Financial Statements - Entel

More documents

Recommendations

Info

EMPRESA NACIONAL DE TELECOMUNICACIONES S.A. & SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)For Translation Purposes Only2. BASIS FOR THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTSa) Declaration of ComplianceThe consolidated financial statements for the year ended December 31, 2012, have been prepared inline with the International Financial Reporting Standards (IFRS) published by the InternationalAccounting Standards Board (IASB).On the date on which these consolidated financial statements were prepared, the IASB had issuedthe following directives, each with mandatory adoption starting from the annual periods specifiedin each case:Standards and amendmentsApplication required by:NEW IFRSIFRS 9 – Financial Instruments Annual periods starting February 1, 2015IFRS 10 – Consolidated Financial Statements Annual periods starting January 1, 2013IFRS 11 – Joint Arrangements Annual periods starting January 1, 2013IFRS 12 – Disclosure of Interests in Other Entities Annual periods starting January 1, 2013IFRS 13 – Fair Value Measurement Annual periods starting January 1, 2013AMENDMENTS TO IFRSIAS 1 – Presentation of Financial StatementsPresentation of Other Components of Comprehensive Income Annual periods starting July 1, 2012IAS 19 – Employee BenefitsElimination of Corridor Approach for Defined Benefits Annual periods starting January 1, 2013IAS 32 – Financial Instruments PresentationOffsetting Financial Assets and Financial Liabilities Annual periods starting January 1, 2014At the time of writing, no decision has been made to bring forward the adoption of any of theseregulatory changes. Furthermore, it is estimated they will not have a significant impact on theGroup’s consolidated financial statements for the initial period in which their application becomescompulsory.The consolidated financial statements for Entel Chile S.A. for the year ended December 31, 2012,were approved and authorized for publication at the board meeting held on January 28, 2013.b) Measurement BasesThe consolidated financial statements have been prepared based on historical cost, except for thefollowing essential items:derivative financial instruments measured at fair value;interest accruing loans measured using amortized cost;staff obligations for specific post-employment benefits measured at present value andtaking actuarial variables into account.c) Working and Reporting CurrencyFigures in these financial statements and accompanying notes are expressed in thousands ofChilean Pesos (Th.CLP), the Group’s working currency.–2–
EMPRESA NACIONAL DE TELECOMUNICACIONES S.A. & SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)For Translation Purposes Onlyd) Use of Estimates and Accounting JudgmentsEstimates determined based on the best information available at the close of each financial yearhave been used in the preparation of the consolidated financial statements. These estimates affectthe valuation of certain assets, liabilities, income, and cash flows and hence may be significantlyaffected by new events that change the assumptions made and other sources of uncertaintyassumed on the date.The main estimates are:actuarial assumptions used when calculating employee separation obligations;the valuation of assets and goodwill originating from the acquisition of companies that with thepotential to affect the calculation of losses due to impairment in their value;the useful life of property, plant and equipment, and intangible assets;assumptions made when determining the fair value of financial instruments;assumptions on the generation of future taxable revenue where tax is deductible from assets asdeferred tax;in establishing the cost of decommissioning installations.e) Changes to Accounting PoliciesAccounting principles have been consistently applied during the years covered by theseconsolidated financial statements.3. SUMMARY OF ACCOUNTING POLICIESa) Consolidation BasisThe financial statements of subsidiaries are included in the consolidated financial statements fromthe date of controlling starts until the date it is relinquished.Control exists when Entel S.A., has a direct or indirect majority of voting rights or has the power todetermine (also through agreements) the financial and operating policies of a company to generateprofit from its activities.In the preparation of these consolidated financial statements, the assets, liabilities, revenues, andcosts for the consolidated companies are consolidated line by line. All direct and indirectsubsidiaries of Entel S.A. are 100% controlled and as such there are no non-controlling shares in theconsolidated financial statements for the Entel Group.For the purposes of consolidation, significant transactions and balances between consolidatedcompanies have been removed in addition to any balances owed.The book value of the investment in each subsidiary is offset against its equity after adjustment,where applicable, to its fair value on the date control was acquired. Goodwill is recorded on thisdate under intangible assets, as described further on, while any earnings from the purchase of abusiness or negative goodwill are recorded on the income statement.The assets and liabilities of consolidated foreign subsidiaries expressed in currencies other thanChilean Pesos are converted using the exchange rate on the date of the statement; revenue andexpenditure are converted at the average exchange rate for the period covered by the financial–3–
Page 3 and 4: For Translation Purposes OnlyEMPRES
Page 12 and 13: EMPRESA NACIONAL DE TELECOMUNICACIO
Page 14 and 15: Financial LiabilitiesEMPRESA NACION
Page 49 and 50: For evaluation purposes, the profil
Page 61 and 62:
EMPRESA NACIONAL DE TELECOMUNICACIO
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
show all

Financial Statements - Entel

Create successful ePaper yourself

Delete template?

Save as template?