Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | LINE CORP |
Entity Central Index Key | 0001611820 |
Current Fiscal Year End Date | --12-31 |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 241,133,142 |
Entity Address, Country | JP |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares, each representing one share of common stock |
Trading Symbol | LN |
Security Exchange Name | NYSE |
Common Stock [member] | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Stock |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - JPY (¥) | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets | |||
Cash and cash equivalents | ¥ 217,345,000,000 | ¥ 256,978,000,000 | |
Trade and other receivables | 42,680,000,000 | 37,644,000,000 | |
Other financial assets, current | 20,117,000,000 | 15,915,000,000 | |
Contract assets | [1] | 241,000,000 | 339,000,000 |
Inventories | 4,740,000,000 | 4,887,000,000 | |
Other current assets | 10,518,000,000 | 9,751,000,000 | |
Total current assets | 295,641,000,000 | 325,514,000,000 | |
Non-current assets | |||
Property and equipment | 25,024,000,000 | 24,726,000,000 | |
Right-of-use assets | 54,337,000,000 | ||
Goodwill | 17,651,000,000 | 17,095,000,000 | |
Other intangible assets | 7,801,000,000 | 5,298,000,000 | |
Investments in associates and joint ventures | 64,194,000,000 | 53,921,000,000 | |
Other financial assets, non-current | 51,737,000,000 | 42,287,000,000 | |
Deferred tax assets | 24,095,000,000 | 17,107,000,000 | |
Other non-current assets | 872,000,000 | 639,000,000 | |
Total non-current assets | 245,711,000,000 | 161,073,000,000 | |
Total assets | 541,352,000,000 | 486,587,000,000 | |
Current liabilities | |||
Trade and other payables | 43,710,000,000 | 34,985,000,000 | |
Other financial liabilities, current | 44,826,000,000 | 36,726,000,000 | |
Accrued expenses | 23,462,000,000 | 18,405,000,000 | |
Income tax payables | 3,963,000,000 | 4,855,000,000 | |
Lease liabilities, current | 11,487,000,000 | ||
Contract liabilities | 25,752,000,000 | 24,637,000,000 | |
Provisions, current | 3,221,000,000 | 2,581,000,000 | |
Other current liabilities | 5,238,000,000 | 1,037,000,000 | |
Total current liabilities | 161,659,000,000 | 123,226,000,000 | |
Non-current liabilities | |||
Corporate bonds | 142,851,000,000 | 142,132,000,000 | |
Other financial liabilities, non-current | 362,000,000 | 527,000,000 | |
Lease liabilities, non-current | 45,150,000,000 | ||
Deferred tax liabilities | 1,071,000,000 | 503,000,000 | |
Provisions, non-current | 4,528,000,000 | 3,309,000,000 | |
Post-employment benefits | 9,617,000,000 | 6,943,000,000 | |
Other non-current liabilities | 1,451,000,000 | 1,433,000,000 | |
Total non-current liabilities | 205,030,000,000 | 154,847,000,000 | |
Total liabilities | 366,689,000,000 | 278,073,000,000 | |
Shareholders' equity | |||
Share capital | 96,737,000,000 | 96,064,000,000 | |
Share premium | 121,299,000,000 | 118,626,000,000 | |
Treasury shares | (6,308,000,000) | (8,205,000,000) | |
Accumulated deficit | (53,524,000,000) | (5,556,000,000) | |
Accumulated other comprehensive income | (71,000,000) | (2,013,000,000) | |
Equity attributable to the shareholders of the Company | 158,133,000,000 | 198,916,000,000 | |
Non-controlling interests | 16,530,000,000 | 9,598,000,000 | |
Total shareholders' equity | 174,663,000,000 | 208,514,000,000 | |
Total liabilities and shareholders' equity | ¥ 541,352,000,000 | ¥ 486,587,000,000 | |
[1] | Contract assets mainly consist of transactions related to the advertising contracts in which the revenues from these transactions are recognized over time by measuring the progress towards completion of satisfaction of the performance obligation. |
Consolidated Statements of Prof
Consolidated Statements of Profit or Loss - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Revenues and other operating income: | |||||||
Revenues | ¥ 227,485 | [1] | ¥ 207,182 | [1] | ¥ 167,147 | [2] | |
Other operating income | 3,211 | 28,099 | 12,011 | ||||
Total revenues and other operating income | 230,696 | 235,281 | 179,158 | ||||
Operating expenses: | |||||||
Payment processing and licensing expenses | (35,874) | (30,823) | (29,589) | ||||
Sales commission expenses | (15,995) | (15,960) | (899) | ||||
Employee compensation expenses | (70,265) | (57,493) | (42,469) | ||||
Marketing expenses | (33,022) | (20,311) | (15,477) | ||||
Infrastructure and communication expenses | (10,821) | (10,483) | (9,087) | ||||
Outsourcing and other service expenses | (41,892) | (31,825) | (24,007) | ||||
Depreciation and amortization expenses | (22,737) | (11,135) | (7,149) | ||||
Other operating expenses | (39,087) | (41,141) | (25,403) | ||||
Total operating expenses | (269,693) | (219,171) | (154,080) | ||||
Profit/(loss) from operating activities | [3] | (38,997) | 16,110 | 25,078 | |||
Finance income | 512 | 413 | 257 | ||||
Finance costs | (1,980) | (519) | (26) | ||||
Share of loss of associates and joint ventures | (13,412) | (11,148) | (6,321) | ||||
Loss on foreign currency transactions, net | (72) | (902) | (818) | ||||
Other non-operating income | 3,878 | 869 | 1,963 | ||||
Other non-operating expenses | (1,545) | (1,469) | (1,988) | ||||
Profit/(loss) before tax from continuing operations | (51,616) | 3,354 | 18,145 | ||||
Income tax expenses | (384) | (9,522) | (9,922) | ||||
Profit/(loss) for the year from continuing operations | (52,000) | (6,168) | 8,223 | ||||
(Loss)/profit from discontinued operations, net of tax | 584 | 376 | (13) | ||||
Profit/(loss) for the year | (51,416) | (5,792) | 8,210 | ||||
Attributable to: | |||||||
The shareholders of the Company | (46,888) | (3,718) | 8,078 | ||||
Non-controlling interests | ¥ (4,528) | ¥ (2,074) | ¥ 132 | ||||
Earnings per share | |||||||
Basic profit/(loss) for the year attributable to the shareholders of the Company | ¥ (196.07) | ¥ (15.62) | ¥ 36.56 | ||||
Diluted profit/(loss) for the year attributable to the shareholders of the Company | (196.07) | (15.62) | 34.01 | ||||
Earnings per share from continuing operations | |||||||
Basic profit/(loss) from continuing operations attributable to the shareholders of the Company | (198.51) | (17.20) | 36.62 | ||||
Diluted profit/(loss) from continuing operations attributable to the shareholders of the Company | (198.51) | (17.20) | 34.06 | ||||
Earnings per share from discontinued operations | |||||||
Basic (loss)/profit from discontinued operations attributable to the shareholders of the Company | 2.44 | 1.58 | (0.06) | ||||
Diluted (loss)/profit from discontinued operations attributable to the shareholders of the Company | ¥ 2.44 | ¥ 1.58 | ¥ (0.05) | ||||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | ||||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. | ||||||
[3] | The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | |||
Profit/(loss) for the year | ¥ (51,416) | ¥ (5,792) | ¥ 8,210 |
Other comprehensive income Items that will not be reclassified to profit or loss | |||
Net changes in fair value of equity instruments at FVOCI | 3,799 | (2,681) | |
Remeasurement of defined benefit plans | (1,134) | (169) | 2,093 |
Income tax relating to items that will not be reclassified to profit or loss | (1,091) | 706 | (488) |
Other comprehensive income - Items that may be reclassified to profit or loss | |||
Net changes in fair value of debt instruments at FVOCI | (7) | 88 | |
Reclassification to profit or loss of debt instruments at FVOCI | 1 | 10 | |
Net changes in fair value of available-for-sale financial assets | (3,339) | ||
Reclassification to profit or loss of available-for-sale financial assets | 1,090 | ||
Exchange differences on translation of foreign operations: Gain/(loss) arising during the year | (732) | (4,047) | 3,751 |
Exchange differences on translation of foreign operations: Reclassification to profit or loss | (448) | (345) | (13) |
Proportionate share of other comprehensive income of associates and joint ventures | 8 | (27) | 106 |
Reclassification to profit or loss on the proportionate share of other comprehensive income or loss of associates and joint ventures | (12) | ||
Income tax relating to items that may be reclassified subsequently to profit or loss | 386 | 340 | 333 |
Total other comprehensive income/(loss) for the year, net of tax | 782 | (6,137) | 3,533 |
Total comprehensive income/(loss) for the year, net of tax | (50,634) | (11,929) | 11,743 |
Attributable to: | |||
The shareholders of the Company | (46,027) | (9,648) | 11,365 |
Non-controlling interests | ¥ (4,607) | ¥ (2,281) | ¥ 378 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - JPY (¥) ¥ in Millions | Total | Share capital [member] | Share premium [member] | Accumulated deficit [Member] | Accumulated other comprehensive income [member]Accumulated other comprehensive income: Foreign currency translation reserve [Member] | Accumulated other comprehensive income [member]Accumulated other comprehensive income: Available-for-sale reserve [Member] | Accumulated other comprehensive income [member]Accumulated other comprehensive income: Defined benefit plan reserve [Member] | Accumulated other comprehensive income [member]Reserve of gains and losses on financial assets measured at fair value through other comprehensive income [member] | Total equity attributable to the shareholder of the Company [Member] | Non-controlling interests [Member] | Treasury shares [member] | |
Beginning balance at Dec. 31, 2016 | ¥ 161,023 | ¥ 77,856 | ¥ 91,208 | ¥ (12,381) | ¥ (174) | ¥ 5,649 | ¥ (1,324) | ¥ 160,834 | ¥ 189 | |||
Comprehensive (loss)/income/ | ||||||||||||
Profit/(loss) for the year | 8,210 | 8,078 | 8,078 | 132 | ||||||||
Other comprehensive income/(loss) | 3,533 | 3,328 | (1,721) | 1,680 | 3,287 | 246 | ||||||
Total comprehensive income/ (loss) for the year | 11,743 | 8,078 | 3,328 | (1,721) | 1,680 | 11,365 | 378 | |||||
Recognition of share-based payments | 1,882 | 1,882 | 1,882 | |||||||||
Forfeiture of stock options | (9) | 9 | ||||||||||
Exercise of stock options | 11,425 | 12,513 | (1,088) | 11,425 | ||||||||
Acquisition of subsidiaries | 4,168 | 4,168 | ||||||||||
Acquisition of non-controlling interests | (254) | (423) | 4 | (2) | (421) | 167 | ||||||
Issuance of common shares and acquisition of treasury shares under Employee Stock Ownership Plan | (10) | 2,000 | 1,990 | (10) | ¥ (4,000) | |||||||
Total transactions with owners and other transactions | 17,211 | 14,513 | 2,352 | 9 | 4 | (2) | 12,876 | 4,335 | (4,000) | |||
Ending balance (Increase (decrease) due to changes in accounting policy required by IFRSs [member]) at Dec. 31, 2017 | (1,166) | 177 | ¥ (1,258) | (1,081) | (85) | |||||||
Ending balance (Adjusted balance [member]) at Dec. 31, 2017 | 188,811 | 92,369 | 93,560 | (4,117) | 3,158 | 354 | 2,670 | 183,994 | 4,817 | (4,000) | ||
Ending balance at Dec. 31, 2017 | 189,977 | 92,369 | 93,560 | (4,294) | 3,158 | ¥ 3,928 | 354 | 3,928 | 185,075 | 4,902 | (4,000) | |
Comprehensive (loss)/income/ | ||||||||||||
Profit/(loss) for the year | (5,792) | (3,718) | (3,718) | (2,074) | ||||||||
Other comprehensive income/(loss) | (6,137) | (3,802) | (298) | (1,830) | (5,930) | (207) | ||||||
Total comprehensive income/ (loss) for the year | (11,929) | (3,718) | (3,802) | (298) | (1,830) | (9,648) | (2,281) | |||||
Recognition of share-based payments | 1,336 | 1,336 | 1,336 | |||||||||
Forfeiture of stock options | (37) | 37 | ||||||||||
Exercise of stock options | 996 | 1,195 | (199) | 996 | ||||||||
Changes in interest in subsidiaries | 25,640 | 17,440 | [1] | (15) | 1 | (27) | 17,399 | 8,241 | ||||
Derecognition of non-controlling interests due to loss of control of subsidiaries | (1,974) | (1,974) | ||||||||||
Acquisition of subsidiaries | 795 | 795 | ||||||||||
Issuance of common shares and acquisition of treasury shares under Employee Stock Ownership Plan | (12) | 2,500 | 2,488 | (12) | (5,000) | |||||||
Issuance of convertible bonds with stock acquisition rights | 4,175 | 4,175 | 4,175 | |||||||||
Disposal of treasury shares | 662 | (137) | 662 | 799 | ||||||||
Purchase of treasury shares | (4) | (4) | (4) | |||||||||
Transfer of accumulated other comprehensive income to accumulated deficit | 2,224 | 6 | (2,230) | |||||||||
Other | 18 | 18 | 18 | |||||||||
Total transactions with owners and other transactions | 31,632 | 3,695 | 25,066 | 2,279 | (15) | 7 | (2,257) | 24,570 | 7,062 | (4,205) | ||
Ending balance (Increase (decrease) due to changes in accounting policy required by IFRSs [member]) at Dec. 31, 2018 | (26) | (26) | (26) | |||||||||
Ending balance (Adjusted balance [member]) at Dec. 31, 2018 | 208,488 | 96,064 | 118,626 | (5,582) | (659) | 63 | (1,417) | 198,890 | 9,598 | (8,205) | ||
Ending balance at Dec. 31, 2018 | 208,514 | 96,064 | 118,626 | (5,556) | (659) | 63 | (1,417) | 198,916 | 9,598 | (8,205) | ||
Comprehensive (loss)/income/ | ||||||||||||
Profit/(loss) for the year | (51,416) | (46,888) | (46,888) | (4,528) | ||||||||
Other comprehensive income/(loss) | 782 | (683) | (1,147) | 2,691 | 861 | (79) | ||||||
Total comprehensive income/ (loss) for the year | (50,634) | (46,888) | (683) | (1,147) | 2,691 | (46,027) | (4,607) | |||||
Recognition of share-based payments | 1,682 | 1,682 | 1,682 | |||||||||
Forfeiture of stock options | (51) | 51 | ||||||||||
Exercise of stock options | 571 | 673 | (102) | 571 | ||||||||
Changes in interest in subsidiaries | 14,785 | 1,715 | [2] | 1,715 | 13,070 | |||||||
Acquisition of subsidiaries | 203 | 203 | ||||||||||
Disposal of treasury shares | 1,334 | (571) | 1,334 | 1,905 | ||||||||
Purchase of treasury shares | (8) | (8) | (8) | |||||||||
Transfer of accumulated other comprehensive income to accumulated deficit | (1,081) | 1,081 | ||||||||||
Distributions | (1,734) | (1,734) | ||||||||||
Other | (24) | (24) | (24) | |||||||||
Total transactions with owners and other transactions | 16,809 | 673 | 2,673 | (1,054) | 1,081 | 5,270 | 11,539 | 1,897 | ||||
Ending balance at Dec. 31, 2019 | ¥ 174,663 | ¥ 96,737 | ¥ 121,299 | ¥ (53,524) | ¥ (1,342) | ¥ (1,084) | ¥ 2,355 | ¥ 158,133 | ¥ 16,530 | ¥ (6,308) | ||
[1] | Changes in interest in subsidiaries for the fiscal year ended December 31, 2018 include increase in share premium of 17,892 million yen due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the decrease in share premium of 488 million yen due to the changes in the percentage of ownership resulting from absorption type mergers within subsidiaries of the Group. | |||||||||||
[2] | Changes in interest in subsidiaries for the fiscal year ended December 31, 2019 is due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the changes in the percentage of ownership resulting from acquisition of additional interest in subsidiaries of the Group. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - JPY (¥) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Profit/(loss) before tax from continuing operations | ¥ (51,616,000,000) | ¥ 3,354,000,000 | ¥ 18,145,000,000 | |
(Loss)/profit before tax from discontinued operations | 648,000,000 | 550,000,000 | (19,000,000) | |
Profit/(loss) before tax | (50,968,000,000) | 3,904,000,000 | 18,126,000,000 | |
Adjustments for: | ||||
Depreciation and amortization expenses | 22,737,000,000 | 11,135,000,000 | 7,149,000,000 | |
Finance income | (512,000,000) | (413,000,000) | (257,000,000) | |
Finance costs | 1,980,000,000 | 519,000,000 | 26,000,000 | |
Dividend income | (151,000,000) | (50,000,000) | (69,000,000) | |
Share-based compensation expenses | 4,249,000,000 | 2,528,000,000 | 2,686,000,000 | |
Gain on loss of control of subsidiaries and business transfer | [1] | (24,794,000,000) | (10,444,000,000) | |
(Gain)/loss on financial assets at fair value through profit or loss | (2,901,000,000) | 646,000,000 | (1,026,000,000) | |
Impairment loss of property and equipment | 57,000,000 | 0 | 0 | |
Impairment loss of right-of-use assets | [2] | 617,000,000 | ||
Impairment loss of other intangible assets | 96,000,000 | 212,000,000 | 214,000,000 | |
Impairment loss of available-for-sale financial assets | 1,761,000,000 | |||
Gain on sale of available-for-sale financial assets | (751,000,000) | |||
Share of loss of associates and joint ventures | 13,412,000,000 | 11,148,000,000 | 6,321,000,000 | |
Dilution gains from changes in equity interest in associates and joint ventures | (1,819,000,000) | (2,620,000,000) | ||
(Gain)/loss on foreign currency transactions, net | (456,000,000) | 28,000,000 | (182,000,000) | |
Changes in: | ||||
Trade and other receivables | (4,972,000,000) | 2,344,000,000 | (13,539,000,000) | |
Contract assets | 98,000,000 | 97,000,000 | ||
Inventories | (397,000,000) | (1,672,000,000) | (2,366,000,000) | |
Trade and other payables | 9,149,000,000 | 6,653,000,000 | 6,215,000,000 | |
Accrued expenses | 3,576,000,000 | 7,082,000,000 | 2,642,000,000 | |
Contract liabilities | 1,129,000,000 | 641,000,000 | ||
Advances received | 6,338,000,000 | |||
Deferred revenue | (700,000,000) | |||
Provisions | 493,000,000 | 1,079,000,000 | 187,000,000 | |
Post-employment benefits | 1,649,000,000 | 940,000,000 | 2,054,000,000 | |
Other current assets | (3,216,000,000) | (2,428,000,000) | (2,860,000,000) | |
Other current liabilities | 12,075,000,000 | 2,917,000,000 | 1,311,000,000 | |
Others | 375,000,000 | 504,000,000 | 232,000,000 | |
Cash provided by operating activities | 6,300,000,000 | 20,400,000,000 | 23,068,000,000 | |
Interest received | 495,000,000 | 409,000,000 | 252,000,000 | |
Interest paid | (1,258,000,000) | (313,000,000) | (32,000,000) | |
Dividend received | 202,000,000 | 82,000,000 | 98,000,000 | |
Payment of issuance costs for corporate bonds | (1,954,000,000) | |||
Income taxes paid | (8,844,000,000) | (9,502,000,000) | (12,421,000,000) | |
Net cash provided by/(used in) operating activities | (3,105,000,000) | 9,122,000,000 | 10,965,000,000 | |
Cash flows from investing activities | ||||
Purchases of time deposits | (9,364,000,000) | (13,443,000,000) | (1,282,000,000) | |
Proceeds from maturities of time deposits | 17,287,000,000 | 13,843,000,000 | 401,000,000 | |
Purchase of equity investments | (5,022,000,000) | (4,880,000,000) | ||
Proceeds from sales of equity investments | 1,595,000,000 | 4,031,000,000 | 1,672,000,000 | |
Investments in debt instruments | (11,223,000,000) | (15,661,000,000) | (6,433,000,000) | |
Proceeds from redemption of debt instruments | 2,981,000,000 | 1,841,000,000 | 5,209,000,000 | |
Acquisition of property and equipment and intangible assets | (15,487,000,000) | (20,939,000,000) | (12,622,000,000) | |
Proceeds from sale of property and equipment and intangible assets | 525,000,000 | 181,000,000 | 472,000,000 | |
Investments in associates and joint ventures | (23,332,000,000) | (14,214,000,000) | (5,566,000,000) | |
Return on capital from investments in associates | 92,000,000 | 499,000,000 | ||
Payments of office security deposits | (782,000,000) | (4,130,000,000) | (1,112,000,000) | |
Refund of office security deposits | 355,000,000 | 447,000,000 | 1,581,000,000 | |
Payments of guarantee deposits | (5,795,000,000) | (800,000,000) | ||
Return of the office security deposits received under sublease agreement | (19,000,000) | |||
Payments of the guarantee deposits for the Japanese Payment Services Act | (2,744,000,000) | (130,000,000) | (530,000,000) | |
Return of the guarantee deposits for the Japanese Payment Services Act | 2,744,000,000 | 765,000,000 | 3,340,000,000 | |
Payments for acquisition of subsidiaries and businesses | (240,000,000) | (188,000,000) | (11,887,000,000) | |
Cash acquired on acquisition of subsidiaries | 736,000,000 | |||
Cash disposed on loss of control of subsidiaries and business transfer | (2,043,000,000) | (581,000,000) | ||
Payments for loan receivables | (114,000,000) | (754,000,000) | (2,165,000,000) | |
Collection of loan receivables | 338,000,000 | 2,271,000,000 | 124,000,000 | |
Others | 31,000,000 | (174,000,000) | 48,000,000 | |
Net cash used in investing activities | (43,133,000,000) | (52,884,000,000) | (34,230,000,000) | |
Cash flows from financing activities | ||||
Repayment of lease liabilities | (9,167,000,000) | |||
Repayment of short-term borrowings, net | (107,000,000) | |||
Proceeds from short-term borrowings | 1,100,000,000 | 1,050,000,000 | ||
Repayment of short-term borrowings | (1,002,000,000) | (72,000,000) | ||
Repayment of long-term borrowings | (2,000,000) | (11,000,000) | ||
Proceeds from issuance of corporate bonds | 149,978,000,000 | |||
Payments of common shares issuance costs | (5,000,000) | (33,000,000) | (30,000,000) | |
Proceeds from exercise of stock options | 573,000,000 | 1,002,000,000 | 11,489,000,000 | |
Payment of distributions to non-controlling interests | (1,735,000,000) | |||
Payment for acquisition of interest in subsidiaries from non-controlling interests | (452,000,000) | (630,000,000) | (255,000,000) | |
Capital contribution from non-controlling interests | 15,476,000,000 | 26,439,000,000 | 343,000,000 | |
Proceeds from disposal of treasury shares | 1,334,000,000 | 662,000,000 | ||
Others | (8,000,000) | 16,000,000 | (1,000,000) | |
Net cash provided by financing activities | 6,112,000,000 | 178,401,000,000 | 11,439,000,000 | |
Net (decrease)/increase in cash and cash equivalents | (40,126,000,000) | 134,639,000,000 | (11,826,000,000) | |
Cash and cash equivalents at the beginning of the year | 256,978,000,000 | 123,606,000,000 | 134,698,000,000 | |
Effect of exchange rate fluctuations on cash and cash equivalents | 493,000,000 | (1,267,000,000) | 734,000,000 | |
Cash and cash equivalents at the end of the year | ¥ 217,345,000,000 | ¥ 256,978,000,000 | ¥ 123,606,000,000 | |
[1] | Refer to Note 20 Supplemental Cash Flow Information for further details. | |||
[2] | Refer to Note 11 Impairment for further details. |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2019 | |
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Reporting Entity | 1. Reporting Entity LINE Corporation (the “Company”) was incorporated in September 2000 in Japan in accordance with the Companies Act of Japan under the name Hangame Japan Corporation to provide online gaming services. The Company changed its name to NHN Japan Corporation in August 2003, and subsequently changed its name to LINE Corporation in April 2013. The Company is a subsidiary of NAVER Corporation (“NAVER”), formerly NHN Corporation, which is domiciled in Korea. NAVER is the ultimate parent entity of the Company and its subsidiaries (collectively “the Group”). The Company’s head office is located at 4-1-6 Shinjuku-ku, The Company listed shares of its common shares in the form of American depositary shares on the New York Stock Exchange and shares of its common shares on the Tokyo Stock Exchange. The Group mainly operate a cross-platform messenger application, LINE, and provides communication and content sales and advertising services. Communication and content are provided via the LINE platform, while advertising services are provided via LINE advertising, and web portals, livedoor and NAVER Matome. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2019 | |
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Basis of Preparation | 2. Basis of Preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Group’s consolidated financial statements are presented in millions of Japanese yen, which is also the Company’s functional currency. The consolidated financial statements were approved by Representative Director, President and Chief Executive Officer Takeshi Idezawa and Director and Chief Financial Officer In Joon Hwang on March 27, 2020. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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Significant Accounting Policies | 3. Significant Accounting Policies The significant accounting policies applied by the Group in preparing its consolidated financial statements are set out below. The accounting policies have been applied consistently, except for effect of new and amended standards and interpretations of IFRS, to all periods presented in these consolidated financial statements. Refer to (30) New and Amended Standards and Interpretations for the impacts of the adoption of new and revised IFRSs issued by the IASB that are mandatorily effective for the accounting period that begins on or after January 1, 2019 on the Group’s annual consolidated financial statements as of December 31, 2018 and 2019, and for the years ended December 31, 2017, 2018 and 2019. (1) Basis of Consolidation The consolidated financial statements include the accounts of the Group, which are directly or indirectly controlled. Control is generally conveyed by ownership of the majority of voting rights. The Group controls an entity when the Group has power over the entity, is exposed, or has rights, to variable returns from the involvement with the entity and has the ability to affect those returns through its power over the entity. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. If the end of the reporting period of a subsidiary differs from that of the Company, the subsidiary prepares, for the purpose of preparing consolidated financial statements, additional financial statements as of the same date as the consolidated financial statements of the Group. Non-controlling non-controlling non-controlling non-controlling On February 12, 2016, the board of directors approved the abandonment of the MixRadio service (“MixRadio”) segment. The operation of the MixRadio business was classified as a discontinued operation on March 21, 2016, when the abandonment took effect. Intercompany balances and transactions have been eliminated upon consolidation. (2) Basis of Measurement The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value, which is the price that would be received to sell such financial instruments or paid to transfer the related liability in an orderly transaction between market participants at the measurement date. (3) Business Combinations (a) Business combinations In accordance with IFRS 3 Business Combinations, – Deferred tax assets or liabilities which are recognized and measured in accordance with IAS 12 Income Taxes; – Employee benefit arrangements which are recognized and measured in accordance with IAS 19 Employee Benefits Leases and insurance contracts are classified on the basis of the contractual terms and other factors at the inception of the contract or at the date of modification, which could be the acquisition date if the terms of the contract have been modified in a manner that would change its classification. Contingent liabilities assumed in a business combination are recognized when such liabilities are present obligations and their fair value can be measured reliably. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree and the equity interests issued by the acquirer. Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. Acquisition-related costs, other than those associated with the issue of debt or equity securities, are expensed in the periods in which the costs are incurred and the services are received. The Group measures goodwill at the acquisition date as: – the fair value of the consideration transferred; plus – the recognized amount of any non-controlling – if the business combination is achieved in stages, the fair value of the pre-existing – the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses. (b) Business combinations under common control A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and in which control is not transitory. The Group has accounted for the acquisition of businesses under common control based on the carrying amounts recorded in the consolidated financial statements of the acquired companies. The financial statements of acquired companies have been retrospectively consolidated as part of the Group’s consolidated financial statements as if the acquisition of acquired companies had occurred on the date of its original acquisition by the common control group, regardless of the actual date of acquisition by the Group. (4) Associates and Joint Arrangements (a) Associates An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity, unless it can be clearly demonstrated that it is not the case. The Group’s investments in associates are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognized at cost and the carrying amount is adjusted to recognize the Group’s share of the profit or loss and changes in equity of the associate after the date of acquisition. Gains and losses from transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Intra-group losses are recognized as an expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements. If an associate uses accounting policies different from those of the Group for like transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity method. When the Group’s share of losses exceeds its interest in associates, the carrying amount of that interest, including any long-term investments, is reduced to nil and the recognition of further losses is discontinued. (b) Joint arrangements A joint arrangement is an arrangement in which two or more parties have joint control. The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in joint operations in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint ventures are accounted for using the equity method. (5) Foreign Currencies (a) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate. Non-monetary Non-monetary Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of equity instruments at FVOCI which are recognized in other comprehensive income. (b) Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the presentation currency at the average foreign exchange rates for the reporting period. Foreign currency differences are recognized in other comprehensive income. When a foreign operation is disposed of, the relevant amount after the translation is reclassified to profit or loss as part of profit or loss on disposal. In the event that a partial disposal does not lead to a loss of control in a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling (6) Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments with maturity dates that are within three months from the purchase dates. Such investments are highly liquid and readily convertible to known amounts of cash. Cash and cash equivalents are subject to an insignificant risk of changes in value and are used by the Group in managing its short-term commitments. (7) Financial Assets (a) Classification of financial assets Based on the Group’s business model for managing the financial assets and the characteristics of contractual cash flow of the financial assets, the Group classifies the financial assets by the i. Financial assets at amortized cost Financial assets measured at amortized cost are debt instruments whose contractual cash flows represent solely payments of principal and interest on the principal amount outstanding, and which are held within a business model whose objective is achieved solely by collecting contractual cash flows. ii. Financial assets at fair value through other comprehensive income Financial assets measured at fair value through other comprehensive income are debt instruments whose contractual cash flows represent solely payments of principal and interest on the principal amount outstanding, and which are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and equity instruments which the Group has made an irrevocable election at the time of initial recognition to account for the equity instruments at fair value through other comprehensive income. The Group made irrevocable election to classify all equity investments (other than those which are accounted for as affiliates under equity method or consolidated) as financial assets measured at FVOCI. iii. Financial assets at fair value through profit or loss Financial assets measured at fair value through profit or loss are the financial assets that are not classified as financial asset at amortized cost or financial assets at fair value through other comprehensive income. (b) Measurement of financial assets i. Initial measurement At initial recognition, the Group recognize financial assets in the Consolidated Statements of Financial Position when the Group becomes party to the contractual provisions of the financial assets. The Group measures financial assets at the fair value. Financial assets not classified as financial assets at fair value through profit or loss are measure at fair value, including any transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets measured at fair value through profit or loss are expensed in profit or loss. ii. Subsequent measurement Debt instruments: (i) Financial assets at amortized cost The financial assets at amortized cost are measured at amortized cost using the effective interest method, and related interest income are included in finance income. When the financial asset is derecognized, the difference between amortized cost and consideration received is recognized in profit or loss. When there are changes in the amount of expected credit loss of the financial asset, an impairment gain or loss is recognized in profit or loss. (ii) Fair value through other comprehensive income (“FVOCI”) Subsequent to initial recognition, financial assets are measured at fair value and gains or losses arising from changes in the fair value are recorded in other comprehensive income whereas related interest income and foreign exchange gains or losses are recognized in profit or loss. The Group recognizes impairment gain or loss due to expected credit loss in profit or loss. When debt investments are derecognized, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss. (iii) Fair value through profit or loss Subsequent to initial recognition, financial assets are measured at fair value. Gains or losses on debt instruments are recognized in profit or loss. Equity instruments: Where the Group has irrevocably elected to designate equity instruments as financial assets measured at fair value through other comprehensive income, any changes in the book value resulting from fair value measurement are recognized as other comprehensive income. There is no subsequent reclassification of cumulative gains or losses previously recognized in other comprehensive income to profit or loss. The accumulated other comprehensive income of the equity instruments measured at FVOCI on which the Group made an irrevocable election are transferred to retained earnings, when such equity instruments are sold. Where the Group has not elected to designate equity instruments as financial assets measured at fair value through other comprehensive income, any changes in the book value resulting from fair value measurement are recognized in profit or loss. Dividends from equity instruments are recognized in profit or loss as “Other operating income” when the Group’s right to receive payments is established. (c) Derivative financial instruments The Group may use derivative financial instruments, such as exchange forward contracts to hedge its foreign exchange risk. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured (d) Derecognition of a financial asset The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. Significant accounting policies prior to the adoption of IFRS 9 as of January 1, 2018 were as follows: Financial assets The Group classifies and measures financial assets based on the following four categories: financial assets at fair value through profit or loss; held-to-maturity available-for-sale Upon initial recognition, financial assets are measured at their fair value plus, in the case of a financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition. Regular way purchases or sales of financial assets, i.e. purchases or sales under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned, are accounted for at the trade date. (a) Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (b) Held-to-maturity Financial assets with fixed or determinable payments and fixed maturities, for which the Group has the positive intention and ability to hold to maturity, are classified as held-to-maturity held-to-maturity (c) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, except for loans and receivables for which the effect of discounting is immaterial. (d) Available-for-sale Available-for-sale held-to-maturity Dividends on an available-for-sale (e) Derivative financial instruments The Group may use derivative financial instruments, such as exchange forward contracts, to hedge its foreign exchange risk. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured Derivative financial instruments embedded in non-derivative (f) Derecognition of a financial asset The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. Impairment of Financial Assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized. Objective evidence that financial assets, including equity securities, are impaired can include significant financial distress of issuers of financial assets or debtors, default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security, or the existence of observable data that shows the negative effect on expected future cash flows of the group of financial assets after the initial recognition can be reliably estimated, though the decrease in expected future cash flows of individual financial assets cannot be reliably estimated. In addition, for an investment in an equity security classified as an available-for-sale If financial assets have objective evidence that they are impaired, impairment losses should be measured and recognized. (a) Financial assets measured at amortized cost An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the asset’s original effective interest rate. If it is not practicable to obtain the instrument’s estimated future cash flows, impairment losses are measured by using prices from any observable current market transactions. The Group can recognize impairment losses directly or establish a provision to cover impairment losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting an allowance account. Financial assets are directly written off when there is no realistic prospect of future recovery. (b) Available-for-sale While other evidence and indicators are taken into consideration, generally, when the fair value of an available-for-sale available-for-sale available-for-sale available-for-sale available-for-sale (8) Financial Liabilities The Group recognizes financial liabilities in the Consolidated Statements of Financial Position when the Group becomes a party to the contractual provisions of the financial liability. At the date of initial recognition, financial liabilities are measured at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. The Group derecognizes financial liabilities from the Consolidated Statements of Financial Position when it is extinguished (i.e. when the obligation specified in the contract is discharged, canceled or expires). For convertible bonds, at initial recognition, the book value of the liability component of the bond is the fair value of discounted future cash flows of the bond at a rate of similar debt instruments taking into account the Company’s credit risk excluding the transaction costs from issuing the bond. After the initial recognition, the liability component is measured at amortized cost using the effective interest method. The difference between the fair value of the entire convertible bond and the fair value of the liability component is allocated to the conversion option. The difference is recognized as the equity component at the amount excluding the transaction costs as well as income taxes and is not remeasured subsequently. Significant accounting policies prior to the adoption of IFRS 9 as of January 1, 2018 were as follows: Financial Liabilities The Group recognizes financial liabilities in the Consolidated Statements of Financial Position when the Group becomes a party to the contractual provisions of the financial liability. At the date of initial recognition, financial liabilities are measured at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. (9) Inventories Inventories, consisting of merchandise for resale, are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (10) Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and stock options are recognized as a deduction from equity, net of any tax effects. (11) Treasury Shares Treasury shares are measured at costs and deducted from equity. No gain or loss is recognized on the purchase, sales or cancellation of the Company’s treasury shares. The difference between the book value and consideration received at the times of sales is recognized in equity. (12) Property and Equipment Property and equipment are measured and recognized at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Cost includes any other costs directly attributable to bring the assets to a working condition for their intended use, the costs of dismantling and removing the assets and restoring the site on which they are located. The cost of replacing a part of property and equipment is included in the carrying amount of the asset or recognized as a separate asset, as necessary, if it is probable that the future economic benefits embodied within the part will flow into the Group and if the cost can be reliably measured. Accordingly, the carrying amount of the replaced part is derecognized. The costs of day to day servicing of property and equipment are recognized in profit or loss as incurred. Land and assets held within construction-in-progress Gains or losses arising from the derecognition of an item of property and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other operating income or expenses. The estimated useful lives for the years ended December 31, 2017, 2018 and 2019 are as follows: Estimated useful lives (years) Equipment (mainly consist of servers) 3-5 Furniture and fixtures 3-5 Others 3-5 Depreciation methods, useful lives and residual values are reviewed at each fiscal year-end (13) Borrowing Costs The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are expensed as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. To the extent that the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset, which is the effective interest rate of the general borrowing. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Group capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period. No borrowing costs were capitalized during the years ended December 31, 2017, 2018 and 2019. (14) Intangible Assets Intangible assets are initially measured at cost and carried at cost less accumulated amortization and accumulated impairment losses after initial recognition. Within intangible assets with finite lives, customer relationships are amortized by the declining balance method and other intangible assets with finite lives are amortized using the straight-line method over the useful lives of the respective assets as provided below. Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The residual value of intangible assets is assumed to be zero. The estimated useful lives for the intangible assets with finite lives for the years ended December 31, 2017, 2018 and 2019 are as follows: Estimated useful lives (years) Software 2-10 Customer relationships 7 Domain name 20 Others 1-10 The amortization periods and methods for intangible assets with finite useful lives are reviewed at each fiscal year-end. Research and development Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred. No significant development expenditure was capitalized for the years ended December 31, 2017, 2018 and 2019. (15) Leases Group, as a lessee The Group mainly leases properties and data centers. A lease contract is normally entered into for a fixed term from 1 year to 5 years but it may include extension options. Leases are recognized as right-of-use right-of-use The assets and liabilities arising from leases are measured at the present value of the lease at the commencement date. The lease liability includes the net present value of the following lease payments: – fixed payments less any lease incentives – variable lease payments that depend on an index or a rate – amounts expected to be payable under a residual value guarantee – the exercise price of a purchase option if the lessee is reasonably certain to exercise that option – payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease Lease payments are determined using the discount rate as the interest rate implicit in the lease, if that rate can be readily determined, or the Group’s incremental borrowing rate. The right-of-use – the amount of the initial measurement of the lease liability – any lease payments made at or before the commencement date, less any lease incentives received – any initial direct cost – cost of restoring the underlying asset to the original condition As a practical expedient, the Group elects, by class of underlying asset, not to separate non-lease non-lease The lease payments associated with short-term lease and leases of low-value A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less. A lease of low-value Most of the Group’s property leases include extension options and termination options. An extension option shall be included in the lease term only if the lessee is reasonably certain to exercise that option. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception of the lease. When a lease contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration, such assets are defined as a lease transaction. The amount and term of the lease liabilities are properly reassessed when lease contracts are modified. When the lease liabilities are remeasured, the Group recognizes the amount of the remeasurement of the lease liability as an adjustment of the right-of-use asset. Group as lessor The Group had cancelable lease contracts related to servers, data storage, network equipment, personal computers and software with third parties for the years ended December 31, 2017, 2018 and 2019. The leased assets are included in “Property and equipment” in the Consolidated Statements of Financial Position and are depreciated over their expected useful lives on a basis consistent with similar assets included in property and equipment. Income from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term. (16) Impairment of Financial Assets The Group assesses the expected credit losses associated with its debt instruments measured at amortized cost and FVOCI. The impairment methodology used for estimating expected credit losses depends on whether there has been a significant increase in credit risk after the initial recognition. The Group measures the expected credit losses for the debt instruments measured at amortized cost and FVOCI for which there have been no significant increase in credit risk at the amount equal to twelve-month expected credit losses at the reporting date. For the financial assets measured at amortized cost and FVOCI for which there have been significant increase in credit risk, the Group measures the expected credit losses at the amount equal to the lifetime expected credit losses. The Group uses default ratio calculated based on historical default data of corporate bond ratings in Japan to measure the twelve-month expected credit loss and the lifetime expected credit losses. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from the initial recognition of th |
Significant Accounting Judgment
Significant Accounting Judgments, Estimates and Assumptions | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant Accounting Judgments, Estimates and Assumptions | 4. Significant Accounting Judgments, Estimates and Assumptions The preparation of the Group’s consolidated financial statements requires the management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. These estimates and assumptions are based on the best judgment of the management in light of historical experience and various factors deemed to be reasonable as of the fiscal year end date. Given their nature, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and assumptions are continuously reviewed by the management. The effects of a change in estimates and assumptions are recognized in the period of the change or in the period of the change and future periods. Among estimates and assumptions made by the management, the following are ones that may have a material effect on the amounts recognized in the consolidated financial statements of the Group: (a) Impairment i Investments in associates and joint ventures and other non-financial Non-current Non-current The value in use is estimated by applying a pre-tax discount rate to the estimated future cash flow expected to be generated by the asset or CGU. The estimate of the value in use mainly includes the following assumptions: – Pre-tax discount rate reflected such as weighted average cost of capital of comparable companies and control premium. – Terminal growth rate (the Group uses terminal growth rate for cash flow projections beyond the planning period of financial budget). The cash flow projections are based on the financial budgets approved by the Group’s management. The projections represent management’s best estimate taken into account past experience as well as using internal and external information. Goodwill The goodwill impairment test requires the Group to exercise judgment and assess whether the carrying value of the CGU to which goodwill has been allocated can be supported by the recoverable amount of such CGU to which goodwill has been allocated. The recoverable amount of a CGU is determined based on a value in use calculation which involves the use of estimates. The main assumptions used in the value in use calculation include the discount rate, terminal growth rate and expected future cash flow projections for a period of up to five years from financial budgets approved by the management. Cash flow projections beyond the planning period are extrapolated using terminal growth rates. Cash flow projections take into account past experience and represent management’s best estimates. These assumptions can be subject to significant adjustments from such factors as user trend, spending on marketing, IT spending of corporations, and competition from competitors. The key assumptions used to determine the recoverable amounts of the different CGU to which goodwill has been allocated are disclosed and further explained in Note 11 Impairment. ii Financial assets measured at amortized cost and fair value through other comprehensive income The Group assesses the expected credit losses associated with its assets carried at amortized cost and FVOCI. The impairment methodology depends on whether there has been a significant increase in credit risk in the individual financial asset or the asset group including the financial asset. If there has been a significant increase in credit risk, the Group measures the loss allowance for the individual financial asset or group of financial assets at an amount equal to the lifetime expected credit losses considering all reasonable and supportable information including that which is forward looking. If there has been no significant increase in credit risk, the Group measures the loss allowance for the financial asset or group of financial assets at an amount equal to the 12-month For trade receivables, the Group measures the loss allowance at an amount equal to lifetime expected credit losses from initial recognition, hence applies the simplified approach in accordance to IFRS 9. (b) Recoverability of deferred tax assets Regarding temporary differences, which are differences between carrying value of an asset or liability in the Consolidated Statements of Financial Position and its tax base, the Group recognizes deferred tax assets and deferred tax liabilities. The deferred tax assets and deferred tax liabilities are calculated using the tax rates based on tax laws that have been enacted or substantively enacted by the end of the reporting period and the tax rates that are expected to apply to the period when the deferred tax asset is realized or the deferred tax liability is settled. Deferred tax assets are recognized for all deductible temporary differences, unused tax losses carryforward and unused tax credits carryforward to the extent that it is probable that taxable income will be available. The estimation of future taxable income is calculated based on financial budgets approved by management of the Group, and it is based on management’s subjective judgments and assumptions. The Group considers these estimates to be significant because any adjustments in the assumed conditions and amendments of tax laws in the future may significantly affect the amounts of deferred tax assets and deferred tax liabilities. (c) Methods of determining fair value for financial instruments measured at fair value Financial assets and financial liabilities held by the Group are measured at the following fair values: – quoted prices in active markets for identical assets or liabilities; – fair value calculated using observable inputs other than quoted prices for the assets or liabilities, either directly or indirectly; and – fair value calculated using valuation techniques incorporating unobservable inputs. In particular, the fair value estimates using valuation techniques that incorporate unobservable inputs are based on the judgment and assumptions of Group management, such as experience assumptions, and the use of specific numerical calculation models, such as discounted cash flow models. (d) Provisions The Group recognizes asset retirement obligations related to lease in the Consolidated Statements of Financial Position. These provisions are recognized based on the best estimates of the costs expected to incur for the restoration of the lease properties to the state as specified in the rental agreements upon termination of the leases. The estimation takes risks and uncertainty related to the obligations into account as of the fiscal year end date. The Group records a provision for the licensing expense payable to the third-party platform partners upon redemption of promotional virtual credits for virtual items by end users in the future. For promotional and marketing purposes, virtual credits are given to end users free of charge. (e) Defined benefit plans The cost of the defined benefit plan and the present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions, including the determination of the discount rate and future salary increases. The Group determines the discount rate based on market returns of high-quality corporate bonds consistent with currencies and estimated payment terms applicable to the defined benefit obligations as of the reporting date in order to calculate present value of the defined benefit obligations. Estimated future salary increases are based on historical salary increases and expected future inflation rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Further details about the Group’s defined benefit obligations are presented in Note 16 Employment Benefits. (f) Share-based payments Share-based payment expenses related to stock options granted to directors and employees are estimated based on the option’s fair value determined under the Black-Scholes-Merton (“Black-Scholes”) option pricing model and binomial option pricing model. The Black-Scholes model and binomial option pricing model require various highly judgmental assumptions, including expected volatility, expected life of stock options and fair value of share capital at the time of option grants, which will be discussed further below. Expected volatility is estimated based on the historical volatility of reference companies which are comparable with the Company and the Group. The expected life of stock options is estimated based on the expectation of future stock price movements and expected exercise patterns of the option holders. (g) Valuation of common shares Until the Company’s initial public offering in July 2016, the Group exercised significant judgment in determining fair value of common shares at the time of option grants. Valuation is based on all relevant facts and circumstances known at the time of valuation, including but not limited to factors such as historical financial results and projections of the Group’s future operating and financial performance; market performance of comparable publicly traded companies; overall economic and industry outlook; and third-party valuations of the Group’s common shares as of the date of stock option grants. (h) Revenues For revenues attributable to the sales of in-game/app log-on For revenues attributable to the sales of LINE Stickers, Creator Stickers and emojis, revenues are recognized over the estimated periods over which LINE Stickers, Creator Stickers and emojis are expected to be used by users, taking into consideration historical data on usage and user behavior. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
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Segment Information | 5. Segment Information The Group identifies operating segments based on the internal report regularly reviewed by the Group’s Chief Operating Decision Maker to make decisions about resources to be allocated to segments and assess performance. An operating segment of the Group is a component for which discrete financial information is available. The Chief Operating Decision Maker has been identified as the Company’s board of directors. No operating segments have been aggregated to form the reportable segments. In 2018, the Group changed its operating segment from one component to two components as its budget has been prepared based on the Core business and Strategic business and as the Company’s board of directors changed the unit of components to assess the performance of the Group from a single segment to two segments, Core business segment and Strategic business segment. Under the corporate strategy to allocate the resources generated from the Core business to the Strategic business, the Company’s board of directors individually assesses the business performance of the Core business based on the growth of revenue and profitability and of the Strategic business based on profitability as well as important non-financial (1) Description of Reportable Segments The Group’s reportable segments are as follows: Core business segment Core business segment mainly consists of advertising service, communication and content. Advertising services mainly include display advertising, account advertising, and other advertising. Display advertising provides advertisements on services such as LINE NEWS. Account advertising mainly includes LINE Official Accounts and Sponsored Stickers. Other advertising mainly includes advertisements on services such as livedoor Blog, NAVER Matome and advertisements appearing on LINE Part-Time Job. Communication mainly includes LINE Stickers. Content mainly includes LINE GAME. Strategic business segment Strategic business segment consists of Fintech services such as LINE Pay service, and other services such as AI, LINE Friends, and E-commerce. (2) Profit or Loss for the Group’s reportable segments The Group’s operating profit for each segment is prepared in the same method as the consolidated financial statements, except that certain items such as other operating income and share-based compensation expenses are included in corporate adjustments. Also, IT development expenses and indirect expenses such as department management fees are allocated based on the information such as the hours of service provided, the number of server infrastructures used to provide the service, or the percentage of revenues. As the Company’s board of directors uses the information after eliminating intercompany transactions for their performance assessment, there is no adjustment between segments. From the fiscal year of 2018, the Group divided its operating segment into Core business segment and Strategic business segment, as the Company’s board of directors assesses performance based on these components. From the annual reporting period ended December 31, 2018, the Group monitors its profit and loss by segment. The profit and loss of each segment for the annual reporting period ended December 31, 2017 was prepared mainly based on the same method as in fiscal year 2018 and 2019 where practicable and adjusted accordingly. For the year ended December 31, 2017 (In millions of yen) Reportable segments Corporate (1) Consolidated Core business Strategic Total Revenue from external customers (2) 149,156 17,991 167,147 — 167,147 Segment profit/(loss) (3) 34,250 (17,674 ) 16,576 8,502 25,078 Depreciation and amortization expenses 6,252 897 7,149 — 7,149 (1) Corporate adjustments mainly include other operating income and share-based compensation expenses. (2) The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. (3) The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. For the year ended December 31, 2018 (In millions of yen) Reportable segments Corporate (1) Consolidated Core business Strategic Total Revenue from external customers 178,398 28,784 207,182 — 207,182 Segment profit/(loss) (2) 26,559 (34,931 ) (8,372 ) 24,482 16,110 Depreciation and amortization expenses 8,832 2,303 11,135 — 11,135 (1) Corporate adjustments mainly include other operating income and share-based compensation expenses. (2) The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. For the year ended December 31, 2019 (In millions of yen) Reportable segments Corporate (1) Consolidated Core business Strategic Total Revenue from external customers 196,711 30,774 227,485 — 227,485 Segment profit/(loss) (2) 31,584 (66,557 ) (34,973 ) (4,024 ) (38,997 ) Depreciation and amortization expenses 14,573 8,164 22,737 — 22,737 (1) Corporate adjustments mainly include other operating income, share-based compensation expenses and a cost arisen from cancellation of system development. (2) The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. The reconciliation of Segment profit/(loss) to the profit/(loss) before tax from continuing operations is as follows: (In millions of yen) 2017 2018 2019 Segment profit/(loss) 25,078 16,110 (38,997 ) Finance income 257 413 512 Finance costs (26 ) (519 ) (1,980 ) Share of loss of associates and joint ventures (6,321 ) (11,148 ) (13,412 ) Loss on foreign currency transactions, net (818 ) (902 ) (72 ) Other non-operating 1,963 869 3,878 Other non-operating (1,988 ) (1,469 ) (1,545 ) Profit/(loss) before tax from continuing operations 18,145 3,354 (51,616 ) The above items are not allocated to individual segments as these are managed on an overall group basis. (3) Revenues from Major Services The Group’s revenues from continuing operations from its major services for the years ended December 31, 2017, 2018 and 2019 are as follows. Revenues for the years ended December 31, 2017 is presented using IAS 18 as the Group uses the modified retrospective method in the adoption of IFRS 15. Revenues recognized at a point in time mainly consist of revenues from LINE Friends. (In millions of yen) 2017 2018 2019 Core business Advertising Display advertising (1) 26,609 36,221 49,655 Account advertising (2) 38,929 56,714 62,654 Other advertising (3) 10,433 15,302 12,533 Sub-total 75,971 108,237 124,842 Communication, content, and others Communication (4) 30,225 28,527 28,319 Content (5) 40,144 38,237 38,344 Others 2,816 3,397 5,206 Subtotal 73,185 70,161 71,869 Core business total 149,156 178,398 196,711 Strategic business Friends (6) 12,299 19,579 19,189 Others (7) 5,692 9,205 11,585 Strategic business total 17,991 28,784 30,774 Total 167,147 207,182 227,485 (1) Revenues from display advertising primarily consisted of fees from advertisement on services such as Timeline, Smart Channel and LINE NEWS. (2) Revenues from account advertising primarily consisted of fees from LINE Official Accounts, Sponsored Stickers and LINE Points. (3) Revenues from other advertising were mainly attributable to advertising revenue from livedoor, NAVER Matome and LINE Part-Time Job. (4) Revenues from communication were mainly attributable to sales of LINE Stickers and Creator Stickers. (5) Revenues from content primarily consisted of sales of LINE GAME’s virtual items. (6) Friends primarily consisted of revenues from sales of character goods. (7) Others for the year ended December 31, 2017 and 2018 primarily consisted of revenues from LINE Mobile service and E-commerce. (4) Geographic Information Revenues from external customers Revenues from external customers classified by country or region were based on the locations of customers. Revenues attributable to communication and content have been classified based on the geographical location of the end users. Revenues attributable to advertising have been classified based on the geographical locations where the services were provided. (In millions of yen) 2017 2018 2019 Japan (country of domicile) 121,283 148,260 166,469 Taiwan 16,630 18,593 21,923 Others 29,234 40,329 39,093 Total 167,147 207,182 227,485 Non-current Non-current right-of-use (In millions of yen) December 31, 2018 December 31, 2019 Japan (country of domicile) 34,502 76,756 Korea 5,310 10,778 Others 7,946 18,151 Total 47,758 105,685 (5) Major Customers No single customer accounted for 10 percent or more of the Group’s total revenues for the years ended December 31, 2017, 2018 and 2019. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
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Cash and Cash Equivalents | 6. Cash and Cash Equivalents The breakdown of cash and cash equivalents as of December 31, 2018 and 2019 is as follows: (In millions of yen) December 31, 2018 December 31, 2019 Cash on hand 13 12 Demand deposits 256,965 217,333 Total cash and cash equivalents 256,978 217,345 |
Trade and Other Receivables
Trade and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
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Trade and Other Receivables | 7. Trade and Other Receivables Trade and other receivables as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Trade and other receivables, current 38,097 42,884 Loss allowance, current (453 ) (204 ) Trade receivables, non-current 14 462 Loss allowance, non-current (14 ) (462 ) Total trade and other receivables 37,644 42,680 For movement in the loss allowance for trade and other receivables, refer to Note 25 Financial Risk Management. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
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Inventories | 8. Inventories Inventories as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Goods 4,887 2,107 Other — 2,633 Total Inventories 4,887 4,740 Cost of goods recognized from continuing operations for the years ended December 31, 2017, 2018 and 2019 were 4,436 million yen, 7,346 million yen and 7,760 million yen, respectively. Inventory valuation losses recognized from continuing operations for the years ended December 31, 2017, 2018 and 2019 were 510 million yen, 276 million yen and 369 million yen, respectively. Other mainly consists of cryptocurrency on deposit by users. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
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Property and Equipment | 9. Property and Equipment (1) Changes in property and equipment for the year ended December 31, 2018 are as follows: (In millions of yen) Furniture and fixtures Equipment Construction- in-progress Others Total Acquisition cost Balance at January 1, 2018 6,501 22,196 42 1,343 30,082 Acquisitions 1,105 16,095 970 635 18,805 Disposals (8 ) (2,134 ) — (24 ) (2,166 ) Acquisition through business combinations — 18 — 14 32 Loss of control of subsidiaries — (141 ) — (412 ) (553 ) Exchange differences (1 ) (187 ) (7 ) (55 ) (250 ) Other (27 ) 16 (42 ) (41 ) (94 ) Balance at December 31, 2018 7,570 35,863 963 1,460 45,856 Accumulated depreciation and impairment Balance at January 1, 2018 1,879 12,402 — 676 14,957 Disposals (1 ) (1,751 ) — (16 ) (1,768 ) Depreciation 1,352 6,745 — 321 8,418 Acquisition through business combinations — 11 — 1 12 Loss of control of subsidiaries — (73 ) — (289 ) (362 ) Exchange differences (1 ) (78 ) — (27 ) (106 ) Other (1 ) (111 ) — 91 (21 ) Balance at December 31, 2018 3,228 17,145 — 757 21,130 Carrying amounts Balance at January 1, 2018 4,622 9,794 42 667 15,125 Balance at December 31, 2018 4,342 18,718 963 703 24,726 (2) Changes in property and equipment for the year ended December 31, 2019 are as follows: (In millions of yen) Furniture and fixtures Equipment Construction- in-progress Others Total Acquisition cost Balance at January 1, 2019 7,570 35,863 963 1,460 45,856 Acquisitions 2,262 7,646 54 358 10,320 Disposals (34 ) (2,000 ) — (194 ) (2,228 ) Exchange differences — (106 ) 2 (7 ) (111 ) Other (78 ) 390 (464 ) (49 ) (201 ) Balance at December 31, 2019 9,720 41,793 555 1,568 53,636 Accumulated depreciation and impairment Balance at January 1, 2019 3,228 17,145 — 757 21,130 Disposals (17 ) (1,728 ) — (136 ) (1,881 ) Depreciation 1,691 7,552 — 273 9,516 Impairment (1) — 57 — — 57 Exchange differences — (46 ) — (5 ) (51 ) Other (14 ) (64 ) — (81 ) (159 ) Balance at December 31, 2019 4,888 22,916 — 808 28,612 Carrying amounts Balance at January 1, 2019 4,342 18,718 963 703 24,726 Balance at December 31, 2019 4,832 18,877 555 760 25,024 (1) Refer to Note 11 Impairment for further details. (3) Contractual commitments for the acquisition of property and equipment: (In millions of yen) December 31, 2018 December 31, 2019 1,820 1,047 There were no additions of property and equipment under finance leases and installment payment contracts during the year ended December 31, 2018. There were no additions of property and equipment under installment payment contracts during the year ended December 31, 2019. Construction-in-progress As of January 1, 2019, the Group revised the estimated useful lives of property and equipment to reflect the most recent condition of use of servers. Due to this revision in estimates, loss from operating activities decreased by 1,268 million yen for the year ended December 31, 2019 compared to the previous method. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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Goodwill and Other Intangible Assets | 10. Goodwill and Other Intangible Assets (1) Changes in goodwill and other intangible assets for the year ended December 31, 2018 are as follows: (In millions of yen) Goodwill Software (1) Music rights Customer relationships Game Others (2) Total Acquisition cost Balance at January 1, 2018 19,093 2,350 460 741 1,749 5,445 29,838 Acquisitions — 225 — — — 2,998 3,223 Acquisition through business combinations 1,224 — — — — — 1,224 Loss of control of subsidiaries (3) (560 ) (191 ) — — (1,790 ) (436 ) (2,977 ) Disposals or sales — (8 ) — — — — (8 ) Exchange differences (464 ) (61 ) (35 ) (18 ) 41 (169 ) (706 ) Other (45 ) — — — — (146 ) (191 ) Balance at December 31, 2018 19,248 2,315 425 723 — 7,692 30,403 Accumulated amortization and impairment Balance at January 1, 2018 2,326 1,362 460 325 284 1,828 6,585 Loss of control of subsidiaries (3) — (50 ) — — (912 ) (124 ) (1,086 ) Disposals or sales — (6 ) — — — — (6 ) Amortization — 262 — 168 636 1,650 2,716 Impairment — 52 — — — 160 212 Exchange differences (173 ) (39 ) (35 ) (8 ) (8 ) (34 ) (297 ) Other — — — — — (114 ) (114 ) Balance at December 31, 2018 2,153 1,581 425 485 — 3,366 8,010 Carrying amounts Balance at January 1, 2018 16,767 988 — 416 1,465 3,617 23,253 Balance at December 31, 2018 17,095 734 — 238 — 4,326 22,393 (1) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2018 was three years. (2) Others mainly consist of 1,471 million yen for acquisition of licenses for LINE TV, 651 million yen for acquisition of domain name, and 437 million yen for Gatebox Inc.’s acquisition of trademark and patented technology. The carrying amounts as of December 31, 2018 of these intangible assets were 1,064 million yen, 587 million yen and 306 million yen, respectively. (3) The balances were mainly comprised with the changes in the Group’s ownership ratio of LINE Games Corporation (renamed from NextFloor Corporation) resulting in the investment to be accounted for as an associate under the equity method rather than as a consolidated subsidiary. Refer to Note 30 Principal Subsidiaries for further details. (2) Changes in goodwill and other intangible assets for the year ended December 31, 2019 are as follows: (In millions of yen) Goodwill Software (4) Music rights Customer relationships Others (5) Total Acquisition cost Balance at January 1, 2019 19,248 2,315 425 723 7,692 30,403 Acquisitions — 3,868 — — 1,819 5,687 Acquisition through business combinations 615 — — — — 615 Disposals or sales (6) (2,113 ) (728 ) (425 ) — (562 ) (3,828 ) Exchange differences (59 ) 2 — (2 ) 85 26 Other — 372 — — (492 ) (120 ) Balance at December 31, 2019 17,691 5,829 — 721 8,542 32,783 Accumulated amortization and impairment Balance at January 1, 2019 2,153 1,581 425 485 3,366 8,010 Disposals or sales (6) (2,113 ) (717 ) (425 ) — (281 ) (3,536 ) Amortization — 652 — 155 1,954 2,761 Impairment (7) — — — — 96 96 Exchange differences — — — (1 ) 43 42 Other — — — — (42 ) (42 ) Balance at December 31, 2019 40 1,516 — 639 5,136 7,331 Carrying amounts Balance at January 1, 2019 17,095 734 — 238 4,326 22,393 Balance at December 31, 2019 17,651 4,313 — 82 3,406 25,452 (4) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2019 was four years. (5) The balances of acquisition cost of others as of December 31, 2019 mainly consist of 2,011 million yen of licenses for LINE TV, 632 million yen of domain name, and 439 million yen of trademark and patented technology. The balances of carrying amounts as of December 31, 2019 of these intangible assets were 918 million yen, 549 million yen and 248 million yen, respectively. (6) Mainly related to the liquidation of the MixRadio business. (7) Refer to Note 11 Impairment for further details. The Group has been conducting research and development such as Fintech and AI. The research and development expenses recognized for the years ended December 31, 2017, 2018 and 2019 are 10,357 million yen, 19,096 million yen and 26,606 million yen, respectively. (3) There were no contractual commitments for the acquisition of intangible assets as of December 31, 2018 and 2019. |
