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EXPLANATION OF ACCOUNT FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE ACCOUNT

11~12

111

Econom resources ic controlled by an entity as a result of past transactions or events and from which future economic benefits probably are obtained. current assets Current assets are cash and other assets expected to be converted to cash, sold, or consumed within a year cash and cash equivalents 1111 cash on hand 1112 petty cash/revolving funds

assets

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1113 cash in banks 1114 1115 1116 1117 1118

112 1121

1122 1123

Consists of cash on hand, cash in bank, deposit account revolving funds, petty cash and highly negotiable certificate of liquidity investments deposite and cash that can be converted momentarily, cash in transit but cash that is either restricted to be used cash equivalents only for specified other cash and cash purposes or by regulation or contracts equivalents is excluded. short-term investments financial assets at fair value through income Consists of financial assets at fair value statement through income statement, financial financial assets in assets in available-foravailable-for-sale sale and financial assets in held-tofinancial assets in maturity-current. held-to-maturity

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1129 Adjustments for change in value of investment 115 1151 1156 financial assets for hedging derivative financial assets for hedging financial assets on Adjustments effective hedging for change in value of should be valued by derivative financial fair value and assets for hedging distinguished by liquidity notes receivable notes receivable A written promise that discounted notes is expected to be receivable collected by a business notes receivable and should take stock the amounts related parties uncollectible as other settlement. Then notes receivable

113 1131 1132 1137 1138

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1139 allowance for uncollectible accounts notes receivable 114 1141 1142 1147 1149

account reasonable allowance to be the deduction of note receivable.

118 1184 1185

accounts receivable accounts receivable installment accounts Trade receivables receivable arising from the sale of accounts receivable products, goods or services to customers related parties and should take stock the amounts allowance for uncollectible accountsuncollectible as accounts receivablesettlement. Then account reasonable allowance to be the deduction of accounts receivable. other receivables earned revenue receivable income tax refund receivable

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1187 other receivables related parties 1188 other receivables other 1189

121~ 122 1211 1212 1213 1219 1221 1222 1223 1224 1225 1226 1227

Receivables not classified under the headings above and should take stock the amounts uncollectible as settlement. Then account reasonable allowance to be the deduction of other allowance for uncollectible accountsreceivable. accounts receivable inventories merchandise inventory consigned merchandise merchandise Products, finished in transit goods, by-products that allowance to reduce are available for sale inventory to market under normal finished goods operation; or work-inconsigned process being processed that is finished goods by-products expected to be sold when completed; or work in process materials or supplies work in that are expected to be process outsourced used directly or raw materials indirectly in producing supplies

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

125

126

1228 materials the goods (or services) and supplies in transitavailable for sale. 1229 allowance to reduce inventory to market prepaid expenses 1251 prepaid payroll 1252 prepaid rents Consists of prepaid 1253 prepaid payroll, prepaid rent, insurance prepaid insurance, 1254 office office supplies, prepaid supplies income tax, and other 1255 prepaid prepaid expense that income tax are expected to be 1258 other consumed within one prepaid expenses year. prepayments 1261 prepayment for purchases

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1268 other prepayments

128~ 129 1281 1282 1283 1284 1285 1286 1287

Cost and expenses that are paid in advance. But contract payments on property, plant and equipment purchased or on construction-inprogress for construction to be used in operation should be classified under property, plant and equipment. other current assets Current assets that cannot be classified prepaid sales tax under the above current asset headings. overpaid sales tax temporary payments payment on behalf of others advances to employees refundable deposits restricted deposit

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1291 deferred income tax assets(current) 1292 deferred foreign exchange losses 1293 () owners (stockholders) current account 1294 Trades current account 1298 other current assets other funds and long-term investments Assets andlong-term investmentsthat are desig nated for specific purposes. funds 1311 redemption fund (or sinking fund) 1312 fund for improvement and Assets that are designated for specific expansion purposes, for example, 1313 redemption fund, fund contingency fund 1314 pension fund for improvement and

13

131

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1318 other funds expansion and contingency fund. 132134 long-term investments 1321 Long-term investments financial assets at fairincluding investing in value through income stock bonds and real estate. statement noncurrent 1322 financial assets in available-for-sale noncurrent 1323 financial asset in held-tomaturity noncurrent 1325 financial assets at cost - noncurrent 1329 Adjustments for change in value of investment 1331 long-term investments at equity 1341 longterm real estate investments 9

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

14~15

141

1345 cash surrender value of life insurance 1349 other long-term investments Fixed assets Assets which are purchased for continued and longterm use in earning profit in a business. They are written off against profits over their anticipated life by charging depreciation expenses (with exception of land). Accumulated depreciation is shown in the face of the balance sheet or in the notes. land 1411 land

10

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

142

143

1417 land Land and perpetual land improvements for revaluation increments operating use. 1419 - accumulated impairment land land improvements Enhancements or 1421 improvements on the land improvements self-owned land that 1427 with limited useful lives. land improvements revaluation increments 1428 accumulated depreciation land improvements 1429 - accumulated impairment land improvements buildings 1431 buildings 1437 Self-owned buildings buildings revaluationand their auxiliary equipment available for increments 1438 use in operation. accumulated depreciation buildings

11

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

1439 - accumulated impairment buildings 144~ () 146 machinery and equipment 1441 () Self-owned machinery machinery that are used directly or 1447 () indirectly in production, machinery transportation revaluation increments equipment, office 1448 () equipment and other accumulated equipment. depreciation machinery 1449 () accumulated mpairment machinery 151 leased assets Assets leased under 1511 capital lease contracts. leased assets 1518 accumulated depreciation leased assets 1519 accumulated mpairment leased assets

12

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

152

leasehold improvements 1521 leasehold improvements 1528 accumulated depreciation leasehold improvements 1529 accumulated impairment leasehold improvements construction in progress and prepayments for equipment 1561 construction in progress 1562 prepayments for equipment

Upgrading made to leased property under operating lease contracts.

156

Construction under progress or working in process, and prepayments for equipment purchased for use in operation.

13

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

158

1569 accumulated mpairment construction in progress miscellaneous property, plant, and equipment

Assets that cannot be classified under the asset headings above.

