
|
|
|
(84,492 |
) |
|
|
(84,600 |
) |
Plan assets |
|
|
|
|
|
|
(59,044 |
) |
|
|
(100,285 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
W |
|
|
|
|
998,125 |
|
|
|
197,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39. |
Non-Cash Transactions |
Significant non-cash transactions for the years ended December 31, 2015 and
2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Won) |
|
|
|
|
2015 |
|
|
2014 |
|
Financial guarantee liabilities |
|
W |
|
|
|
|
43,573 |
|
|
|
7,730 |
|
Investment in subsidiaries transferred to assets held for sale |
|
|
|
|
|
|
518,204 |
|
|
|
468,443 |
|
Available-for-sale investment transferred to assets held for sale |
|
|
|
|
|
|
|
|
|
|
580,062 |
|
Acquisition of available-for-sale investment through exchanging shares |
|
|
|
|
|
|
295,398 |
|
|
|
|
|
Investments in subsidiary by contribution of property, plant and equipment |
|
|
|
|
|
|
|
|
|
|
558,915 |
|
88
POSCO
Notes to the Separate Financial Statements, Continued
As of December 31, 2015 and 2014
Notice to Readers
This report is annexed
in relation to the audit of the separate financial statements as of December 31, 2015 and the review of internal accounting control system pursuant to Article 2-3 of the Act on External Audit for Joint-stock Companies of the Republic of Korea.
89
POSCO
Notes to the Separate Financial Statements
As of
December 31, 2015 and 2014
Independent Auditors Review Report on Internal Accounting Control System
English Translation of a Report Originally Issued in Korean
To the President of
POSCO:
We have reviewed the accompanying Report on the Operations of Internal Accounting Control System (IACS) of POSCO (the Company) as of
December 31, 2015. The Companys management is responsible for designing and maintaining effective IACS and for its assessment of the effectiveness of IACS. Our responsibility is to review managements assessment and issue a report
based on our review. In the accompanying report of managements assessment of IACS, the Companys management stated: Based on the assessment on the operations of the IACS, the Companys IACS has been effectively designed and is
operating as of December 31, 2015, in all material respects, in accordance with the IACS Standards issued by the IACS Operations Committee.
We
conducted our review in accordance with IACS Review Standards, issued by the Korean Institute of Certified Public Accountants. Those Standards require that we plan and perform the review to obtain assurance of a level less than that of an audit as
to whether Report on the Operations of Internal Accounting Control System is free of material misstatement. Our review consists principally of obtaining an understanding of the Companys IACS, inquiries of company personnel about the details of
the report, and tracing to related documents we considered necessary in the circumstances. We have not performed an audit and, accordingly, we do not express an audit opinion.
A companys IACS is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in conformity with Korean International Financial Reporting Standards. Because of its inherent limitations, however, IACS may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Based on our review, nothing has come to our attention that Report on the Operations of Internal Accounting Control System as of December 31, 2015 is not
prepared in all material respects, in accordance with IACS Framework issued by the Internal Accounting Control System Operation Committee.
This report
applies to the Companys IACS in existence as of December 31, 2015. We did not review the Companys IACS subsequent to December 31, 2015. This report has been prepared for Korean regulatory purposes, pursuant to the External
Audit Law, and may not be appropriate for other purposes or for other users.
Seoul, Korea
February 25, 2016
90
Report on the Operations of Internal Accounting Control System
English Translation of a Report Originally Issued in Korean
Report on the Operations of Internal Accounting Control System
To the Board of Directors and Audit Committee of
POSCO:
I, as the Internal Accounting Control Officer (IACO) of POSCO (the Company), have assessed the status of the design and operations of
the Companys internal accounting control system (IACS) as of December 31, 2015.
The Companys management, including IACO, is
responsible for the design and operations of its IACS. I, as the IACO, have assessed whether the IACS has been effectively designed and is operating to prevent and detect any error or fraud which may cause any misstatement of the financial
statements, for the purpose of establishing the reliability of financial statement preparation and presentation for external uses. I, as the IACO, applied the IACS Standards established by the IACS Operations Committee for the assessment of design
and operations of the IACS.
Based on the assessment of the operations of the IACS, the Companys IACS has been effectively designed and is operating
as of December 31, 2015, in all material respects, in accordance with the IACS Standards issued by the IACS Operations Committee.
January 26, 2016
|
|
Kwon, Oh-Joon, Chief Executive Officer |
|
|
Lee, Young-Hoon, Internal Accounting Control Officer |
91
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