Impairment
Impairment | 12 Months Ended |
Dec. 31, 2019 | |
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Impairment | 11. Impairment (1) Impairment of Goodwill The annual impairment testing for goodwill was performed on October 1 for the years ended December 31, 2017, 2018 and 2019. For the purpose of the impairment test, goodwill was allocated to one CGU for the year ended December 31, 2017. For the year ended December 31, 2017, the Group’s CGU was the Group’s operating segment as well as the reporting segment. Since the Group changed its operating segment from one segment to two segments in 2018, Core business and Strategic business, as noted in Note 5 Segment Information, the Group allocated goodwill to five CGUs and tested goodwill for impairment for the years ended December 31, 2018 and 2019. The Group’s Core business and Strategic business are the Group’s operating segments as well as the reporting segments. The carrying amount of goodwill allocated to each of the CGUs for impairment testing is as follows: (In millions of yen) CGU For the year ended December 31, 2017 LINE business and portal 16,767 Total 16,767 (In millions of yen) CGU For the year ended December 31, 2018 Core business Core business 14,838 Strategic business Friends business 740 Fintech business 1,075 E-commerce 307 AI business 135 Total 17,095 (In millions of yen) CGU For the year ended December 31, 2019 Core business Core business 14,789 Strategic business Friends business 737 Fintech business 1,072 E-commerce 919 AI business 134 Total 17,651 The recoverable amounts of the CGUs have been determined based on a value in use calculation using cash flow projections for a period of up to five years from financial budgets approved by the Group’s management. Cash flow projections take into account past experience and represent management’s best estimates. The main assumptions used in the value in use calculation include the discount rate, terminal growth rate and expected future cash flows. These assumptions can be subject to significant adjustments due to factors such as marketing budgets, IT spending of corporations, and competition from competitors. Cash flows beyond the planning periods were extrapolated using terminal growth rates. To estimate the discount rate that reflects the time value of money and the risks specific to the CGUs, the Group has assumed a risk-free rate equal to one-month 10-year (a) CGU The significant assumptions used in the value in use calculations are as follows: 2017 2018 2019 CGU Pre-tax discount rate Terminal growth rate Pre-tax discount rate Terminal growth rate Pre-tax discount rate Terminal growth rate LINE business and portal CGU 10.3 % 1.6 % — — — — Core business Core business — — 11.6 % 1.3 % 10.8 % 1.3 % Strategic business Friends business — — 11.2 % 2.3 % 14.3 % 2.3 % Fintech business — — 11.8 % 1.6 % 13.4 % 1.3 % E-commerce — — 11.0 % 1.7 % 13.6 % 1.4 % AI business — — 11.5 % 1.7 % 12.3 % 1.1 % No significant impairment losses were recognized for goodwill for the year ended December 31, 2017, 2018 and 2019, as a result of the annual impairment testing. (b) Sensitivity to Changes in Assumptions In the opinion of the Group’s management, the recoverable amount considerably exceeded the carrying amount of the CGUs, and the outcomes of the impairment test are not sensitive to reasonably likely changes in any of the assumptions underlying the cash flow projections used for the impairment test or the discount rates in the periods presented for the CGUs. (2) Impairment of intangible assets with definite useful lives, right-of-use assets and property and equipment For the year ended December 31, 2017, in connection with Kiwiple and LINE Games Global Gateway L.P., impairment of intangible assets with definite useful life in the amounts of 134 million yen and 80 million yen, respectively were recognized. No impairment loss was recognized for property and equipment for the years ended December 31, 2017. For the year ended December 31, 2018, in the Core business and in the Fintech finance related business within the Strategic business, impairment of intangible assets with defined useful life in the amount of 60 million yen and 152 million yen, respectively were recognized. No impairment loss was recognized for property and equipment for the years ended December 31, 2018. For the year ended December 31, 2019, impairment of intangible assets with defined useful life in the amount of 96 million yen was recognized mainly in the Fintech finance related business within the Strategic business. The Group assessed at the year-end whether there is any indication that right-of-use assets and property and equipment in connection with Friends business within the Strategic business may be impaired. As of December 31, 2019, the Group determined that there were indications of impairment on right-of-use assets and property and equipment in connection with Friends business within the Strategic business, and the Group performed impairment tests on these assets by comparing the respective recoverable amounts with the carrying amounts. As a result, impairment of right-of-use The recoverable amounts are estimated based on value in use calculated by applying a pre-tax discount rate to the estimated future cash flows. The estimated future cash flows, which are based on the financial budgets approved by the Group’s management, represent management’s best estimate taken into account expected revenue growth rates, cost of goods sold ratio, and marketing expenses determined based on historical experience, internal and external information. The significant assumptions used in the value in use calculations are as follows: December 31, 2019 Pre-tax discount rate 9.9%-13.9 % Refer to Note 4 Significant Accounting Judgements, Estimates and Assumptions (a) for more detail of the estimate of recoverable amount and the assumption used. The carrying amounts of right-of-use assets and property and equipment in connection with Friends business as a Strategic business as of December 31, 2019 are as follows: December 31, 2019 Right-of-used assets 13,074 Property and equipment 1,376 Total 14,450 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
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Provisions | 12. Provisions Changes in provisions for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) Restoration obligations Promotional virtual reserve Other Total Balance at January 1, 2018 3,030 607 414 4,051 Arising during the year 517 4,188 95 4,800 Utilized (82 ) (2,700 ) (414 ) (3,196 ) Reversal (3 ) (17 ) (29 ) (49 ) Unwinding of discount and changes in the discount rate 0 — — 0 Increase due to business combinations 10 — — 10 Decrease due to loss of control of subsidiaries (149 ) — — (149 ) Exchange differences (37 ) (2 ) 0 (39 ) Other 17 459 (14 ) 462 Balance at December 31, 2018 3,303 2,535 52 5,890 Arising during the year 1,303 5,124 202 6,629 Utilized (36 ) (4,592 ) (16 ) (4,644 ) Reversal (18 ) (78 ) — (96 ) Unwinding of discount and changes in the discount rate 2 — — 2 Exchange differences (19 ) 10 1 (8 ) Other — — (24 ) (24 ) Balance at December 31, 2019 4,535 2,999 215 7,749 Restoration obligation for lease properties The Group records provisions for restoration obligations related to its lease properties as the Group is required to restore these properties upon termination of the leases to the state specified in the rental agreements. Promotional virtual credits reserve For promotional and marketing purposes, LINE Points and virtual credits are given to end users free of charge. The Group records a provision for expenses including the licensing expense payable to the third-party platform partners upon redemption of free promotional virtual credits for virtual items by end users in the future. The reversal is mainly related to the expiration of certain LINE Points and virtual credits that were given to end users free of charge. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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Income Taxes | 13. Income Taxes (1) Current and deferred taxes related to each component of other comprehensive income for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Pretax Tax Post Pretax Tax Post Pretax Tax Post Remeasurement of defined benefit plans 2,093 (488 ) 1,605 (169 ) (29 ) (198 ) (1,134 ) 110 (1,024 ) Foreign currency translation adjustments 3,751 (146 ) 3,605 (4,047 ) 372 (3,675 ) (732 ) 418 (314 ) Reclassification adjustments for foreign currency translation adjustments (13 ) — (13 ) (345 ) — (345 ) (448 ) — (448 ) Proportionate share of other comprehensive income of associates 106 (14 ) 92 (27 ) (4 ) (31 ) 8 (34 ) (26 ) Reclassification adjustments for net changes — — — (12 ) — (12 ) — — — Net changes in fair value of equity — — — (2,681 ) 735 (1,946 ) 3,799 (1,201 ) 2,598 Net changes in fair value of debt instruments — — — 88 (28 ) 60 (7 ) 2 (5 ) Reclassification adjustments for net changes — — — 10 — 10 1 — 1 Net change in fair value of available-for-sale (3,339 ) 836 (2,503 ) — — — — — — Reclassification adjustments for net change in fair value of available-for-sale 1,090 (343 ) 747 — — — — — — Total 3,688 (155 ) 3,533 (7,183 ) 1,046 (6,137 ) 1,487 (705 ) 782 Current and deferred taxes related to items directly charged or credited to equity are as follows: (In millions of yen) 2018 2019 Current tax: Share issuance costs related to exercise of stock options (3 ) (1 ) Share issuance costs related to Employee Stock Ownership Plan (5 ) — Deferred tax: Share issuance costs related to exercise of stock options (20 ) — Issuance of convertible bonds 1,917 — Total tax directly charged/(credited) to equity 1,889 (1 ) (2) Deferred Tax Assets and Deferred Tax Liabilities The movement in deferred tax assets and deferred tax liabilities for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) Beginning balance as of January 1, 2018 Adjustment Beginning balance as of 2018 (adjusted) Amounts or loss Amounts recognized under other comprehensive income Other (1) Ending balance as of December 31, 2018 Deferred tax assets: Tax losses 259 — 259 172 — (94 ) 337 Depreciation 2,260 — 2,260 1,991 — 20 4,271 Advances received 3,848 (423 ) 3,425 55 — — 3,480 Deferred revenue 2,471 783 3,254 (117 ) — (2 ) 3,135 Restoration obligations for operating lease properties 215 — 215 151 — (2 ) 364 Accrued bonuses 754 — 754 58 — — 812 Allowance for doubtful accounts 377 — 377 33 — (6 ) 404 Other accrued expenses 737 — 737 659 — (13 ) 1,383 Accrued enterprise taxes 241 — 241 56 — (1 ) 296 Available-for-sale 487 (487 ) — — — — — Financial assets at fair value through profit or loss — 196 196 233 — (6 ) 423 Financial assets at FVOCI — (541 ) (541 ) — 1,358 (2 ) 815 Share-based compensation 1,169 — 1,169 119 — (1 ) 1,287 Post-employment benefits 1,184 — 1,184 222 (32 ) (14 ) 1,360 Tax effect on investments in subsidiaries and associates 2,105 — 2,105 120 194 32 2,451 Other 1,020 267 1,287 597 — (16 ) 1,868 Total 17,127 (205 ) 16,922 4,349 1,520 (105 ) 22,686 Deferred tax liabilities: Available-for-sale (1,027 ) 1,027 — — — — — Financial assets at fair value through profit or loss — (207 ) (207 ) (137 ) — 1 (343 ) Financial assets at FVOCI — 15 15 — 1 (45 ) (29 ) Tax effect on investments in subsidiaries and associates — — — (2,796 ) 146 (1 ) (2,651 ) Convertible bonds — — — 52 — (1,918 ) (1,866 ) Prepaid expenses (356 ) (140 ) (496 ) (247 ) — (5 ) (748 ) Intangible assets (824 ) — (824 ) 432 24 8 (360 ) Other (1 ) — (1 ) (58 ) (1 ) (25 ) (85 ) Total (2,208 ) 695 (1,513 ) (2,754 ) 170 (1,985 ) (6,082 ) (1) Movements in others are mainly attributable to the issuance of convertible bonds with stock acquisition rights and changes in exchange rate for foreign currencies. (In millions of yen) Beginning balance as of January 1, 2019 Adjustment (1) Beginning balance as of 2019 (adjusted) Amounts or loss Amounts recognized under other comprehensive income Other (2) Ending balance as of December 31, 2019 Deferred tax assets: Tax losses 337 — 337 303 — 4 644 Depreciation 4,271 — 4,271 4,023 — — 8,294 Advances received 3,480 — 3,480 288 — — 3,768 Deferred revenue 3,135 — 3,135 121 — — 3,256 Restoration obligations for lease properties 364 — 364 235 — (1 ) 598 Accrued bonuses 812 — 812 134 — — 946 Loss allowance 404 — 404 (237 ) — — 167 Other accrued expenses 1,383 (347 ) 1,036 (239 ) — (7 ) 790 Accrued enterprise taxes 296 — 296 9 — (11 ) 294 Financial assets at fair value through profit or loss 423 — 423 22 — (2 ) 443 Financial assets at FVOCI 815 — 815 (71 ) (411 ) (2 ) 331 Share-based compensation 1,287 — 1,287 (32 ) — (1 ) 1,254 Post-employment benefits 1,360 — 1,360 232 110 (13 ) 1,689 Lease liabilities — 9,642 9,642 3,001 — 1 12,644 Tax effect on investments in subsidiaries and associates 2,451 — 2,451 211 117 — 2,779 Other (3) 1,868 (11 ) 1,857 1,430 — (5 ) 3,282 Total 22,686 9,284 31,970 9,430 (184 ) (37 ) 41,179 Deferred tax liabilities: Financial assets at fair value through profit or loss (343 ) — (343 ) (650 ) — (6 ) (999 ) Financial assets at FVOCI (29 ) — (29 ) — (1,279 ) 8 (1,300 ) Tax effect on investments in subsidiaries and associates (2,651 ) — (2,651 ) 1,588 266 — (797 ) Convertible bonds (1,866 ) — (1,866 ) 326 — — (1,540 ) Prepaid expenses (748 ) — (748 ) 111 — — (637 ) Intangible assets (360 ) — (360 ) 92 — 3 (265 ) Right-of-use — (9,169 ) (9,169 ) (3,175 ) — — (12,344 ) Other (85 ) (102 ) (187 ) (86 ) — — (273 ) Total (6,082 ) (9,271 ) (15,353 ) (1,794 ) (1,013 ) 5 (18,155 ) (1) Refer to Note 3 Significant Accounting Policies. (2) Movements in others are mainly attributable to the changes in exchange rate for foreign currencies. (3) Mainly consists of promotional virtual credits researve. The deferred tax assets and liabilities reconcile to the amounts presented in the Consolidated Statements of Financial Position as follows: (In millions of yen) December 31, 2018 December 31, 2019 Total deferred tax assets 22,686 41,179 Adjustment to offset deferred tax assets and liabilities (5,579 ) (17,084 ) Net deferred tax assets 17,107 24,095 (In millions of yen) December 31, 2018 December 31, 2019 Total deferred tax liabilities (6,082 ) (18,155 ) Adjustment to offset deferred tax assets and liabilities 5,579 17,084 Net deferred tax liabilities (503 ) (1,071 ) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Below is a breakdown of the deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets were recognized: (In millions of yen) December 31, 2018 December 31, 2019 Deductible temporary differences 40,242 99,326 Unused tax losses 57,990 63,714 Unused tax credits 48 249 Total 98,280 163,289 Below is a breakdown of the unused tax losses by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, 2018 December 31, 2019 Less than one year 1,112 1,268 Between one year and five years 3,725 7,012 Five years and more 34,812 48,156 No expiration date 18,341 7,278 Total 57,990 63,714 Below is a breakdown of unused tax credits by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, 2018 December 31, 2019 Less than one year 48 107 Between one year and five years — 142 Five years and more — — No expiration date — — Total 48 249 As of December 31, 2018 and 2019, the total amounts of taxable temporary differences relating to investments in subsidiaries and joint ventures for which deferred tax liabilities are not recognized were 24,066 million yen and 25,349 million yen, respectively. (3) The components of income tax expenses for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Current income tax: Current income tax expenses (1) (8,818 ) (11,291 ) (8,084 ) Deferred tax: Changes related to origination and reversal of temporary differences (2) (1,107 ) 1,775 7,663 Changes in the tax rate (3) 3 (6 ) 37 Income tax expenses (9,922 ) (9,522 ) (384 ) (1) Current income tax expenses include previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences. These benefits were 105 million yen, 55 million yen and 159 million yen for the years ended December 31, 2017, 2018 and 2019, respectively. In addition, current income tax expenses for the year ended December 31, 2018 include additional taxes charged of 2,215 million yen claimed to the Group’s Korean subsidiary. (2) These balances represent the deferred tax benefit or expense from the increase and decrease of temporary differences, the reversal of previously written-down deferred tax assets and write-downs of deferred tax assets. The Group had deferred tax benefits of 105 million yen, 68 million yen and 70 million yen for the years ended December 31, 2017, 2018 and 2019, respectively, due to the reversal of previously written-down deferred tax assets. The main reason for having negative amount of deferred tax for the year ended December 31, 2017 is because of the recognition of deferred tax liabilities due to the transfer of camera application business. (3) The statutory income tax rate was approximately 31.7% effective for the years ended December 31, 2017 and 2018, and approximately 31.5% effective from the year ending December 31, 2019. The Group measured deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the period when the assets are realized or the liabilities are settled. (4) The income tax expenses calculated by applying the statutory tax rates to the Group’s profit or loss before tax differ from the actual tax expenses in the Consolidated Statements of Profit or Loss for the years ended December 31, 2017, 2018 and 2019 for the following reasons: (In millions of yen) 2017 2018 2019 Profit/(loss) before tax from continuing operations 18,145 3,354 (51,616 ) (Loss)/profit before tax from discontinued operations (19 ) 550 648 Accounting profit/(loss) before tax 18,126 3,904 (50,968 ) Income tax (expenses)/benefits at a statutory rate of 31.5% (2017 and 2018: 31.7%) (5,744 ) (1,237 ) 16,033 Permanent non-deductible (1) (353 ) (260 ) (386 ) Assessment of the recoverability of deferred tax assets (2) (2,932 ) (6,202 ) (13,266 ) Effects of changes in tax rate 3 (6 ) 37 Differences in applicable tax rate of subsidiaries (3) 776 (1,194 ) (1,540 ) Tax effect on investment in subsidiaries and associates (4) 377 (174 ) 76 Gain on fair value measurement relating to the deconsolidation (5) — 4,123 — Share of loss of associates and joint ventures (6) (1,836 ) (1,741 ) (1,806 ) Corporate taxes in prior years (7) (182 ) (2,754 ) (92 ) Others (25 ) (251 ) 496 Income tax expenses at an effective tax rate of (0.9) % (2017: 54.7% and 2018: 248.4%) (9,916 ) (9,696 ) (448 ) Income tax expenses reported in the statements of profit or loss (9,922 ) (9,522 ) (384 ) Income tax benefits/(expenses) attributable to discontinued operations 6 (174 ) (64 ) (9,916 ) (9,696 ) (448 ) (1) Permanent non-deductible non-deductible (2) For the year ended December 31, 2017, the amount represents unrecognized deferred tax assets of 2,407 million yen, 4 million yen and 953 million yen in connection with the pre-tax For the year ended December 31, 2018, the amount was attributable to unrecognized deferred tax assets of 4,134 million yen and 1,789 million yen in connection with the pre-tax For the year ended December 31, 2019, the amount was due to unrecognized deferred tax assets of 11,086 million yen and 2,344 million yen in connection with the pre-tax (3) The differences are mainly due to pre-tax (4) This tax effect is mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred losses. (5) For the year ended December 31, 2018, the amount was related to the re-measurement (6) The amount was mainly related to pre-tax (7) The amount for the year ended December 31, 2018 was mainly related to the additional taxes charged of 2,215 million yen claimed to the Group’s Korean subsidiary. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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Other Current Liabilities | 14. Other Current Liabilities Other current liabilities as of December 31, 2018 mainly consist of consumption tax payables and those as of December 31, 2019 mainly consist of consumption tax payables and liabilities corresponding to cryptocurrency on deposit by users. |
Financial Assets and Financial
Financial Assets and Financial Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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Financial Assets and Financial Liabilities | 15. Financial Assets and Financial Liabilities The carrying amounts and fair value of financial instruments, except for cash and cash equivalents, by line item in the Consolidated Statements of Financial Position and by category as defined in IFRS 9 Financial Instruments The fair value is not disclosed for those financial instruments whose fair value approximates their carrying amount due to their short-term and/or variable-interest bearing nature among those not measured at fair value in the Consolidated Statements of Financial Position. Refer to Note 26 Fair Value Measurements for more details on the fair value information of the financial instruments whose fair value is disclosed in this footnote. (In millions of yen) December 31, 2018 December 31, 2019 Book value Fair value Book value Fair value Financial assets Trade and other receivables Financial assets at amortized cost 37,644 42,680 Other financial assets, current Financial assets at amortized cost Time deposits 11,507 3,577 Short-term loans 593 1,378 Corporate bonds and other debt instruments (1) — — 70 70 Guarantee deposits (1)(2) 853 7,929 Office security deposits — 245 Other 4 718 Financial assets at FVOCI (3) 2,958 2,958 6,019 6,019 Financial assets at fair value through profit and loss (2)(4) — — 181 181 Total 15,915 20,117 Other financial assets, non-current Financial assets at amortized cost Corporate bonds and other debt instruments (1) 280 288 210 214 Guarantee deposits (1) 123 123 57 57 Office security deposits 9,162 9,050 9,379 9,266 Other 118 118 100 100 Financial assets at FVOCI (3) 22,343 22,343 21,672 21,672 Financial assets at fair value through profit or loss (4) 10,261 10,261 20,319 20,319 Total 42,287 51,737 (In millions of yen) December 31, 2018 December 31, 2019 Book value Fair value Book value Fair value Financial liabilities Trade and other payables Financial liabilities at amortized cost 34,985 43,710 Other financial liabilities, current Financial liabilities at amortized cost Deposits received 13,653 20,237 Short-term borrowings (5) 23,000 23,207 Others 57 1,321 Financial liabilities at fair value through profit or loss Put option liabilities 16 16 — — Others (2) — — 61 61 Total 36,726 44,826 Corporate bonds (6) 142,132 143,743 142,851 144,254 Other financial liabilities non-current Financial liabilities at amortized cost Office security deposits received under sublease agreement 16 16 16 16 Others 231 122 Financial liabilities at fair value through profit or loss Put option liabilities 280 280 224 224 Total 527 362 (1) The Group is in the compliance with requirements of Japanese Payment Service Act, where a certain amount of money defined in the act has to be secured, either by depositing or entrusting a cash reserve or government bonds with the Legal Affairs Bureau, or by concluding a guarantee contract with a financial institution. If deposits are made, they are recorded as guarantee deposits. If guarantee contracts are entered into, guarantee fees equal to the contractual amount times a guarantee fee rate is incurred. The Group had deposited investments in Japanese government bonds of 280 million yen and 280 million yen as of December 31, 2018 and 2019, respectively, which the Group intends to hold until maturity for this purpose. In addition, the Group had credit guarantee contracts with banks for 18,500 million yen with a weighted average guarantee fee rate of 0.1 % and for 33,500 million yen with a weighted average guarantee fee rate of 0.1 % as of December 31, 2018 and 2019, respectively, to comply with the Japanese Payment Services Act. (2) In January 2019, the Group commenced derivatives instruments investment for investment purposes, and is investing in such transactions as currency, interest rate and commodity futures transactions. In connection with these transactions, it has made deposits of 2,015 million yen to a securities brokerage. Impact of the derivatives instruments for investment purpose on loss before taxes from continuing operation for the year ended December 31, 2019 was 790 million yen in gain. The Group recognized financial assets at fair value through profit or loss of 95 million yen and financial liabilities at fair value through profit or loss of 61 million yen as a result of fair value measurement as of December 31, 2019. In addition, the Group made a guarantee deposit of 3,618 million yen in a financial institution to enter into banking business in Taiwan and withdrawal of the deposit is restricted as of December 31, 2019. (3) Impairment losses of 10 million yen and 1 million yen were recognized for debt instruments at FVOCI for the years ended December 31, 2018 and 2019, respectively. (4) A valuation loss of 676 million yen and a valuation gain of 2,009 million yen were recognized for financial assets at fair value through profit or loss for the years ended December 31, 2018 and 2019, respectively. (5) The weighted average interest rate of the remaining outstanding short-term borrowings as of December 31, 2018 and 2019 was 0.1% and 0.1%, respectively. (6) During the year ended December 31, 2018, I. Euro-yen Euro-yen Euro-yen |
Employment Benefits
Employment Benefits | 12 Months Ended |
Dec. 31, 2019 | |
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Employment Benefits | 16. Employment Benefits The Group offers its employees in Korea, Taiwan, Thailand and Indonesia defined benefit plans (either unfunded or funded). The specific features of these plans vary depending on the applicable laws and regulations in each country where the employees work. The majority of the Group’s defined benefit obligations represents the defined benefit plans for employees of LINE Plus Corporation, LINE PLAY Corporation, LINE Biz Plus Corporation, LINE Friends Corporation, LINE Studio Corporation, LINE UP Corporation, NemusTech Co., Ltd., Unblock Corporation, Markt Co., Ltd. and LINE Financial Plus Corporation (collectively, the “subsidiaries with defined benefit plans”) which are located in Korea. For the year ended December 31, 2018, LINE Games Corporation, NextFloor Corporation, Next Floor Basement Lab Corporation InnoAG. Inc. and Oozoo Inc. (collectively, the “LINE Games Group”) offer employees defined contribution plans. The expenses recognized in the Consolidated Statements of Profit or Loss in relation to the defined contribution plans amounted to 47 million yen and 97 million yen for the years ended December 31, 2017 and 2018, respectively. For the year ended December 31, 2019, expenses were not recognized in the Consolidated Statements of Profit or Loss in relation to the employee defined contribution plans due to loss of control of the LINE Games Group during 2018. The feature of the defined benefit plans in Korea is described below. The legal and regulatory framework for the plans is based on the applicable Korean Employee Retirement Benefit Security Act (“ERBSA”). Post-employment defined benefit plan provides lump sum payments to the eligible employees. Directors and current employees of the subsidiaries offer defined benefit plans with a service period of over one year are eligible for such post-employment defined benefits, which are calculated based on a final average pay formula. Furthermore, the plans expose the Group to actuarial risks, such as interest rate risk, salary increase risk, and longevity risk. Interest rate risk refers to the risk of fluctuation of bond yields. A decrease in the bond yields will increase the defined benefit obligations liability. The salary increase risk refers to the risk that an increase in future salary will increase the defined benefit obligations liability. Longevity risk refers to the risk that an increase in life expectancy of the plan participants will increase the defined benefit obligations liability. The plan assets of the defined benefit plans expose the Group to the risk of underperformance in comparison with the Group’s expectation. (1) Liabilities for defined benefit obligations as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Unfunded Funded Total Unfunded Funded Total Present value of defined benefit obligations 6,628 582 7,210 8,780 1,082 9,862 Plan assets (1) — (267 ) (267 ) — (245 ) (245 ) Liabilities for post-employment benefits 6,628 315 6,943 8,780 837 9,617 (1) All of the plan assets are held by NemusTech, Co., Ltd. and Markt Co., Ltd. (2) Expenses related to defined benefit plans are recognized in the Consolidated Statements of Profit or Loss as operating expenses for the years ended December 31, 2017, 2018 and 2019 are comprised of the following: (In millions of yen) 2017 2018 2019 Current service costs 1,933 1,973 2,078 Interest costs 208 207 212 Total 2,141 2,180 2,290 (3) Movements in the present value of the defined benefit obligations for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) 2018 2019 Defined benefit obligations at the beginning of year 6,189 7,210 Current service costs 1,973 2,078 Interest costs 207 212 Remeasurement (gains)/losses: Actuarial gains arising from changes in demographic assumptions (1) (33 ) (1,046 ) Actuarial losses arising from changes in financial assumptions (2) 166 1,700 Experience adjustments (3) 33 502 Payments from the plan (943 ) (545 ) Net transfer (4) (105 ) 33 Decrease due to deconsolidation (42 ) — Exchange differences on translation of foreign operations (235 ) (282 ) Defined benefit obligations at the end of year 7,210 9,862 (1) In 2019, actuarial gains arising from changes in demographic assumptions resulted mainly from changes in the employee turnover rate of LINE Plus Corporation and NemusTech Co., Ltd. (2) In 2019, actuarial losses arising from changes in financial assumptions resulted mainly from a decrease in the discount rate and an increase in the period end weighted average salary increase rate at year end 2019, as compared to corresponding rates at year end in 2018. The decrease in the discount rate is primarily related to the fact that the shorter period of estimated payment term for the benefit payments, which is used to calculate the retirement benefit obligation, due to the increase in estimated employee turnover rates described above. The increase in the weighted average of salary increase rate primarily related to the fact that the salary increase rates for the current year raised. (3) Experience adjustments represent the impact from differences between actual experiences during the year compared with the previous actuarial assumptions on defined benefit obligations. (4) Net transfer primarily represents the transfer of defined benefit obligations associated with employees of NAVER or other NAVER group companies joining LINE Plus Corporation, LINE Biz Plus Corporation, LINE Studio Corporation, LINE Friends Corporation , UP Corporation and LINE Financial Plus Corporation and vice versa. (4) Movements in the plan assets for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) 2018 2019 Plan assets at the beginning of year 27 267 Interest income 5 7 Employer contributions 316 72 Benefits paid (72 ) (110 ) Gains due to remeasurement Plan assets revenue (excluding interest income) (3 ) 22 Exchange differences on translation of foreign operations (6 ) (13 ) Plan assets at the end of year 267 245 The plan assets contain only cash and cash equivalents. Employer contributions expected to be paid to the plan for the year ending December 31, 2020 are 88 million yen. The amount of employer contributions is determined so that balance of plan assets can be more than 90% of the balance of NemusTech Co., Ltd. and Markt Co., Ltd.’s defined benefit obligations at each year end in the long term. (5) Significant judgment is required when selecting key assumptions for measuring defined benefit expenses for a period and the defined benefit obligations at the period end for each defined benefit plan. The principal actuarial assumptions used include discount rates and salary increase rates. The Group determined the discount rate based on market returns of high-quality corporate bonds consistent with the currencies and estimated payment terms corresponding to the defined benefit obligations as of the reporting date in order to calculate the present value of the defined benefit obligations. December 31, 2017 December 31, 2018 December 31, 2019 Discount rate 3.2%-3.7% 2.5%-3.5% 1.7%-3.1% Weighted average of salary increase s 4.5%-7.7% 5.3%-7.1% 4.5%-8.6% (6) Economic factors and conditions often affect multiple assumptions simultaneously; as such, the effects of changes in key assumptions are not necessarily linear. The following sensitivity analysis illustrates the impact of changes in certain significant actuarial assumptions, leaving all other assumptions constant, as of December 31, 2018 and 2019: (In millions of yen) Impact on the defined benefit Assumptions and sensitivity level December 31, December Discount rate 100 basis point increase (833 ) (998 ) 100 basis point decrease 1,020 1,188 Salary increase rate 100 basis point increase 970 1,104 100 basis point decrease (812 ) (955 ) (7) The average duration of the defined benefit plan obligations as of December 31, 2018 and 2019 were 12.9 and 11.4 years, respectively. The following table shows estimated future benefit payments within ten years from December 31, 2019. Actual payments may differ from those shown because of uncertain future events. (In millions of yen) Years Estimated future 2020 602 2021 573 2022 560 2023 549 2024 540 2025-202 9 2,706 |
Leases-Group as Lessee
Leases-Group as Lessee | 12 Months Ended |
Dec. 31, 2019 | |
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Leases-Group as Lessee | 17. Leases-Group as Lessee Lease commitments-Group as lessee The Group, as lessee, mainly leases properties and data centers. The lease contracts may contain extension options and termination option but do not include material purchase options, escalation clause and restrictions imposed by leases, such as additional financing and additional leases. The extention period of extension options, which are contained in the lease contracts of properties and data centers, are mostly for one year or for the term period equivalent to the original contract. The lease contracts of properties and data centers with termination options can be cancelled earlier if the lessee notifies lessor within three or six months prior to the end of the lease term. The Group has been exercising these options when necessary in order to utilize the underlying assets for business. Information for the year ended December 31, 2018 is disclosed based on IAS 17 Leases. For the year ended December 31, 2018 Future minimum lease payment under non-cancelable (In millions of yen) December 31, Less than one year 9,662 Between, one year to five years 26,226 Five years and more 22,800 Total 58,688 Of the operating expenses of 10,252 million yen for the year ended December 31, 2018, 6,960 million yen was attributable to minimum lease payment expenses, and the remaining 3,292 million yen was related to the variable lease payment expenses. For the year ended December 31, 2019 The expenses relating to leases are as follows: (In millions of yen) For the year ended December 31, 2019 Depreciation of right-of-use Property 9,445 Data center, etc. 1,015 Total depreciation expenses 10,460 Interest expense relating to lease liabilities 1,215 Expense relating to short-term leases 708 Expense relating to leases of low-value 32 Expense relating to variable lease payments (1) 7, 791 (1) These expenses are related to the variable lease payments which are excluded from measurement of the lease liabilities. The variable lease payments are mainly related to the use of IT infrastructure services and those are calculated based on the actual usage volume of server equipment and storage. The carrying amounts of the right-of-use (In millions of yen) December 31, Right-of-use Property 28,640 Data center, etc. 25,697 Total 54,337 The changes in the carrying amounts of the right-of-use (In millions of yen) December 31, Balance at January 1, 2019 — Adjustment on adoption of new accounting standard 46,279 Balance at January 1, 2019 (adjusted) 46,279 Acquisitions 19,727 Disposals (304 ) Depreciation (10,460 ) Impairment (1) (617 ) Exchange differences (328 ) Other 40 Balance at December 31, 2019 54,337 (1) Refer to Note 11 Impairment for further details. Refer to Note 20 Supplemental Cash Flow Information for the total amount of cash outflows related to the leases. Refer to Note 25 Financial Risk Management for the analysis of maturity of lease liabilities. Refer to Note 3 Significant Accounting Policies for the impacts of the adoption of new accounting standard on the leases. |
Leases-Group as Lessor
Leases-Group as Lessor | 12 Months Ended |
Dec. 31, 2019 | |
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Leases-Group as Lessor | 18. Leases-Group as Lessor Group as lessor The Group subleased a part of its head office to a third party. Sublease income on sublease arrangement was based on the actual square footage occupied by the third party. Information for the year ended December 31, 2018 is disclosed based on IAS 17 Leases. For the year ended December 31, 2018 Operating leases Future minimum rentals receivable under non-cancelable (In millions of yen) December 31, Within one year 48 Between one year and five years 8 Total 56 The Group recognized sublease income of 67 million yen for the year ended December 31, 2018. For the year ended December 31, 2019 Operating leases Maturity analysis for the lease payments receivable (undiscounted) of finance lease contract is as follows: (In millions of yen) December 31, Within one year 69 After one year but not more than two years 1 Between two years and three years — Between three years and four years — Between four years and five years — Over 5 years — Total 70 Lease income related to operating lease contract was 185 million yen. There were no significant finance leases in aggregate during the year ended December 31, 2019. |
Issued Capital and Reserves
Issued Capital and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
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Issued Capital and Reserves | 19. Issued Capital and Reserves The movements in issued capital and reserves for the years ended December 31, 2017, 2018 and 2019 are as follows: (1) Authorized shares and shares issued The movements of authorized shares and shares issued for the years ended December 31, 2017, 2018 and 2019 are as follows: Number of (Share capital no-par Number of shares issued (Share capital with no-par value) Share capital (In millions Common shares January 1, 2017 690,000,000 217,775,500 77,856 Exercise of stock options (1) — 19,713,500 12,513 Issuance of common shares (2) — 1,007,810 2,000 December 31, 2017 690,000,000 238,496,810 92,369 Exercise of stock options (1) — 855,500 1,195 Issuance of common shares (3) — 1,172,332 2,500 December 31, 2018 690,000,000 240,524,642 96,064 Exercise of stock options (1) — 608,500 673 December 31, 2019 690,000,000 241,133,142 96,737 (1) Refer to Note 27 Share-Based Payments for further details. (2) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (3) The Group implements the Employee Stock Ownership Plans Trust (J-ESOP) (2) Share premium and retained earnings Share premium The movements in share premium for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) Share-based (1) Common Others (2) Share premium total January 1, 2017 21,935 294 68,979 91,208 Share-based payments 1,882 — — 1,882 Exercise of stock options (16,746 ) — 15,721 (1,025 ) Forfeiture of stock options (9 ) — — (9 ) Issuance of common shares (4) — — 2,000 2,000 Cost related to issuance of common shares (3) — — (73 ) (73 ) Acquisition of non-controlling — — (423 ) (423 ) December 31, 2017 7,062 294 86,204 93,560 Share-based payments 1,336 — — 1,336 Exercise of stock options (1,652 ) — 1,459 (193 ) Forfeiture of stock options (37 ) — — (37 ) Issuance of common shares (5) — — 2,500 2,500 Issuance of convertible bonds with stock acquisition rights (6) — — 4,175 4,175 Cost related to issuance of common shares (3) — — (18 ) (18 ) Changes in interest in subsidiaries (7) — (488 ) 17,928 17,440 Disposal of treasury shares (167 ) — 30 (137 ) December 31, 2018 6,542 (194 ) 112,278 118,626 Share-based payments 1,682 — — 1,682 Exercise of stock options (958 ) — 859 (99 ) Forfeiture of stock options (51 ) — — (51 ) Cost related to issuance of common shares (3) — — (3 ) (3 ) Changes in interest in subsidiaries (8) — — 1,715 1,715 Disposal of treasury shares (512 ) — (59 ) (571 ) December 31, 2019 6,703 (194 ) 114,790 121,299 (1) Refer to Note 27 Share-Based Payments for further details. (2) Others mainly consists of capital reserve required under the Companies Act of Japan. (3) Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity, net of any tax effects. (4) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (5) The Group implements the Employee Stock Ownership Plan ((J-ESOP) (6) Refer to Note 15 Financial Assets and Financial Liabilities for further details. (7) Changes in interest in subsidiaries for the fiscal year ended December 31, 2018 include increase in share premium of 17,892 million yen due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the decrease in share premium of 488 million yen due to the changes in the percentage of ownership resulting from absorption type mergers within subsidiaries of the Group. (8) Changes in interest in subsidiaries for the fiscal year ended December 31, 2019 is due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the changes in the percentage of ownership resulting from acquisition of additional interest in subsidiaries of the Group. Under the Companies Act of Japan, at least 50% of the proceeds of certain issuances of share capital shall be credited to share capital. The remaining proceeds shall be credited to share premium. The Companies Act permits, upon approval at the general meeting of shareholders, the transfer of amounts from share premium to share capital. Retained earnings The Companies Act of Japan requires that an amount equal to at least 10% of dividends from surplus, as defined under the Companies Act, shall be appropriated as capital reserve (part of share premium) or appropriated for legal earnings reserve (part of retained earnings) until the aggregate amount of capital reserve and legal earnings reserve is equal to 25% of share capital. The legal earnings reserve may be used to eliminate or reduce a deficit or be transferred to other retained earnings upon approval at the general meeting of shareholders. The Company has not declared or paid cash dividends to date, and therefore no legal earnings reserves have been recorded as of December 31, 2018 and 2019. (3) Treasury shares The movements in treasury shares for the year ended December 31, 2017, 2018 and 2019 are as follows: Number of shares (Common share with no-par value) Amount (In millions of yen) January 1, 2017 — — Increase during the year (1) 1,007,810 4,000 Decrease during year (2) (100 ) (0 ) December 31, 2017 1,007,710 4,000 Increase during the year (1) 1,173,285 5,004 Decrease during the year (2) (201,220 ) (799 ) December 31, 2018 1,979,775 8,205 Increase during the year 1,739 8 Decrease during the year (2) (457,122 ) (1,905 ) December 31, 2019 1,524,392 6,308 (1) In conjunction with the introduction of the Employee Stock Ownership Plan (J-ESOP) (2) Decrease is due to the sales of shares by Trust & Custody Services Bank, Ltd. (Trust E account). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
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Supplemental Cash Flow Information | 20. Supplemental Cash Flow Information For the year ended December 31, 2017 Transfer of Camera Application Business to Snow Corporation On May 1, 2017, the Group transferred the camera application business, which was operated by LINE Plus Corporation, to Snow Corporation, an associate of the Group and a subsidiary of NAVER. The camera application business includes services such as B612, LINE Camera, Foodie and Looks. The Group acquired 208,455 newly issued common shares of Snow Corporation in exchange for the camera application business. The number of common shares newly issued by Snow Corporation was determined based on the ratio of the fair value of the camera application business transferred as well as the cash and cash equivalent comparing to the enterprise value of Snow Corporation. As a result of this transaction, the Group’s ownership in Snow Corporation increased from 25.0% to 48.6%, followed by an additional capital injection to Snow Corporation by the Company and NAVER in August 2017, resulting in a decrease of the Group’s ownership from 48.6% to 45.0%. The Group continues to account for its ownership in Snow Corporation using the equity method. Also, the ownership of NAVER in Snow Corporation decreased from 75.0% to 55.0% as a result of this transaction. The common shares of Snow Corporation received in exchange for the camera application business are measured and recorded at fair value as of the transaction date. The fair value of the common shares was measured based on the fair value of the camera application business which was estimated using the discounted cash flow method. All the variances between the assets and liabilities of the camera application business transferred to Snow Corporation and the consideration of transfer were recognized as gain on transfer as presented below. (In millions of yen) Current assets 603 Cash and cash equivalents 581 Other current assets 22 Non-current 71 Current liabilities (133 ) Non-current (334 ) Total 207 Consideration received in exchange for the transfer of camera application business (1) 10,651 Gain on transfer (2) 10,444 (1) This amount is solely for the newly issued common shares of Snow Corporation. This transaction is considered as a non-cash (2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss. Material non-cash (1) Acquisition of treasury shares by issuance of common shares In conjunction with the introduction of the Employee Stock Ownership Plan (J-ESOP), As a result, the amounts of share capital, share premium, and treasury shares in the year ended December 31, 2017 were increased by 2,000 million yen, 2,000 million yen and 4,000 million yen, respectively. (2) Acquisition of interest in subsidiaries by debt equity swap On June 19, 2017, the Group provided loan to NextFloor Corporation. (“NextFloor”) for the amount of 1,976 million yen. Subsequently, on July 24, 2017, the all of the loan was converted into common share of NextFloor through the process of acquiring 51.0% interests of NextFloor. Refer to Note 29. Business Combinations for further details. Movements on liabilities from financing activities (In millions of yen) Borrowings which Borrowings which Total Net liabilities as of January 1, 2017 21,925 — 21,925 Cash flows (107 ) (1 ) (108 ) Increase due to business combinations 405 91 496 Items such as foreign currency translation adjustments 1 3 4 Net liabilities as of December 31, 2017 22,224 93 22,317 For the year ended December 31, 2018 Loss of control of LINE Mobile Corporation In April 2018, LINE Mobile Corporation issued its new shares to SoftBank Corporation through a third-party allotment. As a result, the Group’s ownership of LINE Mobile Corporation has decreased from 100.0% to 49.0%, resulting LINE Mobile Corporation to be accounted for as an associate under the equity method rather than as a consolidated subsidiary. The assets, liabilities and gain on loss of control of LINE Mobile Corporation after deconsolidation are presented below; (In millions of yen) Current assets 2,646 Cash and cash equivalents (1) 1,113 Trade and other receivables 1,277 Inventories 48 Other non-current 208 Non-current 270 Current liabilities (4,083 ) Non-current (1 ) Total (1,168 ) Fair value of investment owned by the Group 8,326 Gain on loss of control of subsidiaries (2) 9,494 (1) This amount is included in “Cash disposed on loss of control of subsidiaries and business transfer” in the Group’s Consolidated Statements of Cash Flows. (2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss for the year ended December 31, 2018. Loss of control of LINE Games Corporation. and its subsidiaries In November 2018, LINE Games Corporation issued its new shares to Lungo Entertainment Ltd. through the third-party allotment. As a result, the Group’s ownership of LINE Games Corporation has decreased from 100.0% to 49.5%, resulting LINE Games Corporation to be accounted for as an associate under the equity method rather than as a consolidated subsidiary. The assets, liabilities and gain on loss of control of LINE Games Corporation after deconsolidation are presented as below; (In millions of yen) Current assets 2,969 Cash and cash equivalents (1) 930 Trade and other receivables 758 Other current assets 1,281 Non-current 4,570 Current liabilities (1,276 ) Non-current (265 ) Other comprehensive income (180 ) Non-controlling (1,974 ) Total 3,844 Fair value of investment owned by the Group 19,144 Gain on loss of control of subsidiaries (2) 15,300 (1) This amount is included in “Cash disposed on loss of control of subsidiaries and business transfer” in the Group’s Consolidated Statements of Cash Flows. (2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss. Material non-cash (1) Acquisition of treasury shares by issuance of common shares In conjunction with the introduction of the Employee Stock Ownership Plan (J-ESOP), As a result, the amounts of share capital, share premium, and treasury shares in the fiscal year 2018 were increased by 2,500 million yen, 2,500 million yen and 5,000 million yen, respectively. Movements on liabilities from financing activities (In millions of yen) Borrowings Borrowings Corporate bond which Total Net liabilities as of January 1, 2018 22,224 93 — 22,317 Cash flows 966 — 148,024 148,990 Transfer of liquidity 78 (78 ) — — Increase due to business combinations — 9 — 9 Decrease due to loss of control of subsidiaries (79 ) — — (79 ) Interest expenses — — 200 200 Recognition of stock acquisition rights through issuance of corporate bonds and deferred tax liabilities — — (6,092 ) (6,092 ) Foreign currency translation adjustments (189 ) (18 ) — (207 ) Net liabilities as of December 31, 2018 23,000 6 142,132 165,138 For the year ended December 31, 2019 There were no material non-cash transactions for the year ended December 31, 2019. Movements on liabilities from financing activities (In millions of yen) Borrowings which are due Borrowings Corporate Lease Total Net liabilities as of January 1, 2019 23,000 6 142,132 — 165,138 Adjustment on adoption of new — — — 48,013 48,013 Net liabilities as of January 1, 2019 23,000 6 142,132 48,013 213,151 Cash flows 98 (2 ) — (10,383 ) (10,287 ) Increase due to business combinations 94 — — — 94 New lease contracts — — — 18,520 18,520 Lease disposals — — — (308 ) (308 ) Interest expenses — — 719 1,216 1,935 Foreign currency translation 15 — — (421 ) (406 ) Net liabilities as of December 31, 2019 23,207 4 142,851 56,637 222,699 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
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Revenue from Contracts with Customers | 21. Revenue from Contracts with Customers The Group has recognized the following amounts relating to revenue in the Consolidated Statement of Profit or Loss for the year ended December 31, 2018 and 2019: (In millions of yen) 2018 2019 Revenue from contracts with customers Revenue (1) 207,182 227,485 Other operating income: Virtual credits breakage income 387 453 207,569 227,938 Other revenue from other sources Other operating income (2) 27,712 2,758 (1) Refer to Note 5 Segment Information for further details of revenue by segment. (2) Refer to Note 20 Supplemental Cash Flow Information for details of other operating income for the year ended December 31, 2018. Trade and other receivables, contract assets and contract liabilities (In millions of yen) December 31, December 31, Trade and other receivables 37,644 42,680 Contract assets (1) 339 241 Contract liabilities Unsatisfied performance obligations (2) 12,927 13,172 Virtual credits (3) 11,710 12,580 Total contract liabilities 24,637 25,752 (1) Contract assets mainly consist of transactions related to the advertising contracts in which the revenues from these transactions are recognized over time by measuring the progress towards completion of satisfaction of the performance obligation. (2) Unsatisfied performance obligations will be fulfilled mainly within a year. Therefore, the transaction price allocated to unsatisfied contract is not disclosed, based on the practical expedient as permitted under IFRS 15. (3) The timing of transfer of goods or services related to virtual credits is determined at the customer’s discretion. Revenue recognized during the year ended December 31, 2018 and 2019 that was included in the contract liability balance as of January 1, 2018 and 2019 are as follow: (In millions of yen) 2018 2019 Unsatisfied performance obligations 11,182 10, 400 Virtual credits 9,349 10, 850 The Group recorded 2,636 million yen and 2,038 million yen of contract costs as of December 31, 2018 and 2019, respectively, in the Consolidated Statements of Financial Position and 2,172 million yen and 2,288 million yen of amortization expenses of such assets for the years ended December 31, 2018 and 2019, respectively. |
Other Income and Expenses
Other Income and Expenses | 12 Months Ended |
Dec. 31, 2019 | |
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Other Income and Expenses | 22. Other Income and Expenses (1) Other operating income for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Virtual credits breakage income 815 386 453 Gain on loss of control of subsidiaries and business transfer (1) 10,444 24,794 — Dilution gain (2) 434 2,635 1,895 Others 318 284 863 Total 12,011 28,099 3,211 (1) Refer to Note 20 Supplemental Cash Flow Information for further details. (2) Dilution gain included gain of 2,310 million yen for the year ended December 31, 2018 in connection with third-party allotments by Snow Corporation, an associate of the Group. Dilution gain included gain of 948 million yen for the year ended December 31, 2019 in connection with third-party allotments by LINE Mobile Corporation, an associate of the Group, and dilution gain included gain of 947 million yen in connection with third-party allotments by Snow Corporation, an associate of the Group. (2) Other operating expenses for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Rent (1) 6,143 8,440 1,411 Travel 2,259 3,348 3,258 Supplies 2,378 3,327 3,938 Taxes and dues 1,516 2,347 2, 972 Professional fees 2,182 3,266 3,629 Cost of goods 4,946 7,622 8,129 Training 1,344 1,972 2,105 LINE points 1,006 5,533 6,042 Others (2) 3,629 5,286 7,60 3 Total 25,403 41,141 39,087 (1) For the year ended December 31, 2019, the amount decreased due to the adoption of IFRS 16 Leases. (2) For the year ended December 31, 2018, the amount consists of office management fees, utilities and other miscellaneous expenses. For the year ended December 31, 2019, the amount consists of a cost arisen from cancellation of system development and miscellaneous expenses. (3) Other non-operating (In millions of yen) 2017 2018 2019 Gain on financial assets at fair value through profit or loss (1) 1,096 555 2,837 Dividend income 69 50 151 Gain on sale of financial assets 751 136 1 Gain from derivatives 47 128 889 Total 1,963 869 3,878 (1) Gains and losses on valuation of financial assets are recognized under IAS 39 Financial Instruments: Recognition and Measurement Financial Instruments (4) Other non-operating (In millions of yen) 2017 2018 2019 Loss on financial assets at fair value through profit or loss (1) 118 1,231 828 Loss on impairment of available-for-sale 1,761 — — Others ( 2) 109 238 717 Total 1,988 1,469 1,545 (1) Losses on financial assets at fair value through profit or loss are recognized under IAS 39 Financial Instruments: Recognition and Measurement Financial Instruments (2) Others mainly consists of impairment loss on investments in associates for the year ended December 31, 2019. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
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Discontinued Operations | 23. Discontinued Operations The Group acquired MixRadio on March 16, 2015. Subsequently, the Group made a strategic decision to focus on its core LINE business and portal segment. On February 12, 2016, the board of directors approved the abandonment of the MixRadio segment. The operation of the MixRadio business was classified as a discontinued operation on March 21, 2016, when the abandonment took effect. The aggregated results of the discontinued operations for the years ended December 31, 2017, 2018 and 2019 are presented below: (In millions of yen) 2017 2018 2019 Revenues — — — Other income (1) — 566 96 Expenses (19 ) (6 ) ( 19 ) (Loss)/gain on foreign currency transactions — (10 ) 57 1 (Loss)/profit before tax from discontinued operations (19 ) 550 648 Income tax benefits/(expenses) on liquidation (2) 6 (174 ) (64 ) (Loss)/profit for the year from discontinued operations (attributable to the shareholders of the Company) (13 ) 376 584 (1) For the year ended December 31, 2018 and 2019, the Group recognized a gain from discharge of debt amounting to 566 million yen and 96 million yen, respectively, in connection with the liquidation of the MixRadio business. (2) The income tax benefits/(expenses) for the year ended December 31, 2017, 2018 and 2019 are mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred loss or profit during the periods. The aggregated cash flow information of the discontinued operations for the years ended December 31, 2017, 2018 and 2019, are presented below: (In millions of yen) 2017 2018 2019 Operating (136 ) 18 0 Investing — — — Financing — (353 ) (103 ) Net cash outflow (136 ) (335 ) (103 ) |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
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Earnings per Share | 24. Earnings per Share The profit or loss for the year and the weighted average number of shares used in the calculation of earnings per share are as follows: (In millions of yen, except number of shares) 2017 2018 2019 Profit/(loss) for the year attributable to the shareholders of the Company from continuing operations 8,091 (4,094 ) (47,472 ) (Loss)/profit for the year attributable to the shareholders of the Company from discontinued operations (13 ) 376 584 Total profit/(loss) for the year attributable to the shareholders of the Company for basic earnings and diluted earnings per share 8,078 (3,718 ) (46,888 ) Weighted average number of total common shares 221,405,391 239,761,603 240,824,713 Weighted average number of total treasury shares (459,843 ) (1,686,797 ) (1,682,006 ) Weighted average number of common shares for basic earnings per share 220,945,548 238,074,806 239,142,707 Effect of dilution: Stock options 16,559,789 — — Employee Stock Ownership Plan (J-ESOP) 47,369 — — Convertible bonds with stock acquisition rights — — — Weighted average number of total common shares adjusted for the effect of dilution 237,552,706 238,074,806 239,142,707 In calculating diluted earnings per share, share options outstanding and other potential shares are taken into account where their impact is dilutive. Outstanding stock options and employee stock ownership plan (J-ESOP), Outstanding stock options, employee stock ownership plan (J-ESOP) Outstanding stock options, employee stock ownership plan (J-ESOP) The Company allotted 30,240 stock options to the Company’s directors (other than outside directors and part-time directors), 240 stock options to the Company’s outside directors, and 16,548 stock options to the Company’s employees (including executive officers) and its subsidiaries’ employees on July 29, 2019 as the allotment date. Upon exercise of those stock options, common shares of 4,702,800 will be newly issued. |
Financial Risk Management
Financial Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
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Financial Risk Management | 25. Financial Risk Management The Group has exposure to the following risks from its use of financial instruments: – Credit risk – Liquidity risk – Market risk This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout the Group’s consolidated financial statements. (1) Risk Management Framework The Group limits its fund management to highly liquid and low risk investments, such as time deposits and other debt instruments. The Group raises funds mainly through the issuance of corporate bonds, and borrowings from financial institutions, including banks, with high credit ratings. The Group may enter into foreign exchange forward contracts to hedge foreign exchange risk. For the year ended December 31, 2019, the Group commenced derivative instruments investment for investment purpose. (2) Credit Risk Credit risk is the risk of financial losses to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers and investments. (a) Maximum amounts of possible financial loss to the Group due to credit risk as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Book value Book value Demand deposits (1) 256,965 217,333 Time deposits (1) 11,507 3,577 Loan receivables (2)(6) 593 1,378 Guarantee deposits (1)(3) 976 7,986 Trade and other receivables (2) (4) 37,644 42,680 Japanese government bonds (1)(3) 280 280 Corporate bonds and other debt instruments (1) 18,005 18,043 Office security deposits (1)(5) 9,162 9,624 Total 335,132 300,901 (1) None of the assets was past due or impaired as of December 31, 2018 and 2019. (2) For receivables, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group regularly performs credit assessments on customers and counterparties considering their financial position and historical data in order to manage the credit risk. The Group recorded provisions for estimated credit risk in respect of the loan receivables and trade and other receivables as of December 31, 2018 and 2019. The methodology used for estimating the expected credit loss differs depending on whether there have been significant increase in credit risk since initial recognition per financial assets or per assets group. The Group measures the expected credit losses for the financial assets measured at amortized cost without any significant increase in credit risk at the amount equal to twelve-month expected credit losses. For the financial assets measured at amortized cost with a significant increase in credit risk, the Group measures the expected credit losses at the amount equal to the lifetime expected credit losses. The Group uses the probability that a default occurs calculated based on the historical default data of the corporate bond ratings in Japan to measure the twelve-month expected credit losses and the lifetime expected credit losses. For the account receivables, the Group applied the simplified approach permitted by IFRS 9 that estimates the lifetime expected credit losses since the initial recognition. The expected credit loss of trade receivables are measured using the probability that a default may occur calculated based on the Group’s historical experiences on cash collection from trade receivables taking into account forward-looking information such as future economic conditions. When there has been a significant increase in credit risk, the Group measures the expected credit risk considering all reasonable and supportable information including that which is forward looking. (3) Refer to Note 15 Financial Assets and Financial Liabilities for details of the financial instruments being deposited under the Japanese Payment Services Act. (4) The Group identifies concentrations of credit risk when a limited number of the Group’s counterparties that have similar characteristics or business activities, and thus are affected similarly by changes in economic or other conditions, account for a large portion of the entire trade and other receivables. The Group had significant concentrations of credit risk with two payment processing service providers, representing 23.6% and 23.5% of trade and other receivables as of December 31, 2018 and 2019, respectively. (5) The amount mainly consists of the office security deposits paid for the Group’s office lease agreements. (6) The Group conducted loan commitment for an associate as of December 31, 2018 and 2019. The undrawn loan commitment as of December 31, 2018 and 2019 is as follows: (In millions of yen) December 31, 2018 December 31, 2019 Total amount of loan commitment 1,000 1,000 Outstanding balance of loan commitment — — Undrawn loan commitment 1,000 1,000 (b) Trade and other receivables As of December 31, 2018 and 2019, the Group considers the probability of default upon initial recognition of asset when assessing whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially, the following indicators are incorporated: – external credit rating (as far as available) – actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower’s ability to meet its obligations – actual or expected significant changes in the operating results of the customer or the counterparty – significant increase in credit risk of the customer or the counterparty Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is past due in making a contractual payment. The Group defines a default on a financial asset when the customer or the counterparty fails to make contractual payments within six months from the due date. Financial assets are written off when there is no reasonable expectation of recovery. Loss allowance for trade and other receivables as of December 31, 2018 and 2019 are calculated as follows: (In millions of yen) December 31, 2018 Current Within six due Over six months Over twelve Total Expected credit loss rate (1) 0.0 % 1.7 % 30.4 % 97.5 % 1.2 % Trade and other receivables 35,182 2,386 176 367 38,111 Loss allowance 16 39 54 358 467 (In millions of yen) December 31, 2019 Current Within six due Over six months Over twelve Total Expected credit loss rate (1) 0.1 % 1.7 % 27.8 % 85.6 % 1.5 % Trade and other receivables 39,402 3,096 228 620 43,346 Loss allowance 20 52 63 531 666 (1) The expected credit loss rate is calculated based on the historical loss rate for trade receivables and other receivables of one year. Below is the movement in the loss allowance attributable to trade and other receivables. The balances for the trade and other receivables over six months past due are aggregated as the balance of these assets are not significant. (In millions of yen) Provisions Loss allowance balance at January 1, 2018 492 Provision for the year 304 Reversal (60 ) Utilized (171 ) Deconsolidation (102 ) Translation 4 Loss allowance balance at January 1, 2019 467 Provision for the year 312 Reversal (18 ) Utilized (95 ) Translation 0 Loss allowance balance at December 31, 2019 666 Refer to Note 7 Trade and Other Receivables for more details on non-current (c) Financial assets measured at amortized cost and debt instruments measured at FVOCI Most of the loss allowance relating to the financial assets at amortized cost and the debt instruments that are measured at FVOCI recognized during the years ended December 31, 2018 and 2019 are limited to the twelve-month expected credit loss. The management determines whether the debt instruments that are measured at FVOCI have low credit risk when at least one major rating organization rates them as “investment grade”. For any other investments, the management deems the investments to have low credit risk if the investments have low risk of default, and the issuers has a strong capacity to meet its contractual cash flow obligations in the near future. As of December 31, 2018, financial assets measured at amortized cost consist of financial assets with low credit risk, such as time deposits and Japanese government bonds. The Group has not recognized the loss allowance for such financial assets. As of December 31, 2019, financial assets measured at amortized cost mainly consist of financial assets with low credit risk, such as guarantee deposits, and loan receivable, and the Group recognized the loss allowance for the loan receivables of 72 million yen. Loss allowance for loan receivables are calculated as follows: (In millions of yen) December 31, 2019 Current Within six Total Expected credit loss rate 4.2 % 19.2 % 5.0 % Loan receivables 1,379 71 1,450 Loss allowance 58 14 72 The Group recognized the loss allowance for debt instruments measured at FVOCI in the amount of 27 million yen and 28 million yen as of December 31, 2018 and 2019, respectively. A disclosure of the movement of loss allowance for the financial assets measured at amortized cost and debt instruments measured at FVOCI is omitted, as the amount of the expected loss for these financial assets is not significant. (3) Liquidity Risk Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as much as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group monitors its cash flow through long-term and short-term management strategies and ensures it has sufficient cash on hand to meet expected operational expenses. (a) Financial liabilities The book values of financial liabilities based on the remaining maturities as of December 31, 2018 and 2019 are as follows: The amounts below include estimated interest from financial liabilities scheduled to be paid. (In millions of yen) December 31, 2018 Book value Contractual cash outflows Less than one year One to five years After five years Trade and other payables 35,210 35,210 34,985 225 — Short-term borrowings (1) 23,000 23,019 23,019 — — Deposits received 13,653 13,653 13,653 — — Corporate bonds 142,132 146,320 — 73,160 73,160 Office security deposits received under sublease agreement 16 16 — 16 — Put option liabilities 296 296 16 280 — Total 214,307 218,514 71,673 73,681 73,160 (In millions of yen) December 31, 2019 Book value Contractual cash outflows Less than one year One to five years After five years Trade and other payables 43,829 43,829 43,710 119 — Short-term borrowings (1) 23,207 23,246 23,246 — — Deposits received 20,237 20,237 20,237 — — Corporate bonds 142,851 146,320 — 73,160 73,160 Lease liabilities 56,637 66,102 11,593 23,418 31,091 Office security deposits received under sublease agreement 16 16 — 16 — Put option liabilities 224 224 — 224 — Total 287,001 299,974 98,786 96,937 104,251 (1) The Group had lines of credit with four banks for the years ended December 31, 2018 and 2019. The lines of credit available and the lines of credit used are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Lines of credit available 23,680 43,680 Lines of credit used 23,000 23,100 Remainig lines of credit available 680 20,580 (b) Financial assets Private equity investment fund As a limited partner of the private equity investment funds, the Group may be required at any time to contribute to the partnership its pro rata share of the aggregate amount to be contributed by all limited partners for such portfolio investment, up to the amount of its unfunded capital commitment (1,215 million yen and 30 million US dollars, equivalent of 3,349 million