1581 miscellaneous property, plant, and equipment 1587 miscellaneous property, plant, and equipment revaluation increments 1588 accumulated depreciation miscellaneous property, plant, and equipment

14

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

16

161

17

1589 accumulated impairment miscellaneous property, plant, and equipment depletable assets Natural resources, the value of which will be exhausted by mining, cutting and other consumption methods. depletable assets 1611 Natural resources, the natural resources 1617 value of which will be natural resources exhausted by mining, cutting and other revaluation increments 1618 consumption methods. accumulated depletion natural resources 1619 accumulated mpairment natural resources intangible assets The assets lacked physical substance but 15

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

171 1711 1717 1719

172 1721 1727 1729 173 1731 1739 174 1741

qualified economic value. trademarks trademarks Trademark right held or purchased legally; trademarks valued at unamortized revaluation increments costs. accumulated mpairmen t trademarks patents patents The patent right held or purchased legally. patents revaluation increments accumulated mpairmen patents t franchise franchise Franchise obtained for operation. accumulated mpairmen franchise t copyright copyright

16

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

175

176

1749 accumulated mpairmen copyright Copyright held or t purchased legally for the publishing and sale of original composition or translation of literature, art, academic article, music, motion picture and other similar works, and the right of performing art and music; valued at its unamortized costs. computer software cost 1751 computer Computer software software cost purchased or developed for sale, rent 1758 - or other form of Accumulated marketing. amortization computer software cost 1759 Accumulated mpairmen computer t software cost goodwill Goodwill acquired as a 1761 goodwill

17

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

178

18

181

1769 result of a purchase. Accumulated mpairmen goodwill t other intangible assets Intangible assets that 1781 cannot be classified deferred pension costs into the intangible 1782 asset headings above. leasehold improvements 1788 other intangible assets other 1789 - Accumulated mpairmen other t other assets Assets that cannot be classified into the asset headings above and which has recoverable period longer than one year. deferred assets 1811 deferred bond issuance costs Expenditures incurred that will benefit over 1812 longone year or one term prepaid rent 18

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

182

1813 long- operating cycle and should be amortized term prepaid insurance over the future periods. 1814 deferred income tax assets noncurrent 1815 prepaid pension cost 1818 other deferred assets idle assets Assets not under 1821 operating use currently. idle assets

184

1841 1842 1843 1847

long-term notes , accounts and overdue receivables Long-term notes, accounts receivable and overdue charges long-term notes that due beyond one long-term accounts year or one operating cycle. overdue receivables long-term notes, accounts and overdue receivables related parties 19

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

185

186

188

1848 other long-term receivables 1849 - allowance for uncollectible accounts long-term notes, accounts and overdue receivables assets leased to others 1851 assets Self-owned assets held leased to others for rent by a business which is not in the 1859 investment or leasing accumulated depreciation assets business. leased to other refundable deposit Cash or other assets 1861 refundable deposit deposited for guarantee purpose. miscellaneous assets 1881 restricted Other assets that cannot be classified deposit under the other asset 1888 miscellaneous assets headings above. other liabilities 20

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

21~22

211

An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. current liabilities Liabilities which are reasonably expected to be liquidated with current assets or other current liabilities within a year. short-term debt 2111 Loan or overdraft bank overdraft 2112 bank loan borrowed from financial 2114 short- institutions or other personal creditors, due term debtowners

21

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

212

213

2115 short- within one year or one operating cycle. term debt employees 2117 short-term debt related parties 2118 shortterm debt other short-term notes and bills payable Short-term note issued 2121 by financial institutions commercial paper on behalf of the payable business, for obtaining capital from monetary 2122 market. bank acceptance 2128 other short-term notes and bills payable 2129 discount on short-term notes and bills payable notes payable Various notes to be paid by the business. 2131 notes payable 2137 notes payable related parties 2138 other notes payable

22

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

214 2141 2147 215 2151

2152 2153 2159

216 2161 217

accounts payable Various accounts to be paid by the business. accounts payable accounts payable related parties other financial liabilities financial liabilities at fair value A contractual obligation to exchange through income financial assets or statement financial liabilities with another entity under derivative financial conditions that are liability for hedging potentially unfavorable to the entity within a financial liabilities at year. cost Adjustments for change in value of financial liabilities income tax payable Income tax payable of income tax payable the business which has not yet been paid. accrued expenses

23

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

2171 accrued payroll 2172 rent payable 2173 accrued interest payable 2174 sales tax payable 2175 taxes payable other 2178 other accrued expenses payable 218~ 219 2184 2185 2187 2191 2192

Expense incurred but not yet paid, including accrued payroll, accrued rent payable, accrued interest payable, accrued VAT payable, accrued taxes payable-other and other accrued expense payable. other payables Payables that cannot payables on land and be classified as accounts payable. building Payables on equipment other payables related parties dividend payable bonus payable

24

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

225

226

227

2193 compensation payable to directors and supervisors 2198 other payables other preferred stock liability current The preferred stock 2251 liability for financial preferred stock liability liability and are current redeemable within a year. unearned receipts Various amounts collected in advance. 2261 unearned sales revenue 2262 unearned revenue 2268 other unearned revenue current portion of long- term liabilities 2271 The portions of longcorporate bonds term liability payable by payable current current assets or portion

25

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

2272 current liabilities or payable within one current portion of longterm loans payable year or one operating cycle. 2273 current portion of longterm notes and accounts payable 2277 current portion of longterm notes and accounts payables to related parties 2278 current portion of other long-term liabilities 228~ 229 other current liabilities Current liabilities that 2281 cannot be classified sales tax payable into the headings 2283 temporary receipts above. 2284 receipts under custody 2285 estimated warranty liabilities 2291 deferred income tax liabilities 26

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

23

231

232

2292 deferred foreign exchange gain 2293 () owners current account 2294 current account with others 2298 other current liabilities others long-term liabilities The liabilities are reasonably expected not to be liquidated within a year . bonds payable Corporate bonds 2311 authorized and issued. bonds payable 2312 () premium(discount) on bonds payable long-term debt payable Borrowing with due 2321 date beyond one year long-term debt payable or one operating cycle. bank 2322 longterm debt payable owners

27

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

233

234

2323 long-term debt payable employees 2324 long-term debt payable related parties 2325 long-term debt payable other long-term notes and accounts payable Notes and accounts 2331 longterm notes payable payable with repayment period beyond one year or 2332 longone term accounts payable operating cycle. 2333 long-term capital lease liabilities 2337 Long-term notes and accounts payable related parties 2338 other long-term payables accrued liabilities for land tax revaluation Provision for the land increment 28

