PA - Banco Security

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g) Goodwill
The acquired assets and the assumed liabilities in a business combination are recorded at fair value and the excess of the purchase price of
the investment, over the fair value of the acquired assets and assumed liabilities is recorded as goodwill. According to Chile GAAP goodwill
resulting from business combinations was amortized using the straight-line method during a maximum period of 20 years. Under IFRS
goodwill is not subject to amortization. Instead it should be evaluated on an annual basis for impairment. The adjustment presented in the
reconciliation of equity, reverses the effects of goodwill, based on impairment tests performed to these items under IFRS.
h) Non-controlling interest
The adjustments in the reconciliation between previous generally accepted accounting principles (i.e. Chile GAAP) and IFRS include the
effect of adjustments under IFRS in the subsidiaries with non-controlling interest.
Chile GAAP recognized the participation of minority shareholders in the equity of the subsidiaries as a separate account between liabilities
and equity of the consolidated financial statements of the Company. Likewise, the consolidated income statement for the year under
Chile GAAP excluded through a specific line the participation of the non-controlling interests in the results of the subsidiaries. Under IFRS
the minority shareholders were part of the owners of the economic group and, therefore, their participation is considered as part of the
statement of changes in equity and of the statement of comprehensive income.
i) Intangible assets
The capitalized expenses that were deferred and later charged to profit or loss over time were adjusted against equity because according to
IFRS they should not be recognized as assets. Consequently, the asset and related amortization have to be reversed.
NotE 4 - Cash and Cash Equivalents
The Consolidated Statement of Cash Flows includes the bank subsidiaries that are presented separately in the same statement.
Accordingly, the following detail corresponds only to the cash and cash equivalents of the non-banking services:
a) This item is includes the following:
Balance Balance Balance
CASH AND CASH EQUIVALENT
31.12.2010 31.12.2009 01.01.2009
ThCLP$ ThCLP$ ThCLP$
Cash 120,411,918 70,829,841 88,469,727
Time deposits 585,000 1,264,834 7,378,485
Repurchase agreements 656,499 33,079,130 32,133,394
Mutual fund units 799,999 14,681,730 3,732,429
Other cash and cash equivalent 21,901,011 41,430,965 65,050,909
Total 144,354,427 161,286,500 196,764,944
b) The detail per type of currency of the cash and cash equivalents is as follows:
Currency
31.12.2010 31.12.2009
ThCLP$
ThCLP$
Cash and cash equivalent Non-indexed CLP 144,354,427 161,286,500