yen, as of December 31, 2018, and 710 million yen and 27 million US dollars, equivalent of 2,928 million yen, as of December 31, 2019) as of the day of the capital contribution call. (4) Market Risk Market risk is the risk that changes in market prices which will affect the future cash flow or the value of the Group’s holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. (a) Exchange rate risk The Group has exposure to currency risk on sales and purchase transactions denominated in currencies other than the functional currencies. The main currencies used for transactions of the Group are the Japanese yen (“JPY”), the Korean won (“KRW”), the Euro (“EUR”), the U.S. dollar (“USD”), the Thai baht (“THB”), the Singapore dollar (“SGD”) and the New Taiwan dollar (“TWD”). The book values of major assets and liabilities denominated in currencies other than the functional currency as of December 31, 2018 and 2019 are as follows: (In millions) December 31, 2018 Currency Amount Exchange rate Yen equivalent Assets: Cash and cash equivalents KRW 15,539 0.10 1,534 USD 109 110.36 11,985 JPY 337 1.00 337 Trade receivables KRW 2,362 0.10 233 USD 12 110.36 1,378 THB 72 3.39 245 Financial instruments at amortized cost Time deposit KRW 7,100 0.10 701 Short-term loans USD 11 110.36 1,260 Guarantee deposits KRW 8,628 0.10 852 Office security deposits KRW 7,250 0.10 716 Financial assets at fair value through profit or loss USD 23 110.36 2,491 TWD 88 3.61 319 (In millions) December 31, 2019 Currency Amount Exchange rate Yen equivalent Assets: Cash and cash equivalents KRW 24,893 0.09 2,341 USD 93 108.87 10,155 JPY 337 1.00 337 EUR 3 122.00 380 Trade receivables and other receivables KRW 21,102 0.09 1,984 USD 16 108.87 1,693 THB 62 3.64 227 Financial instruments at amortized cost Time deposits USD 5 108.87 545 Guarantee deposits KRW 33,242 0.09 3,126 Office security deposits KRW 5,541 0.09 521 Financial assets at fair value through profit or loss USD 36 108.87 3,928 TWD 95 3.62 343 KRW 25,439 0.09 2,392 THB 162 3.64 590 SGD 3 80.73 233 (In millions) December 31, 2018 Currency Amount Exchange rate Yen equivalent Liabilities: Trade and other payables KRW (44,026 ) 0.10 (4,345 ) USD (11 ) 110.36 (1,229 ) TWD (125 ) 3.61 (451 ) JPY (256 ) 1.00 (256 ) Put option liabilities KRW (2,296 ) 0.10 (227 ) (In millions) December 31, 2019 Currency Amount Exchange rate Yen equivalent Liabilities: Trade and other payables KRW (35,934 ) 0.09 (3,379 ) USD (6 ) 108.87 (704 ) JPY (202 ) 1.00 (202 ) Put option liabilities KRW (2,410 ) 0.09 (227 ) Lease liabilities KRW (23,219 ) 0.09 (2,183 ) The effects on profit or loss before tax from continuing operations and shareholders’ equity as a result of exchange rate fluctuations as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 Shareholders’ equity Profit or (loss) before tax Currency Appreciation of functional currency by Depreciation of functional currency by Appreciation of functional currency by Depreciation of functional currency by KRW (14 ) 13 (27 ) 26 USD 584 (556 ) 794 (756 ) THB 8 (8 ) 12 (12 ) TWD (6 ) 5 (7 ) 6 JPY 3 (3 ) 4 (4 ) (In millions of yen) December 31, 2019 Shareholders’ equity Profit or (loss) before tax Currency Appreciation of functional currency by Depreciation of functional currency by Appreciation of functional currency by Depreciation of functional currency by KRW 170 (162 ) 239 (228 ) USD 630 (600 ) 831 (791 ) THB 28 (27 ) 41 (39 ) TWD 12 (11 ) 17 (16 ) JPY 6 (6 ) 7 (6 ) EUR 15 (14 ) 19 (18 ) SGD 8 (8 ) 12 (11 ) The tables above demonstrate the sensitivity to a change in KRW, USD, THB, TWD, JPY, EUR and SGD assuming all other variables are constant. (b) Interest rate risk Interest bearing financial assets and liabilities as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Fixed rate Variable rate Fixed rate Variable rate Financial assets Guarantee deposits — — — 1,672 Japanese government bonds 280 — 280 — Time deposits 11,507 — 3,577 — Loan receivables 110 — 1,396 — Corporate bonds and other debt instruments 18,005 — 18,043 — Total financial assets 29,902 — 23,296 1,672 Financial liabilities Short-term borrowings — 23,000 94 23,100 Total financial liabilities — 23,000 94 23,100 The Group has exposure to interest rate risk as it possesses financial assets and liabilities set out in the above. The analysis below was performed using balances of the outstanding financial liabilities set out in the above as of December 31, 2018 and 2019, as well as using balance of debt instrument as of December 31, 2018 a nd (In millions of yen) December 31, 2018 Shareholders’ equity Profit or (loss) before tax Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Interest expenses (79 ) 16 (115 ) 23 (In millions of yen) December 31, 2018 Shareholders’ equity Other comprehensive Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Debt instruments (145 ) 86 (212 ) 125 (In millions of yen) December 31, 2019 Shareholders’ equity Profit or (loss) before tax Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Interest expenses (79 ) 17 (116 ) 25 (In millions of yen) December 31, 2019 Shareholders’ equity Other comprehensive income/(loss) Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Debt instruments (121 ) 69 (177 ) 100 (5) Capital management The Group maintains a strong capital base to ensure the Group will be able to continue as a going concern. In addition, through management of the debt and equity balances, the Group aims to maintain investor, creditor and market confidence, and to sustain future development of the business. For the year ended December 31, 2018, the Group issued corporate bonds to meet the cash demand for the investment for further growth of business to improve the Group’s corporate value in medium term. In order to achieve sustainable growth, the Group understands that financing capacities sufficient to make business investments when there are opportunities, such as the acquisition of external resources for business growth, are required. The equity and major liabilities are as follows: (In millions of yen) December 31, December 31, Short-term borrowings 23,000 23,207 Corporate bonds 142,132 142,851 Lease liabilities — 56,637 Total 165,132 222,695 Total shareholders’ equity 208,514 174,663 The Group is not subject to any externally imposed capital requirements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Fair Value Measurements | 26. Fair Value Measurements (1) Fair value hierarchy The Group referred to the levels of the fair value hierarchy for financial instruments measured at fair value in the consolidated financial statements based on the following inputs: – Level 1 inputs are quoted prices in active markets for identical assets or liabilities. – Level 2 inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. – Level 3 inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable, which reflect the reporting entity’s own assumptions that market participants would use in establishing a price. Transfers between levels of the fair value hierarchy are recognized as if they have occurred at the beginning of the reporting period. (2) Fair value measurements by fair value hierarchy Assets and liabilities measured at fair value on a recurring basis in the Consolidated Statements of Financial Position as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss — — 10,261 10,261 Financial assets at FVOCI Equity instruments 791 — 6,505 7,296 Debt instruments — 18,005 — 18,005 Total 791 18,005 16,766 35,562 Financial liability at fair value through profit or loss Put option liabilities — — 296 296 Total — — 296 296 (In millions of yen) December 31, 2019 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss 172 3,016 17,312 20,500 Financial assets at FVOCI Equity instruments 6,750 — 2,898 9,648 Debt instruments — 18,043 — 18,043 Total 6,922 21,059 20,210 48,191 Financial liability at fair value through profit or loss Put option liabilities — — 224 224 Other 61 — — 61 Total 61 — 224 285 Financial assets at FVOCI as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Marketable 791 6,751 Non-marketable (1) 6,505 2,897 Total 7,296 9,648 (1) The fair value of non-marketable non-marketable The Group made irrevocable election to designate a financial asset measured at FVOCI at initial recognition for the investment that are aimed to mid to long-term strategy instead of held for trading. The dividend income for the equity instruments measured at FVOCI is immaterial for the year ended December 31, 2018 and 2019. The accumulated other comprehensive income for the equity instruments measured at FVOCI which derecognized are transferred to retained earnings in the amount of 2,230 million yen (profit) and 1,081 million yen (loss) for the year ended December 31, 2018 and 2019, respectively. Assets and liabilities not measured at fair values in the Consolidated Statements of Financial Position, but for which fair values are disclosed as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets at amortized cost Corporate bonds and other debt instruments — 288 — 288 Guarantee deposits — 123 — 123 Office security deposits — 9,050 — 9,050 Total — 9,461 — 9,461 Financial liability at amortized cost Office securities deposits received under sublease agreement — 16 — 16 Corporate bonds — 143,743 — 143,743 Total — 143,759 — 143,759 (In millions of yen) December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets at amortized cost Corporate bonds and other debt instruments — 284 — 284 Guarantee deposits — 57 — 57 Office security deposits — 9,266 — 9,266 Others 100 100 Total — 9,707 — 9,707 Financial liability at amortized cost Office securities deposits received under sublease agreement — 16 — 16 Corporate bonds — 144,254 — 144,254 Total — 144,270 — 144,270 There have been no transfers among Level 1, Level 2 and Level 3 during the years ended December 31, 2018 and 2019, except for the transfer from Level 3 to Level 1 as described in (3) below. (3) Reconciliations from the opening balance to the closing balance of financial instruments categorized within Level 3 are as follows: (In millions of yen) 2018 2019 Financial Financial Put option Financial Financial Equity Put option Fair value at the beginning of the year 7,143 8,539 (486 ) 10,261 6,505 (296 ) Total (loss)/gain for the year: Included in profit or loss (1) (553 ) — (74 ) 1,953 — 85 Included in other comprehensive income (2) — (1,916 ) — — (224 ) — Comprehensive (loss)/income (553 ) (1,916 ) (74 ) 1,953 (224 ) 85 Purchases 4,763 5,029 (16 ) 5,311 — (28 ) Sales and settlements (3) — (4,176 ) — — (556 ) — Exercise of options — — 250 — — — Decrease due to loss of control (963 ) (595 ) 26 — — — Other 138 (110 ) (3 ) (216 ) 176 16 Transfer to Level 1 (4) — — — — (3,000 ) — Effect of exchange rate changes (267 ) (266 ) 7 3 (3 ) (1 ) Fair value at the end of the year 10,261 6,505 (296 ) 17,312 2,898 (224 ) (1) This amount is included in “Other non-operating non-operating (2) This amount is included in “Net changes in fair value of equity instruments at FVOCI” in the Group’s Consolidated Statements of Comprehensive Income. (3) During the years ended December 31, 2018 and 2019, the Group sold financial assets at FVOCI. The cumulative gain on disposal amounted to 2,267 million yen and the cumulative loss on disposal amounted to 1,081 million yen, respectively. (4) During the year ended December 31, 2019, the issuing company of an equity instrument was listed on Tokyo Stock Exchange Mothers. Accordingly, such equity instrument was transferred from Level 3 to Level 1. (4) Valuation techniques and inputs Assets and liabilities measured at fair value on a recurring basis in the Group’s Consolidated Statements of Financial Position Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss categorized within Level 2 consists of investment trusts. The investment trusts are measured at fair value based on the price presented by the financial institutions as of December 31, 2019. Financial assets at fair value through profit or loss within Level 3 mainly consist of private equity investment funds, preferred stock with conversion rights and redemption rights. As of December 31, 2018 and 2019, preferred stock with conversion right and redemption right of preferred stock were measured at fair value using mainly a binominal option pricing model. In addition, the private equity investment funds are measured at fair value based on the most recent available net asset value, and preferred stocks are measured at fair value based either on the valuation techniques such as the most recent transactions or on the discount cash flow model. Below is the quantitative information regarding the valuation technique and significant unobservable inputs used in measuring the fair value of financial assets at fair value through profit or loss categorized within Level 3, except for private equity investment funds: Valuation technique Significant unobservable input 2018 2019 Discount cash flow model Discount rate 16.0% 14.9% Growth rate 2.0% 1.0% Binomial option pricing model Comparable listed companies’ average historical volatility 53.3%-54.0% 53.3%-54.0% Discount rate 2.0%-2.2% 1.4%-1.6% A significant increase (decrease) in the growth rate would result in a higher (lower) fair value of the unlisted equity securities. On the other hand, a significant increase (decrease) in discount rate would result in a lower (higher) fair value of the unlisted equity securities. A significant increase (decrease) in the comparable listed companies’ average historical volatility would result in a higher (lower) fair value of the conversion right and redemption right of preferred stock, while a significant increase (decrease) in the discount rate would result in a lower (higher) fair value of the conversion right and redemption right of preferred stock. Financial liabilities at fair value through profit or loss The financial liabilities at fair value through profit or loss categorized within Level 3 consists of the put option liabilities that are options written on shares of subsidiaries, associates, and investments. Such put option liabilities are measured at fair value using mainly option pricing model or the Monte Carlo simulation. Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain put option liabilities: Valuation technique Significant unobservable input 2018 2019 Option pricing model Comparable listed companies’ average historical volatility 51.9% — Discount rate 1.8% — Monte Carlo simulation Comparable listed companies’ average historical volatility 43.1% 43.6% Discount rate 2.0% 1.7% A significant increase (decrease) in the comparable listed companies’ average historical volatility would result in a higher (lower) fair value of the put option liabilities, while a significant increase (decrease) in the discount rate would result in a lower (higher) fair value of the put option liabilities. Financial assets at fair value through other comprehensive income Financial assets at FVOCI categorized within Level 2 consist of bonds. Such bonds are measured at fair value using discount cash flow model and using the observable input such as estimated yield rate when acquiring a similar debt instruments as of December 31, 2018 and 2019. Financial assets at FVOCI within Level 3 mainly consist of unlisted equity securities. Such unlisted equity securities are measured mainly at fair value based on the valuation techniques such as the most recent transactions and market approach as of December 31, 2018 and 2019. Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain unlisted equity securities. Valuation technique Significant unobservable input 2018 2019 Market approach-market comparable companies Revenue multiple 1.3-9.1 1.4-13.3 Liquidity discount 30.0% 30.0% A significant increase (decrease) in the revenue multiple would result in a higher (lower) fair value of the unlisted equity securities, while a significant increase (decrease) in the liquidity discount, would result in a lower (higher) fair value of the unlisted equity securities. The valuation techniques and the valuation results of the Level 3 financial assets, including those performed by the external experts, were reviewed and approved by the management of the Group. Assets and liabilities not measured at fair value in the Consolidated Statements of Financial Position, but for which fair values are disclosed Corporate bonds (asset) and other debt instruments, guarantee deposits, office security deposits, office security deposits received under sublease agreements, and corporate bonds (liability) The fair values of the corporate bonds (asset) and other debt instruments, guarantee deposits, office security deposits, office security deposits received under sublease agreements, and corporate bonds (liability) are calculated by using the discounted cash flow model which utilizes observable inputs such as risk-free interest rates and credit risk spreads of the Group as of the reporting dates. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Share-Based Payments | 27. Share-Based Payments The Group has stock option incentive plans for directors and employees. (1) Stock Option Plan For the stock options granted during the years ended December 31, 2013, 2014, and 2015, each stock option represents the right to purchase 500 common shares at a fixed price for a defined period of time. For the stock options granted during the year ended December 31, 2017, each stock option represents the right to purchase 100 common shares at a fixed price for a defined period of time. The exercise price of stock options per share that were granted during the years ended December 31, 2013 is 344 yen, whereas that of those options, which were granted during the years ended December 31, 2014 and 2015 is 1,320 yen per share. The exercise price of stock options per share, which were granted during the year ended December 31, 2017, is 4,206 yen. During the year ended December 31, 2019, the Company has granted 47,028 of stock options equivalent to 4,702,800 of common shares. The exercise price of stock options per share, which were granted during the year ended December 31, 2019 was 3,500 yen per share. The fair value of stock options granted during the years ended December 31, 2013, 2014, 2015, and 2017 is determined using the Black-Scholes model, and the fair value of stock options granted during the year ended December 31, 2019 is determined using the binomial option pricing model. Stock options granted during the years ended December 31, 2013, 2014 and 2015 vested two years after the grant date and are exercisable for a period of eight years from the vesting date. Stock options granted during the year ended December 31, 2017 vest 25% of such stock options per year from the grant date and are exercisable from the vesting date until July 18, 2027. Stock options granted during the year ended December 31, 2019 are exercisable from the vesting date until July 8, 2029, where 20%, 30% and 50% of the stock options will be vested after three years, four years and five years from the grant date, respectively. Conditions for vesting and exercising the stock options granted during the years ended December 31, 2013, 2014, 2015 and 2017, as well as the 23rd series of stock acquisition rights (“the 23rd stock option”) and 24th series of stock acquisition rights (“the 24th stock option”) granted during December 31, 2019, require that those who received the allotment of stock options continue to be employed by the Group from the grant date to the vesting date, and from the grant date to the exercise date, respectively, unless otherwise permitted by the board of directors. Conditions for vesting and exercising the 22nd series of stock acquisition rights (“the 22nd stock option”) granted during the year ended December 31, 2019 require that those who received the allotment of stock options continue to be directors of the Group from the grant date to the vesting date, and from the grant date to the exercise date, respectively, unless otherwise permitted by the board of directors. When the Company’s common stock price meets the requirements in (i) to (iii) below, the stock option holder may exercise his/her rights up to the number of units listed in the following items: (i) If, on any day from the day exactly three years after the grant date until the day exactly six years after the grant date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day (ii) If, on any day from the day exactly four years after the grant date until the day exactly seven years after the grant date, the average closing price in ordinary trading of the company’s common shares on the Tokyo Stock Exchange during the ten-business-day (iii) If, on any day from the day exactly five years after the grant date until the day exactly eight years after the grant date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day Refer to Note 4 Significant Accounting Judgment, Estimates and Assumptions (f) for more details on the valuation methodology of stock options, and the assumptions used in such valuation. There were no cancellations or modifications to the awards in 2017, 2018 and 2019. i. Movements during the years ended December 31, 2017, 2018 and 2019 The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, outstanding stock options on a per-common-share 2017 Common Stock Options Number (shares) WAEP (yen per share) Outstanding at January 1 22,911,500 653 Granted during the year 2,386,000 4,206 Forfeited during the year (7,000 ) 1,320 Exercised during the year (1) (19,713,500 ) 583 Expired during the year — — Outstanding at December 31 5,577,000 2,421 Exercisable at December 31 3,191,000 1,086 2018 Common Stock Options Number (shares) WAEP (yen per share) Outstanding at January 1 5,577,000 2,421 Granted during the year — — Forfeited during the year (2) (983,200 ) 4,178 Exercised during the year (1) (855,500 ) 1,171 Expired during the year — — Outstanding at December 31 3,738,300 2,245 Exercisable at December 31 2,701,400 1,492 2019 Common Stock Options Number (shares) WAEP (yen per share) Outstanding at January 1 3,738,300 2,245 Granted during the year 4,702,800 3,500 Forfeited during the year (2) (152,300 ) 4,021 Exercised during the year (1) (608,500 ) 942 Expired during the year — — Outstanding at December 31 7,680,300 3,081 Exercisable at December 31 2,376,000 1,960 (1) The weighted average share price at the date of exercise of these options during the years ended December 31, 2017, 2018 and 2019 were 4,580 yen, 4,245 yen and 3,975 yen, respectively. (2) For the year ended December 31, 2018 and 2019, the number of forfeited stock options include 763,300 shares and 120,200 shares, respectively, of revocation due to waiver of rights. ii. The exercise price and the number of shares for options outstanding as of December 31, 2017, 2018 and 2019 are as follows: Number (Shares) Grant dates Exercise price December 31, December 31, December 31, December 17, 2013 344 763,500 544,500 309,000 February 8, 2014 1,320 818,000 649,000 502,500 August 9, 2014 1,320 218,000 148,500 116,000 November 1, 2014 1,320 145,000 122,500 109,000 February 4, 2015 1,320 1,246,500 891,500 708,500 July 18, 2017 4,206 2,386,000 1,382,300 1,262,100 July 29, 2019 3,500 — — 4,673,200 iii. The weighted average remaining contractual life for the stock options outstanding as of December 31, 2017, 2018 and 2019 was 7.8 years, 6.6 years and 8.1 years, respectively. iv. The following tables list the inputs to the models used for deriving the fair value of the stock options granted for the years ended December 31, 2017, 2018 and 2019. Grant date Grant date July 18, 2017 July 29, 2019 Dividend yield 0.0 % 0.0 % Expected volatility 44.9-45.7 % 36.6 % Risk-free interest rate (0.04)-0.00 % (0.15 )% Expected life of stock options (years) 5.5-7 10 Exercise price (yen) 4,206 3,500 Fair value per common share at the grant date (yen) 3,840 3,500 Model used Black-Scholes Binomial option During the year ended December 31, 2018, no stock options were granted. The weighted average fair value of the stock options granted on July 29, 2019 was 1,287 yen on a per-common The expected volatility was derived from the daily volatility of the share price over a period from the listing date of the Company to the grant date, and such volatility is assumed to be indicative of future trends, which may not necessarily be the actual outcome. For the 24th stock option, effects of early exercise was incorporated into the fair value measurement based on the expected employee turnover (annual turnover rate 9.25%) as grantees are the employees of the Group. The 22nd stock option was subject to the stock market condition, requiring that the average closing price during a certain period through the ordinary trading for the Company’s common shares should exceed the Standard Stock Price. This stock market condition was incorporated into the fair value measurement of the stock option by using Monte-Carlo simulation along with the unit price of the stock option which was determined using the binominal option pricing model. v. The expenses recognized in connection with share-based payments during the years ended December 31, 2017, 2018 and 2019 are shown in the following table: (In millions of yen) 2017 2018 2019 Total expenses arising from equity-settled share-based payment transactions 1,602 559 888 (2) Equity-settled Employee Stock Ownership Plan (J-ESOP) The Group has a Group policy, the Regulations on Stock Compensation, which regulates an incentive for the employees in line with the stock price movement and for the purpose of securing excellent human resources and their long-term success. In accordance with the Regulations on Stock Compensation, the Group has granted points equivalent to 262,069 shares, 26,946 shares, 260,133 shares, 48,651 shares and 161,172 shares to the employees of the Group on July 18, 2017, January 1, 2018, July 20, 2018 January 23, 2019 and July 29, 2019, respectively. The points vest once the employees who received the points satisfy the conditions under the Regulations on the Stock Compensation. As the points vest, the trust grants the Company’s shares equivalent to the number of points, which the trust owns, to the employees of the Company and its domestic subsidiary. Under the Regulations on Stock Compensation, the employees granted the points on July 18, 2017 are required to be employed by the Group until the vesting dates, which are set between April 1, 2018 and April 1, 2020. The employees granted the points on January 1, 2018 are required to be employed by the Group until the vesting dates, which are set between October 1, 2018 and October 1, 2020 and the employees granted the points on July 20, 2018 are required to be employed by the Group until the vesting dates, which are set between April 1, 2019 and April 1, 2021. The employees granted the points on January 23, 2019 are required to be employed by the Group until the vesting dates, which are set between October 1, 2019 and October 1, 2021. The employees granted the points on July 29, 2019 are required to be employed by the Group until the vesting dates, which are set between April 1, 2020 and April 1, 2022. i. Movements during the years ended December 31, 2017, 2018 and 2019 The following table illustrates the movements in outstanding points during the years ended December 31, 2017, 2018 and 2019: J-ESOP (Equity-settled) Number of points (1) 2017 2018 2019 Outstanding at January 1 — 251,302 445,401 Granted during the year 262,069 287,079 209,823 Forfeited during the year (10,767 ) (35,091 ) (48,662 ) Exercised during the year — (57,889 ) (145,579 ) Expired during the year — — (392 ) Outstanding at December 31 251,302 445,401 460,591 Exercisable at December 31 — 5,275 8,505 (1) One point is equal to one share. ii. The Group’s J-ESOP iii. The fair value of the points issued on July 18, 2017, January 1, 2018 and July 20, 2018 were 3,840 yen, 4,865 yen and 5,130 yen, respectively, which were equivalent to the share price of the grant day. The fair value of the points issued on January 23, and July 29, 2019 were 3,905 yen and 3,500 yen, respectively, which were equivalent to the share price of the grant day. iv. The expenses recognized in connection with share-based payments during the years ended December 31, 2017, 2018 and 2019 are shown in the following table: (In millions of yen) 2017 2018 2019 Total expenses arising from equity-settled share-based payment transactions 279 827 875 (3) Cash-settled Employee Stock Ownership Plan (J-ESOP) In accordance with the Regulations on Stock Compensation, the Group has granted points equivalent to 567,056 shares, 58,660 shares, 543,733 shares, 90,744 shares and 306,452 shares to the employees of the Group on July 18, 2017, on January 1, 2018, on July 20, 2018, January 23, 2019 and July 29, 2019, respectively. The points vest once the employees who received the points satisfy the conditions under the Regulations on the Stock Compensation. As the points vest, the trust sells the shares of the Company, which are equivalent to the number of points in the market and distributes the cash obtained from the transaction to the employees. Under the Regulations on Stock Compensation, the employees granted the points on July 18, 2017 are required to be employed by the Group until the vesting dates, which are set between April 1, 2018 and April 1, 2020. The employees granted the points on January 1, 2018 are required to be employed by the Group until the vesting dates, which are set between October 1, 2018 and October 1, 2020. The employees granted the points on July 20, 2018 are required to be employed by the Group until the vesting dates, which are set between April 1, 2019 and April 1, 2021. The employees granted the points on January 23, 2019 are required to be employed by the Group until the vesting dates, which are set between October 1, 2019 and October 1, 2021. The employees granted the points on July 29, 2019 are required to be employed by the Group until the vesting dates, which are set between April 1, 2020 and April 1, 2022. i. Movements during the years ended December 31, 2017, 2018 and 2019 The following table illustrates the movements in outstanding points during the years ended December 31, 2017, 2018 and 2019: J-ESOP Number of points (1) 2017 2018 2019 Outstanding at January 1 — 533,502 890,624 Granted during the year 567,056 602,393 397,196 Forfeited during the year (33,554 ) (101,430 ) (94,297 ) Exercised during the year — (143,841 ) (305,760 ) Expired during the year — — (176 ) Outstanding at December 31 533,502 890,624 887,587 Exercisable at December 31, — 2,373 3,840 (1) One point is equal to one share. ii. The Group’s J-ESOP iii. The fair value of the points granted on July 18, 2017 as of the grant date and the measurement date were the share price as of the grant date of 3,840 yen and the share price of December 31, 2017 of 4,595 yen, respectively. The fair value of the points granted on January 1, 2018 and July 20, 2018 as of the grant date were the share price of the grand date of 4,865 yen and 5,130 yen, respectively. The fair value as of the measurement date was the share price as of December 31, 2018 of 3,775 yen for all of the points granted on the aforementioned dates. The fair value of the points granted on January 23, 2019 and July 29, 2019 as of the grant date were the share price of the grand date of 3,905 yen and 3,500 yen, respectively. The fair value as of the measurement date was the share price as of December 31, 2019 of 5,350 yen for all of the points granted on the aforementioned dates. iv. The expenses recognized in connection with share-based payments during the years ended December 31, 2017, 2018 and 2019 are shown in the following table: (In millions of yen) 2017 2018 2019 Total expenses arising from cash-settled share-based payment transactions 805 1,142 2,486 v. The Group has recognized current liabilities of 758 million yen and 1,849 million yen as of December 31, 2018 and 2019, respectively, and non-current vi. The amount of the liabilities fixed as of December 31, 2018 and 2019 amounted to 12 million yen and 11 million yen, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Related Party Transactions | 28. Related Party Transactions Note 30 Principal Subsidiaries provides information about the Group’s structure, including details of the subsidiaries and the parent company. The following table provides the total amount of outstanding balances and related party transactions entered into during 2017, 2018 and 2019. (1) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2017 are as follows: (In millions of yen) Relationship Name Transaction Transaction amount Outstanding receivable/ (payable) balances (3) Parent company NAVER Advertising service (1) 518 108 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 8,475 (976 ) Associate of the Group Snow Corporation Transfer of camera application business (4) 10,651 — Director of the Company Joongho Shin Exercise of stock options (5) 6,922 — Director of the Company Hae Jin Lee Exercise of stock options (5) 1,917 — (1) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 518 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2017. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (4) In May 2017, LINE Plus Corporation transferred its camera application business to Snow Corporation. In exchange for the transfer of the business, LINE Plus Corporation received 208,455 newly issued common shares of Snow Corporation, and the transaction amount represents the fair value of the newly issued common shares received on the transaction date. Refer to Note 20 Supplemental Cash Flow Information for further details. (5) Stock options, which had been issued with resolution at the meeting of board of directors on December 17, 2012 and January 30, 2015, have been exercised. The transaction amount includes the amount paid in by exercising stock options during the year ended December 31, 2017. (2) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2018 are as follows: (In millions of yen) Relationship Name Transaction Transaction amount Outstanding receivable/ (payable) balances (4) Parent company NAVER Underwrite of (1) 74,989 (71,901 ) Parent company NAVER Advertising service (2) 663 184 Subsidiary of parent company NAVER Business Platform Corp. (3) Operating expenses 8,566 (883 ) (1) During the year ended December 31, 2018, the Group issued Euro-yen (2) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 663 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2018. (3) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (4) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (3) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2019 are as follows: (In millions of yen) Relationship Name Transaction Transaction amount Outstanding receivable/ (payable) balances (3) Parent company NAVER Underwrite of (1) — (72,114 ) Parent company NAVER Advertising service (2) 694 192 Subsidiary of parent company NAVER Business Platform Corp. IT Infrastructure 8,490 (937 ) (1) During the year ended December 31, 2018, the Group issued Euro-yen (2) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 694 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2019. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (4) The total compensation of key management personnel for the years ended December 31, 2017, 2018 and 2019 is as follows: (In millions of yen) 2017 2018 2019 Salaries (including bonuses) 739 704 637 Share-based payments (1) 928 780 800 Other — 43 55 Total 1,667 1,527 1,492 (1) Refer to Note 27 Share-Based Payments for further details. Key management personnel includes directors and corporate auditors of the Company. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Business Combinations | 29. Business Combinations Acquisition in 2017 Acquisition of NextFloor Group On July 24, 2017, the Group acquired 51.0% of the voting shares of NextFloor Corporation. (“NextFloor”), an unlisted company based in Korea, specializing in developing and publishing smartphone games. As a result of the acquisition, the Group obtained control, and NextFloor and its subsidiaries (“NextFloor Group”) became consolidated subsidiaries of the Group. The Group acquired NextFloor for the purpose of acquiring an organizational structure to develop and operate mainly middle core game contents. The valuation of the fair values of the assets acquired and the liabilities assumed was completed in the fourth quarter of 2017 and unchanged as compared the preliminary assessment at the time of acquisition. Assets acquired and liabilities assumed The identifiable assets and liabilities of NextFloor Group, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value recognized on acquisition Assets Cash and cash equivalents 1,946 Trade receivables 335 Other financial assets, current 307 Other financial assets, non-current 754 Property and equipment 145 Intangible assets Software 153 Publishing rights 1,640 Other intangible assets 277 Investments in associates 805 Other assets 320 6,682 Liabilities Trade and other payables 404 Other financial liabilities, current 123 Other financial liabilities, non-current 63 Deferred tax liabilities 391 Other liabilities 264 1,245 Total identifiable net assets at fair value 5,437 Non-controlling (2,664 ) Goodwill 3,154 Total consideration 5,927 All consideration was paid in cash except for the loan receivables of 1,976 million yen from NextFloor to the Group, which was converted into the common shares of NextFloor. The fair value of the trade receivables was 335 million yen. The gross contractual amounts of the trade receivables were not materially different from the fair value determined as part of the purchase price allocation. Non-controlling Goodwill of 3,154 million yen represented the value of expected synergies arising from the acquisition and was allocated entirely to the LINE business and portal segment. Subsequently, in line with the change in the CGU for the year ended December 31, 2018, the goodwill was mainly allocated to the Core Business segment. None of the goodwill recognized was expected to be deductible for income tax purposes. From the date of acquisition, NextFloor Group had contributed 1,058 million yen to the revenue of the Group and had reduced profit from continuing operations of the Group by 947 million yen. Transaction costs of 18 million yen have been expensed and are included in “Other operating expenses” in the Group’s Consolidated Statement of Profit or Loss. (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,927 ) Debt equity swap 1,976 Net cash and cash equivalents acquired at the acquisition date 1,946 Net cash flows on acquisition (included in cash flows from investing activities) (2,005 ) Acquisition of FIVE Inc. On December 15, 2017, the Group acquired 100.0% of the voting shares of FIVE Inc. (“FIVE”), an unlisted company based in Japan, and FIVE became a consolidated subsidiary of the Group. FIVE is specialized in developing, selling and operating a video advertising platform for smartphones. The Group acquired FIVE for the purpose of utilizing FIVE’s technological capability and resources for video advertisement and enhancing the Group’s video advertising for LINE services such as “LINE Ads Platform”. The valuation of the fair values of the assets acquired and the liabilities assumed was completed in the fourth quarter of 2017. Assets acquired and liabilities assumed The identifiable assets and liabilities of FIVE, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value on acquisition Assets Cash and cash equivalents 231 Trade and other receivables, current 307 Other financial assets, non-current 10 Property and equipment 9 Technology 391 Other assets 7 955 Liabilities Trade and other payables 288 Other financial liabilities, current 50 Deferred tax liabilities 123 Other liabilities 44 505 Total identifiable net assets at fair value 450 Goodwill 4,996 Total consideration 5,446 All consideration was paid in cash. The fair value of the trade receivables was 306 million yen. The gross contractual amounts of the trade receivables were not materially different from the fair value determined as part of the purchase price allocation. Goodwill of 4,996 million yen represented the value of expected synergies arising from the acquisition and was allocated entirely to the LINE business and portal segment. Subsequently, in line with the change in the CGU for the year ended December 31, 2018, the goodwill was mainly allocated to the Core Business segment. None of the goodwill recognized was expected to be deductible for income tax purposes. From the date of acquisition, FIVE had contributed 68 million yen to the revenue of the Group and had reduced profit from continuing operations of the Group by 4 million yen. Transaction costs of 11 million yen have been expensed and are included in “Other operating expenses” in the Group’s Consolidated Statements of Profit or Loss. (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,446 ) Net cash and cash equivalents acquired at the acquisition date 231 Net cash flows on acquisition (included in cash flows from investing activities) (5,215 ) If the business combinations of NextFloor Group and FIVE had taken place on January 1, 2017, revenue for the Group would have been 168,915 million yen (unaudited) and the profit from continuing operations for the Group would have been 6,701 million yen (unaudited) for the year ended December 31, 2017. Other business combinations There were no other significant business combinations for the year ended December 31, 2017. Acquisition in 2018 There were no significant business combinations individually or in aggregate during the year ended December 31, 2018. Acquisition in 2019 There were no significant business combinations individually or in aggregate during the year ended December 31, 2019. |
Principal Subsidiaries
Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Principal Subsidiaries | 30. Principal Subsidiaries Information on subsidiaries (1) The Group has 66 consolidated subsidiaries. The significant subsidiaries of the Group include the following subsidiaries: Percentage of ownership Name Primary business activities Country of incorporation December 31, 2018 December 31, 2019 LINE Fukuoka Corp. Management support Japan 100.0 % 100.0 % LINE Pay Corporation Software development and Japan 100.0 % 100.0 % LINE GAME Global Gateway, L.P. (1) Investment Japan 100.0 % — M.T.Burn Inc. (2) Advertising platform Japan 50.5 % — Gatebox Inc. (3) IoT hologram technology Japan 51.0 % 55.1 % LINE Financial Corporation Financial related service Japan 100.0 % 100.0 % LVC Corporation (4) Financial related service Japan 100.0 % 90.0 % LINE Part-Time Job, Ltd. (5) Job posting service Japan 60.0 % — LINE Ventures Global Limited Liability Partnership Investment Japan 100.0 % 100.0 % LINE Ventures Japan Limited Liability Partnership Investment Japan 100.0 % 100.0 % LINE Digital Frontier Corporation Manga related business Japan 70.0 % 70.0 % LINE Credit Corporation (6) Lending related service Japan 100.0 % 51.0 % LINE Securities Corporation (7) Security related business Japan 100.0 % 51.0 % LINE Plus Corporation Global Marketing Korea 100.0 % 100.0 % LINE Friends Corporation Character goods business Korea 100.0 % 100.0 % LINE C&I Corporation (8) Investment Korea 100.0 % — NemusTech Co., Ltd. (9) Software development Korea 94.2 % 100.0 % LINE Taiwan Limited Mobile service Taiwan 100.0 % 100.0 % LINE Biz+ Taiwan Limited Payment service Taiwan 70.0 % 70.0 % LINE Financial Taiwan Limited Financial related service Taiwan 100.0 % 100.0 % LFG HOLDINGS LIMITED Character goods business Hong Kong (China) 100.0 % 100.0 % LINE Financial Asia Corporation Limited Financial related service Hong Kong (China) 100.0 % 100.0 % LINE Company (Thailand) Limited (10) e-Commerce Thailand 50.0 % 50.0 % LINE SOUTHEAST ASIA CORP.PTE.LTD. Software development and Singapore 100.0 % 100.0 % LINE MAN Corporation (11) Delivery service in Singapore — 100.0 % LINE Friends (Shanghai) Commercial Trade Co., Ltd Character goods business China 100.0 % 100.0 % LINE VIETNAM JOINT STOCK COMPANY (12) Portal site operation Vietnam 98.8 % 99.1 % (1) LINE Game Global Gateway L.P. liquidated in February 2019. (2) M.T.Burn Inc. liquidated in November 2019. (3) The Group acquired additional interests of Gatebox Inc. in June 2019. As a result, the ownership of the Group to Gatebox Inc. increased from 51.0% to 55.1%. (4) As a result of capital injections by Nomura Holdings, Inc. executed in October 2019, the Group’s ownership in LVC Corporation decreased from 100.0% to 90.0%. (5) In August 2019, LINE Part-Time Job, Ltd. became a wholly-owned subsidiary as a result a merger with the Company in November 2019. (6) As a result of capital injections by Mizuho Bank, LINE Financial Corporation and Orient Corporation executed in May 2019, the Group’s ownership in LINE Credit Corporation decreased from 100.0% to 51.0%. (7) As a result of capital injections by LINE Financial Corporation and Nomura Holdings, Inc. executed in January 2019, the Group’s ownership in LINE Securities Corporation (renamed from LINE Securities Preparatory Corporation) decreased from 100.0% to 51.0% and became a specified subsidiary as its amount of share capital exceeded 10% of the Company’s share capital. (8) LINE C&I Corporation merged with LINE Plus Corporation, a subsidiary of the Company, in March 2019. (9) NemusTech Co.,Ltd. became a wholly owned subsidiary of the Group as a result of additional interests acquisition by LINE Plus Corporation, a subsidiary of the Company. (10) The Group’s ownership in LINE Company (Thailand) Limited is 50.0%, but it holds 90.9% of the voting rights. Accordingly, LINE Company (Thailand) Limited is included in the scope of consolidation for the Group’s consolidated financial statements. (11) The Group established LINE MAN Corporation PTE. LTD, a wholly-owned subsidiary, in September 2019. (12) As a result of the third-party allotment executed by LINE VIETNAM JOINT STOCK COMPANY, the ownership of the Group increased from 98.8% to 99.1%. (2) The summarized financial information for the subsidiaries which the Group recognizes significant non-controlling (In millions of yen) M.T.Burn Inc. December 31, 2018 Current assets 3,866 Non-current assets 174 Current liabilities 538 Non-current liabilities 42 Equity 3,460 Accumulated non-controlling interest 1,715 Proportionate share of non-controlling interest 49.5 % (In millions of yen) M.T.Burn Inc. 2017 2018 Revenue 3,921 3,186 Net profit for the year 1,338 1,416 Other comprehensive income — — Total comprehensive income for the year 1,338 1,416 Profit attributable to non-controlling interest 661 703 Dividend paid to non-controlling interest — — (In millions of yen) M.T.Burn Inc. 2017 2018 Cash flows from operating activities 1,224 1,989 Cash flows from investing activities — — Cash flows from financing activities (258 ) — Net increase in cash and cash equivalent 966 1,989 (In millions of yen) Gatebox Inc. December 31, 2018 Current assets 1,259 Non-current 353 Current liabilities 100 Non-current 2,046 Equity (534 ) Accumulated no-controlling (261 ) Proportionate share of non-controlling 49.0 % (In millions of yen) Gatebox Inc. 2017 2018 Revenue 0 95 Net loss for the year (541 ) (917 ) Other comprehensive (loss)/income — — Total comprehensive loss for the year (541 ) (917 ) Loss attributable to non-controlling (192 ) (449 ) Dividend paid to non-controlling — — (In millions of yen) Gatebox Inc. 2017 2018 Cash flows from operating activities (397 ) (963 ) Cash flows from investing activities (79 ) (10 ) Cash flows from financing activities (1 ) 1,934 Net (decrease)/increase in cash and cash equivalent (477 ) 961 (In millions of yen) LINE Company December 31, 2018 Current assets 5,221 Non-current 2,583 Current liabilities 7,313 Non-current 2,049 Equity (1,558 ) Accumulated no-controlling 1,023 Proportionate share of non-controlling (1) 50.0 % (1) The non-controlling (In millions of yen) LINE Company (Thailand) Limited 2017 2018 Revenue 2,760 8,200 Net profit/(loss) for the year 357 (1,396 ) Other comprehensive (loss)/income (60 ) 22 Total comprehensive income/loss for the year 297 (1,374 ) Profit/(loss) attributable to non-controlling 198 (816 ) Dividend paid to non-controlling — — (In millions of yen) LINE Company (Thailand) Limited 2017 2018 Cash flows from operating activities 1,842 1,712 Cash flows from investing activities (430 ) (1,709 ) Cash flows from financing activities — — Net increase in cash and cash equivalent 1,412 3 (3) Ultimate parent company of the Group The next senior and the ultimate parent company of the Group is NAVER, which is domiciled in Korea and listed on the Korean Stock Exchange. |
Investments in Associates and J
Investments in Associates and Joint Ventures | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Investments in Associates and Joint Ventures | 31. Investments in Associates and Joint Ventures (1) Details of investments in the Group’s significant associates and joint ventures are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Primary business activities Country of incorporation Percentage of ownership Carrying amount Percentage of ownership Carrying amount Associates PT. Bank KEB Hana Indonesia (1) Banking Indonesia — — 20.0 % 15,734 LINE Games Corporation. Game development and publishing Korea 49.5 % 18,438 49.5 % 14,523 LINE Mobile Corporation (2) Mobile virtual network operator Japan 49.0 % 5,637 40.0 % 6,642 Snow Corporation (3) Mobile app Korea 34.0 % 9,346 29.2 % 5,317 K-Fund Investment France 25.0 % 2,670 25.0 % 4,416 FOLIO Co., Ltd. Online trading service Japan 41.4 % 5,126 41.4 % 3,840 DEMAE-CAN Co., Ltd. (4) Integrated delivery service Japan 21.9 % 3,838 21.7 % 3,458 LINE MUSIC Corporation Music distribution Japan 36.7 % 505 36.7 % — Joint ventures Kasikorn LINE Company Limited Banking Thailand 50.0 % 302 50.0 % 3,909 Drama & Company Co., Ltd. Software Development Korea 40.7 % 2,574 40.6 % 1,995 RABBIT-LINE PAY COMPANY LIMITED Payment service Thailand 33.3 % 1,856 33.3 % 1,561 (1) In May 2019, the Group acquired 20.0% of PT. Bank KEB Hana Indonesia’s total number of outstanding shares in order to establish a business partnership in banking business. As the Group has significant influence, but not control over PT. Bank KEB Hana Indonesia, the investment is accounted for under the equity method. (2) In April 2019, LINE Mobile Corporation, a subsidiary of the Group, issued its new shares through a third-party allotment. As a result, the Group’s ownership interest in LINE Mobile Corporation decreased from 49.0% to 40.0%. As the Group still has significant influence on LINE Mobile Corporation, the investment is accounted for under the equity method. (3) In August 2019, Snow Corporation, an associate of the Group, issued new shares through a third-party allotment. As a result, the Group’s ownership interest in Snow Corporation decreased from 34.0% to 29.2%. As the Group still has significant influence on Snow Corporation, the investment is accounted for under the equity method. (4) In November 2019, DEMAE-CAN Co., Ltd. changed its name from Yume no Machi Souzou Iinkai Co., Ltd. (2) Financial information on the Group’s investment in the associates is summarized as follows: (In millions of yen) Snow Corporation December 31, December 31, Current assets 11,168 7,784 Non-current 15,119 14,055 Current liabilities 9,080 11,985 Non-current 2,482 3,974 Equity 14,725 5,880 Proportion of the Group’s ownership 34.0 % 29.2 % Group’s share of equity 5,007 1,717 Goodwill and other adjustments (1) 4,339 3,600 Carrying amount of the interests 9,346 5,317 Snow Corporation 2017 2018 2019 Revenue 271 1,320 2,204 Loss for the year from continuing operations (10,348 ) (10,627 ) (13,921 ) Other comprehensive income/(loss) for the year, net of tax 131 (358 ) (680 ) Total comprehensive loss for the year, net of tax (10,217 ) (10,985 ) (14,601 ) Group’s share of loss for the year (4,531 ) (4,971 ) (4,443 ) (In millions of yen) LINE Mobile Corporation December 31, December 31, Current assets 8,451 14,237 Non-current 818 2,373 Current liabilities 4,951 5,822 Non-current 232 1,624 Equity 4,086 9,164 Proportion of the Group’s ownership 49.0 % 40.0 % Group’s share of equity 2,002 3,666 Goodwill and other adjustments (1) 3,635 2,976 Carrying amount of the interests 5,637 6,642 LINE Mobile Corporation Period from 2019 Revenue 6,545 13,142 Loss for the year from continuing operations (5,490 ) (6,585 ) Other comprehensive income for the year, net of tax — — Total comprehensive loss for the year, net of tax (5,490 ) (6,585 ) Group’s share of loss for the year (2,690 ) (2,924 ) (In millions of yen) LINE Games Corporation December 31, 2018 December 31, Current assets 14,345 6,122 Non-current assets 6,172 8,709 Current liabilities 1,185 1,009 Non-current liabilities 1,419 2,213 Equity 17,913 11,609 Proportion of the Group’s ownership 49.5 % 49.5 % Group’s share of equity 8,867 5,746 Goodwill and other adjustments (1) 9,571 8,777 Carrying amount of the interests 18,438 14,523 LINE Games Corporation Period from 2019 Revenue 251 2,431 Loss for the year from continuing operations (488 ) (6,185 ) Other comprehensive (loss)/income for the year, net of tax (20 ) 78 Total comprehensive loss for the year, net of tax (508 ) (6,107 ) Group’s share of loss for the year (242 ) (3,068 ) (1) Goodwill and other adjustments consists of adjustments such as goodwill and exchange difference arising from goodwill. (3) The aggregate amount of individually immaterial associates accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, December 31, Carrying amount of the interests 15,350 30,028 2017 2018 2019 Loss for the year from continuing operations (3,050 ) (4,928 ) (3,067 ) Other comprehensive income for the year, net of tax 84 211 527 Total comprehensive loss for the year, net of tax (2,966 ) (4,717 ) (2,540 ) The Group had no contingent liabilities relating to its associates as of December 31, 2017, 2018 and 2019. (4) The aggregate amount of individually immaterial joint ventures accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, December 31, Carrying amount of the interests 5,150 7,683 2017 2018 2019 Loss for the year from continuing operations (2,211 ) (3,708 ) (3,535 ) Other comprehensive income/(loss) for the year, net of tax 81 (35 ) (106 ) Total comprehensive loss for the year, net of tax (2,130 ) (3,743 ) (3,641 ) The Group had no contingent liabilities associated with the joint ventures as at December 31, 2018 and 2019. The Group had outstanding payment for capital commitments of 4,786 million yen and nil relating to the joint ventures as at December 31, 2018 and 2019, respectively. The Group’s joint ventures cannot distribute its profits without the unanimous consent from the parties of the joint arrangement. (5) Impairment of investments in associates and joint ventures The Group assess investments in associates and joint ventures whether there is any indication that these investments may be impaired and performed impairment test for the investments for which the Group determined that the indications of impairment existed. The significant assessments of the impairment are as follows: As of December 31, 2019, the Group determined that there were indications of impairment for the investments in LINE Games Corporation and Snow Corporation and the Group performed impairment tests on these investments by comparing the respective recoverable amounts with the carrying amounts. As a result, the Group did not recognize impairment losses as the recoverable amounts of both investments exceeded the carrying amounts of these investments. The recoverable amounts are determined based on value in use calculated by applying pre-tax discount rates to the estimated future cash flows. The estimated future cash flows are established based on the financial budgets for a period of five years approved by the management of the associates. The estimated future cash flows represent management’s best estimate taken into account expected Monthly Active User (MAU), Daily Active User (DAU), Average Revenue Per User (ARPU) and marketing expenses determined based on historical experience, internal and external information. Cash flows beyond 5-year planning period were extrapolated using terminal growth rates. The significant assumptions used in the value in use calculation are as follows: December 31, 2019 Pre-tax discount rates LINE Games Corporation 11.5 % Snow Corporation 14.3 % Terminal growth rates LINE Games Corporation 1.0 % Snow Corporation 1.0 % The Group’s management believes that the impairment of investments in LINE Games Corporation and Snow Corporation is less likely to occur even if the expected future cash flows and assumptions such as pre-tax discount rate used for impairment test change within a reasonable range, because the recoverable amounts of the investments in Snow Corporation and LINE Games Corporation. exceed its carrying amounts. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Subsequent Events | 32. Subsequent Events Issuance of stock warrant (Stock option) to directors (excluding the outside directors) of the Company At the annual general meeting of shareholders held on March 26, 2020, and in compliance with Article 236, 238 and 239 of the Companies Act of Japan, the Company resolved to issue stock options (warrants) to directors of the Company (excluding the outside directors) and to delegate the board of directors to determine the subscription requirements. The details of the stock options are as follows: Candidates and numbers of candidates Four of the Company’s directors, excluding outside directors and non-executive directors Class of share to be issued upon exercise of stock options Common shares Total number of shares A maximum of 3,024,000 shares will be issued. If it is appropriate to adjust the number of allotted shares subject to stock acquisition rights because of a transaction such as a share split or share consolidation, the Company will adjust the number of allotted shares as necessary to reasonable extent. Amount of payments upon exercise of stock options The exercise price will be obtained by multiplying 1.05 by the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange for each day (excluding any day on which no trade is executed) of the month preceding the month in which the day that the stock options were allotted, and any fraction less than one yen arising from such calculation will be rounded up. However, when the exercise price calculated using this method is lower than the closing price (or closing price immediately preceding trading day when there is no closing price) of the shares of the Company’s common share on the allotment date, the exercise price will be the closing price on the allotment date of the stock option. If it is appropriate to adjust the exercise price because of a transaction such as a merger, an issuance of shares for subscription, a share split or share consolidation, the Company will adjust the exercise price as necessary to reasonable extent. Exercise period for stock options The exercise period for stock options will be from the day exactly three years following the allotment date until the day exactly ten years after the allotment date. Conditions for exercise of stock options The recipients of warrants must be in a position of director of the Company or its subsidiaries or associates at the time of exercising the stock options. However, this condition does not apply in cases of retirement of a director of the Company or its subsidiaries or associates due to the expiration of his or her term of office, or other cases acknowledged to have a valid reason by the Company’s board of directors. If the recipient meets a certain condition prescribed in the Company’s compensation policy, stock options may be exercised with a limitation on the number of stock options witch can be exercised. Matters relating to transfer on acquisition of stock options Transfer of stock options will be subject to approval by resolution of the Company’s board of directors. Matters relating to substitute payment — Matters relating to granting of stock options in association with organizational restructuring — Other matters concerning stock options shall be determined at the meeting of the Company’s board of directors, which will be held after the general meeting of shareholders at March 26, 2020. Issuance of stock warrant (Stock option) to outside directors of the Company At the annual general meeting of shareholders held on March 26, 2020, and in compliance with Article 236, 238 and 239 of the Companies Act of Japan, the Company resolved to issue stock options (warrants) to outside directors of the Company to determine the subscription requirements. The details of the stock options are as follows: Candidates and numbers of candidates Three of the Company’s outside directors Class of share to be issued upon exercise of stock options Common shares Total number of shares A maximum of 24,000 shares will be issued. If it is appropriate to adjust the number of allotted shares subject to stock acquisition rights because of a transaction such as a share split or share consolidation, the Company will adjust the number of allotted shares as necessary to reasonable extent. Amount of payments upon exercise of stock options The exercise price will be obtained by multiplying 1.05 by the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange for each day (excluding any day on which no trade is executed) of the month preceding the month in which the day that the stock options were allotted, and any fraction less than one yen arising from such calculation will be rounded up. However, when the exercise price calculated using this method is lower than the closing price (or closing price immediately preceding trading day when there is no closing price) of the shares of the Company’s common share on the allotment date, the exercise price will be the closing price on the allotment date of the stock option. If it is appropriate to adjust the exercise price because of a transaction such as a merger, an issuance of shares for subscription, a share split or share consolidation, the Company will adjust the exercise price as necessary to reasonable extent. Exercise period for stock options The exercise period for stock options will be from the day exactly three years following the allotment date until the day exactly ten years after the allotment date. Conditions for exercise of stock options The recipients of warrants must be in a position of director of the Company or its subsidiaries or associates at the time of exercising the stock options. However, this condition does not apply in cases of retirement of a director of the Company or its subsidiaries or associates due to the expiration of his or her term of office, or other cases acknowledged to have a valid reason by the Company’s board of directors. Matters relating to transfer on acquisition of stock options Transfer of stock options will be subject to approval by resolution of the Company’s board of directors. Matters relating to substitute payment — Matters relating to granting of stock options in association with organizational restructuring — Other matters concerning stock options shall be determined at the meeting of the Company’s board of directors, which will be held after the general meeting of shareholders at March 26, 2020. Acquisition of shares of DEMAE-CAN, Ltd. The Group resolved at the board of directors’ meeting held on March 26, 2020 to acquire approximately 15 billion yen of new shares issued by DEMAE-CAN, Ltd. through a third-party allotment. As a result of the acquisition of the shares, the Company’s proportion of voting rights will be higher than that as of December 31, 2019; however, the proportion of voting rights are not expected to exceed 50% after the transaction. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Basis of Consolidation | (1) Basis of Consolidation The consolidated financial statements include the accounts of the Group, which are directly or indirectly controlled. Control is generally conveyed by ownership of the majority of voting rights. The Group controls an entity when the Group has power over the entity, is exposed, or has rights, to variable returns from the involvement with the entity and has the ability to affect those returns through its power over the entity. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. If the end of the reporting period of a subsidiary differs from that of the Company, the subsidiary prepares, for the purpose of preparing consolidated financial statements, additional financial statements as of the same date as the consolidated financial statements of the Group. Non-controlling non-controlling non-controlling non-controlling On February 12, 2016, the board of directors approved the abandonment of the MixRadio service (“MixRadio”) segment. The operation of the MixRadio business was classified as a discontinued operation on March 21, 2016, when the abandonment took effect. Intercompany balances and transactions have been eliminated upon consolidation. |
Basis of Measurement | (2) Basis of Measurement The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value, which is the price that would be received to sell such financial instruments or paid to transfer the related liability in an orderly transaction between market participants at the measurement date. |
Business Combinations | (3) Business Combinations (a) Business combinations In accordance with IFRS 3 Business Combinations, – Deferred tax assets or liabilities which are recognized and measured in accordance with IAS 12 Income Taxes; – Employee benefit arrangements which are recognized and measured in accordance with IAS 19 Employee Benefits Leases and insurance contracts are classified on the basis of the contractual terms and other factors at the inception of the contract or at the date of modification, which could be the acquisition date if the terms of the contract have been modified in a manner that would change its classification. Contingent liabilities assumed in a business combination are recognized when such liabilities are present obligations and their fair value can be measured reliably. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree and the equity interests issued by the acquirer. Acquisition-related costs are costs the acquirer incurs to effect a business combination. Those costs include finder’s fees; advisory, legal, accounting, valuation and other professional or consulting fees; general administrative costs, including the costs of maintaining an internal acquisitions department; and costs of registering and issuing debt and equity securities. Acquisition-related costs, other than those associated with the issue of debt or equity securities, are expensed in the periods in which the costs are incurred and the services are received. The Group measures goodwill at the acquisition date as: – the fair value of the consideration transferred; plus – the recognized amount of any non-controlling – if the business combination is achieved in stages, the fair value of the pre-existing – the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is measured at cost less any accumulated impairment losses. (b) Business combinations under common control A business combination involving entities or businesses under common control is a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and in which control is not transitory. The Group has accounted for the acquisition of businesses under common control based on the carrying amounts recorded in the consolidated financial statements of the acquired companies. The financial statements of acquired companies have been retrospectively consolidated as part of the Group’s consolidated financial statements as if the acquisition of acquired companies had occurred on the date of its original acquisition by the common control group, regardless of the actual date of acquisition by the Group. |
Associates and Joint Arrangements | (4) Associates and Joint Arrangements (a) Associates An associate is an entity in which the Group has significant influence, but not control, over the entity’s financial and operating policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity, unless it can be clearly demonstrated that it is not the case. The Group’s investments in associates are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognized at cost and the carrying amount is adjusted to recognize the Group’s share of the profit or loss and changes in equity of the associate after the date of acquisition. Gains and losses from transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Intra-group losses are recognized as an expense if intra-group losses indicate an impairment that requires recognition in the consolidated financial statements. If an associate uses accounting policies different from those of the Group for like transactions and events in similar circumstances, appropriate adjustments are made to its financial statements in applying the equity method. When the Group’s share of losses exceeds its interest in associates, the carrying amount of that interest, including any long-term investments, is reduced to nil and the recognition of further losses is discontinued. (b) Joint arrangements A joint arrangement is an arrangement in which two or more parties have joint control. The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. Joint operations are joint arrangements whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in joint operations in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint ventures are accounted for using the equity method. |
Foreign Currencies | (5) Foreign Currencies (a) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate. Non-monetary Non-monetary Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on the retranslation of equity instruments at FVOCI which are recognized in other comprehensive income. (b) Foreign operations If the presentation currency of the Group is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods: The assets and liabilities of foreign operations, whose functional currency is not the currency of a hyperinflationary economy, are translated to presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the presentation currency at the average foreign exchange rates for the reporting period. Foreign currency differences are recognized in other comprehensive income. When a foreign operation is disposed of, the relevant amount after the translation is reclassified to profit or loss as part of profit or loss on disposal. In the event that a partial disposal does not lead to a loss of control in a subsidiary that includes a foreign operation, the relevant proportion of such cumulative amount is reattributed to non-controlling |
Cash and Cash Equivalents | (6) Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, demand deposits, and short-term investments with maturity dates that are within three months from the purchase dates. Such investments are highly liquid and readily convertible to known amounts of cash. Cash and cash equivalents are subject to an insignificant risk of changes in value and are used by the Group in managing its short-term commitments. |