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

235

236

value incremental tax 2341 estimated accrued liability resulting from land revaluation. land value incremental tax payable accrued pension liabilities 2351 Pension liability accrued pension recognized by a liabilities business with the obligation to make future pension payments to its employees. - other financial liabilities noncurrent 2361 A contractual obligation - financial liabilities at to exchange financial assets or financial fair value through income statement liabilities with another entity under conditions noncurrent 2362 - that are potentially unfavorable to the derivative financial liability for entity. hedging - noncurrent 2363 financial liabilities at cost - noncurrent 29

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

237

238

28

281

2369 - adjustments for change in value of financial liabilities noncurrent Preferred stock liability - noncurrent The preferred stock for financial liability. 2361 Preferred stock liability - noncurrent other long-term liabilities Long-term liabilities 2381 that cannot be other long-term classified into the longliabilities other term liabilities headings above. other liabilities Liabilities that cannot be classified into the liabilities headings above deferred liabilities 2811 deferred revenue 2814 deferred income tax liabilities

30

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

2818 other deferred liabilities

286

deposits received 2861 guarantee deposit received miscellaneous liabilities 2888 miscellaneous liabilities other 31

288

Refer to deferred income, deferred income tax liabilities, and etc..Deferred income refers to income items received by a business to be recorded as income in the future periods.Deferred income tax liabilities refer to the tax effects of temporary differences resulting from pretax financial income in excess of taxable income. Cash or other assets received from customers or others for guarantee purpose. Other liabilities that cannot be classified into the two headings above.

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

owners equity

31 311 3111 3112 3113 3114 3115 32

321 3211

Owners equity equals to that of total assets minus total liability. capital () capital capital common stock capital Capital contributed by business owners and preferred stock registered with the capital collected in advance competent authority in stock charge but not includingpreferred dividends to be stock liability . distributed capital additional paid-in capital The equity not arising from the operating results. additional paid-in capital in excess of par The excess amount additional paid-in capital in excess of over the par value of par- common stock common or prefer

32

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

3212 stock issued, which is received by a additional paid-in capital in excess of corporation. par- preferred stock 3214 additional paid-in capital in excess of par- treasury stock 3219 additional paid-in capital in excess of par- other donated surplus 3261 donated surplus

326

(1) (2) Additional paid-in capital resulting from gifts of assets donated to a business. Including the donated stock from stockholders and abandoned creditors rights according to the percentage of equity.

33

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

328 3281

33

331 3311

332 3321 3322

other additional paid-in capital Paid-in capital that cannot be classified additional paid-into the paid-in capital headings above. in capital from investee under equity method () retained earnings (accumulated deficit) Net income that have been retained by the corporation at yearend. If the opposite occurs when the corporation has net losses the corporation retains those losses at year-end. legal reserve Retained earnings legal reserve appropriated according to Company Law or related regulations. special reserve contingency reserve Retained earnings appropriated according improvement and expansion reserve to earnings distribution

34

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

335

34

341

3323 special resolution or according to reserve for redemption law or regulation. of liabilities 3328 other special reserve ( ) retained earnings- unappropriated (or Earnings not yet accumulated deficit) appropriated or deficits 3351 accumulated not yet compensated. profit or loss 3352 prior period adjustments 3353 net income or loss for current period equity adjustments Other items increasing or decreasing the owners equity. Unrealized gain or loss on financial instrument 3411 Unrealized gain or loss on financial instrument Unrealized gain or loss on financial instrument in available-for sale or in cash flow hedging securities

35

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

342

343

cumulative translation adjustment 3421 cumulative translation adjustment Translation differences arising from translating the foreign currency financial statements of the foreign branches, subsidiaries and reinvestments accounted for under equity method into the local currency. net loss not recognized as pension cost

36

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

344

345

3431 net loss not recognized as pension cost The amount of additional liability, which exceeds the sum of unrecognized prior service cost and unrecognized transitional net assets or net benefit obligation. Additional pension liability is the difference between the recorded pension liability and the minimum pension liability required to be recognized. unrealized revaluation increments 3441 unrealized revaluationIncrements in equity from revaluation of increments property, plant and equipment, depletable assets and intangible assets. treasury stock

37

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

3451 treasury stock

36 361

minority interest minority interest 3611 minority interest operating revenue

41 411

417

sales revenue sales revenue 4111 sales revenue 4112 installment sales revenue sales return

Issued shares that have been reacquired by the corporation and not yet resold or cancelled. A subsidiarys equity that is held by the investors other than these affiliated companies Revenue from operating activities during this period. Income earned from selling goods.

38

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

4171 sales return

419

46 461

47 471

48

A contra revenue account for goods or products sold but subsequently returned by the customer. sales discounts and allowances 4191 sales discounts and A contra revenue account for reduction in allowances the selling price of goods or products sold. service revenue Revenues earned from providing services. service revenue 4611 service revenue agency revenue Revenues earned from agency revenue compensation for 4711 intermediary and agent agency revenue business or for acting as an assignee. other operating revenue 39

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

488

other operating revenue 4888 other operating revenue operating costs

Other operating revenues that cannot be classified into the headings above. Cost from operating activities during this period. Refer to the original costs of merchandise sold or the production costs of goods sold.

51 511 5111 5112 512 5121 5122 5123 5124 513

cost of goods sold cost of goods sold cost of goods sold installment cost of goods sold purchases purchases purchase expenses purchase returns purchase discounts and allowances material purchased 40

Purchase of goods for sale. Purchase returns, discounts and allowances should be the deduction of purchases.

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

5131 material purchased 5132 charges on purchased material 5133 material purchase The acquisition costs of returns all materials that can 5134 material purchase discounts be traced directly to the cost object, including and allowances freight-in, insurance, import duty, notary fee and rent 514 direct labor 5141 Labor cost that can be direct labor reasonably identified for the production of finished goods 515~ 518 manufacturing overhead 5151 indirect labor 5152 rent expense 5153 supplies Costs that cannot be expense classified as material 5154 and direct labor in the travelling expense manufacturing or the 5155 shipping expenses service department. 41

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

56 561

5156 postage expenses 5157 repair(s) and maintenance expense 5158 packing expenses 5161 utilities expense 5162 insurance expense 5163 manufacturing overhead outsourced 5166 taxes 5168 depreciation expense 5169 various amortization 5172 meal expenses 5173 employee benefits/welfare 5176 training (expense) 5177 indirect materials 5188 other manufacturing expenses service costs service costs 5611 service costs Costs incurred for providing services.

