Samsung 1998 Annual Report Download - page 45

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7. Property, plant and equipment
Property, plant and equipment at December 31, 1998 and 1997 consist of the following:
Thousands of Korean Won
1998 1997
Buildings and auxiliary facilities 2,040,196,815 1,719,615,673
Machinery and equipment 9,787,637,346 8,619,594,538
Tools and fixtures 1,314,868,639 1,303,330,322
Structures and vehicles 201,335,813 203,533,117
13,344,038,613 11,846,073,650
Less : accumulated depreciation (7,680,173,687) (6,531,959,851)
5,663,864,926 5,314,113,799
Land 1,274,368,408 872,069,235
Construction in progress 564,487,991 973,130,033
7,502,721,325 7,159,313,067
At December 31, 1998, certain portion of the Company’s property, plant and equipment up to a maximum of ￦1,498,019 million is
pledged as collateral for various loans from Korea Development Bank, Commercial Bank of Korea and Hanil Bank (see Note 10).
At December 31, 1998, depreciable assets are insured against fire and other casualty losses up to ￦19,137,185 million.
At December 31, 1998, the government appraised value of land is ￦1,173,222 million.
Interest costs of ￦52,570 million have been capitalized for the year ended December 31, 1998.
In accordance with the Asset Revaluation Law (see Note 2), effective January 1, 1980 and 1982, the Company revalued a
substantial portion of its property, plant and equipment by ￦18,564 million and ￦14,967 million, respectively, and its investments
in equity securities by ￦502 million and ￦649 million, respectively. The revaluation increments, net of revaluation tax, were
credited to revaluation surplus, a component of shareholders’ equity.
In addition, effective January 1, 1998, the Company revalued a substantial portion of its property, plant and equipment by
￦956,696 million and its investments in equity securities by ￦6,956 million as follows :
Thousands of Korean Won
Revalued Book Revaluation
Amount Value Increment
Land 523,708,023 23,810,460 499,897,563
Buildings and auxiliary facilities 709,610,968 499,929,666 209,681,302
Machinery and equipment 278,017,686 49,318,629 228,699,057
Tools and fixtures 20,850,243 6,794,521 14,055,722
Structures and vehicles 39,620,605 35,258,933 4,361,672
Investments in equity securities 12,460,185 5,503,806 6,956,379
1,584,267,710 620,616,015 963,651,695
The additional depreciation of ￦132,663 million in relation to the above revaluation is recorded during 1998. The revaluation
increments, net of revaluation tax of ￦28,910 million, was credited to deferred foreign currency translation losses, a component
of deferred charges, in the amount of ￦934,742 million.
NOTES TO FINACIAL STATEMENTS
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