Financial Assets | (7) Financial Assets (a) Classification of financial assets Based on the Group’s business model for managing the financial assets and the characteristics of contractual cash flow of the financial assets, the Group classifies the financial assets by the i. Financial assets at amortized cost Financial assets measured at amortized cost are debt instruments whose contractual cash flows represent solely payments of principal and interest on the principal amount outstanding, and which are held within a business model whose objective is achieved solely by collecting contractual cash flows. ii. Financial assets at fair value through other comprehensive income Financial assets measured at fair value through other comprehensive income are debt instruments whose contractual cash flows represent solely payments of principal and interest on the principal amount outstanding, and which are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and equity instruments which the Group has made an irrevocable election at the time of initial recognition to account for the equity instruments at fair value through other comprehensive income. The Group made irrevocable election to classify all equity investments (other than those which are accounted for as affiliates under equity method or consolidated) as financial assets measured at FVOCI. iii. Financial assets at fair value through profit or loss Financial assets measured at fair value through profit or loss are the financial assets that are not classified as financial asset at amortized cost or financial assets at fair value through other comprehensive income. (b) Measurement of financial assets i. Initial measurement At initial recognition, the Group recognize financial assets in the Consolidated Statements of Financial Position when the Group becomes party to the contractual provisions of the financial assets. The Group measures financial assets at the fair value. Financial assets not classified as financial assets at fair value through profit or loss are measure at fair value, including any transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets measured at fair value through profit or loss are expensed in profit or loss. ii. Subsequent measurement Debt instruments: (i) Financial assets at amortized cost The financial assets at amortized cost are measured at amortized cost using the effective interest method, and related interest income are included in finance income. When the financial asset is derecognized, the difference between amortized cost and consideration received is recognized in profit or loss. When there are changes in the amount of expected credit loss of the financial asset, an impairment gain or loss is recognized in profit or loss. (ii) Fair value through other comprehensive income (“FVOCI”) Subsequent to initial recognition, financial assets are measured at fair value and gains or losses arising from changes in the fair value are recorded in other comprehensive income whereas related interest income and foreign exchange gains or losses are recognized in profit or loss. The Group recognizes impairment gain or loss due to expected credit loss in profit or loss. When debt investments are derecognized, the cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss. (iii) Fair value through profit or loss Subsequent to initial recognition, financial assets are measured at fair value. Gains or losses on debt instruments are recognized in profit or loss. Equity instruments: Where the Group has irrevocably elected to designate equity instruments as financial assets measured at fair value through other comprehensive income, any changes in the book value resulting from fair value measurement are recognized as other comprehensive income. There is no subsequent reclassification of cumulative gains or losses previously recognized in other comprehensive income to profit or loss. The accumulated other comprehensive income of the equity instruments measured at FVOCI on which the Group made an irrevocable election are transferred to retained earnings, when such equity instruments are sold. Where the Group has not elected to designate equity instruments as financial assets measured at fair value through other comprehensive income, any changes in the book value resulting from fair value measurement are recognized in profit or loss. Dividends from equity instruments are recognized in profit or loss as “Other operating income” when the Group’s right to receive payments is established. (c) Derivative financial instruments The Group may use derivative financial instruments, such as exchange forward contracts to hedge its foreign exchange risk. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured (d) Derecognition of a financial asset The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. Significant accounting policies prior to the adoption of IFRS 9 as of January 1, 2018 were as follows: Financial assets The Group classifies and measures financial assets based on the following four categories: financial assets at fair value through profit or loss; held-to-maturity available-for-sale Upon initial recognition, financial assets are measured at their fair value plus, in the case of a financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition. Regular way purchases or sales of financial assets, i.e. purchases or sales under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned, are accounted for at the trade date. (a) Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading. Upon initial recognition, transaction costs are recognized in profit or loss when incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. (b) Held-to-maturity Financial assets with fixed or determinable payments and fixed maturities, for which the Group has the positive intention and ability to hold to maturity, are classified as held-to-maturity held-to-maturity (c) Loans and receivables Loans and receivables are financial assets with fixed or determinable payments. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, except for loans and receivables for which the effect of discounting is immaterial. (d) Available-for-sale Available-for-sale held-to-maturity Dividends on an available-for-sale (e) Derivative financial instruments The Group may use derivative financial instruments, such as exchange forward contracts, to hedge its foreign exchange risk. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured Derivative financial instruments embedded in non-derivative (f) Derecognition of a financial asset The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability. If the Group retains substantially all the risks and rewards of ownership of the transferred financial assets, the Group continues to recognize the transferred financial assets and recognizes financial liabilities for the consideration received. Impairment of Financial Assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. However, losses expected as a result of future events, regardless of likelihood, are not recognized. Objective evidence that financial assets, including equity securities, are impaired can include significant financial distress of issuers of financial assets or debtors, default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security, or the existence of observable data that shows the negative effect on expected future cash flows of the group of financial assets after the initial recognition can be reliably estimated, though the decrease in expected future cash flows of individual financial assets cannot be reliably estimated. In addition, for an investment in an equity security classified as an available-for-sale If financial assets have objective evidence that they are impaired, impairment losses should be measured and recognized. (a) Financial assets measured at amortized cost An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of its estimated future cash flows discounted at the asset’s original effective interest rate. If it is not practicable to obtain the instrument’s estimated future cash flows, impairment losses are measured by using prices from any observable current market transactions. The Group can recognize impairment losses directly or establish a provision to cover impairment losses. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed by adjusting an allowance account. Financial assets are directly written off when there is no realistic prospect of future recovery. (b) Available-for-sale While other evidence and indicators are taken into consideration, generally, when the fair value of an available-for-sale available-for-sale available-for-sale available-for-sale available-for-sale |
Financial Liabilities | (8) Financial Liabilities The Group recognizes financial liabilities in the Consolidated Statements of Financial Position when the Group becomes a party to the contractual provisions of the financial liability. At the date of initial recognition, financial liabilities are measured at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. The Group derecognizes financial liabilities from the Consolidated Statements of Financial Position when it is extinguished (i.e. when the obligation specified in the contract is discharged, canceled or expires). For convertible bonds, at initial recognition, the book value of the liability component of the bond is the fair value of discounted future cash flows of the bond at a rate of similar debt instruments taking into account the Company’s credit risk excluding the transaction costs from issuing the bond. After the initial recognition, the liability component is measured at amortized cost using the effective interest method. The difference between the fair value of the entire convertible bond and the fair value of the liability component is allocated to the conversion option. The difference is recognized as the equity component at the amount excluding the transaction costs as well as income taxes and is not remeasured subsequently. Significant accounting policies prior to the adoption of IFRS 9 as of January 1, 2018 were as follows: Financial Liabilities The Group recognizes financial liabilities in the Consolidated Statements of Financial Position when the Group becomes a party to the contractual provisions of the financial liability. At the date of initial recognition, financial liabilities are measured at fair value, net of transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortized cost using the effective interest method. |
Inventories | (9) Inventories Inventories, consisting of merchandise for resale, are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out |
Share Capital | (10) Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and stock options are recognized as a deduction from equity, net of any tax effects. |
Treasury Shares | (11) Treasury Shares Treasury shares are measured at costs and deducted from equity. No gain or loss is recognized on the purchase, sales or cancellation of the Company’s treasury shares. The difference between the book value and consideration received at the times of sales is recognized in equity. |
Property and Equipment | (12) Property and Equipment Property and equipment are measured and recognized at cost, net of accumulated depreciation and/or accumulated impairment losses, if any. Cost includes any other costs directly attributable to bring the assets to a working condition for their intended use, the costs of dismantling and removing the assets and restoring the site on which they are located. The cost of replacing a part of property and equipment is included in the carrying amount of the asset or recognized as a separate asset, as necessary, if it is probable that the future economic benefits embodied within the part will flow into the Group and if the cost can be reliably measured. Accordingly, the carrying amount of the replaced part is derecognized. The costs of day to day servicing of property and equipment are recognized in profit or loss as incurred. Land and assets held within construction-in-progress Gains or losses arising from the derecognition of an item of property and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other operating income or expenses. The estimated useful lives for the years ended December 31, 2017, 2018 and 2019 are as follows: Estimated useful lives (years) Equipment (mainly consist of servers) 3-5 Furniture and fixtures 3-5 Others 3-5 Depreciation methods, useful lives and residual values are reviewed at each fiscal year-end |
Borrowing Costs | (13) Borrowing Costs The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are expensed as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale. To the extent that the Group borrows funds specifically for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. To the extent that the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group shall determine the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset, which is the effective interest rate of the general borrowing. The capitalization rate shall be the weighted average of the borrowing costs applicable to the borrowings of the Group that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs that the Group capitalizes during a period shall not exceed the amount of borrowing costs incurred during that period. No borrowing costs were capitalized during the years ended December 31, 2017, 2018 and 2019. |
Intangible Assets | (14) Intangible Assets Intangible assets are initially measured at cost and carried at cost less accumulated amortization and accumulated impairment losses after initial recognition. Within intangible assets with finite lives, customer relationships are amortized by the declining balance method and other intangible assets with finite lives are amortized using the straight-line method over the useful lives of the respective assets as provided below. Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The residual value of intangible assets is assumed to be zero. The estimated useful lives for the intangible assets with finite lives for the years ended December 31, 2017, 2018 and 2019 are as follows: Estimated useful lives (years) Software 2-10 Customer relationships 7 Domain name 20 Others 1-10 The amortization periods and methods for intangible assets with finite useful lives are reviewed at each fiscal year-end. Research and development Expenditures on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss as incurred. Development expenditures are capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Other development expenditures are recognized in profit or loss as incurred. No significant development expenditure was capitalized for the years ended December 31, 2017, 2018 and 2019. |
Leases | (15) Leases Group, as a lessee The Group mainly leases properties and data centers. A lease contract is normally entered into for a fixed term from 1 year to 5 years but it may include extension options. Leases are recognized as right-of-use right-of-use The assets and liabilities arising from leases are measured at the present value of the lease at the commencement date. The lease liability includes the net present value of the following lease payments: – fixed payments less any lease incentives – variable lease payments that depend on an index or a rate – amounts expected to be payable under a residual value guarantee – the exercise price of a purchase option if the lessee is reasonably certain to exercise that option – payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease Lease payments are determined using the discount rate as the interest rate implicit in the lease, if that rate can be readily determined, or the Group’s incremental borrowing rate. The right-of-use – the amount of the initial measurement of the lease liability – any lease payments made at or before the commencement date, less any lease incentives received – any initial direct cost – cost of restoring the underlying asset to the original condition As a practical expedient, the Group elects, by class of underlying asset, not to separate non-lease non-lease The lease payments associated with short-term lease and leases of low-value A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less. A lease of low-value Most of the Group’s property leases include extension options and termination options. An extension option shall be included in the lease term only if the lessee is reasonably certain to exercise that option. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception of the lease. When a lease contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration, such assets are defined as a lease transaction. The amount and term of the lease liabilities are properly reassessed when lease contracts are modified. When the lease liabilities are remeasured, the Group recognizes the amount of the remeasurement of the lease liability as an adjustment of the right-of-use asset. Group as lessor The Group had cancelable lease contracts related to servers, data storage, network equipment, personal computers and software with third parties for the years ended December 31, 2017, 2018 and 2019. The leased assets are included in “Property and equipment” in the Consolidated Statements of Financial Position and are depreciated over their expected useful lives on a basis consistent with similar assets included in property and equipment. Income from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term. |
Impairment of Financial Assets | (16) Impairment of Financial Assets The Group assesses the expected credit losses associated with its debt instruments measured at amortized cost and FVOCI. The impairment methodology used for estimating expected credit losses depends on whether there has been a significant increase in credit risk after the initial recognition. The Group measures the expected credit losses for the debt instruments measured at amortized cost and FVOCI for which there have been no significant increase in credit risk at the amount equal to twelve-month expected credit losses at the reporting date. For the financial assets measured at amortized cost and FVOCI for which there have been significant increase in credit risk, the Group measures the expected credit losses at the amount equal to the lifetime expected credit losses. The Group uses default ratio calculated based on historical default data of corporate bond ratings in Japan to measure the twelve-month expected credit loss and the lifetime expected credit losses. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from the initial recognition of the trade receivables. The expected credit risk of trade receivables is measured using the default ratio calculated based on the Group’s historical experiences on cash collection from trade receivables taking into account forward-looking information such as future economic conditions. In calculating the expected credit losses, the Group may consider the following forward-looking information: – external credit rating (as far as available) – actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower’s ability to perform its obligations – actual or expected significant changes in the operating results of the customer or the counterparty – significant increase in credit risk of the customer or the counterparty |
Impairment of Investments in Associates and Joint Ventures and Other Non-Financial Assets | (17) Impairment of Investments in Associates and Joint Ventures and Other Non-Financial Assets The Group’s investments in associates and joint ventures and non-financial non-current If it is impossible to measure the individual recoverable amount of an asset, then the Group estimates the recoverable amount of the cash-generating unit (“CGU”). A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The recoverable amount of an asset or CGU is the greater of its value in use or its fair value less costs to sell. The value in use is estimated by applying a pre-tax pre-tax An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill Goodwill acquired in a business combination is, from the acquisition date, allocated to each CGU that is expected to benefit from the synergies arising from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Impairment losses are recognized in profit or loss, and impairment losses recognized for goodwill are not reversed in subsequent periods. On disposal of the relevant CGU, the attributable amount of goodwill is included in the determination of the gain or loss on disposal. (18) Employee Compensation (a) Short-term employee compensation Short-term employee compensations are employee compensations that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. The undiscounted short-term employee compensations are accounted for on an accrual basis over the period in which employees have provided the services. (b) Defined benefit plans The Group has defined benefit plans for employees of subsidiaries located in Korea, Taiwan and Thailand. A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s obligation represents the estimated amount of future benefits that employees have earned in return for their services in the current and prior periods. The calculation is performed annually by an independent actuary using the projected unit credit method. The calculation is reviewed and approved by the management of the Group. The assets or the liabilities relating to the defined benefit plans were recognized in the Consolidated Statement of Financial Position as the present value of obligations as of the reporting date, excluding the fair value of plan assets. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Past service cost, which is the change in the present value of the defined benefits obligation for employee services in prior periods, resulting in the current period from the introduction of, or change to post-employment benefits, is recognized in full in profit or loss in the period in which the plan amendment occurs. Remeasurement of the net defined benefit liability is mainly comprised of actuarial gains and losses resulting from experience adjustments and the effects of changes in actuarial assumptions. Experience adjustments are the effects of differences between the previous actuarial assumptions and what has actually occurred. The Group recognizes all remeasurements of the net defined benefit liability in other comprehensive income when incurred. The discount rate used in the present valuation calculation is the yield at the reporting date on high-quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Net interest on the net defined benefit liability is determined by multiplying the net defined benefit liability by the discount rate noted above, taking account of any changes in the net defined benefit liability during the reporting period, as a result of contribution and benefit payments. Interest on the net defined benefit liability is recognized in profit or loss. (c) Defined contribution plans The Group has defined contribution plans for employees of subsidiaries located in Korea. The contribution relating to the plans is recognized as expense when incurred. |
Employee Compensation | (18) Employee Compensation (a) Short-term employee compensation Short-term employee compensations are employee compensations that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. The undiscounted short-term employee compensations are accounted for on an accrual basis over the period in which employees have provided the services. (b) Defined benefit plans The Group has defined benefit plans for employees of subsidiaries located in Korea, Taiwan and Thailand. A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s obligation represents the estimated amount of future benefits that employees have earned in return for their services in the current and prior periods. The calculation is performed annually by an independent actuary using the projected unit credit method. The calculation is reviewed and approved by the management of the Group. The assets or the liabilities relating to the defined benefit plans were recognized in the Consolidated Statement of Financial Position as the present value of obligations as of the reporting date, excluding the fair value of plan assets. Current service cost is the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Past service cost, which is the change in the present value of the defined benefits obligation for employee services in prior periods, resulting in the current period from the introduction of, or change to post-employment benefits, is recognized in full in profit or loss in the period in which the plan amendment occurs. Remeasurement of the net defined benefit liability is mainly comprised of actuarial gains and losses resulting from experience adjustments and the effects of changes in actuarial assumptions. Experience adjustments are the effects of differences between the previous actuarial assumptions and what has actually occurred. The Group recognizes all remeasurements of the net defined benefit liability in other comprehensive income when incurred. The discount rate used in the present valuation calculation is the yield at the reporting date on high-quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Net interest on the net defined benefit liability is determined by multiplying the net defined benefit liability by the discount rate noted above, taking account of any changes in the net defined benefit liability during the reporting period, as a result of contribution and benefit payments. Interest on the net defined benefit liability is recognized in profit or loss. (c) Defined contribution plans The Group has defined contribution plans for employees of subsidiaries located in Korea. The contribution relating to the plans is recognized as expense when incurred. |
Share-based Payments | (19) Share-based Payments The Group has granted stock options to directors and employees. The fair values of the stock options are measured at the grant dates. Compensation expenses related to stock options are recognized over the vesting period. Refer to Note 4 Significant Accounting Judgments, Estimates and Assumptions and Note 27 Share-based Payments for more details on the valuation methodology of stock options and the assumptions used in such valuation. The Group has introduced equity-settled Employee Stock Ownership Plan (J-ESOP) The Group has introduced cash-settled Employee Stock Ownership Plan (J-ESOP) |
Marketing Expenses | (20) Marketing Expenses The Group incurs marketing expenses to increase brand awareness and to promote the launch of new services. The Group’s marketing expenses are primarily related to advertising in mass media, namely television advertising and advertising on mobile applications, and expenses incurred for brand promotional events. Marketing personnel compensation expenses are not included in marketing expenses and are recorded as part of the employee compensation expenses. Expenditures related to marketing activities are recognized as expenses when incurred. |
Provisions | (21) Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. There are uncertainties about the amount and timing of the cash outflows related to provisions. The risks and uncertainties that inevitably surround events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. The Group’s provisions mainly consist of provisions for restoration obligations for leased property, and provisions for the licensing expense payable to the third-party partners upon redemption of virtual credits and LINE points granted without charge upon exchange of virtual items by customers in the future. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. A provision may only apply to expenditures for which the provision was originally recognized. |
Revenue | (22) Revenue The Group mainly operates a cross-platform messenger application, “LINE”, and provides other services including advertising services, sales of communication and content, and LINE character related merchandise sales. Advertising services are provided on the LINE platform through advertising products such as LINE Official Accounts and Sponsored Stickers, as well as the Group’s web portals, livedoor and NAVER Matome. Sales of communication and contents are primarily made to end users in the form of communication products such as LINE Stickers, and contents such as LINE GAME. Refer to Note 5 Segment Information for more details on product lines and services provided. The Group recognizes revenues associated with the transactions by reference to the stage of completion of the transactions at the end of the reporting period. Determination of the stage of completion for the different revenue streams is described below. Revenue is measured at the fair value of the consideration of services provided in the ordinary course of business, less applicable sales and other taxes, where appropriate. Contract Liability The Group’s contract liabilities consist of unsatisfied performance obligations and virtual credits arising from advertising services, communication and content sales. Virtual Credits Virtual credits, which are the prepaid payment instruments may be purchased with credit cards or cash. Depending on the type of service, end users may make payments using cash, credit cards or the virtual credits issued by the Group. Most of the end-user purchases are processed through payment processing service providers such as Apple App Store and Google Play. A processing fee is charged by the payment processing service providers for each transaction processed which are recognized as “payment processing and licensing expenses” on the Group’s Consolidated Statements of Profit or Loss. Upon the initial sales of the Group’s virtual credits, the Group records proceeds received as contract liabilities on the Consolidated Statements of Financial Position. As prescribed in the terms and conditions between the Group and end users, the Group’s virtual credits are not refundable. However, in the event that the Group discontinues its operations, the Japanese Payment Services Act (Act No. 59 of 2009, the “Payment Services Act”) may require the Group to refund the advances received to the end users. When virtual credits are redeemed for the virtual items within each service in the Group by users, balances of the end users’ virtual credits may be reduced by the price of the purchase, and the related contract liabilities are reclassified to revenues over the applicable revenue recognition periods, as described in the following paragraphs. The total amount of revenues recognized is ultimately equivalent to the gross amount of consideration paid by the end users. Core Business (i) Advertising The Group’s advertising services mainly consist of accounts advertising, display advertising and other advertising such as web portals. Accounts advertising Accounts advertising mainly includes LINE Official Accounts, LINE Sponsored Stickers and LINE Point Ads services. LINE Official Accounts enable commercial and other advertisers to send messages directly to LINE users who have added the business as a friend. The performance obligation of the Group to advertisers is to maintain the LINE Official Account through the contract period and enable end users to send messages to the LINE Official Accounts at any time during the contract period. Accordingly, the Group recognizes the LINE Official Accounts subscription revenues on a straight-line method over the advertising contract period. In addition, advertisers with LINE Official Accounts may offer Sponsored Stickers to LINE users, who may download them for free. In the LINE Sponsored Stickers contract, only the advertisers are obligated to pay the Group consideration for Sponsored Stickers services, and end users that use Sponsored Stickers do not pay any consideration to the Group, directly or indirectly. Therefore, the Group has determined that only the advertisers are considered “customers”. The performance obligation of the Group to advertisers is to make Sponsored Stickers available to the users for their use at any time over the contract period. Accordingly, the Group recognizes revenues on a straight-line method over the contract period. The LINE Point Ads service is a pay-per-action Until the year ended December 31, 2017 and prior to the adoption of IFRS 15, the Group recognized revenue from LINE Point Ads service in the period in which an end user takes the action the advertisers contracted for, excluding the portion of revenue attributable to the LINE Points issued by the Group. The portion of the revenue attributable to LINE Points was measured at the fair value of LINE Points. Revenue related to unused LINE Points at the end of the reporting period was deferred, while revenue related to the redeemed LINE Points was recognized in accordance with the revenue recognition policy for the virtual item purchased. The fair value of LINE points is estimated based on the amount required for a user to settle a transaction. Display Advertising Display advertising mainly consists of Timeline and LINE NEWS. The Group has contractual relationships with advertisers for which it provides the Group with rights to receive compensation based on specific actions by users such as impressions, views, and clicks. The Group’s performance obligation is to present the advertisement to users at any given time. The display advertising revenues are recognized when such actions specified in Other Advertising Other advertising services mainly consist of job listing and web portal advertising. The Group’s performance obligation is to publish advertisements and/or presenting the advertisements to users. Revenues from such advertising services are recognized over the advertising contract periods on a straight-line method if the contract is for a certain period of time. If the advertising contract includes the rights to receive payments based on specific actions such as impressions, views and clicks, the Group recognizes revenue under such specific actions under the contract are fulfilled. For advertising services such as LINE Official Accounts, an advertising agency may be involved to obtain contracts from customers and provide, on behalf of the Group, services to customers such as formatting advertisement publications to comply with the Group’s specification or standards of advertisement publications. Since the service provided by an advertising agency is provided to customers based on the Group’s specification or standards of advertisement publication, the Group determined that the Group controls the service provided by the advertising agency and thus the Group is the principal in the transaction. The Group recognizes revenue based on the total consideration received from a customer, including the consideration payable for the service provided by the advertising agency. Moreover, in considering that the consideration payable for the aforementioned services provided by the advertising agency is the cost arising in relation to the contract with the advertiser as a customer, the Group recognizes costs of contract which consist of consideration payable to the advertising agency as an asset and such costs are expensed as related revenues are recognized. If the advertising contract is renewed at the end of the original term, another consideration payable to the advertising agency will be recognized, and such cost will be expensed during the period that related revenue of the advertising contract is recognized. (ii) Communication Communication includes primarily LINE Stickers, LINE Creator Stickers and emoji (collectively, “the Stickers”). The Stickers are emoticons that end users may purchase and use in instant messaging. Payments may be made with cash, virtual credits, LINE Points or credit cards. When virtual credits are redeemed for the purchase of the Stickers, the end users’ virtual credits balances are reduced by the price of the purchase, and the virtual credits redeemed are recognized as revenues over the estimated usage period for the Stickers. The Group acts as a principal in providing the Stickers to end users. The Group determines that Stickers are a similar to the concept of a service of standing ready. The performance obligation of the Group to the customers which are the users who purchased the Stickers is to make the Stickers available to the users for their use at any given time. Accordingly, the users receive the benefit of the services and consume such services as the Group makes the Stickers available to the users for their use. Therefore, the Group determines that its performance obligation is satisfied over a certain period of time. The Group estimated such usage period to be 90 days and approximately 100 days for the years ended December 31, 2018 and 2019, respectively, based on the historical usage pattern. The Group also determined that the users receive the benefits of the services evenly, thus the Group recognizes revenue on a straight-line method over the estimated usage period. (iii) Content—LINE GAME and Applications Content mainly consists of LINE GAME developed by the third party or the Group and applications developed by the Group. – Games developed by third-party game developers All games developed by third-party game developers are free to download from the LINE platform. End users may purchase in-game The Group enters into revenue sharing arrangements with the third-party game developers. The terms of such arrangements provide that when end users purchase in-game With respect to the sale of in-game in-game The Group views the third-party game developers to be its customers, and the Group’s performance obligation to its customers over the term of the game are: 1) channeling users to the mobile games, 2) providing payment processing services, and 3) providing server hosting services. The Group determined that each deliverable was a separate unit of account and measured each selling price of channeling services, payment processing services and server hosting services based on the ratio of stand-alone selling price. The stand-alone selling price for the channeling services and server hosting services are estimated based on the cost-plus-margin pricing, taking into consideration other stand-alone terms and conditions, historical costs, and the industry profit margin range of our competitors. The Group also estimates the stand-alone selling price for the payment processing services based on the cost-plus-margin pricing, taking into consideration historical costs and the industry profit margin range of our competitors. The Group’s performance obligations with respect to channeling services are fulfilled at the time that the in-game Game termination announcements are made by sending notifications to end users two months prior to game termination. Once the game termination announcement is made, in-game two-month in-game The Group’s performance obligations with respect to the hosting services and payment processing services are fulfilled each month as such services are provided, i.e. from game inception through game termination, and from game inception through one month subsequent to game termination, respectively. Accordingly, the revenues attributable to the hosting services and payment processing services are recognized on a straight-line basis over the service periods as described above. However, as the Group does not generate revenues subsequent to the announcement of game termination, the Group defers the revenue attributable to the post-termination-announcement performance obligations for hosting services and payment processing services from the amounts received in the first month of the arrangement, and recognizes such revenues over the two and three months, respectively, following the announcement of game termination. The Group began providing third party games on its platform in 2012. As of December 31, 2019, the average life of third party games, which included both active and terminated third party games, was approximately 23 months. – Internally developed games and applications Principal vs Agent The Group also provides games and applications (“apps”) developed internally for end users and considers itself the principal in providing the games or apps to end users. The Group’s primary responsibility is to develop, maintain and provide the games and apps, and in-game/in-app Consumable and durable virtual items All games and apps are free to download; however, in-game/in-app Revenue recognition for consumable virtual items The characteristics of consumable virtual items include virtual items that are consumed by end users’ specific actions and do not provide end users with any continuing benefits. The consumable virtual items offered by the Group is comparable to a service of standing ready and the performance obligation of the Group with respect to the consumable virtual items purchased by end users is to make the consumable virtual items available to the users for their use at any given time. The period from the time the end user first purchased the consumable virtual item until the user consumed the item is the performance obligation period; however, consumable virtual items offered by the Group are generally consumed upon purchase by end users. Accordingly, the Group recognizes revenues attributable to consumable virtual items upon sale. Revenue recognition for durable virtual items A durable virtual item represents an item that provides the end user with continuing benefits. The durable virtual items offered by the Group is comparable to a service of standing ready and the performance obligation of the Group with respect to the durable virtual items purchased by end users is to make the durable virtual items available to the users for their use at any given time. The period of benefit of a durable virtual item generally ends at the earliest of 1) an item ceasing to provide further benefits to an end user (i.e., the period of benefit is represented by the usage period of such item), 2) an item being removed from the game board or app, by specific in-app/in-game (a) Revenue recognition for the estimated usage period of the durable virtual items The estimated usage period for durable virtual items is developed by taking into consideration historical data on purchase patterns and user usage behavior. For the years ended December 31, 2017, 2018 and 2019, the Group recognizes revenues through the estimated usage period for durable virtual items in one of the internally developed games. For the years ended December 31, 2017, 2018 and 2019, the usage periods were estimated to be a several days and the sales generated by such durable items were immaterial. (b) Revenue recognition for the durable virtual items which the estimated usage period cannot be estimated (1) Revenue recognition by estimating average playing period The Group defines the playing period as the period from when a paying user first purchased virtual credits to when a paying user is deemed to have become inactive, i.e. when a paying user has not logged onto the game/app for two consecutive months. To estimate the average playing period for a paying user, the Group analyzes monthly cohorts composed of paying users who made their first purchase of virtual credits during such month. The Group tracks these monthly cohorts and analyzes the dates on which paying users within each cohort become inactive. Based on the actual data observed, the Group extrapolates the future declines in paying users to determine the ending point of a paying user’s life beyond the date for which observable data is available. The Group then uses the actual and extrapolated data to calculate the average playing period. The Group recognizes revenues arising from internally developed apps by using the estimated average playing periods. For the years ended December 31, 2017, 2018 and 2019, the estimated average playing periods ranged from approximately 2 months to 30 months, 15 months to 30 months and 1 month to 32 months, respectively. (2) Adjustment of the items removed from the game board or app Revenue attributable to the durable virtual items removed from the game board or app is recognized by developing estimated removal rates, i.e. the rates at which durable virtual items are being removed from the game board or app by end users, and applying such rates to total sales generated from durable virtual items. Recognition of revenue upon launching a new game or app Upon launching a new game/app, the Group evaluates the nature of the virtual items, the behavior of end users with respect to such items and the availability of supporting data in determining the related revenue recognition policy. The Group may also consider other existing internally developed games/apps data and industry data in determining the related revenue recognition policy if insufficient history has been developed for such new game/app. In the situation where the Group does not have sufficient data to analyze user behavior, and cannot identify any similar games/apps to serve as references for the Group to reasonably estimate the life of the game/app, the Group defers all sales until such history is developed. Once sufficient history is developed, the Group assesses the estimations (such as the estimated usage period and the estimated average playing period for paying users), for durable virtual items quarterly on a game/app by game/app basis. Estimated revenue The Group recognized revenues for virtual items which continued to be available to end used over the average playing period for this game, as it has sufficient history to reasonably estimate the average playing period for all internally developed games. Strategic business LINE Friends Revenues from LINE Friends primarily consist of the sales of LINE character merchandise. Revenue from the sale of goods is mainly recognized when customers obtain control over the goods, usually on delivery of the goods. Revenue from the sale of goods is measured at transaction price, adjusted for any discounts. Significant financing components There are no significant financing components (i.e. payment terms exceeding one year) within the services provided to customers by the Group. |
Finance Income and Finance Costs | (23) Finance Income and Finance Costs Finance income mainly comprises interest income from time deposits and held-to-maturity Finance costs comprise interest expense on corporate bonds, borrowings and leases, as well as unwinding of the discount on provisions. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method. |
Other Non-Operating Income and Expenses | (24) Other Non-Operating For the year ended December 31, 2017 Other non-operating available-for-sale Other non-operating available-for-sale For the year ended December 31, 2018 and 2019 Other non-operating Other non-operating |
Income Taxes | (25) Income Taxes Income tax expenses comprise current and deferred tax. Current tax and deferred tax are recognized in profit or loss, except to the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income. (a) Current tax Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable non-deductible (b) Deferred tax Deferred tax is recognized using the asset-liability method in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income. The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Group recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow, in a manner that the Group expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied on the same taxable entity by the same tax authority. |
Earnings per Share | (26) Earnings per Share The Group presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to the holders of common shares of the Company by the weighted average number of common shares outstanding during the year, adjusted for own shares held. Diluted EPS is determined by adjusting the profit or loss attributable to the holders of common shares and the weighted average number of common shares outstanding, adjusted for own shares held, for the effects of all dilutive potential common shares, such as stock options granted to directors and employees of the Group. Potential common shares are antidilutive when their conversion to common shares would increase earnings per share or decrease loss per share from continuing operations. The calculation of diluted earnings per share does not assume conversion, exercise, or other issue of potential common shares that would have an antidilutive effect on earnings per share. |
Operating Segments | (27) Operating Segments The Group identifies operating segments based on the internal report regularly reviewed by the Group’s Chief Operating Decision Maker to make decisions about resources to be allocated to segments and assess performance. An operating segment of the Group is a component for which discrete financial information is available. The Chief Operating Decision Maker has been identified as the Company’s board of directors. |
Discontinued Operations and Non-current Assets Held for Sale | (28) Discontinued Operations and Non-current Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for sale or has been disposed of, if the component either (1) represents a separate major line of business or geographical area of operations and (2) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or (3) is a subsidiary acquired exclusively with a view to resale. The Group determined to dispose its MixRadio business in February 2016. In the Consolidated Statements of Profit or Loss, (loss)/profit from the discontinued operations is reported separately from profit/(loss) from continuing operations; prior periods are presented on a comparable basis. The cash flows from discontinued operations are presented in Note 23 Discontinued Operations. References made to the Consolidated Statements of Profit or Loss, except for those noted in Note 23 Discontinued Operations, are related to continuing operations. In the event that certain non-current non-current Non-current Non-current |
Standards Issued but not yet Effective | (29) Standards Issued but not yet Effective The standards and interpretations that are issued but not yet effective as of December 31, 2019 are not expected to have a material impact on the Group. The standards and interpretations issued but not yet effective have not been adopted early by the Group. |
New and Amended Standards and Interpretations | (30) New and Amended Standards and Interpretations The material impacts of the adoption of new and revised IFRSs issued by the IASB that are mandatorily effective for an annual period beginning on or after January 1, 2019 on the Group’s annual consolidated financial statements as of December 31, 2018 and 2019, and for the years ended December 31, 2017, 2018 and 2019 are as follows. The standard that is effective for annual period beginning on or after January 1, 2019: IFRS16 Leases The Group has adopted IFRS 16 Leases IFRS 16 sets out the principal for the recognition, measurement, presentation and disclosure of lease contracts for lessees and lessors. Under IFRS 16, lessees no longer make a distinction between finance and operating leases as required under IAS 17, and apply a single accounting model. At the commencement date of a lease, lessees recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use right-of-use right-of-use Upon the adoption of IFRS 16, the Group recognized lease liabilities for its leases previously classified as operating lease under IAS 17. The lease liabilities were measured at the present value of the remaining lease payments, discounted at the incremental borrowing rate as of January 1, 2019. The weighted average incremental borrowing rate used for the lease liabilities as of January 1, 2019 was 2.21%. The Group applied the following practical expedients permitted by IFRS 16 when applying IFRS 16: – Relied on its assessment of whether leases are onerous applying IAS 37 immediately before the date of initial application as an alternative to an impairment review. – Accounted for – Used hindsight when determining the lease term of contract including extension options and/or termination options. The Group elected not to apply IFRS 16 to the agreements that were not identified as containing a lease component applying IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease. (In millions of yen) Commitments for operating lease as of December 31, 2018 as disclosed in the Group’s consolidated financial statements 58,688 (Less) Short-term leases recognized as an expense on a straight-line basis (545 ) (Less) Leases of low-value (29 ) (Less) Lease contracts commenced on or after January 1, 2019 (3,092 ) Lease liabilities before discounts 55,022 Discounts using the Group’s incremental borrowing rate (7,009 ) Lease liabilities recognized at January 1, 2019 48,013 As a result of above, the Group recognized 46,279 million yen and 48,013 million yen for the right-of-use Due to the adoption of IFRS 16, the infrastructure and communication expenses which included operating lease expenses, and other operating expenses which also included operating lease expenses decreased by 1,334 million yen and 10,433 million yen, respectively, for the fiscal year ended December 31, 2019. The depreciation and amortization expenses which included the depreciation expenses of right-of-use a s Significant accounting policies prior to the adoption of IFRS 16 were as follows: Lease Transactions The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. In the event that fulfillment of the arrangement is dependent on the use of specific assets or the arrangement transfers a right to use the asset, such assets are defined as a lease transaction. (a) Finance Leases Leases that transfer substantially all risks and benefits of ownership of the leased item to the lessee are classified as finance leases. Group as lessee Finance leases are capitalized at the lease’s commencement at the lower of the fair value of the leased property and the present value of the minimum lease payments. The discount rate to be used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease, if this is practicable to determine; if not, the lessee’s incremental borrowing rate shall be used. The minimum lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. A leased asset is depreciated over the shorter of the estimated useful life of the asset or the lease term. (b) Operating Leases All lease arrangements, except finance leases that have been capitalized in the Consolidated Statements of Financial Position, are classified as operating leases. Group as lessee For operating lease transactions, lease payments are recognized as an expense using the straight-line method over the lease term in the Consolidated Statements of Profit or Loss. Group as lessor The Group had cancelable lease contracts related to servers, data storage, network equipment, personal computers and software with third parties for the year ended December 31, 2018. The leased assets are included in “Property and equipment” in the Consolidated Statements of Financial Position and are depreciated over their expected useful lives on a basis consistent with similar assets included in property and equipment. Income from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Estimated Useful Lives for Property and Equipment | The estimated useful lives for the years ended December 31, 2017, 2018 and 2019 are as follows: Estimated useful lives (years) Equipment (mainly consist of servers) 3-5 Furniture and fixtures 3-5 Others 3-5 |
Estimated Useful Lives for Intangible Assets with Finite Lives | The estimated useful lives for the intangible assets with finite lives for the years ended December 31, 2017, 2018 and 2019 are as follows: Estimated useful lives (years) Software 2-10 Customer relationships 7 Domain name 20 Others 1-10 |
Summary of Lease Components Applying IAS17 And IFRIC4 | (In millions of yen) Commitments for operating lease as of December 31, 2018 as disclosed in the Group’s consolidated financial statements 58,688 (Less) Short-term leases recognized as an expense on a straight-line basis (545 ) (Less) Leases of low-value (29 ) (Less) Lease contracts commenced on or after January 1, 2019 (3,092 ) Lease liabilities before discounts 55,022 Discounts using the Group’s incremental borrowing rate (7,009 ) Lease liabilities recognized at January 1, 2019 48,013 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Profit or Loss for the Group's Reportable Segments | For the year ended December 31, 2017 (In millions of yen) Reportable segments Corporate (1) Consolidated Core business Strategic Total Revenue from external customers (2) 149,156 17,991 167,147 — 167,147 Segment profit/(loss) (3) 34,250 (17,674 ) 16,576 8,502 25,078 Depreciation and amortization expenses 6,252 897 7,149 — 7,149 (1) Corporate adjustments mainly include other operating income and share-based compensation expenses. (2) The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. (3) The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. For the year ended December 31, 2018 (In millions of yen) Reportable segments Corporate (1) Consolidated Core business Strategic Total Revenue from external customers 178,398 28,784 207,182 — 207,182 Segment profit/(loss) (2) 26,559 (34,931 ) (8,372 ) 24,482 16,110 Depreciation and amortization expenses 8,832 2,303 11,135 — 11,135 (1) Corporate adjustments mainly include other operating income and share-based compensation expenses. (2) The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. For the year ended December 31, 2019 (In millions of yen) Reportable segments Corporate (1) Consolidated Core business Strategic Total Revenue from external customers 196,711 30,774 227,485 — 227,485 Segment profit/(loss) (2) 31,584 (66,557 ) (34,973 ) (4,024 ) (38,997 ) Depreciation and amortization expenses 14,573 8,164 22,737 — 22,737 (1) Corporate adjustments mainly include other operating income, share-based compensation expenses and a cost arisen from cancellation of system development. (2) The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. |
Reconciliation of Segment Profit to Profit Before Tax from Continuing Operations | The reconciliation of Segment profit/(loss) to the profit/(loss) before tax from continuing operations is as follows: (In millions of yen) 2017 2018 2019 Segment profit/(loss) 25,078 16,110 (38,997 ) Finance income 257 413 512 Finance costs (26 ) (519 ) (1,980 ) Share of loss of associates and joint ventures (6,321 ) (11,148 ) (13,412 ) Loss on foreign currency transactions, net (818 ) (902 ) (72 ) Other non-operating 1,963 869 3,878 Other non-operating (1,988 ) (1,469 ) (1,545 ) Profit/(loss) before tax from continuing operations 18,145 3,354 (51,616 ) |
Summary of Revenue Recognized | Revenues recognized at a point in time mainly consist of revenues from LINE Friends. (In millions of yen) 2017 2018 2019 Core business Advertising Display advertising (1) 26,609 36,221 49,655 Account advertising (2) 38,929 56,714 62,654 Other advertising (3) 10,433 15,302 12,533 Sub-total 75,971 108,237 124,842 Communication, content, and others Communication (4) 30,225 28,527 28,319 Content (5) 40,144 38,237 38,344 Others 2,816 3,397 5,206 Subtotal 73,185 70,161 71,869 Core business total 149,156 178,398 196,711 Strategic business Friends (6) 12,299 19,579 19,189 Others (7) 5,692 9,205 11,585 Strategic business total 17,991 28,784 30,774 Total 167,147 207,182 227,485 (1) Revenues from display advertising primarily consisted of fees from advertisement on services such as Timeline, Smart Channel and LINE NEWS. (2) Revenues from account advertising primarily consisted of fees from LINE Official Accounts, Sponsored Stickers and LINE Points. (3) Revenues from other advertising were mainly attributable to advertising revenue from livedoor, NAVER Matome and LINE Part-Time Job. (4) Revenues from communication were mainly attributable to sales of LINE Stickers and Creator Stickers. (5) Revenues from content primarily consisted of sales of LINE GAME’s virtual items. (6) Friends primarily consisted of revenues from sales of character goods. (7) Others for the year ended December 31, 2017 and 2018 primarily consisted of revenues from LINE Mobile service and E-commerce. |
Revenues from External Customers | Revenues from external customers classified by country or region were based on the locations of customers. Revenues attributable to communication and content have been classified based on the geographical location of the end users. Revenues attributable to advertising have been classified based on the geographical locations where the services were provided. (In millions of yen) 2017 2018 2019 Japan (country of domicile) 121,283 148,260 166,469 Taiwan 16,630 18,593 21,923 Others 29,234 40,329 39,093 Total 167,147 207,182 227,485 |
Summary of Non-current Operating Assets Classified by Country or Region | Non-current right-of-use (In millions of yen) December 31, 2018 December 31, 2019 Japan (country of domicile) 34,502 76,756 Korea 5,310 10,778 Others 7,946 18,151 Total 47,758 105,685 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Breakdown of Cash and Cash Equivalents | The breakdown of cash and cash equivalents as of December 31, 2018 and 2019 is as follows: (In millions of yen) December 31, 2018 December 31, 2019 Cash on hand 13 12 Demand deposits 256,965 217,333 Total cash and cash equivalents 256,978 217,345 |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Trade and Other Receivables | Trade and other receivables as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Trade and other receivables, current 38,097 42,884 Loss allowance, current (453 ) (204 ) Trade receivables, non-current 14 462 Loss allowance, non-current (14 ) (462 ) Total trade and other receivables 37,644 42,680 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Summary of Inventories | Inventories as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Goods 4,887 2,107 Other — 2,633 Total Inventories 4,887 4,740 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Changes in Property and Equipment | (1) Changes in property and equipment for the year ended December 31, 2018 are as follows: (In millions of yen) Furniture and fixtures Equipment Construction- in-progress Others Total Acquisition cost Balance at January 1, 2018 6,501 22,196 42 1,343 30,082 Acquisitions 1,105 16,095 970 635 18,805 Disposals (8 ) (2,134 ) — (24 ) (2,166 ) Acquisition through business combinations — 18 — 14 32 Loss of control of subsidiaries — (141 ) — (412 ) (553 ) Exchange differences (1 ) (187 ) (7 ) (55 ) (250 ) Other (27 ) 16 (42 ) (41 ) (94 ) Balance at December 31, 2018 7,570 35,863 963 1,460 45,856 Accumulated depreciation and impairment Balance at January 1, 2018 1,879 12,402 — 676 14,957 Disposals (1 ) (1,751 ) — (16 ) (1,768 ) Depreciation 1,352 6,745 — 321 8,418 Acquisition through business combinations — 11 — 1 12 Loss of control of subsidiaries — (73 ) — (289 ) (362 ) Exchange differences (1 ) (78 ) — (27 ) (106 ) Other (1 ) (111 ) — 91 (21 ) Balance at December 31, 2018 3,228 17,145 — 757 21,130 Carrying amounts Balance at January 1, 2018 4,622 9,794 42 667 15,125 Balance at December 31, 2018 4,342 18,718 963 703 24,726 (2) Changes in property and equipment for the year ended December 31, 2019 are as follows: (In millions of yen) Furniture and fixtures Equipment Construction- in-progress Others Total Acquisition cost Balance at January 1, 2019 7,570 35,863 963 1,460 45,856 Acquisitions 2,262 7,646 54 358 10,320 Disposals (34 ) (2,000 ) — (194 ) (2,228 ) Exchange differences — (106 ) 2 (7 ) (111 ) Other (78 ) 390 (464 ) (49 ) (201 ) Balance at December 31, 2019 9,720 41,793 555 1,568 53,636 Accumulated depreciation and impairment Balance at January 1, 2019 3,228 17,145 — 757 21,130 Disposals (17 ) (1,728 ) — (136 ) (1,881 ) Depreciation 1,691 7,552 — 273 9,516 Impairment (1) — 57 — — 57 Exchange differences — (46 ) — (5 ) (51 ) Other (14 ) (64 ) — (81 ) (159 ) Balance at December 31, 2019 4,888 22,916 — 808 28,612 Carrying amounts Balance at January 1, 2019 4,342 18,718 963 703 24,726 Balance at December 31, 2019 4,832 18,877 555 760 25,024 |
Contractual Commitments for the Acquisition of Property and Equipment | (3) Contractual commitments for the acquisition of property and equipment: (In millions of yen) December 31, 2018 December 31, 2019 1,820 1,047 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Changes in Goodwill and Other Intangible Assets | (1) Changes in goodwill and other intangible assets for the year ended December 31, 2018 are as follows: (In millions of yen) Goodwill Software (1) Music rights Customer relationships Game Others (2) Total Acquisition cost Balance at January 1, 2018 19,093 2,350 460 741 1,749 5,445 29,838 Acquisitions — 225 — — — 2,998 3,223 Acquisition through business combinations 1,224 — — — — — 1,224 Loss of control of subsidiaries (3) (560 ) (191 ) — — (1,790 ) (436 ) (2,977 ) Disposals or sales — (8 ) — — — — (8 ) Exchange differences (464 ) (61 ) (35 ) (18 ) 41 (169 ) (706 ) Other (45 ) — — — — (146 ) (191 ) Balance at December 31, 2018 19,248 2,315 425 723 — 7,692 30,403 Accumulated amortization and impairment Balance at January 1, 2018 2,326 1,362 460 325 284 1,828 6,585 Loss of control of subsidiaries (3) — (50 ) — — (912 ) (124 ) (1,086 ) Disposals or sales — (6 ) — — — — (6 ) Amortization — 262 — 168 636 1,650 2,716 Impairment — 52 — — — 160 212 Exchange differences (173 ) (39 ) (35 ) (8 ) (8 ) (34 ) (297 ) Other — — — — — (114 ) (114 ) Balance at December 31, 2018 2,153 1,581 425 485 — 3,366 8,010 Carrying amounts Balance at January 1, 2018 16,767 988 — 416 1,465 3,617 23,253 Balance at December 31, 2018 17,095 734 — 238 — 4,326 22,393 (1) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2018 was three years. (2) Others mainly consist of 1,471 million yen for acquisition of licenses for LINE TV, 651 million yen for acquisition of domain name, and 437 million yen for Gatebox Inc.’s acquisition of trademark and patented technology. The carrying amounts as of December 31, 2018 of these intangible assets were 1,064 million yen, 587 million yen and 306 million yen, respectively. (3) The balances were mainly comprised with the changes in the Group’s ownership ratio of LINE Games Corporation (renamed from NextFloor Corporation) resulting in the investment to be accounted for as an associate under the equity method rather than as a consolidated subsidiary. Refer to Note 30 Principal Subsidiaries for further details. (2) Changes in goodwill and other intangible assets for the year ended December 31, 2019 are as follows: (In millions of yen) Goodwill Software (4) Music rights Customer relationships Others (5) Total Acquisition cost Balance at January 1, 2019 19,248 2,315 425 723 7,692 30,403 Acquisitions — 3,868 — — 1,819 5,687 Acquisition through business combinations 615 — — — — 615 Disposals or sales (6) (2,113 ) (728 ) (425 ) — (562 ) (3,828 ) Exchange differences (59 ) 2 — (2 ) 85 26 Other — 372 — — (492 ) (120 ) Balance at December 31, 2019 17,691 5,829 — 721 8,542 32,783 Accumulated amortization and impairment Balance at January 1, 2019 2,153 1,581 425 485 3,366 8,010 Disposals or sales (6) (2,113 ) (717 ) (425 ) — (281 ) (3,536 ) Amortization — 652 — 155 1,954 2,761 Impairment (7) — — — — 96 96 Exchange differences — — — (1 ) 43 42 Other — — — — (42 ) (42 ) Balance at December 31, 2019 40 1,516 — 639 5,136 7,331 Carrying amounts Balance at January 1, 2019 17,095 734 — 238 4,326 22,393 Balance at December 31, 2019 17,651 4,313 — 82 3,406 25,452 (4) Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2019 was four years. (5) The balances of acquisition cost of others as of December 31, 2019 mainly consist of 2,011 million yen of licenses for LINE TV, 632 million yen of domain name, and 439 million yen of trademark and patented technology. The balances of carrying amounts as of December 31, 2019 of these intangible assets were 918 million yen, 549 million yen and 248 million yen, respectively. (6) Mainly related to the liquidation of the MixRadio business. (7) Refer to Note 11 Impairment for further details. The Group has been conducting research and development such as Fintech and AI. The research and development expenses recognized for the years ended December 31, 2017, 2018 and 2019 are 10,357 million yen, 19,096 million yen and 26,606 million yen, respectively. |
Impairment (Tables)
Impairment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Carrying Amount of Goodwill Allocated to Each of Cash Generating Units for Impairment Testing | The carrying amount of goodwill allocated to each of the CGUs for impairment testing is as follows: (In millions of yen) CGU For the year ended December 31, 2017 LINE business and portal 16,767 Total 16,767 (In millions of yen) CGU For the year ended December 31, 2018 Core business Core business 14,838 Strategic business Friends business 740 Fintech business 1,075 E-commerce 307 AI business 135 Total 17,095 (In millions of yen) CGU For the year ended December 31, 2019 Core business Core business 14,789 Strategic business Friends business 737 Fintech business 1,072 E-commerce 919 AI business 134 Total 17,651 |
Significant Assumptions Used in value in Use Calculations | The significant assumptions used in the value in use calculations are as follows: 2017 2018 2019 CGU Pre-tax discount rate Terminal growth rate Pre-tax discount rate Terminal growth rate Pre-tax discount rate Terminal growth rate LINE business and portal CGU 10.3 % 1.6 % — — — — Core business Core business — — 11.6 % 1.3 % 10.8 % 1.3 % Strategic business Friends business — — 11.2 % 2.3 % 14.3 % 2.3 % Fintech business — — 11.8 % 1.6 % 13.4 % 1.3 % E-commerce — — 11.0 % 1.7 % 13.6 % 1.4 % AI business — — 11.5 % 1.7 % 12.3 % 1.1 % |
Summary of significant assumptions used in calculation of recoverable amount | The significant assumptions used in the value in use calculations are as follows: December 31, 2019 Pre-tax discount rate 9.9%-13.9 % |
Summary of carrying amounts of right-of-use assets and property and equipment | The carrying amounts of right-of-use assets and property and equipment in connection with Friends business as a Strategic business as of December 31, 2019 are as follows: December 31, 2019 Right-of-used assets 13,074 Property and equipment 1,376 Total 14,450 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Changes in Provisions | Changes in provisions for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) Restoration obligations Promotional virtual reserve Other Total Balance at January 1, 2018 3,030 607 414 4,051 Arising during the year 517 4,188 95 4,800 Utilized (82 ) (2,700 ) (414 ) (3,196 ) Reversal (3 ) (17 ) (29 ) (49 ) Unwinding of discount and changes in the discount rate 0 — — 0 Increase due to business combinations 10 — — 10 Decrease due to loss of control of subsidiaries (149 ) — — (149 ) Exchange differences (37 ) (2 ) 0 (39 ) Other 17 459 (14 ) 462 Balance at December 31, 2018 3,303 2,535 52 5,890 Arising during the year 1,303 5,124 202 6,629 Utilized (36 ) (4,592 ) (16 ) (4,644 ) Reversal (18 ) (78 ) — (96 ) Unwinding of discount and changes in the discount rate 2 — — 2 Exchange differences (19 ) 10 1 (8 ) Other — — (24 ) (24 ) Balance at December 31, 2019 4,535 2,999 215 7,749 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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Current and Deferred Taxes Related to Each Component of Other Comprehensive Income | (1) Current and deferred taxes related to each component of other comprehensive income for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Pretax Tax Post Pretax Tax Post Pretax Tax Post Remeasurement of defined benefit plans 2,093 (488 ) 1,605 (169 ) (29 ) (198 ) (1,134 ) 110 (1,024 ) Foreign currency translation adjustments 3,751 (146 ) 3,605 (4,047 ) 372 (3,675 ) (732 ) 418 (314 ) Reclassification adjustments for foreign currency translation adjustments (13 ) — (13 ) (345 ) — (345 ) (448 ) — (448 ) Proportionate share of other comprehensive income of associates 106 (14 ) 92 (27 ) (4 ) (31 ) 8 (34 ) (26 ) Reclassification adjustments for net changes — — — (12 ) — (12 ) — — — Net changes in fair value of equity — — — (2,681 ) 735 (1,946 ) 3,799 (1,201 ) 2,598 Net changes in fair value of debt instruments — — — 88 (28 ) 60 (7 ) 2 (5 ) Reclassification adjustments for net changes — — — 10 — 10 1 — 1 Net change in fair value of available-for-sale (3,339 ) 836 (2,503 ) — — — — — — Reclassification adjustments for net change in fair value of available-for-sale 1,090 (343 ) 747 — — — — — — Total 3,688 (155 ) 3,533 (7,183 ) 1,046 (6,137 ) 1,487 (705 ) 782 |
Current and Deferred Taxes Related to Items Directly Charged or Credited to Equity | Current and deferred taxes related to items directly charged or credited to equity are as follows: (In millions of yen) 2018 2019 Current tax: Share issuance costs related to exercise of stock options (3 ) (1 ) Share issuance costs related to Employee Stock Ownership Plan (5 ) — Deferred tax: Share issuance costs related to exercise of stock options (20 ) — Issuance of convertible bonds 1,917 — Total tax directly charged/(credited) to equity 1,889 (1 ) |