42

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

57 571

agency costs agency costs 5711 agency costs

58 588 5888 6

61 615~ 618 6151 6152 6153 6154 6155

Costs incurred for intermediary and agent business or for acting as an assignee. other operating costs Expense incurred for other operating costs earning other operating revenues. other operating costs operating expenses Expenses arising from selling products or services. selling expenses Expenses incurred in selling products. selling expenses payroll expense rent expense supplies expense travelling expense shipping expenses

43

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

6156 postage expenses 6157 repair(s) and maintenance (expense) 6159 advertisement expense, advertisement 6161 utilities expense 6162 insurance expense 6164 entertainment expense 6165 donation expense 6166 taxes 6167 loss on uncollectible accounts 6168 depreciation expense 6169 various amortization 6172 meal expenses 6173 employee benefits/welfare 6175 commission expense 6176 Training expense 6188 other selling expenses

44

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

62

general & administrative expenses

Any expense incurred in the administrative and general departments.

625~ 628 6251 6252 6253 6254 6255 6256 6257 6259 6261 6262 6264

general & administrative expenses payroll expense rent expense supplies expense travelling expense shipping expenses postage expenses repair and maintenance expense advertisement expense, advertisement utilities expense insurance expense entertainment expense 45

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

63

6265 donation expense 6266 taxes 6267 loss on uncollectible accounts 6268 depreciation expense 6269 various amortization 6271 loss on export sales 6272 meal expenses 6273 employee benefits/welfare 6274 research and development expense 6275 commission expense 6276 training expense 6278 professional service fees 6288 other general and administrative expenses research and development expenses 635~ 638 research and development expenses Research, 46

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

6351 payroll expense 6352 6353 6354 6355 6356 6357 6361 6362 6364 6366 6368 6369 6372 6373 6376

improvement and experiment expenses incurred for research and developing new rent expense products, improving production technology, office supplies technology for travelling expense providing services and production process. shipping expenses postage expenses repair and maintenance expense utilities expense insurance expense entertainment expense taxes depreciation expense various amortization meal expenses employee benefits/welfare training expense

47

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

71~74

711

714

6378 other research and development expenses non-operating revenue and expenses The revenue and expenses not arising from operating activities. non-operating revenue The revenue not arising from operating activities. interest revenue 7111 interest revenue/income Interest revenues resulting from deposits with financial institution or loan to others. investment income 7141 Gain Investment income of a on valuation of non-investment financial asset

48

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

7142 Gain company, engaged in financing instruments. on valuation of financial liability

715

716

717

718

7143 investment income recognized under equity method foreign exchange gain Gain from fluctuation in 7151 foreign currency foreign exchange gain exchange rate. gain on disposal of investments Gain from disposal of 7161 gain on disposal of short-term or long-term investments. investments gain on disposal of assets Gain from disposal of 7171 gain on disposal of property, plant and equipment. assets Gain on reversal of ( impairment loss

49

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

7181 Gain on reversal of impairment loss

748 7481 7482 7483 7484 7485 7486 7487 7488 75~78

) Reversal on impairment loss that was account for in prior financial period which can be proof to have lessen or not exist. other non-operating revenue Other non-operating revenue that cannot be donation income classified into the rent revenue/income headings above. commission revenue/income revenue from sale of scraps gain on physical inventory gain from price recovery of inventory gain on reversal of bad debts other non-operating revenue other items 50

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

non-operating expenses 751 7511

752 7521 753 7531 7532 7533

754

The expenses not arising from operating activities. interest expense Interest expense interest expense incurred as a result of borrowing from financial institutions or other persons. dividends on preferred stock liabilities Dividends passed by preferred stock liabilities. dividends on preferred stock liabilities investment loss loss on valuation of Investment loss of a non-investment financial asset company, engaged in loss on valuation of financing instruments. financial liability investment loss recognized under equity method foreign exchange loss

51

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

755

756

768

788

7541 foreign exchange lossLoss from fluctuation of foreign currency exchange rate. loss on disposal of assets 7551 Loss from the sale, loss on disposal of obsolescence, and loss assets of assets. loss on disposal of investments Loss from disposal of 7561 loss on disposal of short-term or long-term investments. investments impairment loss The book value of 7681 assets over impairment loss recoverable amounts. other non-operating expenses Other non-operating 7881 loss on work expense that cannot be classified into the stoppages 7882 casualty loss headings above 7885 loss on physical inventory

52

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

79

791

7886 loss for market price decline and obsolete and slow-moving inventories 7888 other non-operating expenses other continuing operating income before tax Income tax is computed based upon continuing operating statutory tax rate income before tax applied to current 7911 period accounting net continuing income (higher than zero). In case of operating income current period before tax accounting net loss incurred, the income tax benefit is computed based upon statutory tax rate applied to past or future tax savings resulting from current period accounting net loss.

53

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

8 81 811

() income tax expense (or benefit) () income tax expense (or benefit) () income tax expense (or benefit) 8111 () income tax expense (or benefit) continuing operating income after tax continuing operating income after tax 8211 continuing operating income after tax nonrecurring gain or loss

( ) () Refers to the sum of current income tax expense (benefit) and deferred tax expense (benefit)

82

821

Refers to continuing operation after tax

The expense and loss not arising from operating activities.

54

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

91 911

92 921

discontinued operation income operating income for discontinued operation 9111 operating income for discontinued operation 9112 loss(gain) on disposal or valuation of assets for sale discontinued operation Discontinued operation income includes loss(gain) on disposal of assets for sale and loss(gain) on valuation of assets for sale. extraordinary gain or loss extraordinaryGain or loss that is unusual in nature and gain or loss 9211 extraordinaryoccurs infrequently. gain or loss

55

EXPLANATION OF ACCOUNT

FIRST SECON THIRD FOURT GRADE D GRADE H GRADE GRADE

ACCOUNT

93

931

94 941

cumulative effect of changes in accounting After-tax cumulative principles effects resulting from cumulative effect ofchanges in accounting principles. changes in accounting principles 9311 cumulative effect of changes in accounting principles minority interest income minority The subsidiarys net interest income 9411 minority income that is recognized by the interest income investors other than these affiliated.

