LG Display Co., Ltd. (ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory)

8.	Investments in Equity Accounted Investees

(a)

Associates at the reporting date are as follows:

(In millions of won)

Associates

Location

Fiscal

year end

Date of
incorporation

Business

2016

2017

Percentage
of
ownership

Carrying
amount

Percentage
of
ownership

Carrying
amount

Paju Electric Glass Co., Ltd.

Paju,

South Korea

December 31

January

2005

Manufacture electric glass for FPDs

40%

W 52,750

40%

W 46,511

New Optics Ltd.(*1)

Yangju,

South Korea

December 31

August

2005

Manufacture back light parts for TFT-LCDs

46%

40,045

—

INVENIA Co., Ltd.

Seongnam,

South Korea

December 31

January

2001

Develop and manufacture equipment for FPDs

13%

2,450

13%

2,887

WooRee E&L Co., Ltd.

Ansan,

South Korea

December 31

June

2008

Manufacture LED back light unit packages

14%

8,627

14%

7,270

LB Gemini New Growth Fund No. 16 (*2)

Seoul,

South Korea

December 31

December

2009

Invest in small and middle sized companies and benefit from M&A opportunities

31%

8,647

31%

5,910

Can Yang Investments Limited (*1)(*3)

Hong Kong

December 31

January

2010

Develop, manufacture and sell LED parts

5,580

—

YAS Co., Ltd. (*4)

Paju,

South Korea

December 31

April

2002

Develop and manufacture deposition equipment for OLEDs

18%

9,883

15%

15,888

(In millions of won)

Associates

Location

Fiscal

year end

Date of
incorporation

Business

2016

2017

Percentage
of
ownership

Carrying
amount

Percentage
of
ownership

Carrying
amount

Narenanotech

Corporation (*1)

Yongin,

South Korea

December 31

December 1995

Manufacture and sell FPD manufacturing equipment

23%

W23,717

—

W —

AVATEC Co., Ltd.

Daegu,

South Korea

December 31

August

2000

Process and sell electric glass for FPDs

17%

20,984

17%

23,732

Arctic Sentinel, Inc.

Los Angeles, U.S.A.

March 31

June

2008

Develop and manufacture

tablet for kids

10%

—

10%

—

CYNORA GmbH (*5)

Bruchsal,

Germany

December 31

March

2003

Develop organic emitting materials for displays and lighting devices

—

14%

20,309

W172,683

W122,507

Although the Controlling Company’s share interests in INVENIA Co., Ltd., WooRee E&L Co., Ltd., YAS Co., Ltd., AVATEC Co., Ltd., Arctic Sentinel, Inc. and Cynora GmbH are below 20% as of December 31, 2017, the Controlling Company is able to exercise significant influence through its right to appoint a director to the board of directors of each investee or the transactions between the Controlling Company and the investees are significant. Accordingly, the investments in these investees have been accounted for using the equity method.

(*1)	During the year ended December 31, 2017, the Controlling Company disposed of the entire investments in New Optics Ltd., Can Yang Investments Limited and Narenanotech Corporation.

(*2)

The Controlling Company is a member of a limited partnership in the LB Gemini New Growth Fund No.16 (“the Fund”). During the year ended December 31, 2017, the Controlling Company received W2,076 million from the Fund as capital distribution and there were no changes in the Controlling Company’s ownership percentage in the Fund. On the other hand, a resolution to dissolve the fund was approved at the general meeting and the fund is in process of liquidation as of December 31, 2017.

(*3)	The Controlling Company recognized an impairment loss of W4,234 million as finance cost for the difference between the carrying amount and the recoverable amount of investments in Can Yang Investments Limited.

(*4)	In 2017, the Controlling Company’s ownership percentage in YAS Co., Ltd. decreased from 18% to 15% as the Controlling Company did not participate in the capital increase of YAS Co., Ltd.

(*5)	In September 2017, the Controlling Company invested W20,309 million in cash and acquired 88,584 shares of preferred stock with voting rights in CYNORA GmbH.