Movements in Deferred Tax Assets and Deferred Tax Liabilities | The movement in deferred tax assets and deferred tax liabilities for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) Beginning balance as of January 1, 2018 Adjustment Beginning balance as of 2018 (adjusted) Amounts or loss Amounts recognized under other comprehensive income Other (1) Ending balance as of December 31, 2018 Deferred tax assets: Tax losses 259 — 259 172 — (94 ) 337 Depreciation 2,260 — 2,260 1,991 — 20 4,271 Advances received 3,848 (423 ) 3,425 55 — — 3,480 Deferred revenue 2,471 783 3,254 (117 ) — (2 ) 3,135 Restoration obligations for operating lease properties 215 — 215 151 — (2 ) 364 Accrued bonuses 754 — 754 58 — — 812 Allowance for doubtful accounts 377 — 377 33 — (6 ) 404 Other accrued expenses 737 — 737 659 — (13 ) 1,383 Accrued enterprise taxes 241 — 241 56 — (1 ) 296 Available-for-sale 487 (487 ) — — — — — Financial assets at fair value through profit or loss — 196 196 233 — (6 ) 423 Financial assets at FVOCI — (541 ) (541 ) — 1,358 (2 ) 815 Share-based compensation 1,169 — 1,169 119 — (1 ) 1,287 Post-employment benefits 1,184 — 1,184 222 (32 ) (14 ) 1,360 Tax effect on investments in subsidiaries and associates 2,105 — 2,105 120 194 32 2,451 Other 1,020 267 1,287 597 — (16 ) 1,868 Total 17,127 (205 ) 16,922 4,349 1,520 (105 ) 22,686 Deferred tax liabilities: Available-for-sale (1,027 ) 1,027 — — — — — Financial assets at fair value through profit or loss — (207 ) (207 ) (137 ) — 1 (343 ) Financial assets at FVOCI — 15 15 — 1 (45 ) (29 ) Tax effect on investments in subsidiaries and associates — — — (2,796 ) 146 (1 ) (2,651 ) Convertible bonds — — — 52 — (1,918 ) (1,866 ) Prepaid expenses (356 ) (140 ) (496 ) (247 ) — (5 ) (748 ) Intangible assets (824 ) — (824 ) 432 24 8 (360 ) Other (1 ) — (1 ) (58 ) (1 ) (25 ) (85 ) Total (2,208 ) 695 (1,513 ) (2,754 ) 170 (1,985 ) (6,082 ) (1) Movements in others are mainly attributable to the issuance of convertible bonds with stock acquisition rights and changes in exchange rate for foreign currencies. (In millions of yen) Beginning balance as of January 1, 2019 Adjustment (1) Beginning balance as of 2019 (adjusted) Amounts or loss Amounts recognized under other comprehensive income Other (2) Ending balance as of December 31, 2019 Deferred tax assets: Tax losses 337 — 337 303 — 4 644 Depreciation 4,271 — 4,271 4,023 — — 8,294 Advances received 3,480 — 3,480 288 — — 3,768 Deferred revenue 3,135 — 3,135 121 — — 3,256 Restoration obligations for lease properties 364 — 364 235 — (1 ) 598 Accrued bonuses 812 — 812 134 — — 946 Loss allowance 404 — 404 (237 ) — — 167 Other accrued expenses 1,383 (347 ) 1,036 (239 ) — (7 ) 790 Accrued enterprise taxes 296 — 296 9 — (11 ) 294 Financial assets at fair value through profit or loss 423 — 423 22 — (2 ) 443 Financial assets at FVOCI 815 — 815 (71 ) (411 ) (2 ) 331 Share-based compensation 1,287 — 1,287 (32 ) — (1 ) 1,254 Post-employment benefits 1,360 — 1,360 232 110 (13 ) 1,689 Lease liabilities — 9,642 9,642 3,001 — 1 12,644 Tax effect on investments in subsidiaries and associates 2,451 — 2,451 211 117 — 2,779 Other (3) 1,868 (11 ) 1,857 1,430 — (5 ) 3,282 Total 22,686 9,284 31,970 9,430 (184 ) (37 ) 41,179 Deferred tax liabilities: Financial assets at fair value through profit or loss (343 ) — (343 ) (650 ) — (6 ) (999 ) Financial assets at FVOCI (29 ) — (29 ) — (1,279 ) 8 (1,300 ) Tax effect on investments in subsidiaries and associates (2,651 ) — (2,651 ) 1,588 266 — (797 ) Convertible bonds (1,866 ) — (1,866 ) 326 — — (1,540 ) Prepaid expenses (748 ) — (748 ) 111 — — (637 ) Intangible assets (360 ) — (360 ) 92 — 3 (265 ) Right-of-use — (9,169 ) (9,169 ) (3,175 ) — — (12,344 ) Other (85 ) (102 ) (187 ) (86 ) — — (273 ) Total (6,082 ) (9,271 ) (15,353 ) (1,794 ) (1,013 ) 5 (18,155 ) (1) Refer to Note 3 Significant Accounting Policies. (2) Movements in others are mainly attributable to the changes in exchange rate for foreign currencies. (3) Mainly consists of promotional virtual credits researve. |
Deferred Tax Assets and Liabilities Reconcile to Amounts Presented in Consolidated Statements of Financial Position | |
Breakdown of Deductible Temporary Differences, Unused Tax Losses and Unused Tax Credits for which No Deferred Tax Assets Recognized | Below is a breakdown of the deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets were recognized: (In millions of yen) December 31, 2018 December 31, 2019 Deductible temporary differences 40,242 99,326 Unused tax losses 57,990 63,714 Unused tax credits 48 249 Total 98,280 163,289 |
Breakdown of Unused Tax Losses by Expiry Date for which No Deferred Tax Assets Recognized | Below is a breakdown of the unused tax losses by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, 2018 December 31, 2019 Less than one year 1,112 1,268 Between one year and five years 3,725 7,012 Five years and more 34,812 48,156 No expiration date 18,341 7,278 Total 57,990 63,714 |
Breakdown of Unused Tax Credits by Expiry Date for which No Deferred Tax Assets Recognized | Below is a breakdown of unused tax credits by expiry date for which no deferred tax assets were recognized: (In millions of yen) December 31, 2018 December 31, 2019 Less than one year 48 107 Between one year and five years — 142 Five years and more — — No expiration date — — Total 48 249 |
Components of Income Tax Benefits/(Expenses) | (3) The components of income tax expenses for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Current income tax: Current income tax expenses (1) (8,818 ) (11,291 ) (8,084 ) Deferred tax: Changes related to origination and reversal of temporary differences (2) (1,107 ) 1,775 7,663 Changes in the tax rate (3) 3 (6 ) 37 Income tax expenses (9,922 ) (9,522 ) (384 ) (1) Current income tax expenses include previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences. These benefits were 105 million yen, 55 million yen and 159 million yen for the years ended December 31, 2017, 2018 and 2019, respectively. In addition, current income tax expenses for the year ended December 31, 2018 include additional taxes charged of 2,215 million yen claimed to the Group’s Korean subsidiary. (2) These balances represent the deferred tax benefit or expense from the increase and decrease of temporary differences, the reversal of previously written-down deferred tax assets and write-downs of deferred tax assets. The Group had deferred tax benefits of 105 million yen, 68 million yen and 70 million yen for the years ended December 31, 2017, 2018 and 2019, respectively, due to the reversal of previously written-down deferred tax assets. The main reason for having negative amount of deferred tax for the year ended December 31, 2017 is because of the recognition of deferred tax liabilities due to the transfer of camera application business. (3) The statutory income tax rate was approximately 31.7% effective for the years ended December 31, 2017 and 2018, and approximately 31.5% effective from the year ending December 31, 2019. The Group measured deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the period when the assets are realized or the liabilities are settled. |
Reconciliation of Income Tax Expenses Calculated by Applying Statutory Tax Rates to Actual Tax Expenses |
Financial Assets and Financia_2
Financial Assets and Financial Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Carrying Amounts and Fair Value of Financial Instruments, Except for Cash and Cash Equivalents, by Line Item in Consolidated Statements of Financial Position and by Category as Defined in IFRS 9 | (In millions of yen) December 31, 2018 December 31, 2019 Book value Fair value Book value Fair value Financial assets Trade and other receivables Financial assets at amortized cost 37,644 42,680 Other financial assets, current Financial assets at amortized cost Time deposits 11,507 3,577 Short-term loans 593 1,378 Corporate bonds and other debt instruments (1) — — 70 70 Guarantee deposits (1)(2) 853 7,929 Office security deposits — 245 Other 4 718 Financial assets at FVOCI (3) 2,958 2,958 6,019 6,019 Financial assets at fair value through profit and loss (2)(4) — — 181 181 Total 15,915 20,117 Other financial assets, non-current Financial assets at amortized cost Corporate bonds and other debt instruments (1) 280 288 210 214 Guarantee deposits (1) 123 123 57 57 Office security deposits 9,162 9,050 9,379 9,266 Other 118 118 100 100 Financial assets at FVOCI (3) 22,343 22,343 21,672 21,672 Financial assets at fair value through profit or loss (4) 10,261 10,261 20,319 20,319 Total 42,287 51,737 (In millions of yen) December 31, 2018 December 31, 2019 Book value Fair value Book value Fair value Financial liabilities Trade and other payables Financial liabilities at amortized cost 34,985 43,710 Other financial liabilities, current Financial liabilities at amortized cost Deposits received 13,653 20,237 Short-term borrowings (5) 23,000 23,207 Others 57 1,321 Financial liabilities at fair value through profit or loss Put option liabilities 16 16 — — Others (2) — — 61 61 Total 36,726 44,826 Corporate bonds (6) 142,132 143,743 142,851 144,254 Other financial liabilities non-current Financial liabilities at amortized cost Office security deposits received under sublease agreement 16 16 16 16 Others 231 122 Financial liabilities at fair value through profit or loss Put option liabilities 280 280 224 224 Total 527 362 (1) The Group is in the compliance with requirements of Japanese Payment Service Act, where a certain amount of money defined in the act has to be secured, either by depositing or entrusting a cash reserve or government bonds with the Legal Affairs Bureau, or by concluding a guarantee contract with a financial institution. If deposits are made, they are recorded as guarantee deposits. If guarantee contracts are entered into, guarantee fees equal to the contractual amount times a guarantee fee rate is incurred. The Group had deposited investments in Japanese government bonds of 280 million yen and 280 million yen as of December 31, 2018 and 2019, respectively, which the Group intends to hold until maturity for this purpose. In addition, the Group had credit guarantee contracts with banks for 18,500 million yen with a weighted average guarantee fee rate of 0.1 % and for 33,500 million yen with a weighted average guarantee fee rate of 0.1 % as of December 31, 2018 and 2019, respectively, to comply with the Japanese Payment Services Act. (2) In January 2019, the Group commenced derivatives instruments investment for investment purposes, and is investing in such transactions as currency, interest rate and commodity futures transactions. In connection with these transactions, it has made deposits of 2,015 million yen to a securities brokerage. Impact of the derivatives instruments for investment purpose on loss before taxes from continuing operation for the year ended December 31, 2019 was 790 million yen in gain. The Group recognized financial assets at fair value through profit or loss of 95 million yen and financial liabilities at fair value through profit or loss of 61 million yen as a result of fair value measurement as of December 31, 2019. In addition, the Group made a guarantee deposit of 3,618 million yen in a financial institution to enter into banking business in Taiwan and withdrawal of the deposit is restricted as of December 31, 2019. (3) Impairment losses of 10 million yen and 1 million yen were recognized for debt instruments at FVOCI for the years ended December 31, 2018 and 2019, respectively. (4) A valuation loss of 676 million yen and a valuation gain of 2,009 million yen were recognized for financial assets at fair value through profit or loss for the years ended December 31, 2018 and 2019, respectively. (5) The weighted average interest rate of the remaining outstanding short-term borrowings as of December 31, 2018 and 2019 was 0.1% and 0.1%, respectively. (6) During the year ended December 31, 2018, I. Euro-yen Euro-yen Euro-yen |
Employment Benefits (Tables)
Employment Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Liabilities for Defined Benefit Obligations | (1) Liabilities for defined benefit obligations as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Unfunded Funded Total Unfunded Funded Total Present value of defined benefit obligations 6,628 582 7,210 8,780 1,082 9,862 Plan assets (1) — (267 ) (267 ) — (245 ) (245 ) Liabilities for post-employment benefits 6,628 315 6,943 8,780 837 9,617 (1) All of the plan assets are held by NemusTech, Co., Ltd. and Markt Co., Ltd. |
Expenses Related to Defined Benefit Plans Recognized in Consolidated Statements of Profit or Loss as Operating Expenses | (2) Expenses related to defined benefit plans are recognized in the Consolidated Statements of Profit or Loss as operating expenses for the years ended December 31, 2017, 2018 and 2019 are comprised of the following: (In millions of yen) 2017 2018 2019 Current service costs 1,933 1,973 2,078 Interest costs 208 207 212 Total 2,141 2,180 2,290 |
Movements in Present Value of Defined Benefit Obligations | (3) Movements in the present value of the defined benefit obligations for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) 2018 2019 Defined benefit obligations at the beginning of year 6,189 7,210 Current service costs 1,973 2,078 Interest costs 207 212 Remeasurement (gains)/losses: Actuarial gains arising from changes in demographic assumptions (1) (33 ) (1,046 ) Actuarial losses arising from changes in financial assumptions (2) 166 1,700 Experience adjustments (3) 33 502 Payments from the plan (943 ) (545 ) Net transfer (4) (105 ) 33 Decrease due to deconsolidation (42 ) — Exchange differences on translation of foreign operations (235 ) (282 ) Defined benefit obligations at the end of year 7,210 9,862 (1) In 2019, actuarial gains arising from changes in demographic assumptions resulted mainly from changes in the employee turnover rate of LINE Plus Corporation and NemusTech Co., Ltd. (2) In 2019, actuarial losses arising from changes in financial assumptions resulted mainly from a decrease in the discount rate and an increase in the period end weighted average salary increase rate at year end 2019, as compared to corresponding rates at year end in 2018. The decrease in the discount rate is primarily related to the fact that the shorter period of estimated payment term for the benefit payments, which is used to calculate the retirement benefit obligation, due to the increase in estimated employee turnover rates described above. The increase in the weighted average of salary increase rate primarily related to the fact that the salary increase rates for the current year raised. (3) Experience adjustments represent the impact from differences between actual experiences during the year compared with the previous actuarial assumptions on defined benefit obligations. (4) Net transfer primarily represents the transfer of defined benefit obligations associated with employees of NAVER or other NAVER group companies joining LINE Plus Corporation, LINE Biz Plus Corporation, LINE Studio Corporation, LINE Friends Corporation , UP Corporation and LINE Financial Plus Corporation and vice versa. |
Movements in the Plan Assets | (4) Movements in the plan assets for the years ended December 31, 2018 and 2019 are as follows: (In millions of yen) 2018 2019 Plan assets at the beginning of year 27 267 Interest income 5 7 Employer contributions 316 72 Benefits paid (72 ) (110 ) Gains due to remeasurement Plan assets revenue (excluding interest income) (3 ) 22 Exchange differences on translation of foreign operations (6 ) (13 ) Plan assets at the end of year 267 245 |
Principal Actuarial Assumptions Used for Measuring Defined Benefit Expenses and Defined Benefit Obligation | December 31, 2017 December 31, 2018 December 31, 2019 Discount rate 3.2%-3.7% 2.5%-3.5% 1.7%-3.1% Weighted average of salary increase s 4.5%-7.7% 5.3%-7.1% 4.5%-8.6% |
Sensitivity Analysis for Impact of Changes in Certain Significant Actuarial Assumptions Leaving All Other Assumptions Constant | (6) Economic factors and conditions often affect multiple assumptions simultaneously; as such, the effects of changes in key assumptions are not necessarily linear. The following sensitivity analysis illustrates the impact of changes in certain significant actuarial assumptions, leaving all other assumptions constant, as of December 31, 2018 and 2019: (In millions of yen) Impact on the defined benefit Assumptions and sensitivity level December 31, December Discount rate 100 basis point increase (833 ) (998 ) 100 basis point decrease 1,020 1,188 Salary increase rate 100 basis point increase 970 1,104 100 basis point decrease (812 ) (955 ) |
Estimated Future Benefit Payments within Ten Years from December 31, 2018 | The following table shows estimated future benefit payments within ten years from December 31, 2019. Actual payments may differ from those shown because of uncertain future events. (In millions of yen) Years Estimated future 2020 602 2021 573 2022 560 2023 549 2024 540 2025-202 9 2,706 |
Leases-Group as Lessee (Tables)
Leases-Group as Lessee (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Future Minimum Lease Payment under Non-cancelable Operating Leases | Future minimum lease payment under non-cancelable (In millions of yen) December 31, Less than one year 9,662 Between, one year to five years 26,226 Five years and more 22,800 Total 58,688 |
Summary Of Expenses Relating To Leases | The expenses relating to leases are as follows: (In millions of yen) For the year ended December 31, 2019 Depreciation of right-of-use Property 9,445 Data center, etc. 1,015 Total depreciation expenses 10,460 Interest expense relating to lease liabilities 1,215 Expense relating to short-term leases 708 Expense relating to leases of low-value 32 Expense relating to variable lease payments (1) 7, 791 (1) These expenses are related to the variable lease payments which are excluded from measurement of the lease liabilities. The variable lease payments are mainly related to the use of IT infrastructure services and those are calculated based on the actual usage volume of server equipment and storage. |
Summary Of Right Of Use Assets | The carrying amounts of the right-of-use (In millions of yen) December 31, Right-of-use Property 28,640 Data center, etc. 25,697 Total 54,337 |
Summary Of Changes In The Carrying Amounts Of The Right-Of-Use Assets | The changes in the carrying amounts of the right-of-use (In millions of yen) December 31, Balance at January 1, 2019 — Adjustment on adoption of new accounting standard 46,279 Balance at January 1, 2019 (adjusted) 46,279 Acquisitions 19,727 Disposals (304 ) Depreciation (10,460 ) Impairment (1) (617 ) Exchange differences (328 ) Other 40 Balance at December 31, 2019 54,337 (1) Refer to Note 11 Impairment for further details. |
Leases-Group as Lessor (Tables)
Leases-Group as Lessor (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Future Minimum Rentals | Future minimum rentals receivable under non-cancelable (In millions of yen) December 31, Within one year 48 Between one year and five years 8 Total 56 |
Summary of Maturity Analysis for the Lease Payments Receivable | Maturity analysis for the lease payments receivable (undiscounted) of finance lease contract is as follows: (In millions of yen) December 31, Within one year 69 After one year but not more than two years 1 Between two years and three years — Between three years and four years — Between four years and five years — Over 5 years — Total 70 |
Issued Capital and Reserves (Ta
Issued Capital and Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Movements of Authorized Shares and Shares Issued | The movements of authorized shares and shares issued for the years ended December 31, 2017, 2018 and 2019 are as follows: Number of (Share capital no-par Number of shares issued (Share capital with no-par value) Share capital (In millions Common shares January 1, 2017 690,000,000 217,775,500 77,856 Exercise of stock options (1) — 19,713,500 12,513 Issuance of common shares (2) — 1,007,810 2,000 December 31, 2017 690,000,000 238,496,810 92,369 Exercise of stock options (1) — 855,500 1,195 Issuance of common shares (3) — 1,172,332 2,500 December 31, 2018 690,000,000 240,524,642 96,064 Exercise of stock options (1) — 608,500 673 December 31, 2019 690,000,000 241,133,142 96,737 (1) Refer to Note 27 Share-Based Payments for further details. (2) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (3) The Group implements the Employee Stock Ownership Plans Trust (J-ESOP) |
Movements in Share Premium | The movements in share premium for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) Share-based (1) Common Others (2) Share premium total January 1, 2017 21,935 294 68,979 91,208 Share-based payments 1,882 — — 1,882 Exercise of stock options (16,746 ) — 15,721 (1,025 ) Forfeiture of stock options (9 ) — — (9 ) Issuance of common shares (4) — — 2,000 2,000 Cost related to issuance of common shares (3) — — (73 ) (73 ) Acquisition of non-controlling — — (423 ) (423 ) December 31, 2017 7,062 294 86,204 93,560 Share-based payments 1,336 — — 1,336 Exercise of stock options (1,652 ) — 1,459 (193 ) Forfeiture of stock options (37 ) — — (37 ) Issuance of common shares (5) — — 2,500 2,500 Issuance of convertible bonds with stock acquisition rights (6) — — 4,175 4,175 Cost related to issuance of common shares (3) — — (18 ) (18 ) Changes in interest in subsidiaries (7) — (488 ) 17,928 17,440 Disposal of treasury shares (167 ) — 30 (137 ) December 31, 2018 6,542 (194 ) 112,278 118,626 Share-based payments 1,682 — — 1,682 Exercise of stock options (958 ) — 859 (99 ) Forfeiture of stock options (51 ) — — (51 ) Cost related to issuance of common shares (3) — — (3 ) (3 ) Changes in interest in subsidiaries (8) — — 1,715 1,715 Disposal of treasury shares (512 ) — (59 ) (571 ) December 31, 2019 6,703 (194 ) 114,790 121,299 (1) Refer to Note 27 Share-Based Payments for further details. (2) Others mainly consists of capital reserve required under the Companies Act of Japan. (3) Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity, net of any tax effects. (4) In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) (5) The Group implements the Employee Stock Ownership Plan ((J-ESOP) (6) Refer to Note 15 Financial Assets and Financial Liabilities for further details. (7) Changes in interest in subsidiaries for the fiscal year ended December 31, 2018 include increase in share premium of 17,892 million yen due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the decrease in share premium of 488 million yen due to the changes in the percentage of ownership resulting from absorption type mergers within subsidiaries of the Group. (8) Changes in interest in subsidiaries for the fiscal year ended December 31, 2019 is due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the changes in the percentage of ownership resulting from acquisition of additional interest in subsidiaries of the Group. |
Summary of Movement of Treasury Shares | The movements in treasury shares for the year ended December 31, 2017, 2018 and 2019 are as follows: Number of shares (Common share with no-par value) Amount (In millions of yen) January 1, 2017 — — Increase during the year (1) 1,007,810 4,000 Decrease during year (2) (100 ) (0 ) December 31, 2017 1,007,710 4,000 Increase during the year (1) 1,173,285 5,004 Decrease during the year (2) (201,220 ) (799 ) December 31, 2018 1,979,775 8,205 Increase during the year 1,739 8 Decrease during the year (2) (457,122 ) (1,905 ) December 31, 2019 1,524,392 6,308 (1) In conjunction with the introduction of the Employee Stock Ownership Plan (J-ESOP) (2) Decrease is due to the sales of shares by Trust & Custody Services Bank, Ltd. (Trust E account). |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Movement on liabilities from financing activities [member] | |
Statement [Line Items] | |
Movements of Liabilities From Financing Activities | Movements on liabilities from financing activities (In millions of yen) Borrowings which Borrowings which Total Net liabilities as of January 1, 2017 21,925 — 21,925 Cash flows (107 ) (1 ) (108 ) Increase due to business combinations 405 91 496 Items such as foreign currency translation adjustments 1 3 4 Net liabilities as of December 31, 2017 22,224 93 22,317 |
Material non-cash transactions [member] | |
Statement [Line Items] | |
Movements of Liabilities From Financing Activities | Movements on liabilities from financing activities (In millions of yen) Borrowings Borrowings Corporate bond which Total Net liabilities as of January 1, 2018 22,224 93 — 22,317 Cash flows 966 — 148,024 148,990 Transfer of liquidity 78 (78 ) — — Increase due to business combinations — 9 — 9 Decrease due to loss of control of subsidiaries (79 ) — — (79 ) Interest expenses — — 200 200 Recognition of stock acquisition rights through issuance of corporate bonds and deferred tax liabilities — — (6,092 ) (6,092 ) Foreign currency translation adjustments (189 ) (18 ) — (207 ) Net liabilities as of December 31, 2018 23,000 6 142,132 165,138 For the year ended December 31, 2019 There were no material non-cash transactions for the year ended December 31, 2019. Movements on liabilities from financing activities (In millions of yen) Borrowings which are due Borrowings Corporate Lease Total Net liabilities as of January 1, 2019 23,000 6 142,132 — 165,138 Adjustment on adoption of new — — — 48,013 48,013 Net liabilities as of January 1, 2019 23,000 6 142,132 48,013 213,151 Cash flows 98 (2 ) — (10,383 ) (10,287 ) Increase due to business combinations 94 — — — 94 New lease contracts — — — 18,520 18,520 Lease disposals — — — (308 ) (308 ) Interest expenses — — 719 1,216 1,935 Foreign currency translation 15 — — (421 ) (406 ) Net liabilities as of December 31, 2019 23,207 4 142,851 56,637 222,699 |
LINE Mobile Corporation [member] | |
Statement [Line Items] | |
Assets, Liabilities and Other Items of Subsidiaries and Businesses Transferred in Connection with Deconsolidation | The assets, liabilities and gain on loss of control of LINE Mobile Corporation after deconsolidation are presented below; (In millions of yen) Current assets 2,646 Cash and cash equivalents (1) 1,113 Trade and other receivables 1,277 Inventories 48 Other non-current 208 Non-current 270 Current liabilities (4,083 ) Non-current (1 ) Total (1,168 ) Fair value of investment owned by the Group 8,326 Gain on loss of control of subsidiaries (2) 9,494 (1) This amount is included in “Cash disposed on loss of control of subsidiaries and business transfer” in the Group’s Consolidated Statements of Cash Flows. (2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss for the year ended December 31, 2018. |
LINE Games Corporation [member] | |
Statement [Line Items] | |
Assets, Liabilities and Other Items of Subsidiaries and Businesses Transferred in Connection with Deconsolidation | The assets, liabilities and gain on loss of control of LINE Games Corporation after deconsolidation are presented as below; (In millions of yen) Current assets 2,969 Cash and cash equivalents (1) 930 Trade and other receivables 758 Other current assets 1,281 Non-current 4,570 Current liabilities (1,276 ) Non-current (265 ) Other comprehensive income (180 ) Non-controlling (1,974 ) Total 3,844 Fair value of investment owned by the Group 19,144 Gain on loss of control of subsidiaries (2) 15,300 (1) This amount is included in “Cash disposed on loss of control of subsidiaries and business transfer” in the Group’s Consolidated Statements of Cash Flows. (2) This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss. |
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [Member] | |
Statement [Line Items] | |
Assets, Liabilities and Other Items of Subsidiaries and Businesses Transferred in Connection with Deconsolidation | All the variances between the assets and liabilities of the camera application business transferred to Snow Corporation and the consideration of transfer were recognized as gain on transfer as presented below. (In millions of yen) Current assets 603 Cash and cash equivalents 581 Other current assets 22 Non-current 71 Current liabilities (133 ) Non-current (334 ) Total 207 Consideration received in exchange for the transfer of camera application business (1) 10,651 Gain on transfer (2) 10,444 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Revenue from Contracts with Customers | The Group has recognized the following amounts relating to revenue in the Consolidated Statement of Profit or Loss for the year ended December 31, 2018 and 2019: (In millions of yen) 2018 2019 Revenue from contracts with customers Revenue (1) 207,182 227,485 Other operating income: Virtual credits breakage income 387 453 207,569 227,938 Other revenue from other sources Other operating income (2) 27,712 2,758 (1) Refer to Note 5 Segment Information for further details of revenue by segment. (2) Refer to Note 20 Supplemental Cash Flow Information for details of other operating income for the year ended December 31, 2018. |
Summary of Trade and Other Receivables, Contract and Contract Liabilities | Trade and other receivables, contract assets and contract liabilities (In millions of yen) December 31, December 31, Trade and other receivables 37,644 42,680 Contract assets (1) 339 241 Contract liabilities Unsatisfied performance obligations (2) 12,927 13,172 Virtual credits (3) 11,710 12,580 Total contract liabilities 24,637 25,752 (1) Contract assets mainly consist of transactions related to the advertising contracts in which the revenues from these transactions are recognized over time by measuring the progress towards completion of satisfaction of the performance obligation. (2) Unsatisfied performance obligations will be fulfilled mainly within a year. Therefore, the transaction price allocated to unsatisfied contract is not disclosed, based on the practical expedient as permitted under IFRS 15. (3) The timing of transfer of goods or services related to virtual credits is determined at the customer’s discretion. |
Summary of Revenue Recognized | Revenue recognized during the year ended December 31, 2018 and 2019 that was included in the contract liability balance as of January 1, 2018 and 2019 are as follow: (In millions of yen) 2018 2019 Unsatisfied performance obligations 11,182 10, 400 Virtual credits 9,349 10, 850 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Other Operating Income | (1) Other operating income for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Virtual credits breakage income 815 386 453 Gain on loss of control of subsidiaries and business transfer (1) 10,444 24,794 — Dilution gain (2) 434 2,635 1,895 Others 318 284 863 Total 12,011 28,099 3,211 (1) Refer to Note 20 Supplemental Cash Flow Information for further details. (2) Dilution gain included gain of 2,310 million yen for the year ended December 31, 2018 in connection with third-party allotments by Snow Corporation, an associate of the Group. Dilution gain included gain of 948 million yen for the year ended December 31, 2019 in connection with third-party allotments by LINE Mobile Corporation, an associate of the Group, and dilution gain included gain of 947 million yen in connection with third-party allotments by Snow Corporation, an associate of the Group. |
Summary of Other Operating Expenses | (2) Other operating expenses for the years ended December 31, 2017, 2018 and 2019 are as follows: (In millions of yen) 2017 2018 2019 Rent (1) 6,143 8,440 1,411 Travel 2,259 3,348 3,258 Supplies 2,378 3,327 3,938 Taxes and dues 1,516 2,347 2, 972 Professional fees 2,182 3,266 3,629 Cost of goods 4,946 7,622 8,129 Training 1,344 1,972 2,105 LINE points 1,006 5,533 6,042 Others (2) 3,629 5,286 7,60 3 Total 25,403 41,141 39,087 (1) For the year ended December 31, 2019, the amount decreased due to the adoption of IFRS 16 Leases. (2) For the year ended December 31, 2018, the amount consists of office management fees, utilities and other miscellaneous expenses. For the year ended December 31, 2019, the amount consists of a cost arisen from cancellation of system development and miscellaneous expenses. |
Summary of Other Non-Operating Income | (3) Other non-operating (In millions of yen) 2017 2018 2019 Gain on financial assets at fair value through profit or loss (1) 1,096 555 2,837 Dividend income 69 50 151 Gain on sale of financial assets 751 136 1 Gain from derivatives 47 128 889 Total 1,963 869 3,878 (1) Gains and losses on valuation of financial assets are recognized under IAS 39 Financial Instruments: Recognition and Measurement Financial Instruments |
Summary of Other Non-Operating Expenses | (4) Other non-operating (In millions of yen) 2017 2018 2019 Loss on financial assets at fair value through profit or loss (1) 118 1,231 828 Loss on impairment of available-for-sale 1,761 — — Others ( 2) 109 238 717 Total 1,988 1,469 1,545 (1) Losses on financial assets at fair value through profit or loss are recognized under IAS 39 Financial Instruments: Recognition and Measurement Financial Instruments (2) Others mainly consists of impairment loss on investments in associates for the year ended December 31, 2019. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Aggregated Results of Discontinued Operations | The aggregated results of the discontinued operations for the years ended December 31, 2017, 2018 and 2019 are presented below: (In millions of yen) 2017 2018 2019 Revenues — — — Other income (1) — 566 96 Expenses (19 ) (6 ) ( 19 ) (Loss)/gain on foreign currency transactions — (10 ) 57 1 (Loss)/profit before tax from discontinued operations (19 ) 550 648 Income tax benefits/(expenses) on liquidation (2) 6 (174 ) (64 ) (Loss)/profit for the year from discontinued operations (attributable to the shareholders of the Company) (13 ) 376 584 (1) For the year ended December 31, 2018 and 2019, the Group recognized a gain from discharge of debt amounting to 566 million yen and 96 million yen, respectively, in connection with the liquidation of the MixRadio business. (2) The income tax benefits/(expenses) for the year ended December 31, 2017, 2018 and 2019 are mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred loss or profit during the periods. |
Cash Flow Information of Discontinued Operations | The aggregated cash flow information of the discontinued operations for the years ended December 31, 2017, 2018 and 2019, are presented below: (In millions of yen) 2017 2018 2019 Operating (136 ) 18 0 Investing — — — Financing — (353 ) (103 ) Net cash outflow (136 ) (335 ) (103 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Profit or Loss and Weighted Average Number of Shares Used in Calculation of Earnings per Share | The profit or loss for the year and the weighted average number of shares used in the calculation of earnings per share are as follows: (In millions of yen, except number of shares) 2017 2018 2019 Profit/(loss) for the year attributable to the shareholders of the Company from continuing operations 8,091 (4,094 ) (47,472 ) (Loss)/profit for the year attributable to the shareholders of the Company from discontinued operations (13 ) 376 584 Total profit/(loss) for the year attributable to the shareholders of the Company for basic earnings and diluted earnings per share 8,078 (3,718 ) (46,888 ) Weighted average number of total common shares 221,405,391 239,761,603 240,824,713 Weighted average number of total treasury shares (459,843 ) (1,686,797 ) (1,682,006 ) Weighted average number of common shares for basic earnings per share 220,945,548 238,074,806 239,142,707 Effect of dilution: Stock options 16,559,789 — — Employee Stock Ownership Plan (J-ESOP) 47,369 — — Convertible bonds with stock acquisition rights — — — Weighted average number of total common shares adjusted for the effect of dilution 237,552,706 238,074,806 239,142,707 |
Financial Risk Management (Tabl
Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Maximum Amounts of Possible Financial Loss Due to Credit Risk | (a) Maximum amounts of possible financial loss to the Group due to credit risk as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Book value Book value Demand deposits (1) 256,965 217,333 Time deposits (1) 11,507 3,577 Loan receivables (2)(6) 593 1,378 Guarantee deposits (1)(3) 976 7,986 Trade and other receivables (2) (4) 37,644 42,680 Japanese government bonds (1)(3) 280 280 Corporate bonds and other debt instruments (1) 18,005 18,043 Office security deposits (1)(5) 9,162 9,624 Total 335,132 300,901 (1) None of the assets was past due or impaired as of December 31, 2018 and 2019. (2) For receivables, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group regularly performs credit assessments on customers and counterparties considering their financial position and historical data in order to manage the credit risk. The Group recorded provisions for estimated credit risk in respect of the loan receivables and trade and other receivables as of December 31, 2018 and 2019. The methodology used for estimating the expected credit loss differs depending on whether there have been significant increase in credit risk since initial recognition per financial assets or per assets group. The Group measures the expected credit losses for the financial assets measured at amortized cost without any significant increase in credit risk at the amount equal to twelve-month expected credit losses. For the financial assets measured at amortized cost with a significant increase in credit risk, the Group measures the expected credit losses at the amount equal to the lifetime expected credit losses. The Group uses the probability that a default occurs calculated based on the historical default data of the corporate bond ratings in Japan to measure the twelve-month expected credit losses and the lifetime expected credit losses. For the account receivables, the Group applied the simplified approach permitted by IFRS 9 that estimates the lifetime expected credit losses since the initial recognition. The expected credit loss of trade receivables are measured using the probability that a default may occur calculated based on the Group’s historical experiences on cash collection from trade receivables taking into account forward-looking information such as future economic conditions. When there has been a significant increase in credit risk, the Group measures the expected credit risk considering all reasonable and supportable information including that which is forward looking. (3) Refer to Note 15 Financial Assets and Financial Liabilities for details of the financial instruments being deposited under the Japanese Payment Services Act. (4) The Group identifies concentrations of credit risk when a limited number of the Group’s counterparties that have similar characteristics or business activities, and thus are affected similarly by changes in economic or other conditions, account for a large portion of the entire trade and other receivables. The Group had significant concentrations of credit risk with two payment processing service providers, representing 23.6% and 23.5% of trade and other receivables as of December 31, 2018 and 2019, respectively. (5) The amount mainly consists of the office security deposits paid for the Group’s office lease agreements. (6) The Group conducted loan commitment for an associate as of December 31, 2018 and 2019. |
Summary of Undrawn Loan Commitment | The undrawn loan commitment as of December 31, 2018 and 2019 is as follows: (In millions of yen) December 31, 2018 December 31, 2019 Total amount of loan commitment 1,000 1,000 Outstanding balance of loan commitment — — Undrawn loan commitment 1,000 1,000 |
Summary of Loss Allowance for Trade and Other Receivables | Loss allowance for trade and other receivables as of December 31, 2018 and 2019 are calculated as follows: (In millions of yen) December 31, 2018 Current Within six due Over six months Over twelve Total Expected credit loss rate (1) 0.0 % 1.7 % 30.4 % 97.5 % 1.2 % Trade and other receivables 35,182 2,386 176 367 38,111 Loss allowance 16 39 54 358 467 (In millions of yen) December 31, 2019 Current Within six due Over six months Over twelve Total Expected credit loss rate (1) 0.1 % 1.7 % 27.8 % 85.6 % 1.5 % Trade and other receivables 39,402 3,096 228 620 43,346 Loss allowance 20 52 63 531 666 (1) The expected credit loss rate is calculated based on the historical loss rate for trade receivables and other receivables of one year. |
Movement in Allowance for Doubtful Accounts Attributable to Trade and Other Receivables | Below is the movement in the loss allowance attributable to trade and other receivables. The balances for the trade and other receivables over six months past due are aggregated as the balance of these assets are not significant. (In millions of yen) Provisions Loss allowance balance at January 1, 2018 492 Provision for the year 304 Reversal (60 ) Utilized (171 ) Deconsolidation (102 ) Translation 4 Loss allowance balance at January 1, 2019 467 Provision for the year 312 Reversal (18 ) Utilized (95 ) Translation 0 Loss allowance balance at December 31, 2019 666 |
Summary of Calculation of Loss Allowance for Loan Receivables | Loss allowance for loan receivables are calculated as follows: (In millions of yen) December 31, 2019 Current Within six Total Expected credit loss rate 4.2 % 19.2 % 5.0 % Loan receivables 1,379 71 1,450 Loss allowance 58 14 72 |
Summary of Capital Management | (In millions of yen) December 31, December 31, Short-term borrowings 23,000 23,207 Corporate bonds 142,132 142,851 Lease liabilities — 56,637 Total 165,132 222,695 Total shareholders’ equity 208,514 174,663 |
Liquidity risk [member] | |
Statement [Line Items] | |
Book Values of Financial Liabilities Based on Remaining Maturities | The book values of financial liabilities based on the remaining maturities as of December 31, 2018 and 2019 are as follows: The amounts below include estimated interest from financial liabilities scheduled to be paid. (In millions of yen) December 31, 2018 Book value Contractual cash outflows Less than one year One to five years After five years Trade and other payables 35,210 35,210 34,985 225 — Short-term borrowings (1) 23,000 23,019 23,019 — — Deposits received 13,653 13,653 13,653 — — Corporate bonds 142,132 146,320 — 73,160 73,160 Office security deposits received under sublease agreement 16 16 — 16 — Put option liabilities 296 296 16 280 — Total 214,307 218,514 71,673 73,681 73,160 (In millions of yen) December 31, 2019 Book value Contractual cash outflows Less than one year One to five years After five years Trade and other payables 43,829 43,829 43,710 119 — Short-term borrowings (1) 23,207 23,246 23,246 — — Deposits received 20,237 20,237 20,237 — — Corporate bonds 142,851 146,320 — 73,160 73,160 Lease liabilities 56,637 66,102 11,593 23,418 31,091 Office security deposits received under sublease agreement 16 16 — 16 — Put option liabilities 224 224 — 224 — Total 287,001 299,974 98,786 96,937 104,251 |
Line of Credit | (1) The Group had lines of credit with four banks for the years ended December 31, 2018 and 2019. The lines of credit available and the lines of credit used are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Lines of credit available 23,680 43,680 Lines of credit used 23,000 23,100 Remainig lines of credit available 680 20,580 |
Currency risk [member] | |
Statement [Line Items] | |
Exposure to Market Risks | The book values of major assets and liabilities denominated in currencies other than the functional currency as of December 31, 2018 and 2019 are as follows: (In millions) December 31, 2018 Currency Amount Exchange rate Yen equivalent Assets: Cash and cash equivalents KRW 15,539 0.10 1,534 USD 109 110.36 11,985 JPY 337 1.00 337 Trade receivables KRW 2,362 0.10 233 USD 12 110.36 1,378 THB 72 3.39 245 Financial instruments at amortized cost Time deposit KRW 7,100 0.10 701 Short-term loans USD 11 110.36 1,260 Guarantee deposits KRW 8,628 0.10 852 Office security deposits KRW 7,250 0.10 716 Financial assets at fair value through profit or loss USD 23 110.36 2,491 TWD 88 3.61 319 (In millions) December 31, 2019 Currency Amount Exchange rate Yen equivalent Assets: Cash and cash equivalents KRW 24,893 0.09 2,341 USD 93 108.87 10,155 JPY 337 1.00 337 EUR 3 122.00 380 Trade receivables and other receivables KRW 21,102 0.09 1,984 USD 16 108.87 1,693 THB 62 3.64 227 Financial instruments at amortized cost Time deposits USD 5 108.87 545 Guarantee deposits KRW 33,242 0.09 3,126 Office security deposits KRW 5,541 0.09 521 Financial assets at fair value through profit or loss USD 36 108.87 3,928 TWD 95 3.62 343 KRW 25,439 0.09 2,392 THB 162 3.64 590 SGD 3 80.73 233 (In millions) December 31, 2018 Currency Amount Exchange rate Yen equivalent Liabilities: Trade and other payables KRW (44,026 ) 0.10 (4,345 ) USD (11 ) 110.36 (1,229 ) TWD (125 ) 3.61 (451 ) JPY (256 ) 1.00 (256 ) Put option liabilities KRW (2,296 ) 0.10 (227 ) (In millions) December 31, 2019 Currency Amount Exchange rate Yen equivalent Liabilities: Trade and other payables KRW (35,934 ) 0.09 (3,379 ) USD (6 ) 108.87 (704 ) JPY (202 ) 1.00 (202 ) Put option liabilities KRW (2,410 ) 0.09 (227 ) Lease liabilities KRW (23,219 ) 0.09 (2,183 ) |
Sensitivity Analysis for Each Type of Market Risk | The effects on profit or loss before tax from continuing operations and shareholders’ equity as a result of exchange rate fluctuations as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 Shareholders’ equity Profit or (loss) before tax Currency Appreciation of functional currency by Depreciation of functional currency by Appreciation of functional currency by Depreciation of functional currency by KRW (14 ) 13 (27 ) 26 USD 584 (556 ) 794 (756 ) THB 8 (8 ) 12 (12 ) TWD (6 ) 5 (7 ) 6 JPY 3 (3 ) 4 (4 ) (In millions of yen) December 31, 2019 Shareholders’ equity Profit or (loss) before tax Currency Appreciation of functional currency by Depreciation of functional currency by Appreciation of functional currency by Depreciation of functional currency by KRW 170 (162 ) 239 (228 ) USD 630 (600 ) 831 (791 ) THB 28 (27 ) 41 (39 ) TWD 12 (11 ) 17 (16 ) JPY 6 (6 ) 7 (6 ) EUR 15 (14 ) 19 (18 ) SGD 8 (8 ) 12 (11 ) The tables above demonstrate the sensitivity to a change in KRW, USD, THB, TWD, JPY, EUR and SGD assuming all other variables are constant. |
Interest rate risk [member] | |
Statement [Line Items] | |
Exposure to Market Risks | Interest bearing financial assets and liabilities as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Fixed rate Variable rate Fixed rate Variable rate Financial assets Guarantee deposits — — — 1,672 Japanese government bonds 280 — 280 — Time deposits 11,507 — 3,577 — Loan receivables 110 — 1,396 — Corporate bonds and other debt instruments 18,005 — 18,043 — Total financial assets 29,902 — 23,296 1,672 Financial liabilities Short-term borrowings — 23,000 94 23,100 Total financial liabilities — 23,000 94 23,100 |
Sensitivity Analysis for Each Type of Market Risk | Potential effects on shareholders’ equity and profit or loss for one year from the reporting date as a result of a change in the interest rate are as follows. (In millions of yen) December 31, 2018 Shareholders’ equity Profit or (loss) before tax Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Interest expenses (79 ) 16 (115 ) 23 December 31, 2018 Shareholders’ equity Profit or (loss) before tax Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Debt instruments (145 ) 86 (212 ) 125 (In millions of yen) December 31, 2019 Shareholders’ equity Profit or (loss) before tax Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Interest expenses (79 ) 17 (116 ) 25 (In millions of yen) December 31, 2019 Shareholders’ equity Other comprehensive income/(loss) Increase of 50 basis points Decrease of 50 basis points Increase of 50 basis points Decrease of 50 basis points Debt instruments (121 ) 69 (177 ) 100 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement on a Recurring Basis [Member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | Assets and liabilities measured at fair value on a recurring basis in the Consolidated Statements of Financial Position as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss — — 10,261 10,261 Financial assets at FVOCI Equity instruments 791 — 6,505 7,296 Debt instruments — 18,005 — 18,005 Total 791 18,005 16,766 35,562 Financial liability at fair value through profit or loss Put option liabilities — — 296 296 Total — — 296 296 (In millions of yen) December 31, 2019 Level 1 Level 2 Level 3 Total Financial asset at fair value through profit or loss 172 3,016 17,312 20,500 Financial assets at FVOCI Equity instruments 6,750 — 2,898 9,648 Debt instruments — 18,043 — 18,043 Total 6,922 21,059 20,210 48,191 Financial liability at fair value through profit or loss Put option liabilities — — 224 224 Other 61 — — 61 Total 61 — 224 285 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | (3) Reconciliations from the opening balance to the closing balance of financial instruments categorized within Level 3 are as follows: (In millions of yen) 2018 2019 Private and other financial instruments Conversion right of Put option Financial Financial Equity Put option Fair value at the beginning of the year 7,143 8,539 (486 ) 10,261 6,505 (296 ) Total (loss)/gain for the year: Included in profit or loss (1) (553 ) — (74 ) 1,953 — 85 Included in other comprehensive income (2) — (1,916 ) — — (224 ) — Comprehensive (loss)/income (553 ) (1,916 ) (74 ) 1,953 (224 ) 85 Purchases 4,763 5,029 (16 ) 5,311 — (28 ) Sales and settlements (3) — (4,176 ) — — (556 ) — Exercise of options — — 250 — — — Decrease due to loss of control (963 ) (595 ) 26 — — — Other 138 (110 ) (3 ) (216 ) 176 16 Transfer to Level 1 (4) — — — — (3,000 ) — Effect of exchange rate changes (267 ) (266 ) 7 3 (3 ) (1 ) Fair value at the end of the year 10,261 6,505 (296 ) 17,312 2,898 (224 ) (1) This amount is included in “Other non-operating non-operating (2) This amount is included in “Net changes in fair value of equity instruments at FVOCI” in the Group’s Consolidated Statements of Comprehensive Income. (3) During the years ended December 31, 2018 and 2019, the Group sold financial assets at FVOCI. The cumulative gain on disposal amounted to 2,267 million yen and the cumulative loss on disposal amounted to 1,081 million yen, respectively. (4) During the year ended December 31, 2019, the issuing company of an equity instrument was listed on Tokyo Stock Exchange Mothers. Accordingly, such equity instrument was transferred from Level 3 to Level 1. |
Not measured at fair values in Consolidated Statements of Financial Position but for which fair values are disclosed [Member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | Assets and liabilities not measured at fair values in the Consolidated Statements of Financial Position, but for which fair values are disclosed as of December 31, 2018 and 2019 are as follows: (In millions of yen) December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets at amortized cost Corporate bonds and other debt instruments — 288 — 288 Guarantee deposits — 123 — 123 Office security deposits — 9,050 — 9,050 Total — 9,461 — 9,461 Financial liability at amortized cost Office securities deposits received under sublease agreement — 16 — 16 Corporate bonds — 143,743 — 143,743 Total — 143,759 — 143,759 (In millions of yen) December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets at amortized cost Corporate bonds and other debt instruments — 284 — 284 Guarantee deposits — 57 — 57 Office security deposits — 9,266 — 9,266 Others 100 100 Total — 9,707 — 9,707 Financial liability at amortized cost Office securities deposits received under sublease agreement — 16 — 16 Corporate bonds — 144,254 — 144,254 Total — 144,270 — 144,270 |
Put option liabilities [member] | Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | |
Statement [Line Items] | |
Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets | Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain put option liabilities: Valuation technique Significant unobservable input 2018 2019 Option pricing model Comparable listed companies’ average historical volatility 51.9% — Discount rate 1.8% — Monte Carlo simulation Comparable listed companies’ average historical volatility 43.1% 43.6% Discount rate 2.0% 1.7% |
Financial assets at fair value through other comprehensive income, category [member] | |
Statement [Line Items] | |
Fair Value Measurements of Assets by Fair Value Hierarchy | Financial assets at FVOCI as of December 31, 2019 are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Marketable 791 6,751 Non-marketable (1) 6,505 2,897 Total 7,296 9,648 (1) The fair value of non-marketable non-marketable |
Financial assets at fair value through other comprehensive income, category [member] | Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | |
Statement [Line Items] | |
Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets | Below is the quantitative information regarding the valuation techniques and significant unobservable inputs used in measuring the fair value of certain unlisted equity securities. Valuation technique Significant unobservable input 2018 2019 Market approach-market comparable companies Revenue multiple 1.3-9.1 1.4-13.3 Liquidity discount 30.0% 30.0% |
Financial assets at fair value through profit or loss [member] | Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | |
Statement [Line Items] | |
Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets | Below is the quantitative information regarding the valuation technique and significant unobservable inputs used in measuring the fair value of financial assets at fair value through profit or loss categorized within Level 3, except for private equity investment funds: Valuation technique Significant unobservable input 2018 2019 Discount cash flow model Discount rate 16.0% — Growth rate 2.0% — Binomial option pricing model Comparable listed companies’ average historical volatility 53.3%-54.0% 53.3%-54.0% Discount rate 2.0%-2.2% 1.4%-1.6% |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Options on a Per-common-share Basis | i. Movements during the years ended December 31, 2017, 2018 and 2019 The following table illustrates the number and weighted average exercise prices (“WAEP”) of, and movements in, outstanding stock options on a per-common-share 2017 Common Stock Options Number (shares) WAEP (yen per share) Outstanding at January 1 22,911,500 653 Granted during the year 2,386,000 4,206 Forfeited during the year (7,000 ) 1,320 Exercised during the year (1) (19,713,500 ) 583 Expired during the year — — Outstanding at December 31 5,577,000 2,421 Exercisable at December 31 3,191,000 1,086 2018 Common Stock Options Number (shares) WAEP (yen per share) Outstanding at January 1 5,577,000 2,421 Granted during the year — — Forfeited during the year (2) (983,200 ) 4,178 Exercised during the year (1) (855,500 ) 1,171 Expired during the year — — Outstanding at December 31 3,738,300 2,245 Exercisable at December 31 2,701,400 1,492 2019 Common Stock Options Number (shares) WAEP (yen per share) Outstanding at January 1 3,738,300 2,245 Granted during the year 4,702,800 3,500 Forfeited during the year (2) (152,300 ) 4,021 Exercised during the year (1) (608,500 ) 942 Expired during the year — — Outstanding at December 31 7,680,300 3,081 Exercisable at December 31 2,376,000 1,960 (1) The weighted average share price at the date of exercise of these options during the years ended December 31, 2017, 2018 and 2019 were 4,580 yen, 4,245 yen and 3,975 yen, respectively. (2) For the year ended December 31, 2018 and 2019 and 120,200 shares, respectively, of revocation due to waiver of rights. |
Summary of Exercise Price and Number for Shares of Options Outstanding | ii. The exercise price and the number of shares for options outstanding as of December 31, 2017, 2018 and 2019 are as follows: Number (Shares) Grant dates Exercise price December 31, December 31, December 31, December 17, 2013 344 763,500 544,500 309,000 February 8, 2014 1,320 818,000 649,000 502,500 August 9, 2014 1,320 218,000 148,500 116,000 November 1, 2014 1,320 145,000 122,500 109,000 February 4, 2015 1,320 1,246,500 891,500 708,500 July 18, 2017 4,206 2,386,000 1,382,300 1,262,100 July 29, 2019 3,500 — — 4,673,200 |
Inputs to Models Used for Deriving Fair Value of Stock Options Granted | iv. The following tables list the inputs to the models used for deriving the fair value of the stock options granted for the years ended December 31, 2017, 2018 and 2019. Grant dates Grant dates July 18, 2017 July 29, 2019 Dividend yield 0.0 % 0.0 % Expected volatility 44.9-45.7 % 36.6 % Risk-free interest rate (0.04)-0.00 % (0.15 )% Expected life of stock options (years) 5.5-7 10 Exercise price (yen) 4,206 3,500 Fair value per common share at the grant date (yen) 3,840 3,500 Model used Black-Scholes Binomial option |
Expenses Recognized in Connection with Share-Based Payments | v. The expenses recognized in connection with share-based payments during the years ended December 31, 2017, 2018 and 2019 are shown in the following table: (In millions of yen) 2017 2018 2019 Total expenses arising from equity-settled share-based payment transactions 1,602 559 888 |
E S O P equity settled [member] | |
Statement [Line Items] | |
Expenses Recognized in Connection with Share-Based Payments | iv. The expenses recognized in connection with share-based payments during the years ended December 31, 2017, 2018 and 2019 are shown in the following table: (In millions of yen) 2017 2018 2019 Total expenses arising from equity-settled share-based payment transactions 279 827 875 |
Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Other Options on a Per-common-share Basis | The following table illustrates the movements in outstanding points during the years ended December 31, 2017, 2018 and 2019: J-ESOP (Equity-settled) Number of points (1) 2017 2018 2019 Outstanding at January 1 — 251,302 445,401 Granted during the year 262,069 287,079 209,823 Forfeited during the year (10,767 ) (35,091 ) ( 48,662 ) Exercised during the year — (57,889 ) (145,579 ) Expired during the year — — ( 392 ) Outstanding at December 31 251,302 445,401 460,591 Exercisable at December 31 — 5,275 8,505 (1) One point is equal to one share. |
E S O P cash settled [member] | |
Statement [Line Items] | |
Expenses Recognized in Connection with Share-Based Payments | (In millions of yen) 2017 2018 2019 Total expenses arising from cash-settled share-based payment transactions 805 1,142 2,486 |
Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Other Options on a Per-common-share Basis | The following table illustrates the movements in outstanding points during the years ended December 31, 2017, 2018 and 2019: J-ESOP Number of points (1) 2017 2018 2019 Outstanding at January 1 — 533,502 890,624 Granted during the year 567,056 602,393 397,196 Forfeited during the year (33,554 ) (101,430 ) ( 94,297 ) Exercised during the year — (143,841 ) (305,760 ) Expired during the year — — ( 176 ) Outstanding at December 31 533,502 890,624 887,587 Exercisable at December 31, — 2,373 3,840 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Significant Related Party Transactions and Outstanding Balances with Related Parties | (1) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2017 are as follows: (In millions of yen) Relationship Name Transaction Transaction amount Outstanding receivable/ (payable) balances (3) Parent company NAVER Advertising service (1) 518 108 Subsidiary of parent company NAVER Business Platform Corp. (2) Operating expenses 8,475 (976 ) Associate of the Group Snow Corporation Transfer of camera application business (4) 10,651 — Director of the Company Joongho Shin Exercise of stock options (5) 6,922 — Director of the Company Hae Jin Lee Exercise of stock options (5) 1,917 — (1) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 518 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2017. (2) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (4) In May 2017, LINE Plus Corporation transferred its camera application business to Snow Corporation. In exchange for the transfer of the business, LINE Plus Corporation received 208,455 newly issued common shares of Snow Corporation, and the transaction amount represents the fair value of the newly issued common shares received on the transaction date. Refer to Note 20 Supplemental Cash Flow Information for further details. (5) Stock options, which had been issued with resolution at the meeting of board of directors on December 17, 2012 and January 30, 2015, have been exercised. The transaction amount includes the amount paid in by exercising stock options during the year ended December 31, 2017. (2) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2018 are as follows: (In millions of yen) Relationship Name Transaction Transaction amount Outstanding receivable/ (payable) balances (4) Parent company NAVER Underwrite of (1) 74,989 (71,901 ) Parent company NAVER Advertising service (2) 663 184 Subsidiary of parent company NAVER Business Platform Corp. (3) Operating expenses 8,566 (883 ) (1) During the year ended December 31, 2018, the Group issued Euro-yen (2) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 663 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2018. (3) This subsidiary of NAVER provided IT infrastructure services and related development services to the Group. (4) The receivable and payable amounts outstanding are unsecured and will be settled in cash. (3) Significant related party transactions and outstanding balances with related parties during the year ended December 31, 2019 are as follows: (In millions of yen) Relationship Name Transaction Transaction amount Outstanding receivable/ (payable) balances (3) Parent company NAVER Underwrite of (1) — (72,114 ) Parent company NAVER Advertising service (2) 694 192 Subsidiary of parent company NAVER Business Platform Corp . IT Infrastructure service and related development service 8,490 (937 ) (1) During the year ended December 31, 2019, the Group issued Euro-yen (2) LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 694 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2019. (3) The receivable and payable amounts outstanding are unsecured and will be settled in cash. |
Total Compensation of Key Management Personnel | (4) The total compensation of key management personnel for the years ended December 31, 2017, 2018 and 2019 is as follows: (In millions of yen) 2017 2018 2019 Salaries (including bonuses) 739 704 637 Share-based payments (1) 928 780 800 Other — 43 55 Total 1,667 1,527 1,492 (1) Refer to Note 27 Share-Based Payments for further details. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Five Inc [member] | |
Statement [Line Items] | |
Fair Values of Identifiable Assets and Liabilities at Date of Acquisition | The identifiable assets and liabilities of FIVE, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value on acquisition Assets Cash and cash equivalents 231 Trade and other receivables, current 307 Other financial assets, non-current 10 Property and equipment 9 Technology 391 Other assets 7 955 Liabilities Trade and other payables 288 Other financial liabilities, current 50 Deferred tax liabilities 123 Other liabilities 44 505 Total identifiable net assets at fair value 450 Goodwill 4,996 Total consideration 5,446 |
Analysis of Cash Flows on Acquisition | (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,446 ) Net cash and cash equivalents acquired at the acquisition date 231 Net cash flows on acquisition (included in cash flows from investing activities) (5,215 ) |
Next floor group [member] | |
Statement [Line Items] | |
Fair Values of Identifiable Assets and Liabilities at Date of Acquisition | The identifiable assets and liabilities of NextFloor Group, which are measured at fair value as of the date of acquisition except for limited exceptions in accordance with IFRS, were as follows: (In millions of yen) Fair value recognized on acquisition Assets Cash and cash equivalents 1,946 Trade receivables 335 Other financial assets, current 307 Other financial assets, non-current 754 Property and equipment 145 Intangible assets Software 153 Publishing rights 1,640 Other intangible assets 277 Investments in associates 805 Other assets 320 6,682 Liabilities Trade and other payables 404 Other financial liabilities, current 123 Other financial liabilities, non-current 63 Deferred tax liabilities 391 Other liabilities 264 1,245 Total identifiable net assets at fair value 5,437 Non-controlling (2,664 ) Goodwill 3,154 Total consideration 5,927 |
Analysis of Cash Flows on Acquisition | Transaction costs of 18 million yen have been expensed and are included in “Other operating expenses” in the Group’s Consolidated Statement of Profit or Loss. (In millions of yen) Analysis of cash flows on acquisition: Total consideration related to the acquisition (5,927 ) Debt equity swap 1,976 Net cash and cash equivalents acquired at the acquisition date 1,946 Net cash flows on acquisition (included in cash flows from investing activities) (2,005 ) |
Principal Subsidiaries (Tables)
Principal Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Information on Subsidiaries | (1) The Group has 65 consolidated subsidiaries. The significant subsidiaries of the Group include the following subsidiaries: Percentage of ownership Name Primary business activities Country of incorporation December 31, 2018 December 31, 2019 LINE Fukuoka Corp. Management support Japan 100.0 % 100.0 % LINE Pay Corporation Software development and Japan 100.0 % 100.0 % LINE GAME Global Gateway, L.P. (1) Investment Japan 100.0 % — M.T.Burn Inc. (2) Advertising platform Japan 50.5 % Gatebox Inc. (3) IoT hologram technology Taiwan 51.5 % 55.1 % LINE Financial Corporation Financial related service Japan 100.0 % 100.0 % LVC Corporation (4) Financial related service Japan 100.0 % 90.0 % LINE Part-Time Job, Ltd. (5) Job posting service Japan 60.0 % — LINE Ventures Global Limited Liability Partnership Investment Japan 100.0 % 100.0 % LINE Ventures Japan Limited Liability Partnership Investment Japan 100.0 % 100.0 % LINE Digital Frontier Corporation Software development Japan 70.0 % 70.0 % LINE Credit Corporation (6) Japan 100.0 % 51.0 % LINE Security Corporation (7) Security related business Japan 100.0 % 51.0 % LINE Plus Corporation Global Marketing Korea 100.0 % 100.0 % LINE Friends Corporation Character goods business Korea 100.0 % 100.0 % LINE C&I Corporation (8) Investment Korea 100.0 % — NemuTech Co., Ltd. (9) Software development Korea 94.2 % 100.0 % LINE Taiwan Limited Mobile service Taiwan 100.0 % 100.0 % LINE Biz+ Taiwan Limited Payment service Taiwan 70.0 % 70.0 % LINE Financial Taiwan Limited Financial related service Taiwan 100.0 % 100.0 % LFG HOLDINGS LIMITED Character goods business Hong Kong (China) 100.0 % 100.0 % LINE Financial Asia Corporation Limited Financial related service Hong Kong (China) 100.0 % 100.0 % LINE Company (Thailand) Limited (10) e-Commerce Thai 50.0 % 50.0 % LINE SOUTHEAST ASIA CORP.PTE.LTD. Software development and Singapore 100.0 % 100.0 % LINE MAN Corporation (11) Delivery service Singapore — 100.0 % LINE Friends (Shanghai) Commercial Trade Co., Ltd Character goods business China 100.0 % 100.0 % LINE VIETNAM JOINT STOCK COMPANY (12) Portal site operation Vietnam 98.8 % 99.1 % (1) LINE Game Global Gateway L.P. liquidated in February 2019. (2) M.T.Burn Inc. liquidated in November 2019. (3) The Group acquired additional interests of Gatebox Inc. As a result, the share of the Group increased from 51.0% to 55.1% (4) As a result of capital injections by Nomura Holdings, Inc. executed in October 2019, the Group’s ownership in LVC Corporation decreased from 100.0% to 90.0% (5) In August 2019, LINE Part-Time Job, Ltd. became a wholly-owned subsidiary, and has been merged with the Company in November 2019. (6) As a result of capital injections by Mizuho Bank, LINE Financial Corporation and Orient Corporation executed in May 2019, the Group’s ownership in LINE Credit Corporation decreased from 100.0% to 51.0%. (7) As a result of capital injections by LINE Financial Corporation and Nomura Holdings, Inc. executed in January 2019, the Group’s ownership in LINE Security Corporation (renamed from LINE Securities Preparatory Corporation) decreased from 100.0% to 51.0% and became a specified subsidiary as its amount of share capital excluded 10% of the Company’s share capital (8) LINE C&I Corporation liquidated in March 2019. (9) NemusTech Co.,Ltd. became a wholly owned subsidiary as a result of the Group acquired additional interests. (10) The Group’s ownership in LINE Company (Thailand) Limited is 50.0%, but it holds 90.9% of the voting rights. Accordingly, LINE Company (Thailand) Limited is included in the scope of consideration for the Group’s consolidated financial statements. (11) The Group established LINE MAN Corporation PTE. LTD, a wholly-owned subsidiary, in September 2019. (12) As a result of the third-party allotment executed by LINE VIETNAM JOINT STOCK COMPANY, the share of the Group decreased from 99.8% to 99.1%. |
M T Burn Inc [member] | |
Statement [Line Items] | |
Summarized Financial Information for the Subsidiaries Which the Group Recognize Non-controlling Interest | (2) The summarized financial information for the subsidiaries which the Group recognizes significant non-controlling (In millions of yen) M.T.Burn Inc. December 31, 2018 Current assets 3,866 Non-current assets 174 Current liabilities 538 Non-current liabilities 42 Equity 3,460 Accumulated non-controlling interest 1,715 Proportionate share of non-controlling interest 49.5 % (In millions of yen) M.T.Burn Inc. 2017 2018 Revenue 3,921 3,186 Net profit for the year 1,338 1,416 Other comprehensive income — — Total comprehensive income for the year 1,338 1,416 Profit attributable to non-controlling interest 661 703 Dividend paid to non-controlling interest — — (In millions of yen) M.T.Burn Inc. 2017 2018 Cash flows from operating activities 1,224 1,989 Cash flows from investing activities — — Cash flows from financing activities (258 ) — Net increase in cash and cash equivalent 966 1,989 |
Gatebox Inc [member] | |
Statement [Line Items] | |
Summarized Financial Information for the Subsidiaries Which the Group Recognize Non-controlling Interest | (In millions of yen) Gatebox Inc. December 31, 2018 Current assets 1,259 Non-current 353 Current liabilities 100 Non-current 2,046 Equity (534 ) Accumulated no-controlling (261 ) Proportionate share of non-controlling 49.0 % (In millions of yen) Gatebox Inc. 2017 2018 Revenue 0 95 Net loss for the year (541 ) (917 ) Other comprehensive income — — Total comprehensive income for the year (541 ) (917 ) Loss attributable to non-controlling (192 ) (449 ) Dividend paid to non-controlling — — (In millions of yen) Gatebox Inc. 2017 2018 Cash flows from operating activities (397 ) (963 ) Cash flows from investing activities (79 ) (10 ) Cash flows from financing activities (1 ) 1,934 Net (decrease)/increase in cash and cash equivalent (477 ) 961 |
LINE Company (Thailand) Limited [member] | |
Statement [Line Items] | |
Summarized Financial Information for the Subsidiaries Which the Group Recognize Non-controlling Interest | (In millions of yen) LINE Company December 31, 2018 Current assets 5,221 Non-current 2,583 Current liabilities 7,313 Non-current 2,049 Equity (1,558 ) Accumulated no-controlling 1,023 Proportionate share of non-controlling (1) 50.0 % (1) The non-controlling (In millions of yen) LINE Company (Thailand) Limited 2017 2018 Revenue 2,760 8,200 Net profit/(loss) for the year 357 (1,396 ) Other comprehensive income (60 ) 22 Total comprehensive income for the year 297 (1,374 ) Profit/(loss) attributable to non-controlling 198 (816 ) Dividend paid to non-controlling — — (In millions of yen) LINE Company (Thailand) Limited 2017 2018 Cash flows from operating activities 1,842 1,712 Cash flows from investing activities (430 ) (1,709 ) Cash flows from financing activities — — Net increase in cash and cash equivalent 1,412 3 |
Investments in Associates and_2
Investments in Associates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [Line Items] | |
Details of Investments in Significant Associates and Joint Ventures | (1) Details of investments in the Group’s significant associates and joint ventures are as follows: (In millions of yen) December 31, 2018 December 31, 2019 Primary business activities Country of incorporation Percentage of ownership Carrying amount Percentage of ownership Carrying amount Associates LINE Games Corporation. Game development and publishing Korea 49.5 % 18,438 49.5 % 14,523 PT. Bank KEB Hana Indonesia (1) Banking Indonesia — — 20.0 % 15,734 LINE Mobile Corporation (2) Mobile virtual network operator Japan 49.0 % 5,637 40.0 % 6,642 Snow Corporation (3) Mobile app Korea 34.0 % 9,346 29.2 % 5,317 K-Fund Investment France 25.0 % 2,670 25.0 % 4,416 FOLIO Co., Ltd. Online trading service Japan 41.4 % 5,126 41.4 % 3,840 LINE MUSIC Corporation Music distribution Japan 36.7 % 505 36.7 % 0 Joint ventures Drama & Company Co., Ltd. Software Development Korea 40.7 % 2,574 40.6 % 1,995 RABBIT-LINE PAY COMPANY LIMITED Payment service Thailand 33.3 % 1,856 33.3 % 1,561 (1) In March 2019, the Group acquired 20.0% of PT. Bank KEB Hana Indonesia’s total number of outstanding shares in order to establish a business partnership in banking business. As the Group has significant influence, but not control over PT. Bank KEB Hana Indonesia, the investment is accounted for under the equity method. (2) In April 2019, LINE Mobile Corporation, a subsidiary of the Group, issued its new shares through a third-party allotment. As a result, the Group’s ownership interest in LINE Mobile Corporation decreased from 49.0% to 40.0%. As the Group still has significant influence on LINE Mobile Corporation, the investment is accounted for under the equity method. (3) In August 2019, Snow Corporation, an associate of the Group, issued new shares through a third-party allotment. As a result, the Group’s ownership interest in Snow Corporation decreased from 34.0% to 29.2%. As the Group still has significant influence on Snow Corporation, the investment is accounted for under the equity method. |
