DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 20117. Trade and Other Receivables, Continued(2) Changes in allowance for doubtful debts of trade and other receivables as of December 31, 2012 aresummarized as follows:(In millions of won) Trade receivables Other receivables Advance paymentsBeginning balance ₩ 202,642 30,523 58Addition 78,040 10,920 2,628Write-offs (16) - -Foreign currencytranslation adjustment1,279 (10) (5)Ending balance ₩ 281,945 41,433 2,681(In millions of won)Short-term loansLong-term tradereceivablesBeginning balance ₩ - 895Addition 18,600 -Foreign currencytranslation adjustment- (72)Ending balance ₩ 18,600 823The Group regards trade and other receivables overdue for more than 3 months to be impaired. The maincomponents of this allowance are a specific loss component that relates to individually significant exposures,and a collective loss allowance established for groups of homogeneous receivables in respect of losses thatbeen incurred but not yet identified. The collective loss allowance is determined using aging method basedon historical data of payment statistics.Allowance for doubtful accounts pertaining to trade receivable is included in selling expenses, and allowancefor doubtful accounts pertaining to other receivable is included in non-operating expense.40