Kia 2014 Annual Report Download - page 49

December 31, 2014 and 2013
Notes to the Consolidated
Financial Statements
KIA MOTORS CORPORATION AND SUBSIDIARIES
(d) The amount recognized in prot or loss from investment property for the years ended December 31, 2014 and 2013 are summarized as follows:
2014 2013
Rental income
₩ 3,592
5,295
Operating expense 700 728
(e) Land and buildings held for the purpose of earning rentals are classied as investment property. In addition, the fair value of investment property
doesn’t differ from its book value signicantly as of December 31, 2014.
11. Goodwill
(a) Changes in goodwill for the years ended December 31, 2014 and 2013 are summarized as follows:
2014 2013
Balance at January 1
₩ 36,290
36,188
Other increase 941 102
Balance at December 31 ₩ 37,231 36,290
(b) Goodwill is allocated to each CGU (Cash Generating Unit) that is expected to benet from each operating unit. The Company estimated the
recoverable amount of CGU as its value in use calculated by discounting the future cash ows to be generated on the basis of business plan
approved by CEO in ve years. Cash ows expected to be generated after ve years were estimated within the scope of not to exceed long term
average growth rate of industry. No impairment loss is recognized as a result of the impairment tests in 2014 and 2013.
12. Intangible Assets
(a) Details of intangible assets except for goodwill as of December 31, 2014 and 2013 are summarized as follows:
2014 2013
Acquisition
cost
Accumulated
depreciation and
impairment losses
Carrying
amount
Acquisition
cost
Accumulated
depreciation and
impairment losses
Carrying amount
Development costs ₩ 2,870,484 (1,220,961) 1,649,523 3,032,179
(1,508,226) 1,523,953
Industrial property rights 76,554 (62,646) 13,908 71,022 (49,605) 21,417
Software 241,723 (155,633) 86,090 194,581 (133,344) 61,237
Membership(*) 72,758 (7,843) 64,915 70,245 (10,534) 59,711
Other 38,525 (1,364) 37,161 14,163 (1,032) 13,131
₩ 3,300,044 (1,448,447) 1,851,597 3,382,190 (1,702,741) 1,679,449
(*) Membership has indenite useful lives and it has been tested for impairment annually by comparing its recoverable amount to its carrying amount.
(b) Details of changes in intangible assets for the year ended December 31, 2014 are summarized as follows:
Beginning
balance
Acquisition Disposal Amortization Reclassication(*) mpairment
losses
Other Ending
balance
Development costs ₩ 1,523,953 495,988 - (370,759) - - 341 1,649,523
Industrial property rights 21,417 3,665 - (11,281) - - 107 13,908
Software 61,237 51,695 (15) (25,942) - - (885) 86,090
Membership 59,711 4,651 (219) - (1,003) 1,703 72 64,915
Other 13,131 25,799 (336) (1,262) - - (171) 37,161
₩ 1,679,449 581,798 (570) (409,244) (1,003) 1,703 (536) 1,851,597
(*) Part of the membership converted into long-term available for sale of nancial assets in the amount of
₩
1,003 million.
(c) Details of changes in intangible assets for the year ended December 31, 2013 are summarized as follows:
Beginning
balance
Acquisition Disposal Amortization Impairment
losses
Other Ending
balance
Development costs ₩ 1,343,557 509,139 - (328,685) - (58) 1,523,953
Industrial property rights 30,024 3,112 - (11,753) - 34 21,417
Software 53,866 29,076 - (21,481) - (224) 61,237
Other 60,366 16,296 (720) (331) (2,672) (97) 72,842
₩ 1,487,813 557,623 (720) (362,250) (2,672) (345) 1,679,449
(d) Details of research and development expenditures for the years ended December 31, 2014 and 2013 are summarized as follows:
2014 2013
Capitalized development costs
₩ 495,988
509,139
Test expenses (manufacturing costs)
150,402 169,164
Test expenses (selling and administrative
expenses) 623,603 563,270
₩ 1,269,993 1,241,573
(KRW in millions)
(KRW in millions)
(KRW in millions)
(KRW in millions)
(KRW in millions)
(KRW in millions)
94 95
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