56

The Code and Name of Account

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE ACCOUNT EXPLANATION OF ACCOUNT

assets

11~12

111 1111 1112 1113 1114 1115 1116 1117 1118 112

Economic resources controlled by an entity as a result of past transactions or events and from which future economic benefits probably are obtained. current assets Current assets are cash and other assets expected to be converted to cash, sold, or consumed within a year cash and cash Consists of cash on equivalents hand, cash in bank, revolving funds, petty cash on hand cash and highly petty cash/ revolving funds liquidity investments and cash that can be cash in banks deposit account converted momentarily, but negotiable cash that is either certificate of restricted to be used deposit only for specified cash in transit cash equivalents purposes or by other cash and regulation or cash equivalents contracts is excluded. short-term Consists of financial investments assets at fair value

57

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

115

113

114

1121 financial assets at through income fair value through statement, financial income statement assets in available1122 financial assets in for-sale and financial available-for-sale assets in held-to1123 financial assets in maturity-current. held-to-maturity 1129 Adjustments for change in value of investment financial assets for financial assets on hedging effective hedging 1151 derivative financialshould be valued by assets for hedgingfair value and 1156 Adjustments for distinguished by change in value ofliquidity derivative financial assets for hedging notes receivable A written promise 1131 notes receivable that is expected to be 1132 discounted notes collected by a business and should receivable 1137 notes receivable take stock the amounts uncollectible related parties as settlement. Then 1138 other notes account reasonable receivable allowance to be the 1139 allowance for deduction of note uncollectible accounts notes receivable. receivable accounts Trade receivables receivable arising from the sale of products, goods or 1141 accounts services to receivable

58

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

118

121~ 122

1142 installment customers and accounts should take stock the receivable amounts uncollectible as settlement. Then 1147 accounts account reasonable receivable allowance to be the related parties deduction of 1149 allowance for accounts receivable. uncollectible accounts accounts receivable other receivables Receivables not 1184 earned revenue classified under the headings above and receivable 1185 income tax refund should take stock the amounts uncollectible receivable as 1187 other receivables settlement. Then account reasonable related parties allowance to be the 1188 other receivables deduction of other other receivable. 1189 allowance for uncollectible accounts accounts receivable inventories Products, finished goods, by-products that are available for 1211 merchandise sale under normal inventory operation; or work-in1212 consigned process being merchandise processed that is 1213 merchandise in expected to be sold when completed; or transit

59

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

125

126

1219 allowance to materials or supplies reduce inventory to are expected to that market be used directly or indirectly in 1221 finished goods producing the goods 1222 consigned finished (or services) goods available for sale. 1223 by-products 1224 work in process 1225 work in process outsourced 1226 raw materials 1227 supplies 1228 materials and supplies in transit 1229 allowance to reduce inventory to market prepaid expenses Consists of prepaid 1251 prepaid payroll payroll, prepaid rent, prepaid insurance, 1252 prepaid rents 1253 prepaid insurance office supplies, prepaid income tax, 1254 office supplies and other prepaid 1255 prepaid income tax expense that are 1258 other prepaid expected to be expenses consumed within one year. prepayments Cost and expenses 1261 prepayment for that are paid in advance. But purchases contract payments on 1268 other prepayments property, plant and equipment purchased or on construction-in-

60

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

128~ 129 1281 1282 1283 1284 1285 1286 1287 1291 1292 1293 1294 1298 13

progress for construction to be used in operation should be classified under property, plant and equipment. other current Current assets that assets cannot be classified prepaid sales tax under the above overpaid sales taxcurrent asset headings. temporary payments payment on behalf of others advances to employees refundable deposits restricted deposit deferred income tax assets(current) deferred foreign exchange losses owners (stockholders) current account Trades current account other current assets other funds and long- Assets and long-term term investments investments that are desig nated for specific purposes.

61

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

131 1311 1312 1313 1314 1318 132134 1321

1322 1323 1325 1329 1331 1341

funds Assets that are redemption fund desig nated for (or sinking fund) specific purposes, for example, redemption fund for improvement and fund, fund for improvement and expansion contingency fund expansion and contingency fund. pension fund other funds long-term Long-term investments investments including financial assets at investing in stock fair value through bonds and real income statement estate. noncurrent financial assets in available-for-sale noncurrent financial asset in held-to-maturity noncurrent financial assets at cost - noncurrent Adjustments for change in value of investment long-term investments at equity long-term real estate investments

62

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

14~15

1345 cash surrender value of life insurance 1349 other long-term investments Fixed assets

141 1411 1417 1419 142 1421 1427

Assets which are purchased for continued and longterm use in earning profit in a business. They are written off against profits over their anticipated life by charging depreciation expenses (with exception of land). Accumulated depreciation is shown in the face of the balance sheet or in the notes. land Land and perpetual land improvements land land revaluation for operating use. increments accumulated impairment land land improvements nhancements or E improvements on the land improvements self-owned land that land improvements with limited useful revaluation lives. increments

63

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

143

144~ 146

151

1428 accumulated depreciation land improvements 1429 accumulated impairment land improvements buildings Self-owned buildings and their auxiliary 1431 buildings equipment available 1437 buildings for use in operation. revaluation increments 1438 accumulated depreciation buildings 1439 accumulated impairment buildings machinery and Self-owned equipment machinery that are used directly or 1441 machinery indirectly in 1447 machinery production, revaluation transportation increments equipment, office 1448 accumulated equipment and other depreciation equipment. machinery 1449 accumulated impairment machinery leased assets Assets leased under capital lease 1511 leased assets contracts. 1518 accumulated depreciation leased assets

64

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

152

156

158

1519 accumulated impairment leased assets leasehold improvements 1521 leasehold improvements 1528 accumulated depreciation leasehold improvements 1529 accumulated impairment leasehold improvements construction in progress and prepayments for equipment 1561 construction in progress 1562 prepayments for equipment 1569 accumulated impairment construction in progress miscellaneous property, plant, and equipment 1581 miscellaneous property, plant, and equipment

Upgrading made to leased property under operating lease contracts.

Construction under progress or working in process, and prepayments for equipment purchased for use in operation.

Assets that cannot be classified under the asset headings above.