Summary of Financial Information on Investment in Joint Ventures | (4) The aggregate amount of individually immaterial joint ventures accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, December 31, Carrying amount of the interests 5,150 7,683 2017 2018 2019 Loss for the year from continuing operations (2,211 ) (3,708 ) (3,535 ) Other comprehensive income/(loss) for the year, net of tax 81 (35 ) (106 ) Total comprehensive loss for the year, net of tax (2,130 ) (3,743 ) (3,641 ) |
Disclosure of significant assumptions used in calculation of impairment of investments in associates and joint ventures | The significant assumptions used in the value in use calculation are as follows: December 31, 2019 Pre-tax discount rates LINE Games Corporation 11.5 % Snow Corporation 14.3 % Terminal growth rates LINE Games Corporation 1.0 % Snow Corporation 1.0 % |
Snow Corporation [member] | |
Statement [Line Items] | |
Summary of Financial Information on Investment in Associates | (2) Financial information on the Group’s investment in the associates is summarized as follows: (In millions of yen) Snow Corporation December 31, December 31, Current assets 11,168 7,784 Non-current 15,119 14,055 Current liabilities 9,080 11,985 Non-current 2,482 3,974 Equity 14,725 5,880 Proportion of the Group’s ownership 34.0 % 29.2 % Group’s share of equity 5,007 1,717 Goodwill and other adjustments 4,339 3,600 Carrying amount of the interests 9,346 5,317 Snow Corporation 2017 2018 2019 Revenue 271 1,320 2,204 Loss for the year from continuing operations (10,348 ) (10,627 ) (12,744 ) Other comprehensive loss for the year, net of tax 131 (358 ) (680 ) Total comprehensive loss for the year, net of tax (10,217 ) (10,985 ) (13,424 ) Group’s share of loss for the year (4,531 ) (4,971 ) (4,443 ) |
Aggregated individually immaterial associates [member] | |
Statement [Line Items] | |
Summary of Financial Information on Investment in Associates | (3) The aggregate amount of individually immaterial associates accounted for by the equity-method accounted investee is summarized as follows: (In millions of yen) December 31, December 31, Carrying amount of the interests 33,788 44,552 2017 2018 2019 Loss for the year from continuing operations (3,050 ) (5,416 ) (9,267 ) Other comprehensive income for the year, net of tax 84 191 605 Total comprehensive loss for the year, net of tax (2,966 ) (5,225 ) (8,662 ) |
LINE Mobile Corporation [member] | |
Statement [Line Items] | |
Summary of Financial Information on Investment in Associates | (In millions of yen) LINE Mobile Corporation December 31, December 31, Current assets 8,451 14,237 Non-current 818 2,373 Current liabilities 4,951 5,822 Non-current 232 1,624 Equity 4,086 9,164 Proportion of the Group’s ownership 49.0 % 40.0 % Group’s share of equity 2,002 3,666 Goodwill and other adjustments 3,635 2,976 Carrying amount of the interests 5,637 6,642 LINE Mobile Corporation 2018 2019 Revenue 6,545 13,142 Loss for the year from continuing operations (5,490 ) (6,585 ) Other comprehensive income for the year, net of tax — — Total comprehensive loss for the year, net of tax (5,490 ) (6,585 ) Group’s share of loss for the year (2,690 ) (2,924 ) |
LINE Games Corporation [member] | |
Statement [Line Items] | |
Summary of Financial Information on Investment in Associates | (In millions of yen) LINE Games Corporation December 31, December 31, Current assets 14,345 0 Non-current assets 10,531 0 Current liabilities 1,185 0 Non-current liabilities 1,419 0 Equity 22,272 11,163 Proportion of the Group’s ownership 49.5 % 49.5 % Group’s share of equity 11,025 5,526 Goodwill and other adjustments 7,413 8,997 Carrying amount of the interests 18,438 14,523 LINE Games Corporation 2018 2019 Revenue 251 0 Loss for the year from continuing operations (488 ) (6,201 ) Other comprehensive loss for the year, net of tax (20 ) 78 Total comprehensive loss for the year, net of tax (508 ) (6,123 ) Group’s share of loss for the year (242 ) (6,201 ) |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - JPY (¥) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jan. 01, 2019 | |
Disclosure of performance obligations [line items] | |||||
Gain loss on purchase, sales or cancellation of treasury shares | ¥ 0 | ||||
Development expenditure capitalized | 0 | ¥ 0 | ¥ 0 | ||
Right-of-use assets | 54,337,000,000 | ¥ 46,279,000,000 | |||
Lease liabilities recognized at January 1, 2019 | ¥ 56,637,000,000 | ¥ 48,013,000,000 | |||
Impairment of available-for-sale financial asset description | When the fair value of an available-for-sale financial asset is below the acquisition cost consistently for a period of six months or more, or, if the fair value of the available-for-sale financial assets is 20% below its acquisition cost, impairment losses are assessed for such financial asset | ||||
Fair Value of Available For Sale of Financial Assets Percentage | 20.00% | ||||
LINE Stickers, Creator Stickers and Emoji [member] | |||||
Disclosure of performance obligations [line items] | |||||
Estimated period of recognizing revenues for each type of communication and content sales services | 100 days | 90 days | |||
Impact Of Adoption IFRS 16 [member] | |||||
Disclosure of performance obligations [line items] | |||||
Incremental Borrowing Rate | 2.21% | ||||
Increase Decrease Included In Operating Lease Expenses | ¥ 1,334,000,000 | ||||
Increase decrease of right of use assets | 10,435,000,000 | ||||
Increase Decrease Net Cash Used In Operating Activities | 9,167,000,000 | ||||
Increase Decrease Included In Other Operating Lease Expenses | 10,433,000,000 | ||||
Increase decrease of finance costs | ¥ 1,215,000,000 | ||||
Bottom of Range [member] | |||||
Disclosure of performance obligations [line items] | |||||
Lease Contract Term | 1 year | ||||
Top of Range [member] | |||||
Disclosure of performance obligations [line items] | |||||
Payment term for customers | 1 year | ||||
Lease Contract Term | 5 years | ||||
Server Hosting Services [member] | |||||
Disclosure of performance obligations [line items] | |||||
Period of recognizing revenue attributable to the post-termination-announcement performance obligations | 2 months | ||||
Payment Processing Services [member] | |||||
Disclosure of performance obligations [line items] | |||||
Period of recognizing revenue attributable to the post-termination-announcement performance obligations | 3 months | ||||
Third Party Games [member] | |||||
Disclosure of performance obligations [line items] | |||||
Estimated period of recognizing revenues for each type of communication and content sales services | 23 months | ||||
Internally developed games and applications [member] | Bottom of Range [member] | |||||
Disclosure of performance obligations [line items] | |||||
Estimated period of recognizing revenues for each type of communication and content sales services | 1 month | 15 months | 2 months | ||
Internally developed games and applications [member] | Top of Range [member] | |||||
Disclosure of performance obligations [line items] | |||||
Estimated period of recognizing revenues for each type of communication and content sales services | 32 months | 30 months | 30 months |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Lives for Property and Equipment (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equipment (mainly consist of servers) [member] | Bottom of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives for property and equipment | 3 years | 3 years | 3 years |
Equipment (mainly consist of servers) [member] | Top of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives for property and equipment | 5 years | 5 years | 5 years |
Furniture and fixtures [member] | Bottom of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives for property and equipment | 3 years | 3 years | 3 years |
Furniture and fixtures [member] | Top of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives for property and equipment | 5 years | 5 years | 5 years |
Others [member] | Bottom of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives for property and equipment | 3 years | 3 years | 3 years |
Others [member] | Top of Range [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Estimated useful lives for property and equipment | 5 years | 5 years | 5 years |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives for Intangible Assets with Finite Lives (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer relationships [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful lives for the intangible assets with finite lives | 7 years | 7 years | 7 years |
Domain Name [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful lives for the intangible assets with finite lives | 20 years | 20 years | 20 years |
Bottom of Range [member] | Software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful lives for the intangible assets with finite lives | 2 years | 2 years | 2 years |
Bottom of Range [member] | Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful lives for the intangible assets with finite lives | 1 year | 1 year | 1 year |
Top of Range [member] | Software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful lives for the intangible assets with finite lives | 10 years | 10 years | 10 years |
Top of Range [member] | Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Estimated useful lives for the intangible assets with finite lives | 10 years | 10 years | 10 years |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Lease Components Applying IAS17 And IFRIC4 (Detail) - JPY (¥) ¥ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Text block [abstract] | |||
Commitments for operating lease as of December 31, 2018 as disclosed in the Group's consolidated financial statements | ¥ 58,688 | ||
(Less) Short-term leases recognized as an expense on a straight-line basis | ¥ (545) | ¥ (708) | |
(Less) Leases of low-value assets recognized as an expense on a straight-line basis | (29) | (32) | |
(Less) Lease contracts start on or after January 1, 2019 | (3,092) | ||
Lease liabilities before discounts | 55,022 | ||
Discounts using the Group's incremental borrowing rate | (7,009) | ||
Lease liabilities recognized at January 1, 2019 | ¥ 48,013 | ¥ 56,637 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [abstract] | |||
Number of operating segments | 2 | 2 | |
Information about major customers | No single customer accounted for 10 percent or more of the Group’s total revenues | No single customer accounted for 10 percent or more of the Group’s total revenues | No single customer accounted for 10 percent or more of the Group’s total revenues |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Profit to Profit Before Tax from Continuing Operations (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of operating segments [line items] | |||||||
Revenue from external customers | ¥ 227,485 | [1] | ¥ 207,182 | [1] | ¥ 167,147 | [2] | |
Segment profit/(loss) | [3] | (38,997) | 16,110 | 25,078 | |||
Depreciation and amortization expenses | 22,737 | 11,135 | 7,149 | ||||
Financial income | 512 | 413 | 257 | ||||
Financial costs | (1,980) | (519) | (26) | ||||
Share of loss of associates and joint ventures | (13,412) | (11,148) | (6,321) | ||||
Loss on foreign currency transactions, net | (72) | (902) | (818) | ||||
Other non-operating income | 3,878 | 869 | 1,963 | ||||
Other non-operating expenses | (1,545) | (1,469) | (1,988) | ||||
Profit/(loss) before tax from continuing operations | (51,616) | 3,354 | 18,145 | ||||
Core business [member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue from external customers | 196,711 | 178,398 | 149,156 | ||||
Strategic business [member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue from external customers | 30,774 | 28,784 | 17,991 | ||||
Operating Segments [Member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue from external customers | 227,485 | 207,182 | 167,147 | [2] | |||
Segment profit/(loss) | [3] | (34,973) | (8,372) | 16,576 | |||
Depreciation and amortization expenses | 22,737 | 11,135 | 7,149 | ||||
Operating Segments [Member] | Core business [member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue from external customers | 196,711 | 178,398 | 149,156 | [2] | |||
Segment profit/(loss) | [3] | 31,584 | 26,559 | 34,250 | |||
Depreciation and amortization expenses | 14,573 | 8,832 | 6,252 | ||||
Operating Segments [Member] | Strategic business [member] | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue from external customers | 30,774 | 28,784 | 17,991 | [2] | |||
Segment profit/(loss) | [3] | (66,557) | (34,931) | (17,674) | |||
Depreciation and amortization expenses | 8,164 | 2,303 | 897 | ||||
Corporate adjustments [member] | |||||||
Disclosure of operating segments [line items] | |||||||
Segment profit/(loss) | [3],[4] | ¥ (4,024) | ¥ 24,482 | ¥ 8,502 | |||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | ||||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. | ||||||
[3] | The amount of “Segment profit/(loss)” is equivalent to profit/(loss) from operating activities on the Consolidated Statement of Profit or Loss. | ||||||
[4] | Corporate adjustments mainly include other operating income and share-based compensation expenses. |
Segment Information - Summary o
Segment Information - Summary of Revenue Recognized (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | ¥ 227,485 | [1] | ¥ 207,182 | [1] | ¥ 167,147 | [2] | |
Advertising [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | 124,842 | 108,237 | 75,971 | ||||
Advertising [member] | Display advertising [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [3] | 49,655 | 36,221 | 26,609 | |||
Advertising [member] | Account advertising [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [4] | 62,654 | 56,714 | 38,929 | |||
Advertising [member] | Other advertising [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [5] | 12,533 | 15,302 | 10,433 | |||
Communication, content, and others [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | 71,869 | 70,161 | 73,185 | ||||
Communication, content, and others [member] | Communication [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [6] | 28,319 | 28,527 | 30,225 | |||
Communication, content, and others [member] | Content [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [7] | 38,344 | 38,237 | 40,144 | |||
Communication, content, and others [member] | Others [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | 5,206 | 3,397 | 2,816 | ||||
Core business [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | 196,711 | 178,398 | 149,156 | ||||
Strategic business [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | 30,774 | 28,784 | 17,991 | ||||
Strategic business [member] | Others [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [8] | 11,585 | 9,205 | 5,692 | |||
Strategic business [member] | Friends [member] | |||||||
Disclosure of products and services [line items] | |||||||
Revenues recognized | [9] | ¥ 19,189 | ¥ 19,579 | ¥ 12,299 | |||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | ||||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. | ||||||
[3] | Revenues from display advertising primarily consisted of fees from advertisement on services such as Timeline, Smart Channel and LINE NEWS. | ||||||
[4] | Revenues from account advertising primarily consisted of fees from LINE Official Accounts, Sponsored Stickers and LINE Points. | ||||||
[5] | Revenues from other advertising were mainly attributable to advertising revenue from livedoor, NAVER Matome and LINE Part-Time Job. | ||||||
[6] | Revenues from communication were mainly attributable to sales of LINE Stickers and Creator Stickers. | ||||||
[7] | Revenues from content primarily consisted of sales of LINE GAME’s virtual items. | ||||||
[8] | Others for the year ended December 31, 2017 and 2018 primarily consisted of revenues from LINE Mobile service and E-commerce. Others for the year ended December 31, 2019 primarily consisted of revenue from E-commerce. | ||||||
[9] | Friends primarily consisted of revenues from sales of character goods. |
Segment Information - Revenues
Segment Information - Revenues from External Customers and Non-current Operating Assets Classified by Country or Region (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of geographical areas [line items] | ||||||
Revenues | ¥ 227,485 | [1] | ¥ 207,182 | [1] | ¥ 167,147 | [2] |
Non-current operating assets | 105,685 | 47,758 | ||||
Japan (country of domicile) [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 166,469 | 148,260 | 121,283 | |||
Non-current operating assets | 76,756 | 34,502 | ||||
Taiwan [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 21,923 | 18,593 | 16,630 | |||
Others [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Revenues | 39,093 | 40,329 | ¥ 29,234 | |||
Non-current operating assets | 18,151 | 7,946 | ||||
Korea [Member] | ||||||
Disclosure of geographical areas [line items] | ||||||
Non-current operating assets | ¥ 10,778 | ¥ 5,310 | ||||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | |||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. |
Cash and Cash Equivalents - Bre
Cash and Cash Equivalents - Breakdown of Cash and Cash Equivalents (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||||
Cash on hand | ¥ 12 | ¥ 13 | ||
Demand deposits | 217,333 | 256,965 | ||
Total cash and cash equivalents | ¥ 217,345 | ¥ 256,978 | ¥ 123,606 | ¥ 134,698 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Trade and other receivables, current | ¥ 42,680 | ¥ 37,644 |
Total trade and other receivables | 42,680 | 37,644 |
Gross carrying amount [member] | ||
Disclosure of financial assets [line items] | ||
Trade and other receivables, current | 42,884 | 38,097 |
Trade receivables, non-current | 462 | 14 |
Allowance for doubtful account/Loss allowance [Member] | ||
Disclosure of financial assets [line items] | ||
Trade and other receivables, current | (204) | (453) |
Trade receivables, non-current | ¥ (462) | ¥ (14) |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Classes of current inventories [abstract] | ||
Goods | ¥ 2,107 | ¥ 4,887 |
Other | 2,633 | |
Total Inventories | ¥ 4,740 | ¥ 4,887 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Cost of goods recognized from continuing operations | ¥ 7,760 | ¥ 7,346 | ¥ 4,436 |
Inventory valuation losses recognized from continuing operations | ¥ 369 | ¥ 276 | ¥ 510 |
Property and Equipment - Change
Property and Equipment - Changes in Property and Equipment (Detail) - JPY (¥) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | ¥ 24,726,000,000 | ¥ 15,125,000,000 | |
Acquisitions | 0 | ||
Impairment | 57,000,000 | 0 | ¥ 0 |
Ending balance | 25,024,000,000 | 24,726,000,000 | 15,125,000,000 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 45,856,000,000 | 30,082,000,000 | |
Acquisitions | 10,320,000,000 | 18,805,000,000 | |
Disposals | (2,228,000,000) | (2,166,000,000) | |
Acquisition through business combinations | 32,000,000 | ||
Loss of control of subsidiaries | (553,000,000) | ||
Exchange differences | (111,000,000) | (250,000,000) | |
Other | (201,000,000) | (94,000,000) | |
Ending balance | 53,636,000,000 | 45,856,000,000 | 30,082,000,000 |
Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 21,130,000,000 | 14,957,000,000 | |
Disposals | (1,881,000,000) | (1,768,000,000) | |
Depreciation | 9,516,000,000 | 8,418,000,000 | |
Acquisition through business combinations | 12,000,000 | ||
Loss of control of subsidiaries | (362,000,000) | ||
Impairment | 57,000,000 | ||
Exchange differences | (51,000,000) | (106,000,000) | |
Other | (159,000,000) | (21,000,000) | |
Ending balance | 28,612,000,000 | 21,130,000,000 | 14,957,000,000 |
Furniture and fixtures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,342,000,000 | 4,622,000,000 | |
Ending balance | 4,832,000,000 | 4,342,000,000 | 4,622,000,000 |
Furniture and fixtures [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 7,570,000,000 | 6,501,000,000 | |
Acquisitions | 2,262,000,000 | 1,105,000,000 | |
Disposals | (34,000,000) | (8,000,000) | |
Exchange differences | (1,000,000) | ||
Other | (78,000,000) | (27,000,000) | |
Ending balance | 9,720,000,000 | 7,570,000,000 | 6,501,000,000 |
Furniture and fixtures [member] | Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,228,000,000 | 1,879,000,000 | |
Disposals | (17,000,000) | (1,000,000) | |
Depreciation | 1,691,000,000 | 1,352,000,000 | |
Exchange differences | (1,000,000) | ||
Other | (14,000,000) | (1,000,000) | |
Ending balance | 4,888,000,000 | 3,228,000,000 | 1,879,000,000 |
Equipment (mainly consist of servers) [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 18,718,000,000 | 9,794,000,000 | |
Ending balance | 18,877,000,000 | 18,718,000,000 | 9,794,000,000 |
Equipment (mainly consist of servers) [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 35,863,000,000 | 22,196,000,000 | |
Acquisitions | 7,646,000,000 | 16,095,000,000 | |
Disposals | (2,000,000,000) | (2,134,000,000) | |
Acquisition through business combinations | 18,000,000 | ||
Loss of control of subsidiaries | (141,000,000) | ||
Exchange differences | (106,000,000) | (187,000,000) | |
Other | 390,000,000 | 16,000,000 | |
Ending balance | 41,793,000,000 | 35,863,000,000 | 22,196,000,000 |
Equipment (mainly consist of servers) [member] | Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 17,145,000,000 | 12,402,000,000 | |
Disposals | (1,728,000,000) | (1,751,000,000) | |
Depreciation | 7,552,000,000 | 6,745,000,000 | |
Acquisition through business combinations | 11,000,000 | ||
Loss of control of subsidiaries | (73,000,000) | ||
Impairment | 57,000,000 | ||
Exchange differences | (46,000,000) | (78,000,000) | |
Other | (64,000,000) | (111,000,000) | |
Ending balance | 22,916,000,000 | 17,145,000,000 | 12,402,000,000 |
Construction-in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 963,000,000 | 42,000,000 | |
Ending balance | 555,000,000 | 963,000,000 | 42,000,000 |
Construction-in-progress [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 963,000,000 | 42,000,000 | |
Acquisitions | 54,000,000 | 970,000,000 | |
Exchange differences | 2,000,000 | (7,000,000) | |
Other | (464,000,000) | (42,000,000) | |
Ending balance | 555,000,000 | 963,000,000 | 42,000,000 |
Others [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 703,000,000 | 667,000,000 | |
Ending balance | 760,000,000 | 703,000,000 | 667,000,000 |
Others [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,460,000,000 | 1,343,000,000 | |
Acquisitions | 358,000,000 | 635,000,000 | |
Disposals | (194,000,000) | (24,000,000) | |
Acquisition through business combinations | 14,000,000 | ||
Loss of control of subsidiaries | (412,000,000) | ||
Exchange differences | (7,000,000) | (55,000,000) | |
Other | (49,000,000) | (41,000,000) | |
Ending balance | 1,568,000,000 | 1,460,000,000 | 1,343,000,000 |
Others [member] | Accumulated depreciation, amortization and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 757,000,000 | 676,000,000 | |
Disposals | (136,000,000) | (16,000,000) | |
Depreciation | 273,000,000 | 321,000,000 | |
Acquisition through business combinations | 1,000,000 | ||
Loss of control of subsidiaries | (289,000,000) | ||
Exchange differences | (5,000,000) | (27,000,000) | |
Other | (81,000,000) | 91,000,000 | |
Ending balance | ¥ 808,000,000 | ¥ 757,000,000 | ¥ 676,000,000 |
Property and Equipment - Contra
Property and Equipment - Contractual Commitments for Acquisition of Property and Equipment (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Contractual commitments for acquisition of property and equipment | ¥ 1,047 | ¥ 1,820 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2019JPY (¥) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Additions of Property Plant Equipment | ¥ 0 |
Increase Decrease Loss From Operating Activities | ¥ 1,268 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Intangible Assets (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | ¥ 22,393 | ¥ 23,253 | |||
Ending balance | 25,452 | 22,393 | |||
Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 30,403 | 29,838 | |||
Acquisitions | 5,687 | 3,223 | |||
Acquisition through business combinations | 615 | 1,224 | |||
Loss of control of subsidiaries(6) | (2,977) | ||||
Disposals or sales | (3,828) | [1] | (8) | ||
Exchange differences | 26 | (706) | |||
Other | (120) | (191) | |||
Ending balance | 32,783 | 30,403 | |||
Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 8,010 | 6,585 | |||
Loss of control of subsidiaries(6) | (1,086) | ||||
Disposals or sales | (3,536) | [1] | (6) | ||
Amortization | 2,761 | 2,716 | |||
Impairment | 96 | [2] | 212 | ||
Exchange differences | 42 | (297) | |||
Other | (42) | (114) | |||
Ending balance | 7,331 | 8,010 | |||
Goodwill [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 17,095 | 16,767 | |||
Ending balance | 17,651 | 17,095 | |||
Goodwill [member] | Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 19,248 | 19,093 | |||
Acquisition through business combinations | 615 | 1,224 | |||
Loss of control of subsidiaries(6) | (560) | ||||
Disposals or sales | [1] | (2,113) | |||
Exchange differences | (59) | (464) | |||
Other | (45) | ||||
Ending balance | 17,691 | 19,248 | |||
Goodwill [member] | Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 2,153 | 2,326 | |||
Disposals or sales | [1] | (2,113) | |||
Exchange differences | (173) | ||||
Ending balance | 40 | 2,153 | |||
Software [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 734 | [3] | 988 | [4] | |
Ending balance | [3] | 4,313 | 734 | ||
Software [member] | Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 2,315 | [3] | 2,350 | [4] | |
Acquisitions | 3,868 | [3] | 225 | [4] | |
Loss of control of subsidiaries(6) | [4],[5] | (191) | |||
Disposals or sales | (728) | [1] | (8) | [4] | |
Exchange differences | 2 | [3] | (61) | [4] | |
Other | [3] | 372 | |||
Ending balance | [3] | 5,829 | 2,315 | ||
Software [member] | Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 1,581 | [3] | 1,362 | [4] | |
Loss of control of subsidiaries(6) | [4],[5] | (50) | |||
Disposals or sales | (717) | [1] | (6) | [4] | |
Amortization | 652 | [3] | 262 | [4] | |
Impairment | [4] | 52 | |||
Exchange differences | [4] | (39) | |||
Ending balance | [3] | 1,516 | 1,581 | ||
Music rights [member] | Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 425 | 460 | |||
Disposals or sales | [1] | (425) | |||
Exchange differences | (35) | ||||
Ending balance | 425 | ||||
Music rights [member] | Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 425 | 460 | |||
Disposals or sales | [1] | (425) | |||
Exchange differences | (35) | ||||
Ending balance | 425 | ||||
Customer relationships [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 238 | 416 | |||
Ending balance | 82 | 238 | |||
Customer relationships [member] | Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 723 | 741 | |||
Exchange differences | (2) | (18) | |||
Ending balance | 721 | 723 | |||
Customer relationships [member] | Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 485 | 325 | |||
Amortization | 155 | 168 | |||
Exchange differences | (1) | (8) | |||
Ending balance | 639 | 485 | |||
Game publishing rights [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 1,465 | ||||
Game publishing rights [member] | Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 1,749 | ||||
Loss of control of subsidiaries(6) | (1,790) | ||||
Exchange differences | 41 | ||||
Game publishing rights [member] | Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 284 | ||||
Loss of control of subsidiaries(6) | (912) | ||||
Amortization | 636 | ||||
Exchange differences | (8) | ||||
Other intangible assets [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 4,326 | [6] | 3,617 | [7] | |
Ending balance | [6] | 3,406 | 4,326 | ||
Other intangible assets [member] | Gross carrying amount [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 7,692 | [6] | 5,445 | [7] | |
Acquisitions | 1,819 | [6] | 2,998 | [7] | |
Loss of control of subsidiaries(6) | [5],[7] | (436) | |||
Disposals or sales | [1],[6] | (562) | |||
Exchange differences | 85 | [6] | (169) | [7] | |
Other | (492) | [6] | (146) | [7] | |
Ending balance | [6] | 8,542 | 7,692 | ||
Other intangible assets [member] | Accumulated depreciation, amortization and impairment [member] | |||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||
Beginning balance | 3,366 | [6] | 1,828 | [7] | |
Loss of control of subsidiaries(6) | [5],[7] | (124) | |||
Disposals or sales | [1],[6] | (281) | |||
Amortization | 1,954 | [6] | 1,650 | [7] | |
Impairment | 96 | [2],[6] | 160 | [7] | |
Exchange differences | 43 | [6] | (34) | [7] | |
Other | (42) | [6] | (114) | [7] | |
Ending balance | [6] | ¥ 5,136 | ¥ 3,366 | ||
[1] | Mainly related to the liquidation of the MixRadio business. | ||||
[2] | Refer to Note 11 Impairment for further details. | ||||
[3] | Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2019 was four years. | ||||
[4] | Software was mainly comprised of externally acquired software. The remaining useful life of software as of December 31, 2018 was three years. | ||||
[5] | The balances were mainly comprised with the changes in the Group’s ownership ratio of LINE Games Corporation (renamed from NextFloor Corporation) resulting in the investment to be accounted for as an associate under the equity method rather than as a consolidated subsidiary. Refer to Note 30 Principal Subsidiaries for further details. | ||||
[6] | The balances of acquisition cost of others as of December 31, 2019 mainly consist of 2,011 million yen of licenses for LINE TV, 632 million yen of domain name, and 439 million yen of trademark and patented technology. The balances of carrying amounts as of December 31, 2019 of these intangible assets were 918 million yen, 549 million yen and 248 million yen, respectively. | ||||
[7] | Others mainly consist of 1,471 million yen for acquisition of licenses for LINE TV, 651 million yen for acquisition of domain name, and 437 million yen for Gatebox Inc.’s acquisition of trademark and patented technology. The carrying amounts as of December 31, 2018 of these intangible assets were 1,064 million yen, 587 million yen and 306 million yen, respectively. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Goodwill and Other Intangible Assets (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Carrying amount, Intangible assets | ¥ 7,801 | ¥ 5,298 | |
Domain Name [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Remaining useful life | 20 years | 20 years | 20 years |
Software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Remaining useful life | 4 years | 3 years | |
LINE TV [member] | Licences [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets acquired | ¥ 2,011 | ¥ 1,471 | |
Carrying amount, Intangible assets | 918 | 1,064 | |
LINE TV [member] | Domain Name [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets acquired | 632 | 651 | |
Carrying amount, Intangible assets | 549 | 587 | |
Gatebox Inc [member] | Trademark and Patented Technology [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets acquired | 439 | 437 | |
Carrying amount, Intangible assets | ¥ 248 | ¥ 306 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | |||
Research and development expenditure | ¥ 26,606 | ¥ 19,096 | ¥ 10,357 |
Impairment - Additional Informa
Impairment - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019JPY (¥)Segment | Dec. 31, 2018JPY (¥)Segment | Dec. 31, 2017JPY (¥) | ||
Disclosure of information for cash-generating units [line items] | ||||
Number of CGU's | 5 | 5 | ||
Number of operating segments | Segment | 2 | |||
Number of reportable segments | Segment | 2 | 2 | ||
Impairment loss of goodwill | ¥ 0 | ¥ 0 | ¥ 0 | |
Impairment loss of other intangible assets | 96,000,000 | 212,000,000 | 214,000,000 | |
Impairment loss of property and equipment | 57,000,000 | 0 | 0 | |
Impairment loss of right-of-use assets | [1] | 617,000,000 | ||
Kiwiple [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss of other intangible assets | 134,000,000 | |||
LINE Games Global Gateway L.P. [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss of other intangible assets | ¥ 80,000,000 | |||
Line Friends [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss of property and equipment | 57,000,000 | |||
Impairment loss of right-of-use assets | 617,000,000 | |||
Core business [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss of other intangible assets | 60,000,000 | |||
Strategic business [member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss of other intangible assets | ¥ 152,000,000 | |||
Strategic business [member] | Line Friends [Member] | ||||
Disclosure of information for cash-generating units [line items] | ||||
Impairment loss of other intangible assets | ¥ 96,000,000 | |||
[1] | Refer to Note 11 Impairment for further details. |
Impairment - Carrying Amount of
Impairment - Carrying Amount of Goodwill Allocated to Each of Cash Generating Units for Impairment Testing (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of information for cash-generating units [line items] | |||
Goodwill | ¥ 17,651 | ¥ 17,095 | ¥ 16,767 |
LINE business and portal CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | ¥ 16,767 | ||
Core business [member] | Core business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 14,789 | 14,838 | |
Strategic business [member] | Friends business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 737 | 740 | |
Strategic business [member] | Fintech business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 1,072 | 1,075 | |
Strategic business [member] | E-Commerce business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | 919 | 307 | |
Strategic business [member] | AI business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Goodwill | ¥ 134 | ¥ 135 |
Impairment - Significant Assump
Impairment - Significant Assumptions Used in Value in Use Calculations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
LINE business and portal CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax discount rate | 10.30% | ||
Terminal growth rate | 1.60% | ||
Core business [member] | Core business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax discount rate | 10.80% | 11.60% | |
Terminal growth rate | 1.30% | 1.30% | |
Strategic business [member] | Friends business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax discount rate | 14.30% | 11.20% | |
Terminal growth rate | 2.30% | 2.30% | |
Strategic business [member] | Fintech business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax discount rate | 13.40% | 11.80% | |
Terminal growth rate | 1.30% | 1.60% | |
Strategic business [member] | E-Commerce business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax discount rate | 13.60% | 11.00% | |
Terminal growth rate | 1.40% | 1.70% | |
Strategic business [member] | AI business CGU [member] | |||
Disclosure of information for cash-generating units [line items] | |||
Pre-tax discount rate | 12.30% | 11.50% | |
Terminal growth rate | 1.10% | 1.70% |
Impairment - Summary of Signifi
Impairment - Summary of Significant Assumptions Used in Calculation of Recoverable Amount (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of Range [member] | |
Statement [Line Items] | |
Pre tax discount rate | 9.90% |
Top of Range [member] | |
Statement [Line Items] | |
Pre tax discount rate | 13.90% |
Impairment - Summary of Carryin
Impairment - Summary of Carrying Amounts of Right-of-use Assets and Property and Equipment (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amounts Of RightOfUse Assets and Property and Equipment [Line Items] | ||||
Right-of-use assets | ¥ 54,337 | ¥ 46,279 | ||
Property and equipment | 25,024 | ¥ 24,726 | ¥ 15,125 | |
Strategic Business [member] | ||||
Carrying Amounts Of RightOfUse Assets and Property and Equipment [Line Items] | ||||
Right-of-use assets | 13,074 | |||
Property and equipment | 1,376 | |||
Total | ¥ 14,450 |
Provisions - Changes in Provisi
Provisions - Changes in Provisions (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | ||
Beginning balance | ¥ 5,890 | ¥ 4,051 |
Arising during the year | 6,629 | 4,800 |
Utilized | (4,644) | (3,196) |
Reversal | (96) | (49) |
Unwinding of discount and changes in the discount rate | 2 | 0 |
Increase due to business combinations | 10 | |
Decrease due to loss of control of subsidiaries | (149) | |
Exchange differences | (8) | (39) |
Other | (24) | 462 |
Ending balance | 7,749 | 5,890 |
Restoration obligations for lease properties [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 3,303 | 3,030 |
Arising during the year | 1,303 | 517 |
Utilized | (36) | (82) |
Reversal | (18) | (3) |
Unwinding of discount and changes in the discount rate | 2 | 0 |
Increase due to business combinations | 10 | |
Decrease due to loss of control of subsidiaries | (149) | |
Exchange differences | (19) | (37) |
Other | 17 | |
Ending balance | 4,535 | 3,303 |
Promotional virtual credits reserve [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 2,535 | 607 |
Arising during the year | 5,124 | 4,188 |
Utilized | (4,592) | (2,700) |
Reversal | (78) | (17) |
Exchange differences | 10 | (2) |
Other | 459 | |
Ending balance | 2,999 | 2,535 |
Other [member] | ||
Disclosure of other provisions [line items] | ||
Beginning balance | 52 | 414 |
Arising during the year | 202 | 95 |
Utilized | (16) | (414) |
Reversal | (29) | |
Exchange differences | 1 | 0 |
Other | (24) | (14) |
Ending balance | ¥ 215 | ¥ 52 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Taxes Related to Each Component of Other Comprehensive Income (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax relating to components of other comprehensive income [abstract] | |||
Remeasurement of defined benefit plans, Pretax | ¥ (1,134) | ¥ (169) | ¥ 2,093 |
Foreign currency translation adjustments, Pretax | (732) | (4,047) | 3,751 |
Reclassification adjustments for foreign currency translation adjustments, Pretax | (448) | (345) | (13) |
Proportionate share of other comprehensive income of associates, Pretax | 8 | (27) | 106 |
Reclassification adjustments for net changes in proportionate share of other comprehensive income of associates, Pretax | (12) | ||
Net changes in fair value of equity instruments at FVOCI, Pretax | 3,799 | (2,681) | |
Net changes in fair value of debt instruments at FVOCI, Pretax | (7) | 88 | |
Reclassification adjustments for net changes in fair value of debt instruments at FVOCI, Pretax | 1 | 10 | |
Net change in fair value of available-for-sale financial assets, Pretax | (3,339) | ||
Reclassification adjustments for net change in fair value of available-for-sale financial assets, Pretax | 1,090 | ||
Total, Pretax | 1,487 | (7,183) | 3,688 |
Remeasurement of defined benefit plans, Tax | 110 | (29) | (488) |
Foreign currency translation adjustments, Tax | 418 | 372 | (146) |
Proportionate share of other comprehensive income of associates, Tax | (34) | (4) | (14) |
Net changes in fair value of equity instruments at FVOCI, Tax | (1,201) | 735 | |
Net changes in fair value of debt instruments at FVOCI, Tax | 2 | (28) | |
Net change in fair value of available-for-sale financial assets, Tax | 836 | ||
Reclassification adjustments for net change in fair value of available-for-sale financial assets, Tax | (343) | ||
Total, Tax | (705) | 1,046 | (155) |
Remeasurement of defined benefit plans, Post tax | (1,024) | (198) | 1,605 |
Foreign currency translation adjustments, Post tax | (314) | (3,675) | 3,605 |
Reclassification adjustments for foreign currency translation adjustments, Post tax | (448) | (345) | (13) |
Proportionate share of other comprehensive income of associates, Post tax | (26) | (31) | 92 |
Reclassification adjustments for net changes in proportionate share of other comprehensive income of associates, Post tax | (12) | ||
Net changes in fair value of equity instruments at FVOCI, Post tax | 2,598 | (1,946) | |
Net changes in fair value of debt instruments at FVOCI, Post tax | (5) | 60 | |
Reclassification adjustments for net changes in fair value of debt instruments at FVOCI, Post tax | 1 | 10 | |
Net change in fair value of available-for-sale financial assets, Post tax | (2,503) | ||
Reclassification adjustments for net change in fair value of available-for-sale financial assets, Post tax | 747 | ||
Total other comprehensive income/(loss) for the year, net of tax | ¥ 782 | ¥ (6,137) | ¥ 3,533 |
Income Taxes - Current and De_2
Income Taxes - Current and Deferred Taxes Related to Items Directly Charged or Credited to Equity (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Total tax directly (credited)/charged to equity | ¥ (1) | ¥ 1,889 |
Stock Option [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Share issuance costs | ¥ (1) | (3) |
Share issuance costs | (20) | |
Employee Stock Ownership Plan [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Share issuance costs | (5) | |
Convertible bonds [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Share issuance costs | ¥ 1,917 |
Income Taxes - Movements in Def
Income Taxes - Movements in Deferred Tax Assets and Deferred Tax Liabilities (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Amounts recognized under other comprehensive income | ¥ (705) | ¥ 1,046 | ¥ (155) | |||
Deferred tax liabilities [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (6,082) | (2,208) | ||||
Amounts recorded under profit or loss | (1,794) | (2,754) | ||||
Amounts recognized under other comprehensive income | (1,013) | 170 | ||||
Other | 5 | [1] | (1,985) | [2] | ||
Ending balance | (18,155) | (6,082) | (2,208) | |||
Deferred tax liabilities [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (9,271) | 695 | ||||
Ending balance | (9,271) | 695 | ||||
Deferred tax liabilities [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (15,353) | (1,513) | ||||
Ending balance | (15,353) | (1,513) | ||||
Deferred tax liabilities [Member] | Available-for-sale financial assets [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (1,027) | |||||
Ending balance | (1,027) | |||||
Deferred tax liabilities [Member] | Available-for-sale financial assets [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,027 | |||||
Ending balance | 1,027 | |||||
Deferred tax liabilities [Member] | Financial assets at fair value through profit or loss [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (343) | |||||
Amounts recorded under profit or loss | (650) | (137) | ||||
Other | (6) | [1] | 1 | [2] | ||
Ending balance | (999) | (343) | ||||
Deferred tax liabilities [Member] | Financial assets at fair value through profit or loss [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (207) | |||||
Ending balance | (207) | |||||
Deferred tax liabilities [Member] | Financial assets at fair value through profit or loss [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (343) | (207) | ||||
Ending balance | (343) | (207) | ||||
Deferred tax liabilities [Member] | Tax effect on investments in subsidiaries and associates [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (2,651) | |||||
Amounts recorded under profit or loss | 1,588 | (2,796) | ||||
Amounts recognized under other comprehensive income | 266 | 146 | ||||
Other | [2] | (1) | ||||
Ending balance | (797) | (2,651) | ||||
Deferred tax liabilities [Member] | Tax effect on investments in subsidiaries and associates [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (2,651) | |||||
Ending balance | (2,651) | |||||
Deferred tax liabilities [Member] | Convertible bonds [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (1,866) | |||||
Amounts recorded under profit or loss | 326 | 52 | ||||
Other | [2] | (1,918) | ||||
Ending balance | (1,540) | (1,866) | ||||
Deferred tax liabilities [Member] | Convertible bonds [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (1,866) | |||||
Ending balance | (1,866) | |||||
Deferred tax liabilities [Member] | Prepaid expenses [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (748) | (356) | ||||
Amounts recorded under profit or loss | 111 | (247) | ||||
Other | [2] | (5) | ||||
Ending balance | (637) | (748) | (356) | |||
Deferred tax liabilities [Member] | Prepaid expenses [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (140) | |||||
Ending balance | (140) | |||||
Deferred tax liabilities [Member] | Prepaid expenses [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (748) | (496) | ||||
Ending balance | (748) | (496) | ||||
Deferred tax liabilities [Member] | Right-of-use assets [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Amounts recorded under profit or loss | (3,175) | |||||
Ending balance | (12,344) | |||||
Deferred tax liabilities [Member] | Right-of-use assets [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (9,169) | |||||
Ending balance | (9,169) | |||||
Deferred tax liabilities [Member] | Right-of-use assets [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (9,169) | |||||
Ending balance | (9,169) | |||||
Deferred tax liabilities [Member] | Intangible assets [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (360) | (824) | ||||
Amounts recorded under profit or loss | 92 | 432 | ||||
Amounts recognized under other comprehensive income | 24 | |||||
Other | 3 | [1] | 8 | [2] | ||
Ending balance | (265) | (360) | (824) | |||
Deferred tax liabilities [Member] | Intangible assets [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (360) | (824) | ||||
Ending balance | (360) | (824) | ||||
Deferred tax liabilities [Member] | Other [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (85) | (1) | ||||
Amounts recorded under profit or loss | (86) | (58) | ||||
Amounts recognized under other comprehensive income | (1) | |||||
Other | [2] | (25) | ||||
Ending balance | (273) | (85) | (1) | |||
Deferred tax liabilities [Member] | Other [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (102) | |||||
Ending balance | (102) | |||||
Deferred tax liabilities [Member] | Other [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (187) | (1) | ||||
Ending balance | (187) | (1) | ||||
Deferred tax liabilities [Member] | Financial assets at fair value through other comprehensive income, category [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (29) | |||||
Amounts recognized under other comprehensive income | (1,279) | 1 | ||||
Other | 8 | [1] | (45) | [2] | ||
Ending balance | (1,300) | (29) | ||||
Deferred tax liabilities [Member] | Financial assets at fair value through other comprehensive income, category [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 15 | |||||
Ending balance | 15 | |||||
Deferred tax liabilities [Member] | Financial assets at fair value through other comprehensive income, category [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (29) | 15 | ||||
Ending balance | (29) | 15 | ||||
Deferred tax assets [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 22,686 | 17,127 | ||||
Amounts recorded under profit or loss | 9,430 | 4,349 | ||||
Amounts recognized under other comprehensive income | (184) | 1,520 | ||||
Other | (37) | [1] | (105) | [2] | ||
Ending balance | 41,179 | 22,686 | 17,127 | |||
Deferred tax assets [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 9,284 | (205) | ||||
Ending balance | 9,284 | (205) | ||||
Deferred tax assets [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 31,970 | 16,922 | ||||
Ending balance | 31,970 | 16,922 | ||||
Deferred tax assets [Member] | Available-for-sale financial assets [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 487 | |||||
Ending balance | 487 | |||||
Deferred tax assets [Member] | Available-for-sale financial assets [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (487) | |||||
Ending balance | (487) | |||||
Deferred tax assets [Member] | Financial assets at fair value through profit or loss [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 423 | |||||
Amounts recorded under profit or loss | 22 | 233 | ||||
Other | (2) | [1] | (6) | [2] | ||
Ending balance | 443 | 423 | ||||
Deferred tax assets [Member] | Financial assets at fair value through profit or loss [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 196 | |||||
Ending balance | 196 | |||||
Deferred tax assets [Member] | Financial assets at fair value through profit or loss [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 423 | 196 | ||||
Ending balance | 423 | 196 | ||||
Deferred tax assets [Member] | Tax effect on investments in subsidiaries and associates [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 2,451 | 2,105 | ||||
Amounts recorded under profit or loss | 211 | 120 | ||||
Amounts recognized under other comprehensive income | 117 | 194 | ||||
Other | [2] | 32 | ||||
Ending balance | 2,779 | 2,451 | 2,105 | |||
Deferred tax assets [Member] | Tax effect on investments in subsidiaries and associates [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 2,451 | 2,105 | ||||
Ending balance | 2,451 | 2,105 | ||||
Deferred tax assets [Member] | Other [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,868 | 1,020 | ||||
Amounts recorded under profit or loss | 1,430 | 597 | ||||
Other | (5) | [1] | (16) | [2] | ||
Ending balance | 3,282 | 1,868 | 1,020 | |||
Deferred tax assets [Member] | Other [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (11) | 267 | ||||
Ending balance | (11) | 267 | ||||
Deferred tax assets [Member] | Other [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,857 | 1,287 | ||||
Ending balance | 1,857 | 1,287 | ||||
Deferred tax assets [Member] | Tax losses [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 337 | 259 | ||||
Amounts recorded under profit or loss | 303 | 172 | ||||
Other | 4 | [1] | (94) | [2] | ||
Ending balance | 644 | 337 | 259 | |||
Deferred tax assets [Member] | Tax losses [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 337 | 259 | ||||
Ending balance | 337 | 259 | ||||
Deferred tax assets [Member] | Depreciation [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 4,271 | 2,260 | ||||
Amounts recorded under profit or loss | 4,023 | 1,991 | ||||
Other | [2] | 20 | ||||
Ending balance | 8,294 | 4,271 | 2,260 | |||
Deferred tax assets [Member] | Depreciation [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 4,271 | 2,260 | ||||
Ending balance | 4,271 | 2,260 | ||||
Deferred tax assets [Member] | Advances received [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 3,480 | 3,848 | ||||
Amounts recorded under profit or loss | 288 | 55 | ||||
Ending balance | 3,768 | 3,480 | 3,848 | |||
Deferred tax assets [Member] | Advances received [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (423) | |||||
Ending balance | (423) | |||||
Deferred tax assets [Member] | Advances received [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 3,480 | 3,425 | ||||
Ending balance | 3,480 | 3,425 | ||||
Deferred tax assets [Member] | Deferred revenue [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 3,135 | 2,471 | ||||
Amounts recorded under profit or loss | 121 | (117) | ||||
Other | [2] | (2) | ||||
Ending balance | 3,256 | 3,135 | 2,471 | |||
Deferred tax assets [Member] | Deferred revenue [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 783 | |||||
Ending balance | 783 | |||||
Deferred tax assets [Member] | Deferred revenue [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 3,135 | 3,254 | ||||
Ending balance | 3,135 | 3,254 | ||||
Deferred tax assets [Member] | Restoration obligations for operating lease properties [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 364 | 215 | ||||
Amounts recorded under profit or loss | 235 | 151 | ||||
Other | (1) | [1] | (2) | [2] | ||
Ending balance | 598 | 364 | 215 | |||
Deferred tax assets [Member] | Restoration obligations for operating lease properties [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 364 | 215 | ||||
Ending balance | 364 | 215 | ||||
Deferred tax assets [Member] | Accrued bonuses [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 812 | 754 | ||||
Amounts recorded under profit or loss | 134 | 58 | ||||
Ending balance | 946 | 812 | 754 | |||
Deferred tax assets [Member] | Accrued bonuses [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 812 | 754 | ||||
Ending balance | 812 | 754 | ||||
Deferred tax assets [Member] | Allowance for doubtful account/Loss allowance [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 404 | 377 | ||||
Amounts recorded under profit or loss | (237) | 33 | ||||
Other | [2] | (6) | ||||
Ending balance | 167 | 404 | 377 | |||
Deferred tax assets [Member] | Allowance for doubtful account/Loss allowance [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 404 | 377 | ||||
Ending balance | 404 | 377 | ||||
Deferred tax assets [Member] | Other accrued expenses [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,383 | 737 | ||||
Amounts recorded under profit or loss | (239) | 659 | ||||
Other | (7) | [1] | (13) | [2] | ||
Ending balance | 790 | 1,383 | 737 | |||
Deferred tax assets [Member] | Other accrued expenses [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (347) | |||||
Ending balance | (347) | |||||
Deferred tax assets [Member] | Other accrued expenses [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,036 | 737 | ||||
Ending balance | 1,036 | 737 | ||||
Deferred tax assets [Member] | Accrued enterprise taxes [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 296 | 241 | ||||
Amounts recorded under profit or loss | 9 | 56 | ||||
Other | (11) | [1] | (1) | [2] | ||
Ending balance | 294 | 296 | 241 | |||
Deferred tax assets [Member] | Accrued enterprise taxes [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 296 | 241 | ||||
Ending balance | 296 | 241 | ||||
Deferred tax assets [Member] | Financial assets at fair value through other comprehensive income, category [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 815 | |||||
Amounts recorded under profit or loss | (71) | |||||
Amounts recognized under other comprehensive income | (411) | 1,358 | ||||
Other | (2) | [1] | (2) | [2] | ||
Ending balance | 331 | 815 | ||||
Deferred tax assets [Member] | Financial assets at fair value through other comprehensive income, category [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | (541) | |||||
Ending balance | (541) | |||||
Deferred tax assets [Member] | Financial assets at fair value through other comprehensive income, category [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 815 | (541) | ||||
Ending balance | 815 | (541) | ||||
Deferred tax assets [Member] | Share-based compensation [Member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,287 | 1,169 | ||||
Amounts recorded under profit or loss | (32) | 119 | ||||
Other | (1) | [1] | (1) | [2] | ||
Ending balance | 1,254 | 1,287 | 1,169 | |||
Deferred tax assets [Member] | Share-based compensation [Member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,287 | 1,169 | ||||
Ending balance | 1,287 | 1,169 | ||||
Deferred tax assets [Member] | Present value of defined benefit obligations [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,360 | 1,184 | ||||
Amounts recorded under profit or loss | 232 | 222 | ||||
Amounts recognized under other comprehensive income | 110 | (32) | ||||
Other | (13) | [1] | (14) | [2] | ||
Ending balance | 1,689 | 1,360 | 1,184 | |||
Deferred tax assets [Member] | Present value of defined benefit obligations [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 1,360 | 1,184 | ||||
Ending balance | 1,360 | ¥ 1,184 | ||||
Deferred tax assets [Member] | Lease liabilities [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Amounts recorded under profit or loss | 3,001 | |||||
Ending balance | 12,644 | |||||
Deferred tax assets [Member] | Lease liabilities [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | 9,642 | |||||
Ending balance | 9,642 | |||||
Deferred tax assets [Member] | Lease liabilities [member] | Adjusted balance [member] | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Beginning balance | ¥ 9,642 | |||||
Ending balance | ¥ 9,642 | |||||
[1] | Movements in others are mainly attributable to the changes in exchange rate for foreign currencies. | |||||
[2] | Movements in others are mainly attributable to the issuance of convertible bonds with stock acquisition rights and changes in exchange rate for foreign currencies. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Reconcile to Amounts Presented in Consolidated Statements of Financial Position (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Adjustment to offset deferred tax assets | ¥ (17,084) | ¥ (5,579) |
Deferred tax assets | 24,095 | 17,107 |
Adjustment to offset deferred tax liabilities | 17,084 | 5,579 |
Deferred tax liabilities | (1,071) | (503) |
Gross carrying amount [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 41,179 | 22,686 |
Deferred tax liabilities | ¥ (18,155) | ¥ (6,082) |
Income Taxes - Breakdown of Ded
Income Taxes - Breakdown of Deductible Temporary Differences (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Deductible temporary differences | ¥ 99,326 | ¥ 40,242 |
Unused tax losses | 63,714 | 57,990 |
Unused tax credits | 249 | 48 |
Total | ¥ 163,289 | ¥ 98,280 |
Income Taxes - Unused Tax Losse
Income Taxes - Unused Tax Losses (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses | ¥ 63,714 | ¥ 57,990 |
Less than one year [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses | 1,268 | 1,112 |
One to five years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses | 7,012 | 3,725 |
After five years [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses | 48,156 | 34,812 |
No expiration date [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax losses | ¥ 7,278 | ¥ 18,341 |
Income Taxes - Unused Tax Credi
Income Taxes - Unused Tax Credits (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax credits | ¥ 249 | ¥ 48 |
Less than one year [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax credits | ¥ 48 | |
One to five years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Unused tax credits | ¥ 142 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | ||
Total amounts of taxable temporary differences relating to investments in subsidiaries and associates and joint ventures for which deferred tax liabilities are not recognized | ¥ 25,349 | ¥ 24,066 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current income tax: | ||||
Current income tax expenses | [1] | ¥ (8,084) | ¥ (11,291) | ¥ (8,818) |
Deferred tax: | ||||
Changes related to origination and reversal of temporary differences | [2] | 7,663 | 1,775 | (1,107) |
Changes in the tax rate | [3] | 37 | (6) | 3 |
Income tax expenses | ¥ (384) | ¥ (9,522) | ¥ (9,922) | |
[1] | Current income tax expenses include previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences. These benefits were 105 million yen, 55 million yen and 159 million yen for the years ended December 31, 2017, 2018 and 2019, respectively. In addition, current income tax expenses for the year ended December 31, 2018 include additional taxes charged of 2,215 million yen claimed to the Group’s Korean subsidiary. | |||
[2] | These balances represent the deferred tax benefit or expense from the increase and decrease of temporary differences, the reversal of previously written-down deferred tax assets and write-downs of deferred tax assets. The Group had deferred tax benefits of 105 million yen, 68 million yen and 70 million yen for the years ended December 31, 2017, 2018 and 2019, respectively, due to the reversal of previously written-down deferred tax assets. The main reason for having negative amount of deferred tax for the year ended December 31, 2017 is because of the recognition of deferred tax liabilities due to the transfer of camera application business. | |||
[3] | The statutory income tax rate has been approximately 31.7% effective for the years ended December 31, 2017 and 2018, and approximately 31.5% effective from the year ending December 31, 2019. The Group measured deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the period when the assets are realized or the liabilities are settled. |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expenses (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Previously unrecognized tax benefits from tax loss carryforwards and deductible temporary differences | ¥ 159 | ¥ 55 | ¥ 105 |
Deferred tax benefit from the reversal of previously written-down deferred tax assets | ¥ 70 | ¥ 68 | ¥ 105 |
Statutory income tax rate | 31.50% | 31.70% | 31.70% |
Korea [Member] | Subsidiaries [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Additional tax charge | ¥ 2,215 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expenses Calculated by Applying Statutory Tax Rates to Actual Tax Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||||
Profit/(loss) before tax from continuing operations | ¥ (51,616) | ¥ 3,354 | ¥ 18,145 | |
(Loss)/profit before tax from discontinued operations | 648 | 550 | (19) | |
Profit/(loss) before tax | (50,968) | 3,904 | 18,126 | |
Income tax expenses at a statutory rate of 31.5% (2017and 2018: 31.7%) | 16,033 | (1,237) | (5,744) | |
Permanent non-deductibleitems(1) | [1] | (386) | (260) | (353) |
Assessment of the recoverability of deferred tax assets(2) | [2] | (13,266) | (6,202) | (2,932) |
Effects of changes in tax rate | 37 | (6) | 3 | |
Differences in applicable tax rate of subsidiaries(3) | [3] | (1,540) | (1,194) | 776 |
Tax effect on investment in subsidiaries and associates(4) | [4] | 76 | (174) | 377 |
Gain on fair value measurement relating to the deconsolidation(5) | [5] | 4,123 | ||
Share of loss of associates and joint ventures(6) | [6] | (1,806) | (1,741) | (1,836) |
Corporate taxes in prior years(7) | [7] | (92) | (2,754) | (182) |
Others | 496 | (251) | (25) | |
Income tax expenses at an effective tax rate of (0.9) % (2017: 54.7% and 2018: 248.4%) | (448) | (9,696) | (9,916) | |
Income tax expenses reported in the statements of profit or loss | (384) | (9,522) | (9,922) | |
Income tax benefits/(expenses) attributable to discontinued operations | ¥ (64) | ¥ (174) | ¥ 6 | |
[1] | Permanent non-deductible items were mainly related to non-deductible share-based payment expenses incurred in connection with stock options. | |||
[2] | For the year ended December 31, 2017, the amount was due to unrecognized deferred tax assets of 2,407 million yen, 4 million yen and 953 million yen in connection with the pre-tax losses recorded by the Group’s Japanese subsidiaries, MixRadio Limited and the Group’s other subsidiaries, respectively, on a stand-alone basis. Such impact was partially offset by recognizing previously unrecognized deferred tax assets of 107 million yen for tax loss carryforward and 0 million yen for deductible temporary differences, primarily for the Group’s Taiwan subsidiaries on a stand-alone basis. For the year ended December 31, 2018, the amount was due to unrecognized deferred tax assets of 4,134 million yen and 1,789 million yen in connection with the pre-tax losses recorded by the Group’s subsidiaries in Japan and other countries, respectively on the stand-alone basis. Such impact was partially offset by recognizing previously unrecognized deferred tax assets of 40 million yen for tax loss carryforwards and 14 million yen for deductible temporary differences, primarily for the Group’s Korean subsidiaries on a stand-alone basis. For the year ended December 31, 2019, the amount was due to unrecognized deferred tax assets of 10,403 million yen and 3,026 million yen in connection with the pre-tax losses recorded by the Group’s subsidiaries in Japan and other countries, respectively on the stand-alone basis. Such impact was partially offset by recognizing previously unrecognized deferred tax assets of 108 million yen for tax loss carryforwards and 51 million yen for deductible temporary differences, primarily for the Group’s Japanese subsidiary on a stand-alone basis. | |||
[3] | The differences are mainly due to pre-tax loss recorded by the Group’s Korean subsidiaries. | |||
[4] | This tax effect is mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred losses during the year. This tax effect offsets MixRadio Limited’s stand-alone tax impacts described in (2) and (3) above. | |||
[5] | For the year ended December 31, 2018, the amount was related to the re-measurement of the investment in LINE Mobile Corporation and LINE Games Corporation, based on the fair value as of the day when the Group lost the control over its subsidiary. | |||
[6] | The amount was mainly related to pre-tax losses recorded by the Group’s associates on a stand-alone basis for which no deferred tax assets were recognized as the related tax benefits could not be recognized. | |||
[7] | This amount for the year ended December 31, 2018 was mainly related to the additional taxes charged of 2,215 million yen claimed to the Group’s Korean subsidiary. |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Income Tax Expenses Calculated by Applying Statutory Tax Rates to Actual Tax Expenses (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Income Taxes [line items] | |||
Statutory income tax rate | 31.50% | 31.70% | 31.70% |
Effective tax rate | (0.90%) | 248.40% | 54.70% |
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | ¥ 159 | ¥ 55 | ¥ 105 |
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 63,714 | 57,990 | |
MixRadio Limited [member] | |||
Disclosure Of Income Taxes [line items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 4 | ||
Other subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 1,789 | 953 | |
Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 2,344 | ||
Japan (country of domicile) [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Impact of assessment of the recoverability of deferred tax assets offset by unrecognized deferred tax assets in connection with the pre-tax losses | 11,086 | 4,134 | 2,407 |
Japan (country of domicile) [Member] | Tax losses [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | 108 | ||
Japan (country of domicile) [Member] | Deductible temporary differences [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | ¥ 51 | ||
Korea [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Additional tax charge | 2,215 | ||
Korea [Member] | Tax losses [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | 40 | ||
Korea [Member] | Deductible temporary differences [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | ¥ 14 | ||
Taiwan [Member] | Tax losses [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | 107 | ||
Taiwan [Member] | Deductible temporary differences [Member] | Subsidiaries [Member] | |||
Disclosure Of Income Taxes [line items] | |||
Assessment of the recoverability of deferred tax assets due to recognizing previously unrecognized deferred tax assets | ¥ 0 |
Financial Assets and Financia_3
Financial Assets and Financial Liabilities - Carrying Amounts and Fair Value of Financial Instruments, Except for Cash and Cash Equivalents, by Line Item in Consolidated Statements of Financial Position and by Category as Defined in IAS39 (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | ¥ 42,680 | ¥ 37,644 | |
Other financial assets, non-current | 51,737 | 42,287 | |
Other financial assets, current | 20,117 | 15,915 | |
Trade and other payables | 43,710 | 34,985 | |
Other financial liabilities, current | 44,826 | 36,726 | |
Corporate bonds | [1] | 142,851 | 142,132 |
Other financial liabilities non-current | 362 | 527 | |
Financial liabilities measured at amortized cost [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other payables | 43,710 | 34,985 | |
Other financial liabilities, current | 61 | ||
Financial liabilities measured at amortized cost [Member] | Deposits received [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities, current | 20,237 | 13,653 | |
Financial liabilities measured at amortized cost [Member] | Short-term borrowings [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities, current | [2] | 23,207 | 23,000 |
Financial liabilities measured at amortized cost [Member] | Others [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities, current | 1,321 | 57 | |
Other financial liabilities non-current | 122 | 231 | |
Financial liabilities measured at amortized cost [Member] | Office security deposits received under sublease agreement [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities non-current | 16 | 16 | |
Financial liabilities at fair value through profit or loss, category [member] | Put option liabilities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities, current | 16 | ||
Other financial liabilities non-current | 224 | 280 | |
Financial assets at fair value through other comprehensive income, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [3] | 21,672 | 22,343 |
Other financial assets, current | [3] | 6,019 | 2,958 |
Financial assets at fair value through profit or loss [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [4] | 20,319 | 10,261 |
Other financial assets, current | [4] | 181 | |
Financial assets at amortised cost, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | 42,680 | 37,644 | |
Financial assets at amortised cost, category [member] | Time deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, current | 3,577 | 11,507 | |
Financial assets at amortised cost, category [member] | Short-term Loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, current | 1,378 | 593 | |
Financial assets at amortised cost, category [member] | Guarantee deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [5] | 57 | 123 |
Other financial assets, current | [5],[6] | 7,929 | 853 |
Financial assets at amortised cost, category [member] | Office security deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | 9,379 | 9,162 | |
Other financial assets, current | 245 | ||
Financial assets at amortised cost, category [member] | Other [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | 100 | 118 | |
Other financial assets, current | 718 | 4 | |
Financial assets at amortised cost, category [member] | Corporate bonds and other debt instruments [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [5] | 210 | 280 |
Other financial assets, current | [5] | 70 | |
Fair value [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Corporate bonds | [1] | 144,254 | 143,743 |
Fair value [Member] | Financial liabilities measured at amortized cost [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities, current | 61 | ||
Fair value [Member] | Financial liabilities measured at amortized cost [Member] | Office security deposits received under sublease agreement [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities non-current | 16 | 16 | |
Fair value [Member] | Financial liabilities at fair value through profit or loss, category [member] | Put option liabilities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities, current | 0 | 16 | |
Other financial liabilities non-current | 224 | 280 | |
Fair value [Member] | Financial assets at fair value through other comprehensive income, category [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [3] | 21,672 | 22,343 |
Other financial assets, current | [3] | 6,019 | 2,958 |
Fair value [Member] | Financial assets at fair value through profit or loss [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [4] | 20,319 | 10,261 |
Other financial assets, current | [4] | 181 | |
Fair value [Member] | Financial assets at amortised cost, category [member] | Guarantee deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [5] | 57 | 123 |
Fair value [Member] | Financial assets at amortised cost, category [member] | Office security deposits [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | 9,266 | 9,050 | |
Fair value [Member] | Financial assets at amortised cost, category [member] | Other [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | 100 | 118 | |
Fair value [Member] | Financial assets at amortised cost, category [member] | Corporate bonds and other debt instruments [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets, non-current | [5] | 214 | ¥ 288 |
Other financial assets, current | [5] | ¥ 70 | |
