LG 2004 Annual Report Download - page 74

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
As approved by the Board of Directors on February 6, 2004, the Company purchased LG card Co., Ltd. (LG Card)’s commercial papers
with a face value of 150,000 million as part of the fulfillment of LG Card’s business normalization agreement with the creditor
financial institutions. The commercial papers amounting to 111,876 million classified as short-term investments are scheduled to be
collected within December 31, 2005. The remaining commercial papers amounting to 38,124 million are scheduled to be converted
to equity of LG Card and are classified as long-term investment securities (Note 9).
1. Long-term trade accounts receivable are included.
As of December 31, 2004, trade bills negotiated through banks that have not yet matured amount to approximately 3,539,953 million,
which includes the equivalent of US$2,310 million and EUR555 million (Note 17).
5. Short-term investments
Short-term investments as of December 31, 2004, are as follows:
Commercial papers issued by LG Card Co., Ltd.
(in millions of Korean won)
Market value
89,501
Acquisition cost
111,876
Carrying value
89,501
6. Receivables
Receivables, including trade accounts and notes receivable, as of December 31, 2004 and 2003, consist of the following:
2004
Trade accounts and notes receivable
Other accounts receivable
Accrued income
Advances
Other current assets
Long-term loans receivable
(in millions of Korean won)
Carrying
value
999,023
544,885
12,751
46,650
2,795
52,305
1,658,409
Original
amount
1,072,150
554,436
12,970
50,650
2,810
52,810
1,745,826
Allowance for
doubtful accounts
(73,127)
(8,377)
(219)
(4,000)
(15)
(505)
(86,243)
2003
Trade accounts and notes receivable 1
Other accounts receivable
Accrued income
Advances
Other current assets
Long-term loans receivable
(in millions of Korean won)
Discounts for
present value
(2,904)
-
-
-
-
-
(2,904)
Carrying
value
1,005,268
438,078
176,334
28,026
1,671
5,725
1,655,102
Original
amount
1,090,232
450,366
176,744
32,534
1,675
27,436
1,778,987
Allowance for
doubtful accounts
(82,060)
(12,288)
(410)
(4,508)
(4)
(21,711)
(120,981)
Discounts for
present value
-
(1,174)
-
-
-
-
(1,174)