CONSOLIDATED STATEMENTS OF FINANCIAL POSITION In millions of Korean won, in thou
ID: 2551775 • Letter: C
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION In millions of Korean won, in thousands of US dollars (Note 2.28 December 31, 2015 KRW December 31 December 31, December 31, 2016 KRW Notes 2015 Liabilities and Equity Current liabilities Trade payables Short-term borrowings 6,485,039 12,746,789 11,525,910 1,358,878 685,028 12,527,300 2,837,353 1,232,817 4,597,417 351,176 356,388 54,704,095 6,187,291 11,155,425 8,864,378 1,343,432 992,733 11,628,739 3,401,625 5,591,350 10,990,183 9,937,550 1,171,614 590,626 10,800,941 2,446,344 5,334,634 9,618,121 7,642,798 1,158,297 855,927 10,026,208 2,932,855 91,017 5,535,794 247,565 6, 8, 15, 31 er payables Advances received Withholdings Accrued expenses Income tax payable Current portion of long-term liabilities Provisions Other current liabilities Liabilities held-for-sale Total current liabilities 3,963,857 302,781 307,275 47,165,4406 18 6,420,603 287,135 50,502,909 43,543,216 Non-current liabilities Debentures Long-term borrowings Long-term other payables Net defined benefit liabilities Deferred income tax liabilities Provisions Other non-current liabilities Total liabilities 50,474 1,072,772 2,859,938 149,725 1,060,883 229,810 2,622,519 58,542 3,317,054 173,656 7,293,514 358,126 2,062,066 69,211,291 266,542 3,041,687 358,820 5,154,792 522,378 2,042,140 63,119,716 17 4,444,422 450,390 1,760,717 54,421,329 18 308,773 1,777,899 59,673,438 Trade payables and provisions appear on the SFP. Explain an important difference between the amounts derived under trade payables and the amounts derived under provisions.Explanation / Answer
Trade Payables are generally short-term liabilities of the company, the amount which has not yet has been paid to the supplier of the material, purchases, or to the service provider for the services availed. These amounts are shown on the balance sheet, at liability side. These are current liabilities of the company. This liability is set to be at the priority to be paid, generally in assigned payment cycle. An over amount of trade payables may reflect the company's bad credibility in the market.
Provisions, on the other hand, is actually not a liability of the company, it is company's self-retained profit for some specific or contingent event to come. it is like a safeguard, a company should maintain for future possibilities.
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