65

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

16

161

17

1587 miscellaneous property, plant, and equipment revaluation increments 1588 accumulated depreciation miscellaneous property, plant, and equipment 1589 accumulated impairment miscellaneous property, plant, and equipment depletable assets Natural resources, the value of which will be exhausted by mining, cutting and other consumption methods. depletable assets Natural resources, 1611 natural resources the value of which 1617 natural resources will be exhausted by mining, cutting and revaluation other consumption increments methods. 1618 accumulated depletion natural resources 1619 accumulated impairment natural resources intangible assets The assets lacked physical substance but qualified 66

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

171

172

173

174

trademarks 1711 trademarks 1717 trademarks revaluation increments 1719 accumulated impairmen t trademarks patents 1721 patents 1727 patents revaluation increments 1729 accumulated impairmen t patents franchise 1731 franchise 1739 accumulated impairmen t franchise copyright 1741 copyright 1749 accumulated impairmen t copyright

economic value. Trademark right held or purchased legally; valued at unamortized costs.

The patent right held or purchased legally.

Franchise obtained for operation.

Copyright held or purchased legally for the publishing and sale of original composition or translation of literature, art, academic article, music, motion picture and other similar works, and the right

67

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

175 1751 1758

1759

176 1761 1769 178 1781 1782 1788 1789 18

of performing art and music; valued at its unamortized costs. computer softwareComputer software cost purchased or computer softwaredeveloped for sale, rent or other form of cost marketing. Accumulated amortization computer software cost Accumulated impairmen t computer software cost goodwill Goodwill acquired as a result of a goodwill purchase. Accumulated impairmen t goodwill other intangible Intangible assets that assets cannot be classified deferred pension into the intangible asset headings costs above. leasehold improvements other intangible assets other Accumulated impairmen other t other assets Assets that cannot be classified into the asset headings above and which has

68

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

181 1811 1812 1813 1814 1815 1818 182 1821 184

1841 1842 1843 1847

1848

recoverable period longer than one year. deferred assets Expenditures incurred that will deferred bond benefit over one year issuance costs long-term prepaid or one operating cycle and should be rent long-term prepaid amortized over the future periods. insurance deferred income tax assets noncurrent prepaid pension cost other deferred assets idle assets Assets not under operating use idle assets currently. long-term notes , Long-term notes, accounts and accounts receivable overdue and overdue charges receivables that due beyond one long-term notes year or one operating cycle. long-term accounts overdue receivables long-term notes, accounts and overdue receivables related parties other long-term receivables

69

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

185

186 188

21~22

1849 allowance for uncollectible accounts longterm notes, accounts and overdue receivables assets leased to Self-owned assets others held for rent by a 1851 assets leased to business which is not in the investment or others leasing business. 1859 accumulated depreciation assets leased to other refundable depositC ash or other assets 1861 refundable depositdeposited for guarantee purpose. miscellaneous Other assets that assets cannot be classified 1881 restricted deposit under the other asset headings above. 1888 miscellaneous assets - other liabilities An obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. current liabilities Liabilities which are 70

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

211 2111 2112 2114 2115 2117 2118 212 2121 2122 2128 2129 213 2131 2137

reasonably expected to be liquidated with current assets or other current liabilities within a year. short-term debt Loan or overdraft borrowed from bank overdraft financial institutions bank loan short-term debt or other personal creditors, due within owners short-term debt one year or one operating cycle. employees short-term debt related parties short-term debt other short-term notes Short-term note and bills payable issued by financial commercial paper institutions on behalf of the business, for payable bank acceptance obtaining capital from other short-term monetary market. notes and bills payable discount on shortterm notes and bills payable notes payable Various notes to be paid by the business. notes payable notes payable related parties

71

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

214

215

216

217

2138 other notes payable accounts payable Various accounts to 2141 accounts payable be paid by the 2147 accounts payable business. related parties other financial A contractual liabilities obligation to 2151 financial liabilities exchange financial assets or financial at fair value through income liabilities with another entity under statement 2152 derivative financialconditions that are potentially liability for hedging 2153 financial liabilities unfavorable to the entity within a year. at cost 2159 Adjustments for change in value of financial liabilities income tax Income tax payable payable of the business which has not yet been 2161 income tax paid. payable accrued expensesExpense incurred but 2171 accrued payroll not yet paid, including accrued 2172 rent payable 2173 accrued interest payroll, accrued rent payable, accrued payable 2174 sales tax payable interest payable, 2175 taxes payable accrued VAT payable, accrued other taxes payable-other 2178 other accrued expenses payableand other accrued expense payable.

72

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

218~ 219 2184 2185 2187 2191 2192 2193

other payables

2198 225 2251 226 2261 2262 2268 227 2271

Payables that cannot be classified as payables on land accounts payable. and building Payables on equipment other payables related parties dividend payable bonus payable compensation payable to directors and supervisors other payables other preferred stock The preferred stock liability current liability for financial preferred stock liability and are liability current redeemable within a year. unearned receiptsVarious amounts unearned sales collected in advance. revenue unearned revenue other unearned revenue current portion of The portions of longlong-term liabilities term liability payable corporate bonds by current assets or payable current current liabilities or payable within one portion year or one operating cycle.

73

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

228~ 229

2272 current portion of long-term loans payable 2273 current portion of long-term notes and accounts payable 2277 current portion of long-term notes and accounts payables to related parties 2278 current portion of other long-term liabilities other current Current liabilities that liabilities cannot be classified 2281 sales tax payable into the headings above. 2283 temporary receipts 2284 receipts under custody 2285 estimated warranty liabilities 2291 deferred income tax liabilities 2292 deferred foreign exchange gain 2293 owners current account 2294 current account with others 2298 other current liabilities others

74

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

23

231 2311 2312 232 2321 2322 2323 2324 2325 233 2331 2332 2333

long-term liabilities The liabilities are reasonably expected not to be liquidated within a year. bonds payable Corporate bonds authorized and bonds payable issued. premium(discount) on bonds payable long-term debt Borrowing with due payable date beyond one year or one operating long-term debt payable bank cycle. long-term debt payable owners long-term debt payable employees long-term debt payable related parties long-term debt payable other long-term notes Notes and accounts and accounts payable with payable repayment period long-term notes beyond one year or one operation cycle. payable long-term accounts payable long-term capital lease liabilities

