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HYUNDAI MOTOR COMPANY Annual Report 2015
174 175
(2) Effects on profit or loss of current and future periods, due from customers related to changes in accounting esti-
mates of total contract revenue and total contract costs of ongoing contracts of Hyundai Rotem, a subsidiary of the
Company, as of December 31, 2015 are as follows:
In millions of Korean Won
Description December 31, 2015
Changes in accounting estimates of total contract revenue ￦ 79,498
Changes in accounting estimates of total contract costs 532,571
Effects on profit or loss of current period (406,706)
Effects on profit or loss of future periods (46,367)
Changes in due from customers (108,863)
Effects on profit or loss of current and future periods were calculated by total contract costs estimated based on the situation
occurred since the commencement of the contract to December 31, 2015 and the estimates of contract revenue as of December
31, 2015. Total contract revenue and costs are subject to change in future periods.
There are changes in accounting estimates of total contract revenue and total contract costs related to CPTM electric multiple
unit project in Sao Paolo, Brazil, as the host of the consortium IESA filed for court receivership and withdrew from the consor-
tium. In December, 2015, Hyundai Rotem, as the host of consortium, entered into a modified contract with the customers, and as
a result, expected total losses has been recognized amounting at ￦ 157,575 million for the year ended December 31, 2015.
40. BUSINESS COMBINATIONS:
(1) HMNL, a subsidiary of the Company, acquired the business sector of Greenib Car B.V. on January 2, 2015.
1) Considerations for acquisition and the fair value of the assets acquired and liabilities assumed at the acquisition
date are as follows:
In millions of Korean Won
Description Amounts
Considerations transferred ￦ 86,613
Assets acquired and liabilities assumed:
Current assets 80,841
Non-current assets 350
Current liabilities (4,283)
Non-current liabilities (1,600)
Fair value of identifiable net assets 75,308
Goodwill ￦ 11,305
2) During 2015, arising from the acquisition, the Group recognized sales amount of ￦ 208,452 million and net gain of
￦ 1,602 million. The Group recognized receivables amount of ￦ 1,873 million at the time of acquisition and all amount
is expected to be collected.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
(5) Non-current assets by region where the Group’s entities are located in as of December 31, 2015 and 2014 are as
follows:
In millions of Korean Won
December 31, 2015 December 31, 2014
Korea ￦ 27,735,116 ￦ 21,109,314
North America 2,358,588 2,174,461
Asia 1,153,577 1,129,741
Europe 1,864,713 1,952,153
Others 294,438 399,453
33,406,432 26,765,122
Consolidation adjustments (117,993) (79,000)
Total (*) ￦ 33,288,439 ￦ 26,686,122
(*) Sum of PP&E, intangible assets and investment property.
(6) There is no single external customer who represents 10% or more of the Group’s revenue for the years ended De-
cember 31, 2015 and 2014.
39. CONSTRUCTION CONTRACTS:
(1) Cost, income and loss and claimed construction from construction in progress as of December 31, 2015 and 2014 are
as follows:
In millions of Korean Won
Description December 31, 2015 December 31, 2014
Accumulated accrual cost ￦ 9,774,231 ￦ 7,427,961
Accumulated income 961,631 1,071,348
Accumulated construction in process 10,735,862 8,499,309
Progress billing (9,361,257) (7,172,915)
Due from customers 1,837,280 1,617,221
Due to customers (462,675) (290,827)