[1] | During the year ended December 31, 2018, I. Euro-yen convertible bonds with stock acquisition rights due to overseas public offering of 37,494.5 million yen (Zero coupon convertible bonds due 2023) and II. 37,494.5 million yen (Zero coupon convertible bonds due 2025) were issued. The Group also issued Euro-yen convertible bonds with stock acquisition rights through two of the separate third-party allotments to NAVER Corporation, amounted to III. 37,494.5 million yen (Zero coupon convertible bonds due 2023) and IV. 37,494.5 million yen (Zero coupon convertible bonds due 2025). At initial recognition, the book value of the liability component of the convertible bonds with stock acquisition rights is the fair value of discounted future cash flows of the bonds at a rate of similar debt instruments taking into account the Company’s credit risk excluding the transaction costs from issuing the bonds. The difference between the fair value of the entire convertible bonds with stock acquisition rights and the fair value of the liability component is allocated to the conversion option as the equity component at the amount excluding the transaction costs as well as income taxes. The Group recognized a liability of 141,932 million yen and an equity component of 4,175 million yen at the initial recognition. After the initial recognition, the liability component is measured at amortized cost using the effective interest method, whilst the equity component is not remeasured subsequently. The book value of the liability of the convertible bonds with stock acquisition rights as of December 31, 2019 amounted to 142,851 million yen, which was the summation of the book value of the corporate bonds as financial liability as of December 31, 2018 and the interest expense of 719 million yen. The Group may redeem all, but not some only, of the outstanding bonds at 100% of the principal amount provided, however, that no such redemption may be made unless the closing price of the share for each of the 20 consecutive trading days is at least 130 percent of the conversion price for the relevant series of bonds in effect on or after September 21, 2021 for the Euro-yen convertible bonds with stock acquisition rights I. and III., and after September 20, 2023 for II. and IV. There is no financial covenants on the corporate bonds that cause a material disadvantage. | ||
[2] | The weighted average interest rate of the remaining outstanding short-term borrowings as of December 31, 2018 and 2019 was 0.1% and 0.1%, respectively. | ||
[3] | Impairment losses of 10 million yen and 1 million yen were recognized for debt instruments at FVOCI for the years ended December 31, 2018 and 2019, respectively. | ||
[4] | A valuation loss of 676 million yen and a valuation gain of 2,009 million yen were recognized for financial assets at fair value through profit or loss for the years ended December 31, 2018 and 2019, respectively. | ||
[5] | The Group is in the compliance with requirements of Japanese Payment Service Act, where a certain amount of money defined in the act has to be secured, either by depositing or entrusting a cash reserve or government bonds with the Legal Affairs Bureau, or by concluding a guarantee contract with a financial institution. If deposits are made, they are recorded as guarantee deposits. If guarantee contracts are entered into, guarantee fees equal to the contractual amount times a guarantee fee rate is incurred. The Group had deposited investments in Japanese government bonds of 280 million yen and 280 million yen as of December 31, 2018 and 2019, respectively, which the Group intends to hold until maturity for this purpose. In addition, the Group had credit guarantee contracts with banks for 18,500 million yen with a weighted average guarantee fee rate of 0.1 % and for 33,500 million yen with a weighted average guarantee fee rate of 0.1 % as of December 31, 2018 and 2019, respectively, to comply with the Japanese Payment Services Act. | ||
[6] | In January 2019, the Group commenced derivatives instruments investment for investment purposes, and is investing in such transactions as currency, interest rate and commodity futures transactions. In connection with these transactions, it has made deposits of 2,015 million yen to a securities brokerage. Impact of the derivatives instruments for investment purpose on loss before taxes from continuing operation for the year ended December 31, 2019 was 790 million yen in gain. The Group recognized financial assets at fair value through profit or loss of 95 million yen and financial liabilities at fair value through profit or loss of 61 million yen as a result of fair value measurement as of December 31, 2019. In addition, the Group made a guarantee deposit of 3,618 million yen in a financial institution to enter into banking business in Taiwan and withdrawal of the deposit is restricted as of December 31, 2019. |
Financial Assets and Financia_4
Financial Assets and Financial Liabilities - Carrying Amounts and Fair Value of Financial Instruments, Except for Cash and Cash Equivalents, by Line Item in Consolidated Statements of Financial Position and by Category as Defined in IAS39 (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | ||
Disclosure of detailed information about financial instruments [line items] | |||||
Other financial assets, non-current | ¥ 51,737 | ¥ 42,287 | |||
Guarantee fee rate for credit guarantee contracts with banks | 0.10% | 0.10% | |||
Gain on available-for-sale financial assets | ¥ 2,009 | ¥ 676 | |||
Loss before tax from continuing operations | (51,616) | ¥ 3,354 | ¥ 18,145 | ||
Derivative Transactions [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Loss before tax from continuing operations | 790 | ||||
Financial assets at fair value through profit or loss | 95 | ||||
Financial liabilities at fair value through profit or loss | ¥ 61 | ||||
Weighted average [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Weighted average interest rate | 0.10% | 0.10% | |||
Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Number of third party allotments | 2 | 2 | |||
Borrowings | ¥ 141,932 | ||||
Convertible bond equity component | 4,175 | ||||
Borrowing including interest interest expense | 142,851 | ||||
interest expense | ¥ 719 | ||||
DebtRedemptionDescription | The Group may redeem all, but not some only, of the outstanding bonds at 100% of the principal amount provided, however, that no such redemption may be made unless the closing price of the share for each of the 20 consecutive trading days is at least 130 percent of the conversion price for the relevant series of bonds in effect on or after September 21, 2021 for the Euro-yen convertible bonds with stock acquisition rights I. and III., and after September 20, 2023 for II. and IV. | ||||
Guarantee deposits [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Credit guarantee contracts with banks for compliance with the Japanese Payment Services Act | ¥ 33,500 | ¥ 18,500 | |||
Cash and cash equivalents [Member] | Derivative Transactions [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Deposits with securities brokerage | ¥ 2,015 | ||||
Banking Business In Taiwan [Member] | Derivative Transactions [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Deposits with securities brokerage | 3,618 | ||||
Zero coupon convertible bonds due 2023 [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Convertible bonds issued | 37,494.5 | 37,494.5 | |||
Zero coupon convertible bonds due 2023 [member] | Public Offering [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Convertible bonds issued | 37,494.5 | ||||
Zero coupon convertible bonds due 2023 [member] | Third Party Allotment [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Convertible bonds issued | 37,494.5 | ||||
Zero coupon convertible bonds due 2025 [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Convertible bonds issued | 37,494.5 | 37,494.5 | |||
Zero coupon convertible bonds due 2025 [member] | Public Offering [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Convertible bonds issued | 37,494.5 | ||||
Zero coupon convertible bonds due 2025 [member] | Third Party Allotment [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Convertible bonds issued | 37,494.5 | ||||
Financial assets at fair value through other comprehensive income, category [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other financial assets, non-current | [1] | 21,672 | 22,343 | ||
Financial assets at fair value through other comprehensive income, category [member] | Debt Instruments [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Impairment losses | 1 | 10 | |||
Financial assets at amortised cost, category [member] | Guarantee deposits [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other financial assets, non-current | [2] | 57 | 123 | ||
Financial assets at amortised cost, category [member] | Japanese government bonds [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other financial assets, non-current | 280 | 280 | |||
Held-to-maturity investments [Member] | Japanese government bonds [Member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Other financial assets, non-current | ¥ 280 | ¥ 280 | |||
[1] | Impairment losses of 10 million yen and 1 million yen were recognized for debt instruments at FVOCI for the years ended December 31, 2018 and 2019, respectively. | ||||
[2] | The Group is in the compliance with requirements of Japanese Payment Service Act, where a certain amount of money defined in the act has to be secured, either by depositing or entrusting a cash reserve or government bonds with the Legal Affairs Bureau, or by concluding a guarantee contract with a financial institution. If deposits are made, they are recorded as guarantee deposits. If guarantee contracts are entered into, guarantee fees equal to the contractual amount times a guarantee fee rate is incurred. The Group had deposited investments in Japanese government bonds of 280 million yen and 280 million yen as of December 31, 2018 and 2019, respectively, which the Group intends to hold until maturity for this purpose. In addition, the Group had credit guarantee contracts with banks for 18,500 million yen with a weighted average guarantee fee rate of 0.1 % and for 33,500 million yen with a weighted average guarantee fee rate of 0.1 % as of December 31, 2018 and 2019, respectively, to comply with the Japanese Payment Services Act. |
Employment Benefits - Additiona
Employment Benefits - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||||
Expenses recognized in Consolidated Statements of Profit or Loss in relation to the defined contribution plans | ¥ 97 | ¥ 47 | ||
Employer contribution to be paid | ¥ 88 | |||
Average duration of defined benefit plan obligations | 11 years 4 months 24 days | 12 years 10 months 24 days | ||
Bottom of Range [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Percentage of plan assets outstanding | 90.00% |
Employment Benefits - Liabiliti
Employment Benefits - Liabilities for Defined Benefit Obligations (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Present value of defined benefit obligations | ¥ 9,862 | ¥ 7,210 | |
Plan assets | [1] | (245) | (267) |
Liabilities for post-employment benefits | 9,617 | 6,943 | |
Unfunded [member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of defined benefit obligations | 8,780 | 6,628 | |
Liabilities for post-employment benefits | 8,780 | 6,628 | |
Funded [member] | |||
Disclosure of defined benefit plans [line items] | |||
Present value of defined benefit obligations | 1,082 | 582 | |
Plan assets | [1] | (245) | (267) |
Liabilities for post-employment benefits | ¥ 837 | ¥ 315 | |
[1] | All of the plan assets are held by NemusTech, Co., Ltd. and Markt Co., Ltd. |
Employment Benefits - Expenses
Employment Benefits - Expenses Related to Defined Benefit Plans Recognized in Consolidated Statements of Profit or Loss as Operating Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in net defined benefit liability (asset) [abstract] | |||
Current service costs | ¥ 2,078 | ¥ 1,973 | ¥ 1,933 |
Interest costs | 212 | 207 | 208 |
Total | ¥ 2,290 | ¥ 2,180 | ¥ 2,141 |
Employment Benefits - Movements
Employment Benefits - Movements in Present Value of Defined Benefit Obligations (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Current service costs | ¥ 2,078 | ¥ 1,973 | ¥ 1,933 | |
Interest costs | 212 | 207 | 208 | |
Present value of defined benefit obligations [member] | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Defined benefit obligations at the beginning of year | 7,210 | 6,189 | ||
Current service costs | 2,078 | 1,973 | ||
Interest costs | 212 | 207 | ||
Remeasurement (gains)/losses: | ||||
Actuarial gains arising from changes in demographic assumptions | [1] | (1,046) | (33) | |
Actuarial losses arising from changes in financial assumptions | [2] | 1,700 | 166 | |
Experience adjustments | [3] | 502 | 33 | |
Payments from the plan | (545) | (943) | ||
Net transfer | [4] | 33 | (105) | |
Decrease due to deconsolidation | (42) | |||
Exchange differences on translation of foreign operations | (282) | (235) | ||
Defined benefit obligations at the end of year | ¥ 9,862 | ¥ 7,210 | ¥ 6,189 | |
[1] | In 2019, actuarial gains arising from changes in demographic assumptions resulted mainly from changes in the employee turnover rate of LINE Plus Corporation and NemusTech Co., Ltd. | |||
[2] | In 2019, actuarial gains arising from changes in financial assumptions resulted mainly from a decrease in the discount rate and an increase in the period end weighted average salary increase rate at year end 2019, as compared to corresponding rates at year end in 2018. The decrease in the discount rate primarily related to the fact that the estimated duration, which is used to calculate the retirement benefit obligation, decreased due to the increase in estimated termination rates described above. The increase in the weighted average of salary increase rate is primarily related to the fact that the salary increase rates for the current year. | |||
[3] | Experience adjustments represent the impact from differences between actual experiences during the year compared with the previous actuarial assumptions on defined benefit obligations. | |||
[4] | Net transfer primarily represents the transfer of defined benefit obligations associated with employees of NAVER or other NAVER group companies joining LINE Plus Corporation, LINE Biz Plus Corporation, LINE Studio Corporation, LINE Friends Corporation, LINE UP Corporation and LINE Financial Plus Corporation and vice versa. |
Employment Benefits - Movemen_2
Employment Benefits - Movements in the Plan Assets (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Plan assets at the beginning of year | [1] | ¥ 267 | ||
Interest income | 212 | ¥ 207 | ¥ 208 | |
Plan assets at the end of year | [1] | 245 | 267 | |
Plan assets [member] | ||||
Disclosure of net defined benefit liability (asset) [line items] | ||||
Plan assets at the beginning of year | 267 | 27 | ||
Interest income | 7 | 5 | ||
Employer contributions | 72 | 316 | ||
Benefits paid | (110) | (72) | ||
Gains due to remeasurement Plan assets revenue (excluding interest income) | 22 | (3) | ||
Exchange differences on translation of foreign operations | (13) | (6) | ||
Plan assets at the end of year | ¥ 245 | ¥ 267 | ¥ 27 | |
[1] | All of the plan assets are held by NemusTech, Co., Ltd. and Markt Co., Ltd. |
Employment Benefits - Principal
Employment Benefits - Principal Actuarial Assumptions Used for Measuring Defined Benefit Expenses and Defined Benefit Obligation (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Bottom of Range [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Discount rate | 1.70% | 2.50% | 3.20% |
Weighted average of salary increases | 4.50% | 5.30% | 4.50% |
Top of Range [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Discount rate | 3.10% | 3.50% | 3.70% |
Weighted average of salary increases | 8.60% | 7.10% | 7.70% |
Employment Benefits - Sensitivi
Employment Benefits - Sensitivity Analysis for Impact of Changes in Certain Significant Actuarial Assumptions Leaving All Other Assumptions Constant (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Discount rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
100 basis point increase | ¥ (998) | ¥ (833) |
100 basis point decrease | 1,188 | 1,020 |
Salary increase rate [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
100 basis point increase | 1,104 | 970 |
100 basis point decrease | ¥ (955) | ¥ (812) |
Employment Benefits - Estimated
Employment Benefits - Estimated Future Benefit Payments within Ten Years from December 31, 2018 (Detail) ¥ in Millions | Dec. 31, 2019JPY (¥) |
Less than one year [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | ¥ 602 |
2021 [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 573 |
2022 [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 560 |
2023 [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 549 |
2024 [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | 540 |
2025-2029 [member] | |
Disclosure of defined benefit plans [line items] | |
Estimated future benefit payments | ¥ 2,706 |
Leases-Group as Lessee - Additi
Leases-Group as Lessee - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of quantitative information about leases for lessee [abstract] | |||
Lives of significant operating leases | The lease contracts may contain extension options and termination option but do not include material purchase options, escalation clause and restrictions imposed by leases, such as additional financing and additional leases. | ||
Operating lease expenses | ¥ 10,252 | ||
Minimum lease payment expenses | 6,960 | ||
Variable lease payment expenses | ¥ 7,791 | [1] | ¥ 3,292 |
[1] | These expenses are related to the variable lease payments which are excluded from measurement of the lease liabilities. |
Leases-Group as Lessee - Future
Leases-Group as Lessee - Future Minimum Lease Payment under Non-cancelable Operating Leases (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum rentals payable under non-cancelable operating leases | ¥ 58,688 |
Less than one year [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum rentals payable under non-cancelable operating leases | 9,662 |
Between, one year to five years [member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum rentals payable under non-cancelable operating leases | 26,226 |
After five years [Member] | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Future minimum rentals payable under non-cancelable operating leases | ¥ 22,800 |
Leases-Group as Lessee - Summar
Leases-Group as Lessee - Summary Of Expenses Relating To Leases (Detail) - JPY (¥) ¥ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Expenses Relating To Leases [Line Items] | ||||
Total depreciation expenses | ¥ 10,460 | |||
Interest expense relating to lease liabilities | 1,215 | |||
Expense relating to short-term leases | ¥ 545 | 708 | ||
Expense relating to leases of low-value assets excluding expense relating to short-term leases | ¥ 29 | 32 | ||
Expense relating to variable lease payments | 7,791 | [1] | ¥ 3,292 | |
Property [member] | ||||
Disclosure Of Expenses Relating To Leases [Line Items] | ||||
Total depreciation expenses | 9,445 | |||
Data center, etc. [Member] | ||||
Disclosure Of Expenses Relating To Leases [Line Items] | ||||
Total depreciation expenses | ¥ 1,015 | |||
[1] | These expenses are related to the variable lease payments which are excluded from measurement of the lease liabilities. |
Leases-Group as Lessee - Summ_2
Leases-Group as Lessee - Summary Of Right Of Use Assets (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of quantitative information about right-of-use assets [line items] | |||
Total | ¥ 54,337 | ¥ 46,279 | |
Property [member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Total | 28,640 | ||
Data center, etc. [Member] | |||
Disclosure of quantitative information about right-of-use assets [line items] | |||
Total | ¥ 25,697 |
Leases-Group as Lessee - Summ_3
Leases-Group as Lessee - Summary Of Changes In The Carrying Amounts Of The Right-Of-Use Assets (Detail) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019JPY (¥) | ||
Disclosure Of Changes In The Carrying Amounts Of The Right Of Use Assets [Line Items] | ||
Beginning balance | ||
Acquisitions | 19,727 | |
Disposals | (304) | |
Depreciation | (10,460) | |
Impairment loss | (617) | [1] |
Exchange differences | (328) | |
Other | 40 | |
Ending Balance | 54,337 | |
Adjustment on adoption of new accounting standard [Member] | ||
Disclosure Of Changes In The Carrying Amounts Of The Right Of Use Assets [Line Items] | ||
Beginning balance | 46,279 | |
Currently Reported [Member] | ||
Disclosure Of Changes In The Carrying Amounts Of The Right Of Use Assets [Line Items] | ||
Beginning balance | ¥ 46,279 | |
[1] | Refer to Note 11 Impairment for further details. |
Leases-Group as Lessor - Future
Leases-Group as Lessor - Future Minimum Rentals Receivable under Non-cancelable Operating Leases (Detail) ¥ in Millions | Dec. 31, 2018JPY (¥) |
Disclosure of finance lease and operating lease by lessor [line items] | |
Future minimum rentals receivable under non-cancelable operating leases | ¥ 56 |
Less than one year [member] | |
Disclosure of finance lease and operating lease by lessor [line items] | |
Future minimum rentals receivable under non-cancelable operating leases | 48 |
One to five years [member] | |
Disclosure of finance lease and operating lease by lessor [line items] | |
Future minimum rentals receivable under non-cancelable operating leases | ¥ 8 |
Leases-Group as Lessor - Additi
Leases-Group as Lessor - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about leases for lessor [abstract] | ||
Sublease income recognized | ¥ 67 | |
Lease income | ¥ 185 |
Leases-Group as Lessor - Summar
Leases-Group as Lessor - Summary of Maturity Analysis for the Lease Payments Receivable (Detail) ¥ in Millions | Dec. 31, 2019JPY (¥) |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total | ¥ 70 |
Within one year [member] | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |
Total | ¥ 69 |
Issued Capital and Reserves - M
Issued Capital and Reserves - Movements of Authorized Shares and Shares Issued (Detail) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019JPY (¥)shares | Dec. 31, 2018JPY (¥)shares | Dec. 31, 2017JPY (¥)shares | |||
Disclosure of classes of share capital [line items] | |||||
Number of authorized shares (Share capital with no-par value), Beginning balance | shares | 690,000,000 | 690,000,000 | 690,000,000 | ||
Number of authorized shares (Share capital with no-par value), Ending balance | shares | 690,000,000 | 690,000,000 | 690,000,000 | ||
Share capital, Beginning balance | ¥ | ¥ 96,064 | ||||
Share capital, Ending balance | ¥ | ¥ 96,737 | ¥ 96,064 | |||
Common shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares issued (Share capital with no-par value), Beginning balance | shares | 240,524,642 | 238,496,810 | 217,775,500 | ||
Number of shares issued (Share capital with no-par value), Exercise of stock options | shares | 608,500 | 855,500 | [1] | 19,713,500 | [2] |
Number of shares issued (Share capital with no-par value), Issuance of common shares | shares | 1,172,332 | [3] | 1,007,810 | [4] | |
Number of shares issued (Share capital with no-par value), Ending balance | shares | 241,133,142 | 240,524,642 | 238,496,810 | ||
Share capital [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Share capital, Beginning balance | ¥ | ¥ 96,064 | ¥ 92,369 | ¥ 77,856 | ||
Share capital, Exercise of stock options | ¥ | 673 | 1,195 | [1] | 12,513 | [2] |
Share capital, Issuance of common shares | ¥ | 2,500 | [5] | 2,000 | [4] | |
Share capital, Ending balance | ¥ | ¥ 96,737 | ¥ 96,064 | ¥ 92,369 | ||
[1] | Refer to Note 27 Share-Based Payments for further details. | ||||
[2] | Decrease is due to the sales of shares by Trust & Custody Services Bank, Ltd. (Trust E account). | ||||
[3] | The Group implements the Employee Stock Ownership Plans Trust (J-ESOP) and issued 1,172,332 common shares to Trust & Custody Services Bank, Ltd. (Trust E account) on April 25, 2018. The total amount of issued shares was 5,000 million yen, which increased share capital by 2,500 million yen. | ||||
[4] | In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) on July 18, 2017, the Company issued 1,007,810 common shares to Trust & Custody Services Bank, Ltd. (Trust E account). The total amount of issued shares was 4,000 million yen, which increased share capital by 2,000 million yen. | ||||
[5] | The Group implements the Employee Stock Ownership Plans Trust ((J-ESOP) and issued 1,172,332 common shares to Trust & Custody Services Bank, Ltd. (Trust E account) on April 25, 2018. The total amount of issued shares was 5,000 million yen, which increased share capital by 2,500 million yen. |
Issued Capital and Reserves -_2
Issued Capital and Reserves - Movements of Authorized Shares and Shares Issued (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 25, 2018 | Jul. 18, 2017 | |
Disclosure of classes of share capital [line items] | ||||
Number of shares issued | 1,007,810 | |||
Total issued shares | ¥ 5,000 | ¥ 4,000 | ||
Increase in share capital | ¥ 2,500 | ¥ 2,000 | ||
Trust And Custody Services Bank Ltd [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares issued | 1,172,332 | 1,007,810 |
Issued Capital and Reserves -_3
Issued Capital and Reserves - Movements in Share Premium (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of reserves within equity [line items] | |||||||
Share premium, Beginning balance | ¥ 118,626 | ||||||
Share-based payments | 1,682 | ¥ 1,336 | ¥ 1,882 | ||||
Changes in interest in subsidiaries | 14,785 | 25,640 | |||||
Disposal of treasury shares | 1,334 | 662 | |||||
Share premium, Ending balance | 121,299 | 118,626 | |||||
Share-based payments [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Share premium, Beginning balance | [1] | 6,542 | 7,062 | 21,935 | |||
Share-based payments | [1] | 1,682 | 1,336 | 1,882 | |||
Exercise of stock options | [1] | (958) | (1,652) | (16,746) | |||
Forfeiture of stock options | [1] | (51) | (37) | (9) | |||
Disposal of treasury shares | [1] | (512) | (167) | ||||
Share premium, Ending balance | [1] | 6,703 | 6,542 | 7,062 | |||
Common control business combinations [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Share premium, Beginning balance | (194) | 294 | 294 | ||||
Changes in interest in subsidiaries | [2] | (488) | |||||
Share premium, Ending balance | (194) | (194) | 294 | ||||
Others [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Share premium, Beginning balance | [3] | 112,278 | 86,204 | 68,979 | |||
Exercise of stock options | [3] | 859 | 1,459 | 15,721 | |||
Issuance of common shares | [3] | 2,500 | [4] | 2,000 | [5] | ||
Issuance of convertible bonds with stock acquisition rights | [3],[6] | 4,175 | |||||
Cost related to initial public offering | [3],[7] | (3) | (18) | (73) | |||
Changes in interest in subsidiaries | [3] | 1,715 | [8] | 17,928 | [2] | ||
Acquisition of non-controlling interest | [3] | (423) | |||||
Disposal of treasury shares | [3] | (59) | 30 | ||||
Share premium, Ending balance | [3] | 114,790 | 112,278 | 86,204 | |||
Share premium [member] | |||||||
Disclosure of reserves within equity [line items] | |||||||
Share premium, Beginning balance | 118,626 | 93,560 | 91,208 | ||||
Share-based payments | 1,682 | 1,336 | 1,882 | ||||
Exercise of stock options | (99) | (193) | (1,025) | ||||
Forfeiture of stock options | (51) | (37) | (9) | ||||
Issuance of common shares | 2,500 | [4] | 2,000 | [5] | |||
Issuance of convertible bonds with stock acquisition rights | [6] | 4,175 | |||||
Cost related to initial public offering | [7] | (3) | (18) | (73) | |||
Changes in interest in subsidiaries | 1,715 | [8] | 17,440 | [2] | |||
Acquisition of non-controlling interest | (423) | ||||||
Disposal of treasury shares | (571) | (137) | |||||
Share premium, Ending balance | ¥ 121,299 | ¥ 118,626 | ¥ 93,560 | ||||
[1] | Refer to Note 27 Share-Based Payments for further details. | ||||||
[2] | Changes in interest in subsidiaries for the fiscal year ended December 31, 2018 include increase in share premium of 17,892 million yen due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the decrease in share premium of 488 million yen due to the changes in the percentage of ownership resulting from absorption type mergers within subsidiaries of the Group. | ||||||
[3] | Others mainly consists of capital reserve required under the Companies Act of Japan. | ||||||
[4] | The Group implements the Employee Stock Ownership Plan ((J-ESOP) and issued 1,172,332 common shares to Trust & Custody Services Bank Ltd. on April 25, 2018. The total amount of issued shares was 5,000 million yen, which increased share premium by 2,500 million yen. | ||||||
[5] | In conjunction with the introduction of the Employee Stock Ownership Plans Trust (J-ESOP) on July 18, 2017, the Company issued 1,007,810 common shares to Trust & Custody Services Bank, Ltd. (Trust E account). The total amount of issuance price of shares was 4,000 million yen, which increased share premium by 2,000 million yen. | ||||||
[6] | Refer to Note 15 Financial Assets and Financial Liabilities for further details. | ||||||
[7] | Incremental costs directly attributable to the issuance of common shares are recognized as a deduction from equity, net of any tax effects. | ||||||
[8] | Changes in interest in subsidiaries for the fiscal year ended December 31, 2019 is due to the changes in percentage of ownership in connection with third-party allotments by our subsidiaries as well as the changes in the percentage of ownership resulting from acquisition of additional interest in subsidiaries of the Group. |
Issued Capital and Reserves -_4
Issued Capital and Reserves - Movements in Share Premium (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 25, 2018 | Jul. 18, 2017 | |
Disclosure of reserves within equity [line items] | ||||
Number of shares issued | 1,007,810 | |||
Total issued shares | ¥ 5,000 | ¥ 4,000 | ||
Increase (decrease) in share capital | 2,500 | ¥ 2,000 | ||
Trust And Custody Services Bank Ltd [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Number of shares issued | 1,172,332 | 1,007,810 | ||
Common control business combinations [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Increase (decrease) in share capital | (488) | |||
Third Party Allotment [member] | ||||
Disclosure of reserves within equity [line items] | ||||
Increase (decrease) in share capital | ¥ 17,892 |
Issued Capital and Reserves - A
Issued Capital and Reserves - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of reserves within equity [abstract] | |
Minimum percentage required under the Companies Act of Japan for dividends from surplus be appropriated as capital reserve or legal earnings reserve | 10.00% |
Threshold percentage specified under the Companies Act of Japan for aggregate amount capital reserve and legal earnings reserve, over which the appropriation may cease | 25.00% |
Issued Capital and Reserves - S
Issued Capital and Reserves - Summary of Movement of Treasury Shares (Detail) - JPY (¥) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure Of Movement Of Treasury Shares [abstract] | ||||||
Treasury shares, Beginning balance | ¥ 8,205,000,000 | ¥ 4,000,000,000 | ¥ 0 | |||
Increase during the year | 8,000,000 | 5,004,000,000 | [1] | 4,000,000,000 | [1] | |
Decrease during the year | [2] | (1,905,000,000) | (799,000,000) | 0 | ||
Treasury shares, Ending balance | ¥ 6,308,000,000 | ¥ 8,205,000,000 | ¥ 4,000,000,000 | |||
Treasury shares, Beginning balance | 1,979,775 | 1,007,710 | 0 | |||
Increase during the year | 1,739 | 1,173,285 | [1] | 1,007,810 | [1] | |
Decrease during the year | [2] | (457,122) | (201,220) | (100) | ||
Treasury shares, Ending balance | 1,524,392 | 1,979,775 | 1,007,710 | |||
[1] | In conjunction with the introduction of the Employee Stock Ownership Plan (J-ESOP) on July 18, 2017, the Company issued 1,007,810 common shares to Trust & Custody Services Bank, Ltd. (Trust E account), of which total amount was 4,000 million yen. Additionally, the Group issued 1,172,332 common shares to Trust & Custody Services Bank, Ltd. (Trust E account) on April 25, 2018. The total amount of issued shares was 5,000 million yen. | |||||
[2] | Decrease is due to the sales of shares by Trust & Custody Services Bank, Ltd. (Trust E account). |
Issued Capital and Reserves -_5
Issued Capital and Reserves - Summary of Movement of Treasury Shares (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Apr. 25, 2018 | Jul. 18, 2017 | |
Disclosure of treasury shares [line items] | ||||
Number of shares issued | 1,007,810 | |||
Total issued shares | ¥ 5,000 | ¥ 4,000 | ||
Trust And Custody Services Bank Ltd [member] | ||||
Disclosure of treasury shares [line items] | ||||
Number of shares issued | 1,172,332 | 1,007,810 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Additional Information (Detail) - JPY (¥) ¥ in Millions | Jul. 31, 2019 | Oct. 31, 2018 | Mar. 31, 2018 | Jul. 24, 2017 | Jun. 19, 2017 | May 01, 2017 | Aug. 31, 2019 | Nov. 30, 2018 | Apr. 30, 2018 | Dec. 31, 2019 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 25, 2018 | Jul. 18, 2017 | |
Supplemental cash flow information [line items] | ||||||||||||||||
Number of shares issued | 1,007,810 | |||||||||||||||
Increase in share capital | ¥ 2,500 | ¥ 2,000 | ||||||||||||||
Increase in share premium | 2,500 | 2,000 | ||||||||||||||
Increase in treasury shares | ¥ 5,000 | ¥ 4,000 | ||||||||||||||
Next Floor Corporation [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Loan provided | ¥ 1,976 | |||||||||||||||
Percentage of ownership | 51.00% | |||||||||||||||
Snow Corporation [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Percentage of ownership | 34.00% | 29.20% | 29.20% | 34.00% | [1] | |||||||||||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [Member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Number of newly issued common shares received in exchange for transfer of business | 208,455 | |||||||||||||||
Percentage of ownership | 45.00% | 48.60% | ||||||||||||||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [Member] | Snow Corporation [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Percentage of ownership | 48.60% | 25.00% | ||||||||||||||
NAVER Corporation [member] | Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [Member] | Ultimate Parent Company [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Percentage of ownership in Snow Corporation held by ultimate parent company | 55.00% | 75.00% | ||||||||||||||
LINE Mobile Corporation [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Joint venture ownership percentage under equity method | 100.00% | 49.00% | ||||||||||||||
LINE Games Corporation [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Joint venture ownership percentage under equity method | 100.00% | 49.50% | ||||||||||||||
Trust And Custody Services Bank Ltd [member] | ||||||||||||||||
Supplemental cash flow information [line items] | ||||||||||||||||
Number of shares issued | 1,172,332 | 1,007,810 | ||||||||||||||
[1] | In August 2019, Snow Corporation, an associate of the Group, issued new shares through a third-party allotment. As a result, the Group’s ownership interest in Snow Corporation decreased from 34.0% to 29.2%. As the Group still has significant influence on Snow Corporation, the investment is accounted for under the equity method. |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Assets, Liabilities and Other Items of Camera Application Business Transferred in Connection with Deconsolidation (Detail) - JPY (¥) ¥ in Millions | May 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | ||||||
Current assets | ¥ 295,641 | ¥ 325,514 | ||||
Cash and cash equivalents | 217,345 | 256,978 | ¥ 123,606 | ¥ 134,698 | ||
Non-current assets | 245,711 | 161,073 | ||||
Current liabilities | (161,659) | (123,226) | ||||
Non-current liabilities | ¥ (205,030) | ¥ (154,847) | ||||
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [Member] | ||||||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | ||||||
Current assets | ¥ 603 | |||||
Cash and cash equivalents | 581 | |||||
Other current assets | 22 | |||||
Non-current assets | 71 | |||||
Current liabilities | (133) | |||||
Non-current liabilities | (334) | |||||
Total | 207 | |||||
Consideration received | [1] | 10,651 | ||||
Gain on transfer | [2] | ¥ 10,444 | ||||
[1] | This amount is solely for the newly issued common shares of Snow Corporation. This transaction is considered as a non-cash transaction. | |||||
[2] | This amount is included in "Other operating income" in the Group’s Consolidated Statements of Profit or Loss. |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information - Movements on Liabilities from Financing Activities (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | ¥ 165,138 | ¥ 22,317 | ¥ 21,925 |
Net liabilities as adjusted, Beginning balance | 213,151 | ||
Cash flows | (10,287) | 148,990 | (108) |
Increase due to business combinations | 94 | 9 | 496 |
New lease contracts | 18,520 | ||
Lease disposals | (308) | ||
Decrease due to loss of control of subsidiaries | (79) | ||
Interest expenses | 1,935 | 200 | |
Recognition of stock acquisition rights through issuance of corporate bonds and deferred tax liabilities | (6,092) | ||
Foreign currency translation adjustments | (406) | (207) | 4 |
Net liabilities, Ending balance | 222,699 | 165,138 | 22,317 |
Previously Reported [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 165,138 | ||
Net liabilities, Ending balance | 165,138 | ||
Adjustment on adoption of new accounting standards [Member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 48,013 | ||
Net liabilities, Ending balance | 48,013 | ||
Short-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 23,000 | 22,224 | 21,925 |
Net liabilities as adjusted, Beginning balance | 23,000 | ||
Cash flows | 98 | 966 | (107) |
Transfer of liquidity | 78 | ||
Increase due to business combinations | 94 | 405 | |
Decrease due to loss of control of subsidiaries | (79) | ||
Foreign currency translation adjustments | 15 | (189) | 1 |
Net liabilities, Ending balance | 23,207 | 23,000 | 22,224 |
Short-term borrowings [member] | Previously Reported [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 23,000 | ||
Net liabilities, Ending balance | 23,000 | ||
Long-term borrowings [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 6 | 93 | |
Net liabilities as adjusted, Beginning balance | 6 | ||
Cash flows | (2) | (1) | |
Transfer of liquidity | (78) | ||
Increase due to business combinations | 9 | 91 | |
Foreign currency translation adjustments | (18) | 3 | |
Net liabilities, Ending balance | 4 | 6 | ¥ 93 |
Long-term borrowings [member] | Previously Reported [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 6 | ||
Net liabilities, Ending balance | 6 | ||
Long Term Corporate Bond [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 142,132 | ||
Net liabilities as adjusted, Beginning balance | 142,132 | ||
Cash flows | 148,024 | ||
Interest expenses | 719 | 200 | |
Recognition of stock acquisition rights through issuance of corporate bonds and deferred tax liabilities | (6,092) | ||
Net liabilities, Ending balance | 142,851 | 142,132 | |
Long Term Corporate Bond [member] | Previously Reported [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | 142,132 | ||
Net liabilities, Ending balance | 142,132 | ||
Lease liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities as adjusted, Beginning balance | 48,013 | ||
Cash flows | (10,383) | ||
New lease contracts | 18,520 | ||
Lease disposals | (308) | ||
Interest expenses | 1,216 | ||
Foreign currency translation adjustments | (421) | ||
Net liabilities, Ending balance | 56,637 | ||
Lease liabilities [member] | Adjustment on adoption of new accounting standards [Member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Net liabilities, Beginning balance | ¥ 48,013 | ||
Net liabilities, Ending balance | ¥ 48,013 |
Supplemental Cash Flow Inform_6
Supplemental Cash Flow Information - Summary of Assets, Liabilities and Gain on Loss of Control after Deconsolidation (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Current assets | ¥ 325,514 | ¥ 295,641 | |||
Cash and cash equivalents | 256,978 | 217,345 | ¥ 123,606 | ¥ 134,698 | |
Trade and other receivables | 37,644 | 42,680 | |||
Inventories | 4,887 | 4,740 | |||
Other non-current assets | 639 | 872 | |||
Non-current assets | 161,073 | 245,711 | |||
Current liabilities | (123,226) | (161,659) | |||
Non-current liabilities | (154,847) | ¥ (205,030) | |||
LINE Mobile Corporation [member] | |||||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Current assets | 2,646 | ||||
Cash and cash equivalents | [1] | 1,113 | |||
Trade and other receivables | 1,277 | ||||
Inventories | 48 | ||||
Other non-current assets | 208 | ||||
Non-current assets | 270 | ||||
Current liabilities | (4,083) | ||||
Non-current liabilities | (1) | ||||
Total | (1,168) | ||||
Fair value of investment owned by the Group | 8,326 | ||||
Gain on loss of control of subsidiaries | [2] | ¥ 9,494 | |||
[1] | This amount is included in “Cash disposed on loss of control of subsidiary and business transfer” in the Group’s Consolidated Statements of Cash Flows. | ||||
[2] | This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss for the year ended December 31, 2018. |
Supplemental Cash Flow Inform_7
Supplemental Cash Flow Information - Summary of Assets, Liabilities and Gains of Loss of Control after Deconsolidation (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Current assets | ¥ 295,641 | ¥ 325,514 | |||
Cash and cash equivalents | 217,345 | 256,978 | ¥ 123,606 | ¥ 134,698 | |
Trade and other receivables | 42,680 | 37,644 | |||
Non-current assets | 245,711 | 161,073 | |||
Current liabilities | (161,659) | (123,226) | |||
Non-current liabilities | (205,030) | (154,847) | |||
Other comprehensive income | ¥ (782) | 6,137 | ¥ (3,533) | ||
LINE Games Corporation [member] | |||||
Disclosure of Information About Unconsolidated Subsidiaries [Line Items] | |||||
Current assets | 2,969 | ||||
Cash and cash equivalents | [1] | 930 | |||
Trade and other receivables | 758 | ||||
Other current assets | 1,281 | ||||
Non-current assets | 4,570 | ||||
Current liabilities | (1,276) | ||||
Non-current liabilities | (265) | ||||
Other comprehensive income | (180) | ||||
Non-controlling interests | (1,974) | ||||
Total | 3,844 | ||||
Fair value of investment owned by the Group | 19,144 | ||||
Gain on loss of control of subsidiaries | [2] | ¥ 15,300 | |||
[1] | This amount is included in “Cash disposed on loss of control of subsidiary and business transfer” in the Group’s Consolidated Statements of Cash Flows. | ||||
[2] | This amount is included in “Other operating income” in the Group’s Consolidated Statements of Profit or Loss. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Consolidated statement of Profit or Loss (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Revenue from contracts with customers | |||||||
Revenue | ¥ 227,485 | [1] | ¥ 207,182 | [1] | ¥ 167,147 | [2] | |
Other operating income: Virtual credits breakage income | 453 | 386 | ¥ 815 | ||||
Revenue from contracts with customers | 227,938 | 207,569 | |||||
Other operating income | [3] | ¥ 2,758 | ¥ 27,712 | ||||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | ||||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. | ||||||
[3] | Refer to Note 20 Supplemental Cash Flow Information for details of other operating income for the year ended December 31, 2018. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Trade and Other Receivables, Contract and Contract Liabilities (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of revenue from contracts with customers [line items] | |||
Trade and other receivables | ¥ 42,680 | ¥ 37,644 | |
Contract assets | [1] | 241 | 339 |
Contract liabilities | 25,752 | 24,637 | |
Unsatisfied performance obligations [member] | |||
Disclosure of revenue from contracts with customers [line items] | |||
Contract liabilities | [2] | 13,172 | 12,927 |
Virtual credits [member] | |||
Disclosure of revenue from contracts with customers [line items] | |||
Contract liabilities | [3] | ¥ 12,580 | ¥ 11,710 |
[1] | Contract assets mainly consist of transactions related to the advertising contracts in which the revenues from these transactions are recognized over time by measuring the progress towards completion of satisfaction of the performance obligation. | ||
[2] | Unsatisfied performance obligations will be fulfilled mainly within a year. Therefore, the transaction price allocated to unsatisfied contract is not disclosed, based on the practical expedient as permitted under IFRS 15. | ||
[3] | The timing of transfer of goods or services related to virtual credits is determined at the customer’s discretion. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Revenue Recognized (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unsatisfied performance obligations [member] | ||
Disclosure of revenue that was included in contract liability [line items] | ||
Revenue that was included in contract liability balance at beginning of period | ¥ 10,400 | ¥ 11,182 |
Virtual credits [member] | ||
Disclosure of revenue that was included in contract liability [line items] | ||
Revenue that was included in contract liability balance at beginning of period | ¥ 10,850 | ¥ 9,349 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [abstract] | ||
Contract costs | ¥ 2,038 | ¥ 2,636 |
Amortisation expenses of contract costs | ¥ 2,288 | ¥ 2,172 |
Other Income and Expenses - Sum
Other Income and Expenses - Summary of Other Operating Income (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of income and expense [abstract] | ||||
Virtual credits breakage income | ¥ 453 | ¥ 386 | ¥ 815 | |
Gain on loss of control of subsidiaries and business transfer | [1] | 24,794 | 10,444 | |
Dilution gain | [2] | 1,895 | 2,635 | 434 |
Others | 863 | 284 | 318 | |
Total | ¥ 3,211 | ¥ 28,099 | ¥ 12,011 | |
[1] | Refer to Note 20 Supplemental Cash Flow Information for further details. | |||
[2] | Dilution gain included gain of 2,310 million yen for the year ended December 31, 2018 in connection with third-party allotments by Snow Corporation, an associate of the Group. Dilution gain included gain of 948 million yen for the year ended December 31, 2019 in connection with third-party allotments by LINE Mobile Corporation, an associate of the Group, and dilution gain included gain of 947 million yen in connection with third-party allotments by Snow Corporation, an associate of the Group. |
Other Income and Expenses - S_2
Other Income and Expenses - Summary of Other Operating Income (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of Analysis of Income and Expense [line items] | ||||
Dilution gain | [1] | ¥ 1,895 | ¥ 2,635 | ¥ 434 |
Snow Corporation [member] | ||||
Disclosure of Analysis of Income and Expense [line items] | ||||
Dilution gain | 947 | ¥ 2,310 | ||
LINE Mobile Corporation [member] | ||||
Disclosure of Analysis of Income and Expense [line items] | ||||
Dilution gain | ¥ 948 | |||
[1] | Dilution gain included gain of 2,310 million yen for the year ended December 31, 2018 in connection with third-party allotments by Snow Corporation, an associate of the Group. Dilution gain included gain of 948 million yen for the year ended December 31, 2019 in connection with third-party allotments by LINE Mobile Corporation, an associate of the Group, and dilution gain included gain of 947 million yen in connection with third-party allotments by Snow Corporation, an associate of the Group. |
Other Income and Expenses - S_3
Other Income and Expenses - Summary of Other Operating Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of income and expense [abstract] | ||||
Rent | [1] | ¥ 1,411 | ¥ 8,440 | ¥ 6,143 |
Travel | 3,258 | 3,348 | 2,259 | |
Supplies | 3,938 | 3,327 | 2,378 | |
Taxes and dues | 2,972 | 2,347 | 1,516 | |
Professional fees | 3,629 | 3,266 | 2,182 | |
Cost of goods | 8,129 | 7,622 | 4,946 | |
Training | 2,105 | 1,972 | 1,344 | |
LINE points | 6,042 | 5,533 | 1,006 | |
Others | [2] | 7,603 | 5,286 | 3,629 |
Total | ¥ 39,087 | ¥ 41,141 | ¥ 25,403 | |
[1] | For the year ended December 31, 2019, the amount decreased due to the adoption of IFRS 16 Leases. From January 2019, expenses associated with rental leases that are recognized as right-of-use assets and depreciated are recorded as a component of depreciation and amortization expenses while lease expenses for short-term lease as well as leases of low-value assets remain to be recorded as rental expenses. Refer to Note 3 Significant Accounting Policies: (15) and (30) for further details. | |||
[2] | For the year ended December 31, 2018, the amount consists of office management fees, utilities and other miscellaneous expenses. For the year ended December 31, 2019, the amount consists of a cost arisen from cancellation of system development and miscellaneous expenses. |
Other Income and Expenses - S_4
Other Income and Expenses - Summary of Other Non-operating Income (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of income and expense [abstract] | ||||
Gain on financial assets at fair value through profit or loss | [1] | ¥ 2,837 | ¥ 555 | ¥ 1,096 |
Dividend income | 151 | 50 | 69 | |
Gain on sale of financial assets | 1 | 136 | 751 | |
Gain from derivatives | 889 | 128 | 47 | |
Total | ¥ 3,878 | ¥ 869 | ¥ 1,963 | |
[1] | Gains and losses on valuation of financial assets are recognized under IAS 39 Financial Instruments: Recognition and Measurement for the year ended December 31, 2017, and are recognized under IFRS 9 Financial Instruments for the year ended December 31, 2018 and 2019. |
Other Income and Expenses - S_5
Other Income and Expenses - Summary of Other Non-operating Expenses (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Analysis of income and expense [abstract] | ||||
Loss on financial assets at fair value through profit or loss | [1] | ¥ 828 | ¥ 1,231 | ¥ 118 |
Loss on impairment of available-for-sale financial assets | 1,761 | |||
Others | [2] | 717 | 238 | 109 |
Total | ¥ 1,545 | ¥ 1,469 | ¥ 1,988 | |
[1] | Gains and losses on financial assets at fair value through profit or loss are recognized under IAS 39 Financial Instruments: Recognition and Measurement for the year ended December 31, 2017, and are recognized under IFRS 9 Financial Instruments for the years ended December 31, 2018 and 2019. | |||
[2] | Others mainly consists with impairment loss on shares of subsidiaries for the year ended December 31, 2019. |
Discontinued Operations - Aggre
Discontinued Operations - Aggregated Results and Cash Flow Information of Discontinued Operations (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
(Loss)/profit before tax from discontinued operations | ¥ 648 | ¥ 550 | ¥ (19) | |
Income tax benefits/(expenses) on liquidation | (64) | (174) | 6 | |
Discontinued Operations: MixRadio Limited [member] | ||||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Revenues | ||||
Other income | [1] | 96 | 566 | |
Expenses | (19) | (6) | (19) | |
(Loss)/gain on foreign currency transactions | 571 | (10) | ||
(Loss)/profit before tax from discontinued operations | 648 | 550 | (19) | |
Income tax benefits/(expenses) on liquidation | [2] | (64) | (174) | 6 |
(Loss)/profit for the year from discontinued operations (attributable to the shareholders of the Company) | ¥ 584 | ¥ 376 | ¥ (13) | |
[1] | For the year ended December 31, 2018 and 2019, the Group recognized a gain from discharge of debt amounting to 566 million yen and 96 million yen, respectively, in connection with the liquidation of the MixRadio business. | |||
[2] | The income tax benefits/(expenses) for the year ended December 31, 2017, 2018 and 2019 are mainly due to the deductible temporary difference arising from the investment in MixRadio Limited, which incurred loss or profit during the periods. |
Discontinued Operations - Agg_2
Discontinued Operations - Aggregated Results and Cash Flow Information of Discontinued Operations (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Discontinued Operations: MixRadio Limited [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Gain from discharge of debt | [1] | ¥ 96 | ¥ 566 |
[1] | For the year ended December 31, 2018 and 2019, the Group recognized a gain from discharge of debt amounting to 566 million yen and 96 million yen, respectively, in connection with the liquidation of the MixRadio business. |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow Information of Discontinued Operations (Detail) - Discontinued Operations: MixRadio Limited [member] - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating | ¥ 0 | ¥ 18 | ¥ (136) |
Investing | 0 | ||
Financing | (103) | (353) | |
Net cash outflow | ¥ (103) | ¥ (335) | ¥ (136) |
Earnings per Share - Profit or
Earnings per Share - Profit or Loss and Weighted Average Number of Shares Used in Calculation of Earnings per Share (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | |||
Profit/(loss) for the year attributable to the shareholders of the Company from continuing operations | ¥ (47,472) | ¥ (4,094) | ¥ 8,091 |
(Loss)/profit for the year attributable to the shareholders of the Company from discontinued operations | 584 | 376 | (13) |
Total profit/(loss) for the year attributable to the shareholders of the Company for basic earnings and diluted earnings per share | ¥ (46,888) | ¥ (3,718) | ¥ 8,078 |
Weighted average number of common and class A shares for basic earnings per share | 239,142,707 | 238,074,806 | 220,945,548 |
Stock options | 16,559,789 | ||
Employee Stock Ownership Plan (J-ESOP) | 47,369 | ||
Convertible bonds with stock acquisition rights | 0 | ||
Weighted average number of total common shares | 239,142,707 | 238,074,806 | 237,552,706 |
Common shares [member] | |||
Earnings per share [line items] | |||
Weighted average number of common and class A shares for basic earnings per share | 240,824,713 | 239,761,603 | 221,405,391 |
Treasury shares [member] | |||
Earnings per share [line items] | |||
Weighted average number of common and class A shares for basic earnings per share | (1,682,006) | (1,686,797) | (459,843) |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) | Jul. 29, 2019 | Dec. 31, 2019shares | Dec. 31, 2017shares | Dec. 31, 2018shares | Dec. 31, 2016 |
Director [member] | |||||
Earnings per share [line items] | |||||
Number of share option, granted | 30,240 | ||||
Executive Officer [member] | |||||
Earnings per share [line items] | |||||
Number of share option, granted | 16,548 | ||||
Outside Directors [member] | |||||
Earnings per share [line items] | |||||
Number of share option, granted | 240 | ||||
Common stock options [member] | |||||
Earnings per share [line items] | |||||
Outstanding stock options, with a dilutive impact on profit per share from continuing operations | 7,680,300 | 5,577,000 | 3,738,300 | 22,911,500 | |
Number of share option, granted | 4,702,800 | 4,702,800 | 2,386,000 | ||
Stock options and ESOP [member] | |||||
Earnings per share [line items] | |||||
Outstanding stock options, with a dilutive impact on profit per share from continuing operations | 27,669,979 | 5,828,302 | 23,902,127 |
Financial Risk Management - Max
Financial Risk Management - Maximum Amounts of Possible Financial Loss Due to Credit Risk (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | ¥ 300,901 | ¥ 335,132 | |
Demand deposits [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [1] | 217,333 | 256,965 |
Time deposits [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [1] | 3,577 | 11,507 |
Loan receivable [member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [2],[3] | 1,378 | 593 |
Guarantee deposits [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [1],[4] | 7,986 | 976 |
Trade and other receivables [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [2],[5] | 42,680 | 37,644 |
Japanese government bonds [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [1],[4] | 280 | 280 |
Corporate bonds and other debt instruments [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [1] | 18,043 | 18,005 |
Office security deposits [Member] | |||
Disclosure of credit risk exposure [line items] | |||
Maximum amounts of possible financial loss due to credit risk | [1],[6] | ¥ 9,624 | ¥ 9,162 |
[1] | None of the assets was past due or impaired as of December 31, 2018 and 2019. | ||
[2] | For receivables, the Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Group regularly performs credit assessments on customers and counterparties considering their financial position and historical data in order to manage the credit risk. The Group recorded provisions for estimated credit risk in respect of the loan receivables and trade and other receivables as of December 31, 2018 and 2019. The methodology used for estimating the expected credit loss differs depending on whether there have been significant increase in credit risk since initial recognition per financial assets or per assets group. The Group measures the expected credit losses for the financial assets measured at amortized cost without any significant increase in credit risk at the amount equal to twelve-month expected credit losses. For the financial assets measured at amortized cost with a significant increase in credit risk, the Group measures the expected credit losses at the amount equal to the lifetime expected credit losses. The Group uses the probability that a default occurs calculated based on the historical default data of the corporate bond ratings in Japan to measure the twelve-month expected credit losses and the lifetime expected credit losses. For the trade receivables, the Group applied the simplified approach permitted by IFRS 9 that estimates the lifetime expected credit losses since the initial recognition. The expected credit risk of trade receivables are measured using the probability that a default occurs calculated based on the Group’s historical experiences on cash collection from trade receivables. | ||
[3] | The Group conducted loan commitment for an associate as of December 31, 2018 and 2019. | ||
[4] | Refer to Note 15 Financial Assets and Financial Liabilities for details of the financial instruments being deposited under the Japanese Payment Services Act. | ||
[5] | The Group identifies concentrations of credit risk when a limited number of the Group’s counterparties that have similar characteristics or business activities, and thus are affected similarly by changes in economic or other conditions, account for a large portion of the entire trade and other receivables. The Group had significant concentrations of credit risk with two payment processing service providers, representing 23.6% and 23.5% of trade and other receivables as of December 31, 2018 and 2019, respectively. | ||
[6] | The amount mainly consists of the office security deposits paid for the Group’s office lease agreements. |
Financial Risk Management - M_2
Financial Risk Management - Maximum Amounts of Possible Financial Loss Due to Credit Risk (Parenthetical) (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure [abstract] | ||
Percentage of the Group's trade and other receivables representing significant concentrations of credit risk with two payment processing service providers | 23.50% | 23.60% |
Financial Risk Management - Sum
Financial Risk Management - Summary of Undrawn Loan Commitment (Details) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure [abstract] | ||
Total amount of loan commitment | ¥ 1,000 | ¥ 1,000 |
Undrawn loan commitment | ¥ 1,000 | ¥ 1,000 |
Financial Risk Management - S_2
Financial Risk Management - Summary of Loss Allowance for Trade and Other Receivables (Detail) - Trade receivables [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of provision matrix [line items] | |||
Expected credit loss rate | [1] | 1.50% | 1.20% |
Gross carrying amount [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 43,346 | ¥ 38,111 | |
Loss allowance [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 666 | ¥ 467 | |
Current [member] | |||
Disclosure of provision matrix [line items] | |||
Expected credit loss rate | [1] | 0.10% | 0.00% |
Current [member] | Gross carrying amount [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 39,402 | ¥ 35,182 | |
Current [member] | Loss allowance [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 20 | ¥ 16 | |
Within six months past due [member] | |||
Disclosure of provision matrix [line items] | |||
Expected credit loss rate | [1] | 1.70% | 1.70% |
Within six months past due [member] | Gross carrying amount [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 3,096 | ¥ 2,386 | |
Within six months past due [member] | Loss allowance [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 52 | ¥ 39 | |
Over six months past due [member] | |||
Disclosure of provision matrix [line items] | |||
Expected credit loss rate | [1] | 27.80% | 30.40% |
Over six months past due [member] | Gross carrying amount [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 228 | ¥ 176 | |
Over six months past due [member] | Loss allowance [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 63 | ¥ 54 | |
Over twelve months past due [member] | |||
Disclosure of provision matrix [line items] | |||
Expected credit loss rate | [1] | 85.60% | 97.50% |
Over twelve months past due [member] | Gross carrying amount [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 620 | ¥ 367 | |
Over twelve months past due [member] | Loss allowance [member] | |||
Disclosure of provision matrix [line items] | |||
Financial assets | ¥ 531 | ¥ 358 | |
[1] | The expected credit loss rate is calculated based on the historical loss rate for trade receivables and other receivables of one year. |
Financial Risk Management - Mov
Financial Risk Management - Movement in Allowance for Doubtful Accounts Attributable to Trade and Other Receivables (Detail) - Trade and other receivables, and other financial assets current [Member] - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | ||
Loss allowance beginning balance | ¥ 467 | ¥ 492 |
Provision for the year | 312 | 304 |
Reversal | (18) | (60) |
Utilized | (95) | (171) |
Deconsolidation | (102) | |
Translation | 0 | 4 |
Loss allowance ending balance | ¥ 666 | ¥ 467 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) ¥ in Millions, $ in Millions | Dec. 31, 2019JPY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) |
Disclosure of detailed information about financial instruments [line items] | ||||
Contribution requirement as a limited partner of private equity investment funds, up to amount of the Group's unfunded capital commitment | ¥ 710 | ¥ 1,215 | ||
Financial assets measured at fair value through other comprehensive income, category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowance for doubtful accounts | 28 | 27 | ||
Financial assets at amortised cost, category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowance for doubtful accounts | 72 | |||
USD [Member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Contribution requirement as a limited partner of private equity investment funds, up to amount of the Group's unfunded capital commitment | ¥ 2,928 | $ 27 | ¥ 3,349 | $ 30 |
Financial Risk Management - S_3
Financial Risk Management - Summary of Calculation of Loss Allowance for Loan Receivables (Detail) - Loans and receivables, category [member] ¥ in Millions | Dec. 31, 2019JPY (¥) |
Disclosure of Loss Allowance for Loan Receivables Computation [Line Items] | |
Expected credit loss rate | 5.00% |
Loan receivables | ¥ 1,450 |
Loss allowance | ¥ 72 |
Current [member] | |
Disclosure of Loss Allowance for Loan Receivables Computation [Line Items] | |
Expected credit loss rate | 4.20% |
Loan receivables | ¥ 1,379 |
Loss allowance | ¥ 58 |
Within six months past due [member] | |
Disclosure of Loss Allowance for Loan Receivables Computation [Line Items] | |
Expected credit loss rate | 19.20% |
Loan receivables | ¥ 71 |
Loss allowance | ¥ 14 |
Financial Risk Management - Boo
Financial Risk Management - Book Values of Financial Liabilities Based on Remaining Maturities (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade and other payables | ¥ 43,829 | ¥ 35,210 | |
Short-term borrowings | 23,207 | 23,000 | |
Deposits received | 20,237 | 13,653 | |
Corporate bonds | 142,851 | 142,132 | |
Lease liabilities recognized at January 1, 2019 | 56,637 | ¥ 48,013 | |
Office security deposits received under sublease agreement | 16 | 16 | |
Put option liabilities | 224 | 296 | |
Total | 287,001 | 214,307 | |
Trade and other payables, Contractual cash outflows | 43,829 | 35,210 | |
Short-term borrowings, Contractual cash outflows | 23,246 | 23,019 | |
Deposits received, Contractual cash outflows | 20,237 | 13,653 | |
Corporate bonds, Contractual cash outflows | 146,320 | 146,320 | |
Lease liabilities, Contractual cash outflows | 66,102 | ||
Office security deposits received under sublease agreement, Contractual cash outflows | 16 | 16 | |
Put option liabilities, Contractual cash outflows | 224 | 296 | |
Total, Contractual cash outflows | 299,974 | 218,514 | |
Lines of credit available | 43,680 | 23,680 | |
Lines of credit used | 23,100 | 23,000 | |
Remaining lines of credit available | 20,580 | 680 | |
Less than one year [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade and other payables, Contractual cash outflows | 43,710 | 34,985 | |
Short-term borrowings, Contractual cash outflows | 23,246 | 23,019 | |
Deposits received, Contractual cash outflows | 20,237 | 13,653 | |
Lease liabilities, Contractual cash outflows | 11,593 | ||
Put option liabilities, Contractual cash outflows | 16 | ||
Total, Contractual cash outflows | 98,786 | 71,673 | |
One to five years [member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Trade and other payables, Contractual cash outflows | 119 | 225 | |
Corporate bonds, Contractual cash outflows | 73,160 | 73,160 | |
Lease liabilities, Contractual cash outflows | 23,418 | ||
Office security deposits received under sublease agreement, Contractual cash outflows | 16 | 16 | |
Put option liabilities, Contractual cash outflows | 224 | 280 | |
Total, Contractual cash outflows | 96,937 | 73,681 | |
After five years [Member] | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Corporate bonds, Contractual cash outflows | 73,160 | 73,160 | |
Lease liabilities, Contractual cash outflows | 31,091 | ||
Total, Contractual cash outflows | ¥ 104,251 | ¥ 73,160 |
Financial Risk Management - Exp
Financial Risk Management - Exposure to Exchange Rate Risk: Book Values of Major Monetary Assets and Liabilities Denominated in Currencies Other Than Functional Currency (Detail) - Currency risk [member] € in Millions, ₩ in Millions, ฿ in Millions, ¥ in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2019JPY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019KRW (₩) | Dec. 31, 2019THB (฿) | Dec. 31, 2019TWD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019SGD ($) | Dec. 31, 2018JPY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018KRW (₩) | Dec. 31, 2018THB (฿) | Dec. 31, 2018TWD ($) |
KRW [Member] | Lease liabilities [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ (23,219) | |||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | |||||
Yen equivalent | ¥ (2,183) | |||||||||||
KRW [Member] | Trade and other payables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ (35,934) | ₩ 44,026 | ||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent | ¥ (3,379) | ¥ (4,345) | ||||||||||
KRW [Member] | Put option liabilities [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ (2,410) | ₩ 2,296 | ||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent | ¥ (227) | ¥ (227) | ||||||||||
KRW [Member] | Cash and cash equivalents [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 24,893 | ₩ 15,539 | ||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent | ¥ 2,341 | ¥ 1,534 | ||||||||||
KRW [Member] | Trade receivables and other receivables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 21,102 | ₩ 2,362 | ||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent | ¥ 1,984 | ¥ 233 | ||||||||||
KRW [Member] | Time deposits [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 7,100 | |||||||||||
Exchange rate | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||
Yen equivalent | ¥ 701 | |||||||||||
KRW [Member] | Guarantee deposits [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 33,242 | ₩ 8,628 | ||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent | ¥ 3,126 | ¥ 852 | ||||||||||
KRW [Member] | Office security deposits [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 5,541 | ₩ 7,250 | ||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
Yen equivalent | ¥ 521 | ¥ 716 | ||||||||||
KRW [Member] | Financial assets at fair value through profit or loss [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ₩ | ₩ 25,439 | |||||||||||
Exchange rate | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | |||||
Yen equivalent | ¥ 2,392 | |||||||||||
USD [Member] | Trade and other payables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ (6) | $ 11 | ||||||||||
Exchange rate | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 110.36 | 110.36 | 110.36 | 110.36 | 110.36 |
Yen equivalent | ¥ (704) | ¥ (1,229) | ||||||||||
USD [Member] | Cash and cash equivalents [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 93 | $ 109 | ||||||||||
Exchange rate | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 110.36 | 110.36 | 110.36 | 110.36 | 110.36 |
Yen equivalent | ¥ 10,155 | ¥ 11,985 | ||||||||||
USD [Member] | Trade receivables and other receivables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 16 | $ 12 | ||||||||||
Exchange rate | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 110.36 | 110.36 | 110.36 | 110.36 | 110.36 |
Yen equivalent | ¥ 1,693 | ¥ 1,378 | ||||||||||
USD [Member] | Time deposits [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 5 | |||||||||||
Exchange rate | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | |||||
Yen equivalent | ¥ 545 | |||||||||||
USD [Member] | Short-term Loans [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 11 | |||||||||||
Exchange rate | 110.36 | 110.36 | 110.36 | 110.36 | 110.36 | |||||||
Yen equivalent | ¥ 1,260 | |||||||||||
USD [Member] | Financial assets at fair value through profit or loss [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 36 | $ 23 | ||||||||||
Exchange rate | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 108.87 | 110.36 | 110.36 | 110.36 | 110.36 | 110.36 |
Yen equivalent | ¥ 3,928 | ¥ 2,491 | ||||||||||
THB [Member] | Trade receivables and other receivables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ฿ | ฿ 62 | ฿ 72 | ||||||||||
Exchange rate | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.39 | 3.39 | 3.39 | 3.39 | 3.39 |
Yen equivalent | ¥ 227 | ¥ 245 | ||||||||||
THB [Member] | Financial assets at fair value through profit or loss [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ฿ | ฿ 162 | |||||||||||
Exchange rate | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | 3.64 | |||||
Yen equivalent | ¥ 590 | |||||||||||
TWD [Member] | Trade and other payables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 125 | |||||||||||
Exchange rate | 3.61 | 3.61 | 3.61 | 3.61 | 3.61 | |||||||
Yen equivalent | ¥ (451) | |||||||||||
TWD [Member] | Financial assets at fair value through profit or loss [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 95 | $ 88 | ||||||||||
Exchange rate | 3.62 | 3.62 | 3.62 | 3.62 | 3.62 | 3.62 | 3.62 | 3.61 | 3.61 | 3.61 | 3.61 | 3.61 |
Yen equivalent | ¥ 343 | ¥ 319 | ||||||||||
Japan, Yen | Trade and other payables [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ¥ (202) | ¥ 256 | ||||||||||
Exchange rate | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Yen equivalent | ¥ (202) | ¥ (256) | ||||||||||
Japan, Yen | Cash and cash equivalents [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | ¥ 337 | ¥ 337 | ||||||||||
Exchange rate | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Yen equivalent | ¥ 337 | ¥ 337 | ||||||||||
EUR [Member] | Cash and cash equivalents [Member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | € | € 3 | |||||||||||
Exchange rate | 122 | 122 | 122 | 122 | 122 | 122 | 122 | |||||
Yen equivalent | ¥ 380 | |||||||||||
SGD [Member] | Financial assets at fair value through profit or loss [member] | ||||||||||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||||||||||
Amount denominated in currencies other than functional currency | $ | $ 3 | |||||||||||
Exchange rate | 80.73 | 80.73 | 80.73 | 80.73 | 80.73 | 80.73 | 80.73 | |||||
Yen equivalent | ¥ 233 |
Financial Risk Management - Sen
Financial Risk Management - Sensitivity Analysis for Exchange Rate Risk on Profit or Loss Before Tax and Shareholders' Equity (Detail) - Currency risk [member] - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
EUR [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ 15 | |
EUR [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 19 | |
EUR [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (14) | |
EUR [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (18) | |
KRW [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 170 | ¥ (14) |
KRW [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 239 | (27) |
KRW [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (162) | 13 |
