Kia 2003 Annual Report Download - page 61

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2003 Annual Report 61
Available-for-sale securities are valued at fair value. However, available-for-sale securities that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured are valued at cost. The difference between the book value and the acquisition cost of
available-for-sale securities, amounting to ￦966,854 million (US$807,192 thousand) as of December 31, 2003, consist of gain on valuation of
long-term investment securities of ￦969,404 million (US$809,320 million) reflected in capital adjustments and an impairment loss of
investment of ￦2,550 million (US$2,129 thousand) in 2002.
(3) Held-to-maturity securities as of December 31, 2003 consist of the following :
As the interest rates and repayment periods of corporate bonds were changed by mutual agreement in 1999, the difference between nominal
value and present value was presented as bad debt expense, and amortized using the effective interest method over the remaining period.
Maturities of held-to-maturity securities are as follows :
(4) The Company has pledged the following long-term investment securities as collateral for various short-term and long-term borrowings as
of December 31, 2003 :
Acquisition cost Present value discount Book value Book value
Korean won (in millions)
U.S. dollars (Note 2)
(in thousands)
Government and municipal bonds
Corporate bonds:
Acrowave Co., Ltd.
Subordinated bonds:
Seoul Guarantee Insurance Company
10,213
89
16,200
26,502
-
-
5,234
5,234
10,213
89
10,966
21,268
8,526
74
9,156
17,756
￦
￦
￦
￦
￦
￦
＄
＄
Maturity
2003Maturity 2003
Korean won (in millions) U.S. dollars (Note 2) (in thousands)
1 ~ 5 years
6 ~ 10 years
24,269
2,233
26,502
20,261
1,864
22,125
￦
￦
＄
＄
Number of shares pledged 2003 2003
Korean won (in millions)
U.S. dollars (Note 2)
(in thousands)
Kia Steel Co., Ltd.
Kisan Mutual Saving’s & Finance
Other
8,755
306,160
1,500
84
-
320
404
70
-
267
337
￦
￦
＄
＄