As of December 31, 2017, the market value for the Controlling Company’s investments in INVENIA Co., Ltd., WooRee E&L Co., Ltd., YAS Co., Ltd., and AVATEC Co., Ltd., all of which are listed in KOSDAQ, are W12,870 million, W7,038 million, W54,500 million and W20,670 million, respectively.

Dividends received from a joint venture and equity method investees for the years ended December 31, 2015, 2016 and 2017 amounted to W25,577 million, W59,820 million and W8,639 million, respectively.

(b)

Summary of financial information of the significant associate as of December 31, 2016 and 2017 and for the years ended December 31, 2015, 2016 and 2017 is as follows:

(i) Paju Electric Glass Co., Ltd.


(In millions of won)	December 31, 2016		December 31, 2017
Total assets	W	225,086		193,584
Current assets		182,656		146,702
Non-current assets		42,430		46,882
Total liabilities		91,364		77,174
Current liabilities		87,116		71,973
Non-current liabilities		4,248		5,201


(In millions of won)	2015			2016		2017
Revenue	W	491,329			549,559		408,846
Profit for the year		14,729			21,082		12,327
Other comprehensive income (loss)		(51	)		16,477		(9,366	)
Total comprehensive income		14,678			37,559		2,961

(c)

Reconciliation from financial information of the significant associate to its carrying value in the consolidated financial statements at the reporting date is as follows:

(i) As of December 31, 2016


(In millions of won)
Company	Net asset		Ownership interest			Net asset (applying ownership interest)		Goodwill		Intra-group transaction			Book value
Paju Electric Glass Co., Ltd.	W	133,722		40	%		53,489		—		(739	)		52,750

(ii) As of December 31, 2017


(In millions of won)
Company	Net asset		Ownership interest			Net asset (applying ownership interest)		Goodwill		Intra-group transaction			Book value
Paju Electric Glass Co., Ltd.	W	116,410		40	%		46,564		—		(53	)		46,511

(d)

Book value of other associates, in aggregate, as of December 31, 2016 and 2017 is as follows:

(i) As of December 31, 2016


(In millions of won)
	Book value		Net profit (loss) of associates (applying ownership interest)
	Book value		Profit (loss) for the year			Other comprehensive income (loss)			Total comprehensive income (loss)
Other associates		119,933		(2,983	)		(14,197	)		(17,180	)

(ii) As of December 31, 2017

(In millions of won)

Book value

Net profit (loss) of associates
(applying ownership interest)

Profit (loss)
for the year

Other
comprehensive
income (loss)

Total
comprehensive
income (loss)

Other associates

75,996

3,943

5,093

9,036

(e)

Changes in investments in associates and a joint venture accounted for using the equity method for the years ended December 31, 2016 and 2017 are as follows:


(In millions of won)
		2016
Company		January 1		Acquisition/ Disposal			Dividends received			Equity income (loss) on investments			Other comprehensive income (loss)			Other gain (loss)			December 31
Joint ventures	Suzhou Raken Technology Co., Ltd.	W	145,731		(121,204	)		(29,902	)		2,985			2,390			—			—
Associates	Paju Electric Glass Co., Ltd.		58,852		—			(21,030	)		8,337			6,591			—			52,750
	Others		180,172		(28,034	)		(8,888	)		(2,983	)		(14,197	)		(6,137	)		119,933

		W	384,755		(149,238	)		(59,820	)		8,339			(5,216	)		(6,137	)		172,683



(In millions of won)
		2017
Company		January 1		Acquisition/ Disposal			Dividends received			Equity income (loss) on investments			Other comprehensive income (loss)			Other gain (loss)			December 31
Associates	Paju Electric Glass Co., Ltd.		52,750		—			(8,109	)		5,617			(3,747	)		—			46,511
	Others	W	119,933		(48,209	)		(530	)		3,943			5,093			(4,234	)		75,996

			172,683		(48,209	)		(8,639	)		9,560			1,346			(4,234	)		122,507

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

ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory