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j) GoodwillIn the case of the complete or partial acquisition of company rights, the acquisition method is applied, establishing the fair value of the assets and liabilities identifiedfor the acquired company, registering any increases values for the acquisition as goodwill. This value is subject to testing for impairment in value at the closeof each financial year to record possible losses of this nature.k) Income Tax and Deferred TaxesThe cost of income tax is determined based on the financial statements.Temporary tax differences between the financial and tax bases are recorded as noncurrent assets or liabilities as applicable. Independent of the estimated recoveryperiod, these values are recorded at current value without being discounted to present value.Deferred tax assets and liabilities are recorded in line with the tax rates effective during the periods that they are expected to be realized or settled.l) Employee Benefits_Defined Benefits Plan (Post-Employment Benefits)This covers compensation for years of service payable to employees with a permanent contract with Entel–Chile S.A. and who are members of the mutual corporationwith eight years of continuous membership.153These obligations are accounted for at present value, discounting long-term interest rates and using actuarial forecasts of staff turnover, life expectancy, and salaryprojections for prospective beneficiaries.To determine the net value of the liability recorded, the fair value of the cumulative salaries of employees is calculated in line with payments that must be made tocertain funds according to current agreements.Report 2011Changes in the obligation due to accruals associated with increases in the number of attributable periods, new or leaving employees, and earnings or losses due toactuarial effects are allocated against remuneration costs, whereas those for the accrual of implied interest are allocated against financial income._Severance BenefitsSeverance pay, in contrast to post-employment benefits, is recognized as a cost when the Group has a clear commitment, without the possibility to withdraw theoffer, to a formal and detailed plan upon termination of employment before the normal date of retirement or to pay compensation for termination as part of an offerto encourage voluntary retirements. Where benefits are due more than 12 months after the date of reporting, they are adjusted to present value._Short-Term BenefitsThe values of obligations for short-term employee benefits are not discounted and are recorded as costs when the corresponding services are provided. A liability isrecorded for the value expected to be paid in short-term cash bonuses or share plans for benefits where the Group has a current legal or implied obligation to payout the sum as a result of past services provided by the employee and the obligation can be reliably estimated.The cost of employees vacations are accounted for in the financial year in which the right is accrued, independent of the year in which it is exercised.