Kia 2001 Annual Report Download - page 27
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Please find page 27 of the 2001 Kia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Marketable investment equity securities as of December 31, 2001 consist of the following:
Marketable investment equity securities were stated at fair value and the difference of 189,455 million
($142,866 thousand) between book value and fair value was recorded as gain on valuation of invest-
ments equity securities in capital adjustments, excluding 1,515 million ($1,142 thousand) of treasury
stock included in the treasury stock fund which was recorded in treasury stock in capital adjustments as
of December 31, 2001.
Marketable equity securities as of December 31, 2000 consist of the following:
Marketable investment equity securities were stated at fair value and the difference of 4,307 million
($3,248 thousand) between book value and fair value was recorded as loss on valuation of investments
equity securities in capital adjustments, excluding 1,592 million ($1,201 thousand) of treasury stock
included in the treasury stock fund which was recorded in treasury stock in capital adjustments and the
difference of 11,901 million ($8,974 thousand) between book value and fair value of Stock Market
Stabilization Fund as of December 31, 2000.
Companies Acquisition cost Book value Book value Percentage of
Ownership
Korean won (In millions) U.S. dollars (Note2)(in thousands)
Companies Acquisition cost Book value Book value Percentage of
Ownership
Korean won (In millions) U.S. dollars (Note2)(in thousands)
Financial Statements & Notes
50 51
(*) Excluded from using the equity method as individual beginning balance of assets are less than the
required assets level of 7,000 million or the period of operation since the investee's inception is
less than one year and the differences arising from the use of the equity method are not considered
material which are stated at cost.
The difference between the acquisition cost and the Company's portion of an investee's net equity at the
date the Company was considered to be able to exercise significant influence over the operating and
financial policy of an investee is amortized (positive goodwill) or reversed (negative goodwill) over 5
years, using the straight-line method. As of December 31, 2001, the unamortized balance of the positive
goodwill was 30,783 million ($23,213 thousand) and the unreversed balance of the negative goodwill
was 122,431 million ($92,324 thousand). As of December 31, 2000, the unamortized balance of the
positive goodwill was 7,788 million ($5,873 thousand) and the unreversed balance of the negative
goodwill was 127,353 million ($96,036 thousand). Significant unrealized profit (loss) on intercompany
transactions is eliminated.
In 2000, the Company resumed applying the equity method for investments in Kia Japan Co., Ltd and
Kia Motors America Inc., since capital increases on those investees' were made in excess of their accu-
mulated deficits. The Company recognized those investees' cumulative losses attributable to the
Company but not recorded after the discontinuance of use of the equity method, by charging the losses
to the value of investment securities and accumulated deficit.
As of December 31, 2001, the difference between acquisition cost and equity value of 178,383 million
($134,517 thousand) was accounted for as a charge to beginning accumulated deficit for 29,721 mil-
lion ($22,412 thousand) up to prior year, a charge to accumulated deficit for 146,954 million ($110,817
thousand) in the current year, gain on valuation of 11,996 million ($9,046 thousand) reflected in current
operations, and loss on valuation of investment equity securities of 13,704 million ($10,334 thousand)
reflected in capital adjustments.
As of December 31, 2000, the difference between acquisition cost and equity value of 37,301 million
(28,128 thousand) was accounted for as a credit to beginning accumulated deficit for 12,263 million
(9,247 thousand) up to prior year, a charge to accumulated deficit for 67,750 million (51,089 thou-
sand) in the current year, gain on valuation of 25,765 million (19,429 thousand) reflected in current
operations, and loss on valuation of investment equity securities of 7,579 million (5,715 thousand)
reflected in capital adjustments.
The value of investments in equity securities of Kia Motors Deutchland GmbH and Asia Motors Do Brasil
SA has declined and is not expected to recover; accordingly, the difference between the book value and
the fair value has been charged to current operations in 1998 as an investment impairment loss. The
book value of these investments is zero and the net equity value has not been recovered as of
December 31, 2001. In addition, although the capital injection in Kia Motors Deutchland GmbH by the
Company was made in 2001, the increased capital was accounted for as a charge to accumulated
deficit, since such amount was less than the accumulated losses not recognized during the period of
suspending the valuation of investment using the equity method.
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
NOTES TO NON-CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001 AND 2000
70,046 261,919 $ 197,511 17.55%
67,680 55,338 41,730 11.52%
10,056 15,191 11,455 0.59%
96 130 98 0.52%
346 120 90 0.38%
14,843 21,173 15,967 -
2,000 485 366 -
165,067 354,356 267,217
Hyundai MOBIS
I INI Steel Co., Ltd.
LG. Telecom. Co., Ltd.
Kia Steel Co., Ltd.
Kanglim Co., Ltd.
Stock Market Stabilization Fund
Treasury Stock Funds
79,751 78,654 59,312 19.99%
96 100 75 1.36%
3,491 2,037 1,536 0.59%
346 115 87 0.38%
25,145 13,244 9,987
2,000 408 308
110,829 94,558 71,305
Hyundai MOBIS
Kia Steel Co., Ltd.
LG. Telecom. Co., Ltd.
Kanglim Co., Ltd.
Stock Market Stabilization Fund
Treasury Stock Funds