LG 2004 Annual Report Download - page 95

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
LG ELECTRONICS ANNUAL REPORT 2004
094
095
Amortization of intangible assets presented under manufacturing costs and selling and administrative expenses for the years ended
December 31, 2004 and 2003, consists of the following:
Manufacturing costs
Selling and administrative expenses
(in millions of Korean won)
2004
35,660
172,747
208,407
2003
34,631
180,993
215,624
The carrying value of significant intangible assets as of December 31, 2004 and 2003, consists of the following:
As a result of LG Electronics Investment Ltd. (formerly LG Electronics Inc., now merged into LG Corp.)’s merger with LG Information &
Communications, Ltd. in September 2000, former LG Electronics Inc. recognized goodwill amounting to 393,820 million and acquired
industrial property rights amounting to 578,788 million. At the time of spin-off, such goodwill and industrial property rights were
transferred to the Company. Related amortization expenses of goodwill and industrial property rights approximate 39,382 million and
76,359 million, respectively, for the year ended December 31, 2004.
Research and development costs incurred for the year ended December 31, 2004 amounted to 1,235,008 million (2003: 799,455
million) all of which were charged to current operations as ordinary development costs and research costs.
Goodwill
Industrial property rights
(in millions of Korean won)
2003
254,399
311,531
2004
215,017
197,067
Remaining years for amortization
Six years
One through six years