75

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

234

235

236

2337 Long-term notes and accounts payable related parties 2338 other long-term payables accrued liabilities for land tax Provision for the land revaluation value incremental tax increment liability resulting from 2341 estimated accruedland revaluation. land value incremental tax payable accrued pension Pension liability liabilities recognized by a 2351 accrued pension business with the obligation to make liabilities future pension payments to its employees. other financial A contractual liabilities obligation to noncurrent exchange financial 2361 financial liabilities assets or financial liabilities with another at fair value through income entity under conditions that are statement potentially noncurrent 2362 derivative financialunfavorable to the entity. liability for hedging - noncurrent 2363 financial liabilities at cost noncurrent 76

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

237

238

28

281

2369 adjustments for change in value of financial liabilities noncurrent Preferred stock The preferred stock liability for financial liability. noncurrent 2361 Preferred stock liability noncurrent other long-term Long-term liabilities liabilities that cannot be 2381 other long-term classified into the liabilities other long-term liabilities headings above. other liabilities Liabilities that cannot be classified into the liabilities headings above deferred liabilities Refer to deferred 2811 deferred revenue income, deferred 2814 deferred income income tax liabilities, and etc..Deferred tax liabilities income refers to 2818 other deferred income items liabilities received by a business to be recorded as income in the future periods.Deferred income tax liabilities refer to the tax effects of temporary differences resulting

77

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

286 2861

288 2888 3

31 311 3111 3112 3113 3114 3115 32 321

from pretax financial income in excess of taxable income. deposits received Cash or other assets guarantee deposit received from customers or others received for guarantee purpose. miscellaneous Other liabilities that liabilities cannot be classified into the two headings miscellaneous liabilities other above. owners equity Owners equity equals to that of total assets minus total liability. capital Capital contributed by business owners capital capital common and registered with the competent stock capital preferredauthority in charge but not including stock capital collected inpreferred stock liability. advance stock dividends to be distributed capital additional paid-in The equity not arising capital from the operating results. additional paid-in The excess amount capital in excess of over the par value of par common or prefer stock issued, which

78

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

326

328

33

3211 additional paid-in is received by a capital in excess of corporation. par- common stock 3212 additional paid-in capital in excess of par- preferred stock 3214 additional paid-in capital in excess of par- treasury stock 3219 additional paid-in capital in excess of par- other donated surplus Additional paid-in 3261 donated surplus capital resulting from gifts of assets donated to a business. Including the donated stock from stockholders and abandoned creditors rights according to the percentage of equity. other additional Paid-in capital that paid-in capital cannot be classified 3281 additional paid-in into the paid-in capital headings capital from investee under above. equity method retained earnings Net income that have (accumulated been retained by the deficit) corporation at yearend. If the opposite occurs when the 79

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

331 3311

332 3321 3322 3323 3328 335

3351 3352 3353 34

corporation has net losses the corporation retains those losses at yearend. legal reserve Retained earnings appropriated legal reserve according to Company Law or related regulations. special reserve Retained earnings appropriated contingency according to earnings reserve improvement and distribution resolution expansion reserveor according to law or special reserve forregulation. redemption of liabilities other special reserve retained earnings-Earnings not yet unappropriated (orappropriated or accumulated deficits not yet deficit) compensated. accumulated profit or loss prior period adjustments net income or loss for current period equity adjustments Other items increasing or decreasing the owners equity.

80

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

341

342

343

Unrealized gain orUnrealized gain or loss on financial loss on financial instrument instrument in 3411 Unrealized gain oravailable-for sale or loss on financial in cash flow hedging securities instrument cumulative Translation translation differences arising adjustment from translating the foreign currency 3421 cumulative financial statements translation of the foreign adjustment branches, subsidiaries and reinvestments accounted for under equity method into the local currency. net loss not The amount of recognized as additional liability, pension cost which exceeds the sum of unrecognized 3431 net loss not prior service cost and recognized as unrecognized pension cost transitional net assets or net benefit obligation. Additional pension liability is the difference between the recorded pension liability and the minimum pension liability required to be recognized.

81

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

344

unrealized revaluation increments 3441 unrealized revaluation increments

345

36 361

Increments in equity from revaluation of property, plant and equipment, depletable assets and intangible assets. treasury stock Issued shares that have been 3451 treasury stock reacquired by the corporation and not yet resold or cancelled. minority interest A subsidiarys equity minority interest that is held by the 3611 minority interest investors other than these affiliated companies operating revenueRevenue from operating activities during this period. sales revenue Income earned from selling goods. sales revenue 4111 sales revenue 4112 installment sales revenue sales return A contra revenue account for goods or 4171 sales return products sold but subsequently returned by the customer.

4 41 411

417

82

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

419

sales discounts and allowances 4191 sales discounts and allowances

46 461 47 471

48 488

5 51 511

512

A contra revenue account for reduction in the selling price of goods or products sold. service revenue Revenues earned service revenue from providing 4611 service revenue services. agency revenue Revenues earned agency revenue from compensation 4711 agency revenue for intermediary and agent business or for acting as an assignee. other operating Other operating revenue revenues that cannot other operating be classified into the headings above. revenue 4888 other operating revenue operating costs Cost from operating activities during this period. cost of goods soldRefer to the original cost of goods soldcosts of merchandise 5111 cost of goods soldsold or the production 5112 installment cost of costs of goods sold. goods sold purchases Purchase of goods for sale. Purchase 5121 purchases returns, discounts 5122 purchase and allowances expenses 5123 purchase returns should be the deduction of

83

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

513

514

515~ 518

5124 purchase purchases. discounts and allowances material purchased he acquisition costs T of 5131 material purchased all materials that can be traced directly 5132 charges on to purchased material the cost object, 5133 material purchase including freight-in, insurance, import returns 5134 material purchase duty, notary fee and rent discounts and allowances direct labor Labor cost that can be reasonably 5141 direct labor identified for the production of finished goods manufacturing Costs that cannot be overhead classified as material and direct labor in the 5151 indirect labor manufacturing or the 5152 rent expense 5153 supplies expense service department. 5154 travelling expense 5155 shipping expenses 5156 postage expenses 5157 repair(s) and maintenance expense 5158 packing expenses 5161 utilities expense 5162 insurance expense 5163 manufacturing overhead outsourced 84

