Kia 2014 Annual Report Download - page 45

December 31, 2014 and 2013
Notes to the Consolidated
Financial Statements
KIA MOTORS CORPORATION AND SUBSIDIARIES
(a) Details of investments in associates and joint ventures as of December 31, 2014 and 2013 are summarized as follows:
Company Percentage of
ownership
2014 2013
Acquisition cost Carrying amount Acquisition cost Carrying amount
Hyundai Powertech (Shangdong) Co., Ltd. 25.00% ₩ 28,894 36,734 28,894 41,981
Dongfeng Yueda Kia Motors Co., Ltd.(*3) 50.00% 348,522 958,400 348,522 888,208
Hyundai Motor Manufacturing Russia LLC 30.00% 129,229 117,029 129,229 220,314
Innocean Worldwide Americas, LLC(*6) 20.00% 371 1,853 557 4,818
Hyundai Information System North America 30.00% 1,911 3,154 1,911 2,554
Sewon America, Inc. 40.00% 15,090 11,663 15,090 8,092
Hyundai Capital America(*5) 20.00% 453,093 503,842 - -
Hyundai Capital Services UK Ltd.(*3) 10.00% 6,080 9,407 7,814 7,561
Hyundai Capital Canada Inc. 40.00% 21,096 15,405 - -
₩ 3,381,425 10,470,634 2,704,375 9,197,720
(*1) Though the Company’s ownership is below 20%, the Company has signicant inuence on the nancial and operating policy decisions.
(*2) Though the Company has 100% of the ownership, equity method is applied because management believes that the difference between consolidation and applying equity method is immaterial.
(*3) The Company classied Dongfeng Yueda Kia motors Co., Ltd. and Hyundai Capital Services UK Ltd. as joint ventures since the Company has the right to the net assets established by
contractual agreement.
(*4) Hyundai AMCO Co., Ltd. was merged into Hyundai Engineering Co,. Ltd., which is an associate of the Company, during the period ended December 31, 2014. The difference between fair value
of the shares Hyundai Engineering Co., Ltd received and existing book value of Hyundai AMCO Co., Ltd. of ₩ 78,572 million was recognized as a gain on sale of investment in associates.
(*5) The Company was able to exercise signicant inuence on the entity by acquisition of shares in 2014, therefore reclassied the investment from available-for-sale nancial assets to
investments in associates and joint ventures.
(*6) The Company sells the part of its investment in the entity and recognized prot on investments in associates and joint ventures of ₩ 4,809 million.
(*7) In 2014, Hyundai CNI Co., Ltd. merge into Hyundai Autoever Systems Co., Ltd. and by the result the Company’s ownership decreased from 20.00% to 19.37%.
(b) Fair value of marketable securities of associates companies as of December 31, 2014 and 2013 are summarized as follows:
2014 2013
Hyundai Mobis Co., Ltd. ₩ 3,876,789 4,821,346
Hyundai Steel Company 1,463,622 1,989,142
Hyundai Engineering & Construction Co., Ltd. 245,521 353,993
(c) Changes in investment in associates and joint ventures for the year ended December 31, 2014 are summarized as follows:
Company Beginning
balance
Acquisition
(Disposition)
Equity prot
or loss on
investment
Other
capital
movement
Dividends
received
Other
increase
(decrease)
Ending
balance
Hyundai Mobis Co., Ltd. ₩ 3,288,988 - 547,082 (33,315) (32,033) - 3,770,722
Hyundai Steel Company 2,566,364 - 149,354 (54,301) (11,525) - 2,649,892
Hyundai Engineering & Construction Co., Ltd. 762,700 - 12,671 10,266 (2,916) - 782,721
Hyundai Powertech Co., Ltd. 344,798 - 41,526 (149) - - 386,175
Hyundai Card Co., Ltd. 271,642 - 34,426 (5,392) - - 300,676
Hyundai Dymos Inc. 261,013 - 20,022 (2,416) - - 278,619
EUKOR Car Carriers Inc. 99,070 - 15,538 3,919 (5,280) - 113,247
Hyundai AMCO Co., Ltd. 129,764 (133,213) 2,632 817 - - -
Hyundai Engineering Co., Ltd. - 214,848 16,649 (7,987) (7,810) - 215,700
Hyundai Partecs Co., Ltd. 20,576 - 827 - - - 21,403
Hyundai Autoever Systems Co., Ltd. 44,487 - 10,206 693 (1,600) - 53,786
Donghee Auto Co., Ltd. 14,556 - 1,622 - - - 16,178
TRW Steering Co., Ltd. 1,124 - (362) 8 - - 770
Kia Tigers Co., Ltd. (*1) - - - - - - -
Hyundai NGV Co., Ltd. 1,653 - 513 - (20) - 2,146
Haevichi Resort Co., Ltd. 22,962 - (976) (330) - - 21,656
Hyundai Autron Co., Ltd. 19,212 - 682 (315) - - 19,579
Beijing Dymos Transmission Co., Ltd. 58,113 - 8,117 426 (9,201) - 57,455
China Millennium Corporations 21,852 - 3,305 849 - - 26,006
Hyundai Motor Company China Ltd. 93,526 - 13,854 2,461 (15,217) - 94,624
Yanji Kia Motors A/S and Repair(*2) 1,792 - - - - - 1,792
Hyundai Powertech (Shangdong) Co., Ltd. 41,981 - 16,852 (22,099) - - 36,734
Dongfeng Yueda Kia Motors Co., Ltd. 888,208 - 373,909 14,950 (318,667) - 958,400
Hyundai Motor Manufacturing Russia LLC 220,314 - 6,818 (64,651) (45,452) - 117,029
Innocean Worldwide Americas, LLC 4,818 (1,034) 2,180 - (3,928) (183) 1,853
Hyundai Information System North America 2,554 - 798 - (330) 132 3,154
Sewon America, Inc. 8,092 - 2,565 191 - 815 11,663
Hyundai Capital America - 453,093 35,147 - - 15,602 503,842
Hyundai Capital Services UK Ltd. 7,561 1,728 273 - - (155) 9,407
Hyundai Capital Canada Inc. - 21,096 (5,459) (232) - - 15,405
₩ 9,197,720 556,518 1,310,771 (156,607) (453,979) 16,211 10,470,634
(*1) The Company discontinued the application of the equity method for investment in associates of Kia Tigers Co., Ltd. due to the carrying amount of Company’s share being reduced to zero as of December 31, 2014.
(*2) These investments in associates are recorded at cost as management believe that the effect of applying the equity method of accounting for the investments is immaterial.
(KRW in millions)(KRW in millions)
(KRW in millions)
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