LG Display Co., Ltd. (ifrs-full:DisclosureOfIncomeTaxExplanatory)

23.	Income Taxes

(a)

Details of income tax expense (benefit) recognized in profit for the year for the years ended December 31, 2015, 2016 and 2017 are as follows:


(In millions of won)	2015		2016			2017
Current tax expense
Current year	W	277,264		361,237			512,123
Deferred tax expense (benefit)
Origination and reversal of temporary differences		123,458		(49,190	)		(104,835	)
Change in unrecognized deferred tax assets		9,804		72,678			(11,708	)

		133,262		23,488			(116,543	)

Income tax expense	W	410,526		384,725			395,580

(b)

Income taxes recognized directly in other comprehensive income for the years ended December 31, 2015, 2016 and 2017 are as follows:


(In millions of won)	2015
	Before tax			Tax benefit		Net of tax
Net change in fair value of available-for-sale financial assets	W	(288	)		70		(218	)
Remeasurements of net defined benefit liabilities (assets)		(110,257	)		26,682		(83,575	)
Foreign currency translation differences for foreign operations		44,913			144		45,057
Change in equity of equity method investee		18,569			—		18,569

	W	(47,063)			26,896		(20,167	)


(In millions of won)	2016
	Before tax			Tax benefit (expense)			Net of tax
Net change in fair value of available-for-sale financial assets	W	(77	)		19			(58	)
Remeasurements of net defined benefit liabilities (assets)		155,346			(37,594	)		117,752
Foreign currency translation differences for foreign operations		(90,503	)		—			(90,503	)
Change in equity of equity method investee		(5,216	)		—			(5,216	)

	W	59,550			(37,575	)		21,975


(In millions of won)	2017
	Before tax			Tax benefit		Net of tax
Net change in fair value of available-for-sale financial assets	W	—			—		—
Remeasurements of net defined benefit liabilities (assets)		(16,260	)		9,259		(7,001	)
Foreign currency translation differences for foreign operations		(231,738	)		—		(231,738	)
Change in equity of equity method investee		1,346			—		1,346

	W	(246,652)			9,259		(237,393	)

(c)

Reconciliation of the actual effective tax rate for the years ended December 31, 2015, 2016 and 2017 is as follows:


(In millions of won)	2015					2016					2017
Profit before income taxes	W			1,433,982					1,316,233					2,332,632

Income tax using the statutory tax rate of each country		32.56	%	466,848			33.49	%	440,753			28.54	%	665,733
Non-deductible expenses		2.66	%	38,208			3.39	%	44,606			2.72	%	63,416
Tax credits		(8.12	%)	(116,439	)		(11.45	%)	(150,663	)		(10.64	%)	(248,191	)
Change in unrecognized deferred tax assets		0.68	%	9,804			5.52	%	72,678			(0.50	%)	(11,708	)
Effect on change in tax rate (Note 24(d))		—		—			—		—			(3.10	%)	(72,376	)
Others		0.84	%	12,105			(1.72	%)	(22,649	)		(0.06	%)	(1,294	)

Actual income tax expense	W			410,526					384,725					395,580

Actual effective tax rate				28.63	%				29.23	%				16.96	%

LG Display Co., Ltd. | CIK:0001290109 |