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

56 561 57 571

58 588

6 61 615~ 618

5166 taxes 5168 depreciation expense 5169 various amortization 5172 meal expenses 5173 employee benefits/welfare 5176 training (expense) 5177 indirect materials 5188 other manufacturing expenses service costs Costs incurred for providing services. service costs 5611 service costs agency costs Costs incurred for intermediary and agency costs agent business or for 5711 agency costs acting as an assignee. other operating Expense incurred for costs earning other other operating operating revenues. costs 5888 other operating costs operating Expenses arising expenses from selling products or services. selling expenses Expenses incurred in selling expenses selling products. 6151 payroll expense 85

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

6152 6153 6154 6155 6156 6157 6159 6161 6162 6164 6165 6166 6167 6168 6169 6172 6173 6175 6176

rent expense supplies expense travelling expense shipping expenses postage expenses repair(s) and maintenance (expense) advertisement expense, advertisement utilities expense insurance expense entertainment expense donation expense taxes loss on uncollectible accounts depreciation expense various amortization meal expenses employee benefits/welfare commission expense Training expense

86

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

6188 other selling expenses

62 625~ 628 6251 6252 6253 6254 6255 6256 6257 6259 6261 6262 6264 6265 6266 6267 6268

general & Any expense administrative incurred in the expenses administrative and general departments. general & administrative expenses payroll expense rent expense supplies expense travelling expense shipping expenses postage expenses repair and maintenance expense advertisement expense, advertisement utilities expense insurance expense entertainment expense donation expense taxes loss on uncollectible accounts depreciation expense 87

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

63 635~ 638

6269 various amortization 6271 loss on export sales 6272 meal expenses 6273 employee benefits/welfare 6274 research and development expense 6275 commission expense 6276 training expense 6278 professional service fees 6288 other general and administrative expenses research and Research, development improvement and expenses experiment expenses incurred for research research and and developing new development products, improving expenses 6351 payroll expense production technology, 6352 rent expense technology for 6353 office supplies 6354 travelling expenseproviding services and production 6355 shipping expenses 6356 postage expensesprocess. 6357 repair and maintenance expense 6361 utilities expense 88

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

6362 insurance expense 6364 entertainment expense 6366 taxes 6368 depreciation expense 6369 various amortization 6372 meal expenses 6373 employee benefits/welfare 6376 training expense 6378 other research and development expenses non-operating The revenue and revenue and expensesnot arising expenses from operating activities. non-operating The revenue not revenue arising from operating activities. interest revenue Interest revenues resulting from 7111 interest revenue/income deposits with financial institution or loan to others. investment income Investment income of 7141 Gain on valuation a non-investment of financial asset company, engaged in 7142 Gain on valuation financing of financial liabilityinstruments.

71~74 711

714

89

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

7143 investment income recognized under equity method 715 7151 716 7161 717 7171 718 7181 foreign exchange Gain from fluctuation gain in foreign currency foreign exchange exchange rate. gain gain on disposal of Gain from disposal of investments short-term or longterm investments. gain on disposal of investments gain on disposal of Gain from disposal of assets property, plant and equipment. gain on disposal of assets Gain on reversal of Reversal on impairment loss impairment loss that was account for in Gain on reversal of impairment loss prior financial period which can be proof to have lessen or not exist. other nonOther non-operating operating revenuerevenue that cannot donation income be classified into the headings above. rent revenue/income commission revenue/income revenue from sale of scraps gain on physical inventory

748 7481 7482 7483 7484 7485

90

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

7486 gain from price recovery of inventory 7487 gain on reversal of bad debts 7488 other nonoperating revenue other items non-operating The expenses not expenses arising from operating activities. interest expense Interest expense 7511 interest expense incurred as a result of borrowing from financial institutions or other persons. dividends on Dividends passed by preferred stock preferred stock liabilities liabilities. 7521 dividends on preferred stock liabilities investment loss Investment loss of a non-investment 7531 loss on valuation of company, engaged financial asset in 7532 loss on valuation of financing financial liability instruments. 7533 investment loss recognized under equity method foreign exchange Loss from fluctuation loss of foreign currency

75~78 751

752

753

754

91

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

755

756

768 788

79 791

7541 foreign exchange exchange rate. loss loss on disposal ofLoss from the sale, assets obsolescence, and 7551 loss on disposal ofloss of assets. assets loss on disposal ofLoss from disposal of investments short-term or long7561 loss on disposal ofterm investments. investments impairment loss The book value of 7681 impairment loss assets over recoverable amounts. other nonOther non-operating operating expense that cannot expenses be classified into the headings above 7881 loss on work stoppages 7882 casualty loss 7885 loss on physical inventory 7886 loss for market price decline and obsolete and slowmoving inventories 7888 other nonoperating expenses other continuing Income tax is operating income computed based before tax upon statutory tax rate applied to continuing operating income current period accounting net before tax

92

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

8 81 811

82 821

7911 continuing income (higher than operating income zero). In case of before tax current period accounting net loss incurred, the income tax benefit is computed based upon statutory tax rate applied to past or future tax savings resulting from current period accounting net loss. income tax Refers to the sum of expense current income tax (or benefit) expense (benefit) and deferred tax income tax expense (benefit) expense (or benefit) income tax expense (or benefit) 8111 income tax expense (or benefit) continuing Refers to continuing operating income operation after tax after tax continuing operating income after tax 8211 continuing operating income after tax nonrecurring gain The expense and 93

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

91

911

92 921

93

931

loss not arising from operating activities. discontinued Discontinued operation income operation income includes loss(gain) on disposal of assets operating income for sale and for discontinued loss(gain) on valuation of assets operation 9111 operating income for sale. for discontinued operation 9112 loss(gain) on disposal or valuation of assets for sale discontinued operation extraordinary gain Gain or loss that is or loss unusual in nature and extraordinary gain occurs infrequently. or loss 9211 extraordinary gain or loss cumulative effect After-tax cumulative of changes in effects resulting from accounting changes in principles accounting principles. cumulative effect of changes in accounting principles

or loss

94

F IR S T S E C O N D T H IR D F O U R T H GRADE GRADE GRADE GRADE

ACCOUNT

EXPLANATION OF ACCOUNT

94 941

9311 cumulative effect of changes in accounting principles minority interest income minority interest income 9411 minority interest income

The subsidiarys net income that is recognized by the investors other than these affiliated.

95

96