KRW [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (228) | 26 |
USD [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 630 | 584 |
USD [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 831 | 794 |
USD [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (600) | (556) |
USD [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (791) | (756) |
THB [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 28 | 8 |
THB [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 41 | 12 |
THB [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (27) | (8) |
THB [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (39) | (12) |
Japan, Yen | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 6 | 3 |
Japan, Yen | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 7 | 4 |
Japan, Yen | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (6) | (3) |
Japan, Yen | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (6) | (4) |
TWD [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 12 | (6) |
TWD [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 17 | (7) |
TWD [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (11) | 5 |
TWD [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (16) | ¥ 6 |
SGD [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 8 | |
SGD [Member] | Currency risk: Appreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 12 | |
SGD [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Shareholder's equity [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (8) | |
SGD [Member] | Currency risk: Depreciation of functional currency by 5% [Member] | Profit And Loss From Continuing Operations [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ (11) |
Financial Risk Management - E_2
Financial Risk Management - Exposure to Interest Rate Risk: Interest Bearing Financial Assets and Liabilities (Detail) - Interest rate risk [member] - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed rate [Member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | ¥ 23,296 | ¥ 29,902 |
Financial liabilities | 94 | |
Fixed rate [Member] | Short-term borrowings [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 94 | |
Fixed rate [Member] | Japanese government bonds [Member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 280 | 280 |
Fixed rate [Member] | Time deposits [Member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 3,577 | 11,507 |
Fixed rate [Member] | Loan receivable [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 1,396 | 110 |
Fixed rate [Member] | Corporate bonds and other debt instruments [Member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 18,043 | 18,005 |
Variable rate [Member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | 1,672 | |
Financial liabilities | 23,100 | 23,000 |
Variable rate [Member] | Short-term borrowings [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial liabilities | 23,100 | ¥ 23,000 |
Variable rate [Member] | Guarantee deposits [Member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Financial assets | ¥ 1,672 |
Financial Risk Management - S_4
Financial Risk Management - Sensitivity Analysis for Interest Rate Risk on Profit or Loss Before Tax and Shareholders' Equity (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Variable interest rate risk: Increase of 50 basis points [Member] | Shareholder's equity [Member] | Interest rate risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ (79) | ¥ (79) |
Variable interest rate risk: Increase of 50 basis points [Member] | Shareholder's equity [Member] | Debt Instruments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (121) | (145) |
Variable interest rate risk: Increase of 50 basis points [Member] | Profit And Loss From Continuing Operations [member] | Interest rate risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (116) | (115) |
Variable interest rate risk: Increase of 50 basis points [Member] | Profit And Loss From Continuing Operations [member] | Debt Instruments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | (177) | (212) |
Variable interest rate risk: Decrease of 50 basis points [Member] | Shareholder's equity [Member] | Interest rate risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 17 | 16 |
Variable interest rate risk: Decrease of 50 basis points [Member] | Shareholder's equity [Member] | Debt Instruments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 69 | 86 |
Variable interest rate risk: Decrease of 50 basis points [Member] | Profit And Loss From Continuing Operations [member] | Interest rate risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | 25 | 23 |
Variable interest rate risk: Decrease of 50 basis points [Member] | Profit And Loss From Continuing Operations [member] | Debt Instruments [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Effects on profit or loss before tax and shareholders' equity | ¥ 100 | ¥ 125 |
Financial Risk Management - S_5
Financial Risk Management - Summary of Capital Management (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of objectives, policies and processes for managing capital [abstract] | |||||
Short-term borrowings | ¥ 23,207 | ¥ 23,000 | |||
Corporate bonds | 142,851 | 142,132 | |||
Lease liabilities recognized at January 1, 2019 | 56,637 | ¥ 48,013 | |||
Total | 222,695 | 165,132 | |||
Total shareholders' equity | ¥ 174,663 | ¥ 208,514 | ¥ 189,977 | ¥ 161,023 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements of Assets by Fair Value Hierarchy (Detail) - Fair Value Measurement on a Recurring Basis [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets [line items] | ||
Financial asset at fair value through profit or loss | ¥ 20,500 | ¥ 10,261 |
Total | 48,191 | 35,562 |
Total | 285 | 296 |
Put option liabilities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities at fair value | 224 | 296 |
Other Liabilities [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities at fair value | 61 | |
Equity instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets at FVOCI | 9,648 | 7,296 |
Debt Instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets at FVOCI | 18,043 | 18,005 |
Level 1 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial asset at fair value through profit or loss | 172 | |
Total | 6,922 | 791 |
Total | 61 | |
Level 1 [Member] | Other Liabilities [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities at fair value | 61 | |
Level 1 [Member] | Equity instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets at FVOCI | 6,750 | 791 |
Level 2 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial asset at fair value through profit or loss | 3,016 | |
Total | 21,059 | 18,005 |
Level 2 [Member] | Debt Instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets at FVOCI | 18,043 | 18,005 |
Level 3 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial asset at fair value through profit or loss | 17,312 | 10,261 |
Total | 20,210 | 16,766 |
Total | 224 | 296 |
Level 3 [Member] | Put option liabilities [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liabilities at fair value | 224 | 296 |
Level 3 [Member] | Equity instruments [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets at FVOCI | ¥ 2,898 | ¥ 6,505 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets at Fair Value of Other Comprehensive Income (Detail) - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Equity instruments | ¥ 9,648 | ¥ 7,296 | |
Trading securities [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Equity instruments | 6,751 | 791 | |
Non-trading Securities [member] | |||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | |||
Equity instruments | [1] | ¥ 2,897 | ¥ 6,505 |
[1] | The fair value of non-marketable equity instruments measured at FVOCI are mainly consist of finance related business of 3,000 million yen, AI of 1,192 million yen, and other business such as advertising of 2,313 million yen as of December 31, 2018. The fair value of non-marketable equity instruments measured at FVOCI are mainly consist of AI of 801 million yen and other business such as advertising of 2,096 million yen. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Fair value of non-marketable equity instruments measured at FVOCI | ¥ 9,648 | ¥ 7,296 |
Accumulated deficit [Member] | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Accumulated other comprehensive income for equity instruments measured at FVOCI reclassified to accumulated deficit | 1,081 | 2,230 |
Financial services business [member] | Non-trading Securities [member] | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Fair value of non-marketable equity instruments measured at FVOCI | 3,000 | |
AI business CGU [member] | Non-trading Securities [member] | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Fair value of non-marketable equity instruments measured at FVOCI | 801 | 1,192 |
Other business [member] | Non-trading Securities [member] | ||
Disclosure of fair value of investments in equity instruments designated at fair value through other comprehensive income [line items] | ||
Fair value of non-marketable equity instruments measured at FVOCI | ¥ 2,096 | ¥ 2,313 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Not Measured at Fair Values in Consolidated Statements of Financial Position but for which Fair Values are Disclosed by Fair Value Hierarchy (Detail) - Not measured at fair values in Consolidated Statements of Financial Position but for which fair values are disclosed [Member] - JPY (¥) ¥ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of assets [line items] | ||
Total | ¥ 9,707 | ¥ 9,461 |
Total | 144,270 | 143,759 |
Corporate bonds and other debt instruments [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 284 | 288 |
Guarantee deposits [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 57 | 123 |
Office security deposits [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 9,266 | 9,050 |
Other assets [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 100 | |
Level 2 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Total | 9,707 | 9,461 |
Total | 144,270 | 143,759 |
Level 2 [Member] | Corporate bonds and other debt instruments [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 284 | 288 |
Level 2 [Member] | Guarantee deposits [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 57 | 123 |
Level 2 [Member] | Office security deposits [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 9,266 | 9,050 |
Level 2 [Member] | Other assets [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets measured at amortized cost | 100 | |
Office security deposits received under sublease agreement [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liability measured at amortized cost | 16 | 16 |
Office security deposits received under sublease agreement [Member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liability measured at amortized cost | 16 | 16 |
Corporate bonds [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liability measured at amortized cost | 144,254 | 143,743 |
Corporate bonds [Member] | Level 2 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial liability measured at amortized cost | ¥ 144,254 | ¥ 143,743 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliations of Assets Measured at Fair Value on a Recurring Basis Categorized within Level 3 (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of fair value measurement of assets [line items] | ||||
Total comprehensive income/(loss) for the year, net of tax | ¥ (50,634) | ¥ (11,929) | ¥ 11,743 | |
Fair Value Measurement on a Recurring Basis [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | 35,562 | |||
Fair value at the beginning of the year | (296) | |||
Fair value at the end of the year | 48,191 | 35,562 | ||
Fair value at the end of the year | (285) | (296) | ||
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | 16,766 | |||
Fair value at the beginning of the year | (296) | |||
Fair value at the end of the year | 20,210 | 16,766 | ||
Fair value at the end of the year | (224) | (296) | ||
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | 10,261 | |||
Included in profit or loss | [1] | 1,953 | ||
Total comprehensive income/(loss) for the year, net of tax | 1,953 | |||
Purchases | 5,311 | |||
Other | (216) | |||
Effect of exchange rate changes | 3 | |||
Fair value at the end of the year | 17,312 | 10,261 | ||
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Investments in equity instruments designated at fair value through other comprehensive income [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | 6,505 | |||
Included in other comprehensive income | [2] | (224) | ||
Total comprehensive income/(loss) for the year, net of tax | (224) | |||
Purchases | 0 | |||
Sales and settlements | [3] | (556) | ||
Other | 176 | |||
Transfers in | [4] | (3,000) | ||
Effect of exchange rate changes | (3) | |||
Fair value at the end of the year | 2,898 | 6,505 | ||
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Put option liabilities [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | (296) | (486) | ||
Included in profit or loss | [1] | 85 | (74) | |
Total comprehensive income/(loss) for the year, net of tax | 85 | (74) | ||
Purchases | (28) | (16) | ||
Exercise of options | 250 | |||
Decrease due to loss of control | 26 | |||
Other | 16 | (3) | ||
Effect of exchange rate changes | (1) | 7 | ||
Fair value at the end of the year | (224) | (296) | (486) | |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Conversion right and redemption right of preferred stock [member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | 6,505 | 8,539 | ||
Included in other comprehensive income | [2] | (1,916) | ||
Total comprehensive income/(loss) for the year, net of tax | (1,916) | |||
Purchases | 5,029 | |||
Sales and settlements | [3] | (4,176) | ||
Decrease due to loss of control | (595) | |||
Other | (110) | |||
Effect of exchange rate changes | (266) | |||
Fair value at the end of the year | 6,505 | 8,539 | ||
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Private equity and other financial instruments [Member] | ||||
Disclosure of fair value measurement of assets [line items] | ||||
Fair value at the beginning of the year | ¥ 10,261 | 7,143 | ||
Included in profit or loss | [1] | (553) | ||
Total comprehensive income/(loss) for the year, net of tax | (553) | |||
Purchases | 4,763 | |||
Decrease due to loss of control | (963) | |||
Other | 138 | |||
Effect of exchange rate changes | (267) | |||
Fair value at the end of the year | ¥ 10,261 | ¥ 7,143 | ||
[1] | This amount is included in “Other non-operating income” or “Other non-operating expenses” in the Group’s Consolidated Statements of Profit or Loss. | |||
[2] | This amount is included in “Net changes in fair value of equity instruments at FVOCI” in the Group’s Consolidated Statements of Comprehensive Income. | |||
[3] | During the years ended December 31, 2018 and 2019, the Group sold financial assets at FVOCI. The cumulative gain on disposal amounted to 2,267 million yen and the cumulative loss on disposal amounted to 1,081 million yen, respectively. | |||
[4] | During the year ended December 31, 2019, the issuing company of an equity instrument was listed to Tokyo Stock Exchange Mothers. Accordingly, such equity instrument was transferred from Level 3 to Level 1. |
Fair Value Measurements - Rec_2
Fair Value Measurements - Reconciliations of Assets Measured at Fair Value on a Recurring Basis Categorized within Level 3 (Parenthetical) (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Conversion right and redemption right of preferred stock [member] | Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Cummulative gain on disposal (profit) from sale of financial assets at FVOCI | ¥ 1,081 | ¥ 2,267 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information Regarding Valuation Technique and Significant Unobservable Inputs Used in Measuring Fair Value of Assets and Liabilities (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities at fair value through profit or loss [member] | Option pricing model [Member] | Historical volatility for shares, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, liabilities | 0.519 | |
Financial liabilities at fair value through profit or loss [member] | Option pricing model [Member] | Discount rate, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, liabilities | 0.018 | |
Financial liabilities at fair value through profit or loss [member] | Monte Carlo simulation model [member] | Historical volatility for shares, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, liabilities | 0.436 | 0.431 |
Financial liabilities at fair value through profit or loss [member] | Monte Carlo simulation model [member] | Discount rate, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, liabilities | 0.017 | 0.020 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through other comprehensive income, category [member] | Market approach - market comparable companies [Member] | Liquidity discount Measurement Input [Member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.300 | 0.300 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through other comprehensive income, category [member] | Market approach - market comparable companies [Member] | Bottom of Range [member] | Revenue multiple, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 1.4 | 1.3 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through other comprehensive income, category [member] | Market approach - market comparable companies [Member] | Top of Range [member] | Revenue multiple, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 13.3 | 9.1 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | Discount cash flow model [Member] | Discount rate, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.160 | |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | Discount cash flow model [Member] | Financial forecast of cash inflows (outflows) for cash-generating unit, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.020 | |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | Binomial Option Pricing Model [member] | Bottom of Range [member] | Historical volatility for shares, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.533 | 0.533 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | Binomial Option Pricing Model [member] | Bottom of Range [member] | Discount rate, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.014 | 0.020 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | Binomial Option Pricing Model [member] | Top of Range [member] | Historical volatility for shares, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.540 | 0.540 |
Fair Value Measurement on a Recurring Basis [Member] | Level 3 [Member] | Financial assets at fair value through profit or loss [member] | Binomial Option Pricing Model [member] | Top of Range [member] | Discount rate, measurement input [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Significant unobservable input, assets | 0.016 | 0.022 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) | Jul. 29, 2019JPY (¥) | Jan. 23, 2019JPY (¥) | Jul. 20, 2018JPY (¥) | Jan. 01, 2018JPY (¥) | Jul. 18, 2017JPY (¥) | Dec. 31, 2019JPY (¥)¥ / shares | Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥)¥ / sharesshares | Jul. 18, 2017JPY (¥) | Dec. 31, 2015¥ / sharesshares | Dec. 31, 2014¥ / sharesshares | Dec. 31, 2013¥ / sharesshares | |||
Exercise price of outstanding stock options | |||||||||||||||
Number of common shares represented by each stock option | shares | 100 | 500 | 500 | 500 | |||||||||||
Exercise price of outstanding share options | ¥ / shares | ¥ 4,206 | ¥ 1,320 | ¥ 1,320 | ¥ 344 | |||||||||||
Stock option vesting condition | Exercisable from the vesting date until July 8, 2029, where 20%, 30% and 50% of the stock options will be vested after three years, four years and five years from the grant date, respectively. | 25% of such stock options per year from the grant date and are exercisable from the vesting date until July 18, 2027. | Vested two years after the grant date and are exercisable for a period of eight years from the vesting date. | Vested two years after the grant date and are exercisable for a period of eight years from the vesting date. | Vested two years after the grant date and are exercisable for a period of eight years from the vesting date. | ||||||||||
Stock option vesting period | 10 | ||||||||||||||
Cancellations or modifications | 0 | 0 | 0 | ||||||||||||
Weighted average remaining contractual life | 8 years 1 month 6 days | 6 years 7 months 6 days | 7 years 9 months 18 days | ||||||||||||
Weighted average fair value of stock options granted in 2019 on a per-common share basis | ¥ 1,287 | ||||||||||||||
Stock options fair value | ¥ 3,500 | ¥ 3,840 | ¥ 3,840 | ||||||||||||
Standard stock Price threshold limit | ¥ / shares | ¥ 7,518 | ||||||||||||||
Annual Turnover Rate | 9.25% | ||||||||||||||
Grant Date One [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Stock option exercisable percentage | 20.00% | ||||||||||||||
Stock option exercisable period | 3 years | ||||||||||||||
Stock acquisition rights percentage | 20.00% | ||||||||||||||
Grant Date Two [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Stock option exercisable percentage | 30.00% | ||||||||||||||
Stock option exercisable period | 4 years | ||||||||||||||
Stock acquisition rights percentage | 30.00% | ||||||||||||||
Grant date Three [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Stock option exercisable percentage | 50.00% | ||||||||||||||
Stock option exercisable period | 5 years | ||||||||||||||
Stock acquisition rights percentage | 50.00% | ||||||||||||||
Common shares [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Shares granted during the period | 4,702,800 | ||||||||||||||
Stock options exercise price | ¥ / shares | ¥ 3,500 | ||||||||||||||
Common stock options [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Options granted during the years | 47,028 | ||||||||||||||
Shares granted during the period | 4,702,800 | 4,702,800 | 2,386,000 | ||||||||||||
Stock options exercise price | ¥ / shares | ¥ 3,500 | ¥ 4,206 | |||||||||||||
Cancellations or modifications | 152,300 | [1] | 983,200 | [1] | 7,000 | ||||||||||
E S O P equity settled [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Shares granted during the period | 161,172 | 48,651 | 260,133 | 26,946 | 262,069 | 209,823 | [2] | 287,079 | [2] | 262,069 | |||||
Cancellations or modifications | 48,662 | [2] | 35,091 | [2] | 10,767 | ||||||||||
Weighted average remaining contractual life | 10 months 24 days | 1 year 2 months 12 days | 1 year 6 months | ||||||||||||
Stock options fair value | ¥ 3,500 | ¥ 3,905 | ¥ 5,130 | ¥ 4,865 | ¥ 3,840 | 3,840 | |||||||||
E S O P cash settled [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Weighted average remaining contractual life | 10 months 24 days | 1 year 2 months 12 days | 1 year 6 months | ||||||||||||
Stock options fair value | ¥ 3,500 | ¥ 3,905 | ¥ 5,130 | ¥ 4,865 | ¥ 3,840 | ¥ 5,350 | ¥ 3,775 | ¥ 4,595 | ¥ 3,840 | ||||||
Granted during the period | 306,452 | 90,744 | 543,733 | 58,660 | 567,056 | 397,196 | [2] | 602,393 | [2] | 567,056 | [2] | ||||
Liabilities associated Cash-settled J-ESOP | ¥ 11,000,000 | ¥ 12,000,000 | ¥ 0 | ||||||||||||
Current liabilities from share based payment transactions | 1,849,000,000 | 758,000,000 | 400,000,000 | ||||||||||||
Non current liabilities from share based payment transactions | ¥ 774,000,000 | ¥ 669,000,000 | ¥ 434,000,000 | ||||||||||||
Bottom of Range [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Stock option vesting period | 5.5 | 2 | 2 | 2 | |||||||||||
Top of Range [member] | |||||||||||||||
Exercise price of outstanding stock options | |||||||||||||||
Stock option vesting period | 7 | 8 | 8 | 8 | |||||||||||
[1] | For the year ended December 31, 2018 and 2019, the number of forfeited stock options include 763,300 shares and 120,200 shares, respectively, of revocation due to waiver of rights. | ||||||||||||||
[2] | One point is equal to one share. |
Share-Based Payments - Number a
Share-Based Payments - Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Options on a Per-common-share Basis (Detail) | Jul. 29, 2019 | Dec. 31, 2019¥ / shares | Dec. 31, 2018¥ / shares | Dec. 31, 2017¥ / shares | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||
Number of shares, Forfeited | 0 | 0 | 0 | ||||
Common stock options [member] | |||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||||
Number of shares, Beginning balance | 3,738,300 | 5,577,000 | 22,911,500 | ||||
Number of shares, Granted | 4,702,800 | 4,702,800 | 2,386,000 | ||||
Number of shares, Forfeited | (152,300) | [1] | (983,200) | [1] | (7,000) | ||
Number of shares, Exercised | (608,500) | [2] | (855,500) | [2] | (19,713,500) | [1] | |
Number of shares, Ending balance | 7,680,300 | 3,738,300 | 5,577,000 | ||||
Number of shares, Exercisable | 2,376,000 | 2,701,400 | 3,191,000 | ||||
Weighted average exercise prices, Beginning balance | ¥ 2,245 | ¥ 2,421 | ¥ 653 | ||||
Weighted average exercise prices, Granted | 3,500 | 4,206 | |||||
Weighted average exercise prices, Forfeited | 4,021 | [1] | 4,178 | [1] | 1,320 | ||
Weighted average exercise prices, Exercised | 942 | [2] | 1,171 | [2] | 583 | [1] | |
Weighted average exercise prices, Ending balance | 3,081 | 2,245 | 2,421 | ||||
Weighted average exercise prices, Exercisable | ¥ 1,960 | ¥ 1,492 | ¥ 1,086 | ||||
[1] | For the year ended December 31, 2018 and 2019, the number of forfeited stock options include 763,300 shares and 120,200 shares, respectively, of revocation due to waiver of rights. | ||||||
[2] | The weighted average share price at the date of exercise of these options during the years ended December 31, 2017, 2018 and 2019 were 4,580 yen, 4,245 yen and 3,975 yen, respectively. |
Share-Based Payments - Number_2
Share-Based Payments - Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Options on a Per-common-share Basis (Parenthetical) (Detail) | 12 Months Ended | ||||
Dec. 31, 2019shares¥ / shares | Dec. 31, 2018shares¥ / shares | Dec. 31, 2017¥ / shares | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||
Number of forfeited stock options | 0 | 0 | 0 | ||
Common stock options [member] | |||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||
Number of forfeited stock options | 152,300 | [1] | 983,200 | [1] | 7,000 |
Weighted average share price at the date of exercise of stock options | ¥ / shares | ¥ 3,975 | ¥ 4,245 | ¥ 4,580 | ||
Common stock options [member] | Revocation due to waiver of rights [member] | |||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||
Number of forfeited stock options | shares | 120,200 | 763,300 | |||
[1] | For the year ended December 31, 2018 and 2019, the number of forfeited stock options include 763,300 shares and 120,200 shares, respectively, of revocation due to waiver of rights. |
Share-Based Payments - Summary
Share-Based Payments - Summary of Exercise Price and Number for Shares of Options Outstanding (Detail) | Dec. 31, 2019¥ / shares | Dec. 31, 2018 | Dec. 31, 2017¥ / shares | Dec. 31, 2015¥ / shares | Dec. 31, 2014¥ / shares | Dec. 31, 2013¥ / shares |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 4,206 | ¥ 1,320 | ¥ 1,320 | ¥ 344 | ||
December seventeen two thousand thirteen [member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 344 | |||||
Number (Shares) | 309,000 | 544,500 | 763,500 | |||
February eight two thousand fourteen [member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 1,320 | |||||
Number (Shares) | 502,500 | 649,000 | 818,000 | |||
August nine two thousand fourteen [member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 1,320 | |||||
Number (Shares) | 116,000 | 148,500 | 218,000 | |||
November one two thousand fourteen [member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 1,320 | |||||
Number (Shares) | 109,000 | 122,500 | 145,000 | |||
February Four Two Thousand Fifteen [member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 1,320 | |||||
Number (Shares) | 708,500 | 891,500 | 1,246,500 | |||
July Eighteen Two Thousand Seventeen [member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 4,206 | |||||
Number (Shares) | 1,262,100 | 1,382,300 | 2,386,000 | |||
July twenty nine two thousand nineteen [Member] | ||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||
Exercise price (yen) | ¥ 3,500 | |||||
Number (Shares) | 4,673,200 |
Share-Based Payments - Inputs t
Share-Based Payments - Inputs to Models Used for Deriving Fair Value of Stock Options Granted (Detail) | Jul. 29, 2019JPY (¥)¥ / shares | Jul. 18, 2017JPY (¥)¥ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||
Dividend yield | 0.00% | 0.00% | |||
Expected volatility | 36.60% | ||||
Risk-free interest rate | (0.15%) | ||||
Expected life of stock options (years) | 10 | ||||
Exercise price (yen) | ¥ / shares | ¥ 3,500 | ¥ 4,206 | |||
Fair value per common share at the grant date (yen) | ¥ | ¥ 3,500 | ¥ 3,840 | |||
Model used | Binomial option pricing model | Black-Scholes | |||
Bottom of Range [member] | |||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||
Expected volatility | 44.90% | ||||
Risk-free interest rate | (0.04%) | ||||
Expected life of stock options (years) | 5.5 | 2 | 2 | 2 | |
Top of Range [member] | |||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||||
Expected volatility | 45.70% | ||||
Risk-free interest rate | (0.00%) | ||||
Expected life of stock options (years) | 7 | 8 | 8 | 8 |
Share-Based Payments - Expenses
Share-Based Payments - Expenses Recognized in Connection with Share-Based Payments (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Total expenses arising from equity-settled share-based payment transactions | ¥ 888 | ¥ 559 | ¥ 1,602 |
E S O P equity settled [member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Total expenses arising from equity-settled share-based payment transactions | 875 | 827 | 279 |
E S O P cash settled [member] | |||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | |||
Total expenses arising from cash-settled share-based payment transactions | ¥ 2,486 | ¥ 1,142 | ¥ 805 |
Share-Based Payments - Number_3
Share-Based Payments - Number and Weighted Average Exercise Prices of, and Movements in, Outstanding Stock Other Options on a Per-common-share Basis (Detail) | Jul. 29, 2019 | Jan. 23, 2019 | Jul. 20, 2018 | Jan. 01, 2018 | Jul. 18, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||||||||
Number of shares, Forfeited | 0 | 0 | 0 | |||||||||
E S O P equity settled [member] | ||||||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||||||||
Number of shares, Beginning balance | [1] | 251,302 | 445,401 | 251,302 | ||||||||
Number of shares, Granted | 161,172 | 48,651 | 260,133 | 26,946 | 262,069 | 209,823 | [1] | 287,079 | [1] | 262,069 | ||
Number of shares, Forfeited | (48,662) | [1] | (35,091) | [1] | (10,767) | |||||||
Number of shares, Exercised | [1] | (145,579) | (57,889) | |||||||||
Number of shares, Expired | [1] | (392) | ||||||||||
Number of shares, Ending balance | [1] | 460,591 | 445,401 | 251,302 | ||||||||
Number of shares, Exercisable | [1] | 8,505 | 5,275 | |||||||||
E S O P cash settled [member] | ||||||||||||
Disclosure of Terms and Conditions of Share-based Payment Arrangement [Line Items] | ||||||||||||
Number of shares, Beginning balance | [1] | 533,502 | 890,624 | 533,502 | ||||||||
Number of shares, Granted | 306,452 | 90,744 | 543,733 | 58,660 | 567,056 | 397,196 | [1] | 602,393 | [1] | 567,056 | [1] | |
Number of shares, Forfeited | (94,297) | [1] | (101,430) | (33,554) | [1] | |||||||
Number of shares, Exercised | (305,760) | [1] | (143,841) | |||||||||
Number of shares, Expired | [1] | (176) | ||||||||||
Number of shares, Ending balance | [1] | 887,587 | 890,624 | 533,502 | ||||||||
Number of shares, Exercisable | [1] | 3,840 | 2,373 | |||||||||
[1] | One point is equal to one share. |
Related Party Transactions - Si
Related Party Transactions - Significant Related Party Transactions and Outstanding Balances with Related Parties (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Ultimate Parent Company [member] | NAVER Corporation [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Transaction | Advertising service | [1] | Advertising service | [2] | Advertising service | [3] | |
Transaction amount | ¥ 694 | ¥ 663 | ¥ 518 | ||||
Outstanding receivable balances | [4] | ¥ 192 | ¥ 184 | ¥ 108 | |||
Ultimate Parent Company [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Transaction | [5] | Underwrite of convertible Bonds | [6] | Underwrite of convertible bonds | |||
Transaction amount | ¥ 74,989 | ||||||
Outstanding payable balances | [4] | ¥ (72,114) | ¥ (71,901) | ||||
Subsidiary of ultimate parent company [member] | NAVER Business Platform Corp. [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Transaction | IT Infrastructure service and related development service | Operating expenses | Operating expenses | ||||
Transaction amount | ¥ 8,490 | ¥ 8,566 | ¥ 8,475 | ||||
Outstanding payable balances | [4] | ¥ (937) | ¥ (883) | ¥ (976) | |||
Associates [member] | Snow Corporation [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Transaction | [7] | Transfer of camera application business | |||||
Transaction amount | ¥ 10,651 | ||||||
Director joongho shin [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Transaction | [8] | Exercise of stock options | |||||
Transaction amount | ¥ 6,922 | ||||||
Director hae jin lee [member] | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Transaction | [8] | Exercise of stock options | |||||
Transaction amount | ¥ 1,917 | ||||||
[1] | LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 694 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2019. | ||||||
[2] | LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 663 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2018. | ||||||
[3] | LINE Plus Corporation and NAVER entered into an agreement for exchange of services in which LINE Plus Corporation provides advertising services via the LINE platform and the right to use certain LINE characters in exchange for NAVER’s advertising services for LINE Plus via NAVER’s web portal. The Group generated advertising revenues of 518 million yen in connection with the advertising services provided to NAVER for the year ended December 31, 2017. | ||||||
[4] | The receivable and payable amounts outstanding are unsecured and will be settled in cash. | ||||||
[5] | During the year ended December 31, 2018, the Group issued Euro-yen convertible bonds with stock acquisition rights through two of the separate third-party allotments to NAVER, amounted to 37,494.5 million yen (Zero coupon convertible bonds due 2023) and 37,494.5 million yen (Zero coupon convertible bonds due 2025). The amount shown for the outstanding payable balance is the liability measured at amortized cost as of December 31, 2018 excluding the equity components. Refer to Note 15 Financial assets and financial liabilities for further detail. | ||||||
[6] | During the year ended December 31, 2019, the Group issued Euro-yen convertible bonds with stock acquisition rights through two of the separate third-party allotments to NAVER, amounted to 37,494.5 million yen (Zero coupon convertible bonds due 2023) and 37,494.5 million yen (Zero coupon convertible bonds due 2025). The amount shown for the outstanding payable balance is the liability measured at amortized cost as of December 31, 2019 excluding the equity components. Refer to Note 15 Financial assets and financial liabilities for further detail. | ||||||
[7] | In May, 2017, LINE Plus Corporation transferred its camera application business to Snow Corporation. In exchange for the transfer of the business, LINE Plus Corporation received 208,455 newly issued common shares of Snow Corporation, and the transaction amount represents the fair value of the newly issued common shares received on the transaction date. Refer to Note 20 Supplemental Cash Flow Information for further details. | ||||||
[8] | Stock options which had been issued with resolution at the meeting of board of director on December 17, 2012 and January 30, 2015, have been exercised. The transaction amount includes the amount paid in by exercising stock options during the year ended December 31, 2017. |
Related Party Transactions - _2
Related Party Transactions - Significant Related Party Transactions and Outstanding Balances with Related Parties (Parenthetical) (Detail) ¥ in Millions | May 01, 2017shares | Dec. 31, 2019JPY (¥) | Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥) |
Camera Application Business (was operated by a wholly owned subsidiary, LINE Plus Corporation) [Member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Number of newly issued common shares received in exchange for transfer of business | shares | 208,455 | |||
Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Number of third party allotments | 2 | 2 | ||
Zero coupon convertible bonds due 2023 [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Convertible bonds issued | ¥ 37,494.5 | ¥ 37,494.5 | ||
Zero coupon convertible bonds due 2025 [member] | Convertible bond with stock acquisition right [member] | NAVER Corporation [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Convertible bonds issued | 37,494.5 | 37,494.5 | ||
Ultimate Parent Company [member] | NAVER Corporation [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Transaction amount | ¥ 694 | ¥ 663 | ¥ 518 |
Related Party Transactions - To
Related Party Transactions - Total Compensation of Key Management Personnel (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of transactions between related parties [abstract] | ||||
Salaries (including bonuses) | ¥ 637 | ¥ 704 | ¥ 739 | |
Share-based payments(1) | [1] | 800 | 780 | 928 |
Other | 55 | 43 | ||
Total | ¥ 1,492 | ¥ 1,527 | ¥ 1,667 | |
[1] | Refer to Note 27 Share-Based Payments for further details. |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) ¥ in Millions | Jul. 24, 2017JPY (¥) | Dec. 31, 2019JPY (¥) | Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥) | Dec. 15, 2017JPY (¥) |
Disclosure of detailed information about business combination [line items] | |||||
Goodwill | ¥ 17,651 | ¥ 17,095 | ¥ 16,767 | ||
Number of additional significant business combinations completed | 0 | 0 | 0 | ||
Next floor group [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting shares acquired | 51.00% | ||||
Goodwill | ¥ 3,154 | ||||
Goodwill expected to be deductible for income tax purposes | 0 | ||||
Revenues | ¥ 1,058 | ||||
(Loss)/profit for the year from continuing operations | (947) | ||||
Acquisition related transaction costs | 18 | ||||
Loan receivables | 1,976 | ||||
Next floor group [member] | Fair value [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Fair value of trade receivables | 335 | ||||
Goodwill | ¥ 3,154 | ||||
Five Inc [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting shares acquired | 100.00% | ||||
Goodwill | ¥ 4,996 | ||||
Goodwill expected to be deductible for income tax purposes | 0 | ||||
Revenues | 68 | ||||
(Loss)/profit for the year from continuing operations | (4) | ||||
Acquisition related transaction costs | 11 | ||||
Five Inc [member] | Fair value [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Fair value of trade receivables | 306 | ||||
Goodwill | ¥ 4,996 | ||||
Next Floor Group And Five [member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Revenue as if acquisitions occurred at beginning of period | 168,915 | ||||
Profit (loss) as if acquisitions occurred at beginning of period | ¥ 6,701 |
Business Combinations - Fair Va
Business Combinations - Fair Values of Identifiable Assets and Liabilities of NextFloor Group at Date of Acquisition (Detail) - JPY (¥) ¥ in Millions | Jul. 24, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | ¥ 17,651 | ¥ 17,095 | ¥ 16,767 | |
Net cash and cash equivalents acquired at the acquisition date | 736 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (240) | ¥ (188) | ¥ (11,887) | |
Next floor group [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | ¥ 3,154 | |||
Next floor group [member] | Fair value [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash and cash equivalents | 1,946 | |||
Trade receivables | 335 | |||
Other financial assets, current | 307 | |||
Other financial assets, non-current | 754 | |||
Property and equipment | 145 | |||
Software | 153 | |||
Publishing rights | 1,640 | |||
Other intangible assets | 277 | |||
Investments in associates | 805 | |||
Other assets | 320 | |||
Total assets | 6,682 | |||
Trade and other payables | 404 | |||
Other financial liabilities, current | 123 | |||
Other financial liabilities, non-current | 63 | |||
Deferred tax liabilities | 391 | |||
Other liabilities | 264 | |||
Total liabilities | 1,245 | |||
Total identifiable net assets at fair value | 5,437 | |||
Non-controllinginterest | (2,664) | |||
Goodwill | 3,154 | |||
Total consideration | 5,927 | |||
Total consideration related to the acquisition | (5,927) | |||
Debt equity swap | 1,976 | |||
Net cash and cash equivalents acquired at the acquisition date | 1,946 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (2,005) |
Business Combinations - Fair _2
Business Combinations - Fair Values of Identifiable Assets and Liabilities of FIVE Inc. at Date of Acquisition (Detail) - JPY (¥) ¥ in Millions | Dec. 15, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | ¥ 17,651 | ¥ 17,095 | ¥ 16,767 | |
Net cash and cash equivalents acquired at the acquisition date | 736 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (240) | ¥ (188) | ¥ (11,887) | |
Five Inc [member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | ¥ 4,996 | |||
Five Inc [member] | Fair value [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Cash and cash equivalents | 231 | |||
Trade and other receivables, current | 307 | |||
Other financial assets, non-current | 10 | |||
Property and equipment | 9 | |||
Technology | 391 | |||
Other assets | 7 | |||
Total assets | 955 | |||
Trade and other payables | 288 | |||
Other financial liabilities, current | 50 | |||
Deferred tax liabilities | 123 | |||
Other liabilities | 44 | |||
Total liabilities | 505 | |||
Total identifiable net assets at fair value | 450 | |||
Goodwill | 4,996 | |||
Total consideration | 5,446 | |||
Total consideration related to the acquisition | (5,446) | |||
Net cash and cash equivalents acquired at the acquisition date | 231 | |||
Net cash flows on acquisition (included in cash flows from investing activities) | ¥ (5,215) |
Principal Subsidiaries - Additi
Principal Subsidiaries - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Subsidiaries | |
Disclosure of subsidiaries [abstract] | |
Number of consolidated subsidiaries | 66 |
Principal Subsidiaries - Inform
Principal Subsidiaries - Information on Subsidiaries (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
LINE Fukuoka Corp. [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Fukuoka Corp. | ||
Primary business activities | Management support | ||
Country of incorporation | Japan | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE Pay Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Pay Corporation | ||
Primary business activities | Software development and mobile payment service | ||
Country of incorporation | Japan | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE GAME Global Gateway, L.P. [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [1] | LINE GAME Global Gateway, L.P. | |
Primary business activities | [1] | Investment | |
Country of incorporation | [1] | Japan | |
Percentage of ownership | [1] | 100.00% | |
M T Burn Inc [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [2] | M.T.Burn Inc. | |
Primary business activities | [2] | Advertising platform business | |
Country of incorporation | [2] | Japan | |
Percentage of ownership | [2] | 50.50% | |
Gatebox Inc [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [3] | Gatebox Inc. | |
Primary business activities | [3] | IoT hologram technology development | |
Country of incorporation | [3] | Japan | |
Percentage of ownership | [3] | 55.10% | 51.00% |
LINE Financial Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Financial Corporation | ||
Primary business activities | Financial related service | ||
Country of incorporation | Japan | ||
Percentage of ownership | 100.00% | 100.00% | |
LVC Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [4] | LVC Corporation | |
Primary business activities | [4] | Financial related service | |
Country of incorporation | [4] | Japan | |
Percentage of ownership | [4] | 90.00% | 100.00% |
LINE Part Time Job Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [5] | LINE Part-Time Job, Ltd. | |
Primary business activities | [5] | Job posting service | |
Country of incorporation | [5] | Japan | |
Percentage of ownership | [5] | 60.00% | |
LINE Ventures Global Limited Liability Partnership [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Ventures Global Limited Liability Partnership | ||
Primary business activities | Investment | ||
Country of incorporation | Japan | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE Ventures Japan Limited Liability Partnership [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Ventures Japan Limited Liability Partnership | ||
Primary business activities | Investment | ||
Country of incorporation | Japan | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE Digital Frontier Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Digital Frontier Corporation | ||
Primary business activities | Manga related business | ||
Country of incorporation | Japan | ||
Percentage of ownership | 70.00% | 70.00% | |
LINE Credit Corporation [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [6] | LINE Credit Corporation | |
Country of incorporation | [6] | Japan | |
Percentage of ownership | [6] | 51.00% | 100.00% |
LINE Security Corporation [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [7] | LINE Securities Corporation | |
Primary business activities | [7] | Security related business | |
Country of incorporation | [7] | Japan | |
Percentage of ownership | [7] | 51.00% | 100.00% |
LINE Plus Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Plus Corporation | ||
Primary business activities | Global Marketing | ||
Country of incorporation | Korea | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE Friends Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Friends Corporation | ||
Primary business activities | Character goods business | ||
Country of incorporation | Korea | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE C&I Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [8] | LINE C&I Corporation | |
Primary business activities | [8] | Investment | |
Country of incorporation | [8] | Korea | |
Percentage of ownership | [8] | 100.00% | |
NemusTech Co Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [9] | NemusTech Co., Ltd. | |
Primary business activities | [9] | Software development | |
Country of incorporation | [9] | Korea | |
Percentage of ownership | [9] | 100.00% | 94.20% |
LINE Taiwan Limited [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Taiwan Limited | ||
Primary business activities | Mobile service | ||
Country of incorporation | Taiwan | ||
Percentage of ownership | 100.00% | 100.00% | |
Line Biz+ Taiwan Limited [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Biz+ Taiwan Limited | ||
Primary business activities | Payment service | ||
Country of incorporation | Taiwan | ||
Percentage of ownership | 70.00% | 70.00% | |
LINE Financial Taiwan Limited [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Financial Taiwan Limited | ||
Primary business activities | Financial related service | ||
Country of incorporation | Taiwan | ||
Percentage of ownership | 100.00% | 100.00% | |
LFG HOLDINGS LIMITED | |||
Disclosure of subsidiaries [line items] | |||
Name | LFG HOLDINGS LIMITED | ||
Primary business activities | Character goods business | ||
Country of incorporation | Hong Kong (China) | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE Financial Asia Corporation Limited [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Financial Asia Corporation Limited | ||
Primary business activities | Financial related service | ||
Country of incorporation | Hong Kong (China) | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE Company (Thailand) Limited [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [10] | LINE Company (Thailand) Limited | |
Primary business activities | [10] | e-Commerce | |
Country of incorporation | [10] | Thailand | |
Percentage of ownership | [10] | 50.00% | 50.00% |
LINE SOUTHEAST ASIA CORP.PTE.LTD. [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE SOUTHEAST ASIA CORP.PTE.LTD. | ||
Primary business activities | Software development and mobile payment service | ||
Country of incorporation | Singapore | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE MAN Corporation PTE LTD [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [11] | LINE MAN Corporation PTE.LTD | |
Primary business activities | [11] | Delivery service in Thailand | |
Country of incorporation | [11] | Singapore | |
Percentage of ownership | [11] | 100.00% | |
LINE Friends Shanhai Commercial Trade Co Ltd [Member] | |||
Disclosure of subsidiaries [line items] | |||
Name | LINE Friends (Shanghai) Commercial Trade Co., Ltd | ||
Primary business activities | Character goods business | ||
Country of incorporation | China | ||
Percentage of ownership | 100.00% | 100.00% | |
LINE VIETNAM JOINT STOCK COMPANY [member] | |||
Disclosure of subsidiaries [line items] | |||
Name | [12] | LINE VIETNAM JOINT STOCK COMPANY | |
Primary business activities | [12] | Portal site operation | |
Country of incorporation | [12] | Vietnam | |
Percentage of ownership | [12] | 99.10% | 98.80% |
[1] | LINE Game Global Gateway L.P. liquidated in February 2019. | ||
[2] | M.T.Burn Inc. liquidated in November 2019. | ||
[3] | The Group acquired additional interests of Gatebox Inc. As a result, the share of the Group increased from 51.0% to 55.1% | ||
[4] | As a result of capital injections by Nomura Holdings, Inc. executed in October 2019, the Group’s ownership in LVC Corporation decreased from 100.0% to 90.0%. | ||
[5] | In August 2019, LINE Part-Time Job, Ltd. became a wholly-owned subsidiary, and has been merged with the Company in November 2019. | ||
[6] | As a result of capital injections by Mizuho Bank, LINE Financial Corporation and Orient Corporation executed in May 2019, the Group’s ownership in LINE Credit Corporation decreased from 100.0% to 51.0%. | ||
[7] | As a result of capital injections by LINE Financial Corporation and Nomura Holdings, Inc. executed in January 2019, the Group’s ownership in LINE Security Corporation (renamed from LINE Securities Preparatory Corporation) decreased from 100.0% to 51.0% and became a specified subsidiary as its amount of share capital excluded 10% of the Company’s share capital | ||
[8] | LINE C&I Corporation liquidated in March 2019. | ||
[9] | NemusTech Co.,Ltd. became a wholly owned subsidiary as a result of the Group acquired additional interests. | ||
[10] | The Group’s ownership in LINE Company (Thailand) Limited is 50.0%, but it holds 90.9% of the voting rights. Accordingly, LINE Company (Thailand) Limited is included in the scope of consideration for the Group’s consolidated financial statements. | ||
[11] | The Group established LINE MAN Corporation PTE. LTD, a wholly-owned subsidiary, in September 2019. | ||
[12] | As a result of the third-party allotment executed by LINE VIETNAM JOINT STOCK COMPANY, the share of the Group decreased from 99.8% to 99.1%. |
Principal Subsidiaries - Info_2
Principal Subsidiaries - Information on Subsidiaries (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
LINE Company (Thailand) Limited [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership | [1] | 50.00% | 50.00% |
Percentage of voting power held in subsidiary | 90.90% | ||
LINE VIETNAM JOINT STOCK COMPANY [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership | [2] | 99.10% | 98.80% |
Gatebox Inc [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership | [3] | 55.10% | 51.00% |
LINE Credit Corporation [Member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership | [4] | 51.00% | 100.00% |
LVC Corporation [member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership | [5] | 90.00% | 100.00% |
LINE Security Corporation [Member] | |||
Disclosure of subsidiaries [line items] | |||
Percentage of ownership | [6] | 51.00% | 100.00% |
Share capital percentage | 10.00% | ||
[1] | The Group’s ownership in LINE Company (Thailand) Limited is 50.0%, but it holds 90.9% of the voting rights. Accordingly, LINE Company (Thailand) Limited is included in the scope of consideration for the Group’s consolidated financial statements. | ||
[2] | As a result of the third-party allotment executed by LINE VIETNAM JOINT STOCK COMPANY, the share of the Group decreased from 99.8% to 99.1%. | ||
[3] | The Group acquired additional interests of Gatebox Inc. As a result, the share of the Group increased from 51.0% to 55.1% | ||
[4] | As a result of capital injections by Mizuho Bank, LINE Financial Corporation and Orient Corporation executed in May 2019, the Group’s ownership in LINE Credit Corporation decreased from 100.0% to 51.0%. | ||
[5] | As a result of capital injections by Nomura Holdings, Inc. executed in October 2019, the Group’s ownership in LVC Corporation decreased from 100.0% to 90.0%. | ||
[6] | As a result of capital injections by LINE Financial Corporation and Nomura Holdings, Inc. executed in January 2019, the Group’s ownership in LINE Security Corporation (renamed from LINE Securities Preparatory Corporation) decreased from 100.0% to 51.0% and became a specified subsidiary as its amount of share capital excluded 10% of the Company’s share capital |
Principal Subsidiaries - Summar
Principal Subsidiaries - Summarized Financial Information for the Subsidiaries Which the Group Recognize Non-controlling Interest (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Disclosure of subsidiaries [line items] | |||||||
Current assets | ¥ 295,641 | ¥ 325,514 | |||||
Non-current assets | 245,711 | 161,073 | |||||
Current liabilities | 161,659 | 123,226 | |||||
Non-current liabilities | 205,030 | 154,847 | |||||
Equity | 174,663 | 208,514 | ¥ 189,977 | ¥ 161,023 | |||
Accumulated non-controlling interest | 16,530 | 9,598 | |||||
Revenue | 227,485 | [1] | 207,182 | [1] | 167,147 | [2] | |
Net profit/(Loss) for the year | (51,416) | (5,792) | 8,210 | ||||
Other comprehensive income | 782 | (6,137) | 3,533 | ||||
Total comprehensive income for the year | (50,634) | (11,929) | 11,743 | ||||
Profit attributable to non-controlling interest | (4,528) | (2,074) | 132 | ||||
Cash flows from operating activities | (3,105) | 9,122 | 10,965 | ||||
Cash flows from investing activities | (43,133) | (52,884) | (34,230) | ||||
Cash flows from financing activities | 6,112 | 178,401 | 11,439 | ||||
Net (decrease)/increase in cash and cash equivalent | ¥ (40,126) | 134,639 | (11,826) | ||||
M T Burn Inc [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Current assets | 3,866 | ||||||
Non-current assets | 174 | ||||||
Current liabilities | 538 | ||||||
Non-current liabilities | 42 | ||||||
Equity | 3,460 | ||||||
Accumulated non-controlling interest | ¥ 1,715 | ||||||
Non-controlling interest | 49.50% | ||||||
Revenue | ¥ 3,186 | 3,921 | |||||
Net profit/(Loss) for the year | 1,416 | 1,338 | |||||
Total comprehensive income for the year | 1,416 | 1,338 | |||||
Profit attributable to non-controlling interest | 703 | 661 | |||||
Cash flows from operating activities | 1,989 | 1,224 | |||||
Cash flows from financing activities | (258) | ||||||
Net (decrease)/increase in cash and cash equivalent | 1,989 | 966 | |||||
Gatebox Inc [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Current assets | 1,259 | ||||||
Non-current assets | 353 | ||||||
Current liabilities | 100 | ||||||
Non-current liabilities | 2,046 | ||||||
Equity | (534) | ||||||
Accumulated non-controlling interest | ¥ (261) | ||||||
Non-controlling interest | 49.00% | ||||||
Revenue | ¥ 95 | ||||||
Net profit/(Loss) for the year | (917) | (541) | |||||
Total comprehensive income for the year | (917) | (541) | |||||
Profit attributable to non-controlling interest | (449) | (192) | |||||
Cash flows from operating activities | (963) | (397) | |||||
Cash flows from investing activities | (10) | (79) | |||||
Cash flows from financing activities | 1,934 | (1) | |||||
Net (decrease)/increase in cash and cash equivalent | 961 | (477) | |||||
LINE Company (Thailand) Limited [member] | |||||||
Disclosure of subsidiaries [line items] | |||||||
Current assets | 5,221 | ||||||
Non-current assets | 2,583 | ||||||
Current liabilities | 7,313 | ||||||
Non-current liabilities | 2,049 | ||||||
Equity | (1,558) | ||||||
Accumulated non-controlling interest | ¥ 1,023 | ||||||
Non-controlling interest | 50.00% | 50.00% | [3] | ||||
Revenue | ¥ 8,200 | 2,760 | |||||
Net profit/(Loss) for the year | (1,396) | 357 | |||||
Other comprehensive income | 22 | (60) | |||||
Total comprehensive income for the year | (1,374) | 297 | |||||
Profit attributable to non-controlling interest | (816) | 198 | |||||
Cash flows from operating activities | 1,712 | 1,842 | |||||
Cash flows from investing activities | (1,709) | (430) | |||||
Net (decrease)/increase in cash and cash equivalent | ¥ 3 | ¥ 1,412 | |||||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | ||||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. | ||||||
[3] | The non-controlling interest in LINE Company (Thailand) Limited is 50.0%, but it holds 9.1% of the voting rights. |
Principal Subsidiaries - Summ_2
Principal Subsidiaries - Summarized Financial Information for the Subsidiaries Which the Group Recognize Non-controlling Interest (Parenthetical) (Detail) - LINE Company (Thailand) Limited [member] | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Disclosure of subsidiaries [line items] | |||
Non-controlling interest | 50.00% | 50.00% | |
Proportion of voting rights held in subsidiary | 9.10% | ||
[1] | The non-controlling interest in LINE Company (Thailand) Limited is 50.0%, but it holds 9.1% of the voting rights. |
Investments in Associates and_3
Investments in Associates and Joint Ventures - Details of Investments in Significant Associates and Joint Ventures (Detail) - JPY (¥) ¥ in Millions | Jul. 31, 2019 | Mar. 31, 2019 | Aug. 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |||
LINE Games Corporation [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | LINE Games Corporation. | |||||||||
Primary business activities | Game development and publishing | |||||||||
Country of incorporation | Korea | |||||||||
Percentage of ownership | 49.50% | 49.50% | ||||||||
Carrying amount | ¥ 14,523 | ¥ 18,438 | ||||||||
PT Bank KEB Hana Indonesia [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | [1] | PT. Bank KEB Hana Indonesia | ||||||||
Primary business activities | [1] | Banking | ||||||||
Country of incorporation | [1] | Indonesia | ||||||||
Percentage of ownership | 20.00% | 20.00% | [1] | |||||||
Carrying amount | [1] | ¥ 15,734 | ||||||||
LINE Mobile Corporation [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | [2] | LINE Mobile Corporation | ||||||||
Primary business activities | [2] | Mobile virtual network operator | ||||||||
Country of incorporation | [2] | Japan | ||||||||
Percentage of ownership | 49.00% | 40.00% | 40.00% | [2] | 49.00% | [2] | ||||
Carrying amount | [2] | ¥ 6,642 | ¥ 5,637 | |||||||
Snow Corporation [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | [3] | Snow Corporation | ||||||||
Primary business activities | [3] | Mobile app | ||||||||
Country of incorporation | [3] | Korea | ||||||||
Percentage of ownership | 34.00% | 29.20% | 29.20% | [3] | 34.00% | [3] | ||||
Carrying amount | [3] | ¥ 5,317 | ¥ 9,346 | |||||||
K-Fund I [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | K-Fund I | |||||||||
Primary business activities | Investment | |||||||||
Country of incorporation | France | |||||||||
Percentage of ownership | 25.00% | 25.00% | ||||||||
Carrying amount | ¥ 4,416 | ¥ 2,670 | ||||||||
FOLIO Co Ltd [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | FOLIO Co., Ltd. | |||||||||
Primary business activities | Online trading service | |||||||||
Country of incorporation | Japan | |||||||||
Percentage of ownership | 41.40% | 41.40% | ||||||||
Carrying amount | ¥ 3,840 | ¥ 5,126 | ||||||||
LINE MUSIC Corporation [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of associate | LINE MUSIC Corporation | |||||||||
Primary business activities | Music distribution | |||||||||
Country of incorporation | Japan | |||||||||
Percentage of ownership | 36.70% | 36.70% | ||||||||
Carrying amount | ¥ 0 | ¥ 505 | ||||||||
Drama & Company [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of joint venture | Drama & Company Co., Ltd. | |||||||||
Primary business activities | Software Development | |||||||||
Country of incorporation | Korea | |||||||||
Percentage of ownership | 40.60% | 40.70% | ||||||||
Carrying amount | ¥ 1,995 | ¥ 2,574 | ||||||||
RABBIT-LINE PAY COMPANY LIMITED [member] | ||||||||||
Disclosure of investments in associates and joint ventures [line items] | ||||||||||
Name of joint venture | RABBIT-LINE PAY COMPANY LIMITED | |||||||||
Primary business activities | Payment service | |||||||||
Country of incorporation | Thailand | |||||||||
Percentage of ownership | 33.30% | 33.30% | ||||||||
Carrying amount | ¥ 1,561 | ¥ 1,856 | ||||||||
[1] | In March 2019, the Group acquired 20.0% of PT. Bank KEB Hana Indonesia’s total number of outstanding shares in order to establish a business partnership in banking business. As the Group has significant influence, but not control over PT. Bank KEB Hana Indonesia, the investment is accounted for under the equity method. | |||||||||
[2] | In April 2019, LINE Mobile Corporation, a subsidiary of the Group, issued its new shares through a third-party allotment. As a result, the Group’s ownership interest in LINE Mobile Corporation decreased from 49.0% to 40.0%. As the Group still has significant influence on LINE Mobile Corporation, the investment is accounted for under the equity method. | |||||||||
[3] | In August 2019, Snow Corporation, an associate of the Group, issued new shares through a third-party allotment. As a result, the Group’s ownership interest in Snow Corporation decreased from 34.0% to 29.2%. As the Group still has significant influence on Snow Corporation, the investment is accounted for under the equity method. |
Investments in Associates and_4
Investments in Associates and Joint Ventures - Details of Investments in Significant Associates and Joint Ventures (Parenthetical) (Detail) | Jul. 31, 2019 | Mar. 31, 2019 | Aug. 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Snow Corporation [member] | |||||||||
Disclosure of investments in associates and joint ventures [line items] | |||||||||
Percentage of ownership | 34.00% | 29.20% | 29.20% | [1] | 34.00% | [1] | |||
LINE Mobile Corporation [member] | |||||||||
Disclosure of investments in associates and joint ventures [line items] | |||||||||
Percentage of ownership | 49.00% | 40.00% | 40.00% | [2] | 49.00% | [2] | |||
PT Bank KEB Hana Indonesia [member] | |||||||||
Disclosure of investments in associates and joint ventures [line items] | |||||||||
Percentage of ownership | 20.00% | 20.00% | [3] | ||||||
[1] | In August 2019, Snow Corporation, an associate of the Group, issued new shares through a third-party allotment. As a result, the Group’s ownership interest in Snow Corporation decreased from 34.0% to 29.2%. As the Group still has significant influence on Snow Corporation, the investment is accounted for under the equity method. | ||||||||
[2] | In April 2019, LINE Mobile Corporation, a subsidiary of the Group, issued its new shares through a third-party allotment. As a result, the Group’s ownership interest in LINE Mobile Corporation decreased from 49.0% to 40.0%. As the Group still has significant influence on LINE Mobile Corporation, the investment is accounted for under the equity method. | ||||||||
[3] | In March 2019, the Group acquired 20.0% of PT. Bank KEB Hana Indonesia’s total number of outstanding shares in order to establish a business partnership in banking business. As the Group has significant influence, but not control over PT. Bank KEB Hana Indonesia, the investment is accounted for under the equity method. |
Investments in Associates and_5
Investments in Associates and Joint Ventures - Summary of Financial Information on Investment in Associates (Detail) - JPY (¥) ¥ in Millions | Jul. 31, 2019 | Mar. 31, 2019 | Aug. 31, 2019 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Expense by Nature [line items] | ||||||||||||
Current assets | ¥ 295,641 | ¥ 325,514 | ||||||||||
Non-current assets | 245,711 | 161,073 | ||||||||||
Current liabilities | 161,659 | 123,226 | ||||||||||
Non-current liabilities | 205,030 | 154,847 | ||||||||||
Equity | 174,663 | 208,514 | ¥ 189,977 | ¥ 161,023 | ||||||||
Revenue | 227,485 | [1] | 207,182 | [1] | 167,147 | [2] | ||||||
Loss for the year from continuing operations | (52,000) | (6,168) | 8,223 | |||||||||
Other comprehensive loss for the year, net of tax | 782 | (6,137) | 3,533 | |||||||||
Total comprehensive income/(loss) for the year, net of tax | (50,634) | (11,929) | 11,743 | |||||||||
Snow Corporation [member] | ||||||||||||
Expense by Nature [line items] | ||||||||||||
Current assets | 7,784 | 11,168 | ||||||||||
Non-current assets | 14,055 | 15,119 | ||||||||||
Current liabilities | 11,985 | 9,080 | ||||||||||
Non-current liabilities | 3,974 | 2,482 | ||||||||||
Equity | ¥ 5,880 | ¥ 14,725 | ||||||||||
Proportion of the Group's ownership | 34.00% | 29.20% | 29.20% | [3] | 34.00% | [3] | ||||||
Group's share of equity | ¥ 1,717 | ¥ 5,007 | ||||||||||
Goodwill and other adjustments | 3,600 | 4,339 | ||||||||||
Carrying amount of the interests | [3] | 5,317 | 9,346 | |||||||||
Revenue | 2,204 | 1,320 | 271 | |||||||||
Loss for the year from continuing operations | (13,921) | (10,627) | (10,348) | |||||||||
Other comprehensive loss for the year, net of tax | (680) | (358) | 131 | |||||||||
Total comprehensive income/(loss) for the year, net of tax | (14,601) | (10,985) | (10,217) | |||||||||
Group's share of loss for the year | (4,443) | (4,971) | (4,531) | |||||||||
LINE Mobile Corporation [member] | ||||||||||||
Expense by Nature [line items] | ||||||||||||
Current assets | 14,237 | 8,451 | ||||||||||
Non-current assets | 2,373 | 818 | ||||||||||
Current liabilities | 5,822 | 4,951 | ||||||||||
Non-current liabilities | 1,624 | 232 | ||||||||||
Equity | ¥ 9,164 | ¥ 4,086 | ||||||||||
Proportion of the Group's ownership | 49.00% | 40.00% | 40.00% | [4] | 49.00% | [4] | ||||||
Group's share of equity | ¥ 3,666 | ¥ 2,002 | ||||||||||
Goodwill and other adjustments | 2,976 | 3,635 | ||||||||||
Carrying amount of the interests | [4] | 6,642 | 5,637 | |||||||||
Revenue | 13,142 | 6,545 | ||||||||||
Loss for the year from continuing operations | (6,585) | (5,490) | ||||||||||
Total comprehensive income/(loss) for the year, net of tax | (6,585) | (5,490) | ||||||||||
Group's share of loss for the year | (2,924) | (2,690) | ||||||||||
Aggregated individually immaterial associates [member] | ||||||||||||
Expense by Nature [line items] | ||||||||||||
Carrying amount of the interests | 30,028 | 15,350 | ||||||||||
Loss for the year from continuing operations | (3,067) | (4,928) | (3,050) | |||||||||
Other comprehensive loss for the year, net of tax | 527 | 211 | 84 | |||||||||
Total comprehensive income/(loss) for the year, net of tax | (2,540) | (4,717) | ¥ (2,966) | |||||||||
LINE Games Corporation [member] | ||||||||||||
Expense by Nature [line items] | ||||||||||||
Current assets | 6,122 | 14,345 | ||||||||||
Non-current assets | 8,709 | 6,172 | ||||||||||
Current liabilities | 1,009 | 1,185 | ||||||||||
Non-current liabilities | 2,213 | 1,419 | ||||||||||
Equity | ¥ 11,609 | ¥ 17,913 | ||||||||||
Proportion of the Group's ownership | 49.50% | 49.50% | ||||||||||
Group's share of equity | ¥ 5,746 | ¥ 8,867 | ||||||||||
Goodwill and other adjustments | 8,777 | 9,571 | ||||||||||
Carrying amount of the interests | 14,523 | 18,438 | ||||||||||
Revenue | 2,431 | 251 | ||||||||||
Loss for the year from continuing operations | (6,185) | (488) | ||||||||||
Other comprehensive loss for the year, net of tax | 78 | (20) | ||||||||||
Total comprehensive income/(loss) for the year, net of tax | (6,107) | (508) | ||||||||||
Group's share of loss for the year | ¥ (3,068) | ¥ (242) | ||||||||||
[1] | Refer to Note 5 Segment Information for further details of revenue by segment. | |||||||||||
[2] | The segment information for the year ended December 31, 2017 is presented based on IAS 18, while it is presented under IFRS 15 for the years ended December 31, 2018 and 2019. | |||||||||||
[3] | In August 2019, Snow Corporation, an associate of the Group, issued new shares through a third-party allotment. As a result, the Group’s ownership interest in Snow Corporation decreased from 34.0% to 29.2%. As the Group still has significant influence on Snow Corporation, the investment is accounted for under the equity method. | |||||||||||
[4] | In April 2019, LINE Mobile Corporation, a subsidiary of the Group, issued its new shares through a third-party allotment. As a result, the Group’s ownership interest in LINE Mobile Corporation decreased from 49.0% to 40.0%. As the Group still has significant influence on LINE Mobile Corporation, the investment is accounted for under the equity method. |
Investments in Associates and_6
Investments in Associates and Joint Ventures - Additional Information (Detail) - JPY (¥) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Investments In Associates And Joint Ventures [abstract] | ||
Contingent liabilities incurred in relation to interests in associates | ¥ 0 | ¥ 0 |
Contingent liabilities incurred in relation to interests in joint ventures | 0 | 0 |
Commitments in relation to joint ventures | ¥ 0 | ¥ 4,786,000,000 |
Investments in Associates and_7
Investments in Associates and Joint Ventures - Summary of Financial Information on Investment in Joint Ventures (Detail) - JPY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of investments in associates and joint ventures [line items] | |||
Loss for the year from continuing operations | ¥ (52,000) | ¥ (6,168) | ¥ 8,223 |
Other comprehensive income/(loss) for the year, net of tax | 782 | (6,137) | 3,533 |
Total comprehensive loss for the year, net of tax | (50,634) | (11,929) | 11,743 |
Joint Ventures [Member] | |||
Disclosure of investments in associates and joint ventures [line items] | |||
Carrying amount of the interests | 7,683 | 5,150 | |
Loss for the year from continuing operations | (3,535) | (3,708) | (2,211) |
Other comprehensive income/(loss) for the year, net of tax | (106) | (35) | 81 |
Total comprehensive loss for the year, net of tax | ¥ (3,641) | ¥ (3,743) | ¥ (2,130) |
Investments in Associates and_8
Investments in Associates and Joint Ventures - Summary of significant assumptions used in the value in use calculation (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
LINE Games Corp [member] | |
Pretax discount rates [Abstract] | |
Pre tax discount rate | 11.50% |
Terminal growth rates [Abstract] | |
Terminal growth rates | 1.00% |
Snow Corp [member] | |
Pretax discount rates [Abstract] | |
Pre tax discount rate | 14.30% |
Terminal growth rates [Abstract] | |
Terminal growth rates | 1.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Millions | Mar. 26, 2020JPY (¥)shares | Dec. 31, 2019JPY (¥) | Dec. 31, 2018JPY (¥) | Dec. 31, 2017JPY (¥) |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Purchase of equity method investment | ¥ | ¥ 23,332 | ¥ 14,214 | ¥ 5,566 | |
Major purchases of assets [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Purchase of equity method investment | ¥ | ¥ 15,000 | |||
Threshold percentage for purchase of voting rights | 50.00% | |||
Directors [member] | Major ordinary share transactions [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Share-based payment award, number of shares authorized | shares | 3,024,000 | |||
Multiplying Factor | 1.05 | |||
Stock options allotted fraction | less than one yen | |||
Stock option exact exercise period | 3 years | |||
Outside Directors [member] | Major ordinary share transactions [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Share-based payment award, number of shares authorized | shares | 24,000 | |||
Multiplying Factor | 1.05 | |||
Stock options allotted fraction | less than one yen | |||
Stock option exact exercise period | 3 years |