A N N U A L R E P O R T G R U P O S E C U R I T Y ... - Banco Security

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NOTES TO THE FINANCIAL STATEMENTS
December 31, 2008 and 2007
Note 1 – Registration in the Securities Registry
This investment company was created by public deed on February 8, 1991, under the name of Security Holdings S.A. in order to make
investments and provide advisories of any kind in the country.
On January 31, 1995, the Company was registered in the Securities Registry under No. 0499 and therefore is not subject to the supervision
of the Superintendency of Securities and Insurance (“SVS”).
Note 2 - Significant Accounting Principles
a) Periods covered. These financial statements cover the years ended December 31, 2008 and 2007.
b) Basis of preparation. These financial statements of Grupo Security S.A. have been prepared in accordance with generally accepted
accounting principles in Chile (“Chilean GAAP”) issued by the Chilean Association of Accountants and with the standards and instructions
set forth by the SVS, which prevail over the former in case of discrepancies except for investments in direct and indirect subsidiaries.
These investments, by express authorization from the SVS, are presented in a single line of the balance sheet at their proportional
equity and equity value, as applicable, and therefore have not been consolidated line-by-line. This treatment does not modify net
income or shareholders’ equity for the years ended December 31, 2008 and 2007, respectively. Certain accounting practices applied by
the Company that conform to Chilean GAAP may not conform to generally accepted accounting principles in the United States (“US
GAAP”) or International Financial Reporting Standards (“IFRS”). For the convenience of the reader, these financial statements have been
translated from Spanish to English.
These financial statements have been issued only for the purpose of making an individual analysis of the Company, and therefore must
be read in conjunction with the consolidated financial statements, which are required by Chilean GAAP.
c) Basis of presentation. Prior year balances, which are presented for comparison purposes, have been restated off-balance sheet by the
variation in the consumer price index which is 8.9%.
d) Price-level restatement. In order to present the effect of the variation in the purchasing power of the currency experienced during
the year, non-monetary assets and liabilities, shareholders’ equity and income statement accounts have been price-level restated based
on the variation in the Consumer Price Index, which was 8.9% in 2008 (7.4% in 2007).