annual report grupo security - Banco Security

h . M a r k e t a b l e s e c u r i t i e sMutual fund units are stated at each year-end unit value and shares are stated at their market value at each year end.i . T r a d e a c c o u n t s r e c e i v a b l eThese relate mainly to commissions on insurance policies brokered for the insurance companies by the indirect subsidiary Corredora deSeguros Security Ltda. Factored receivables are presented at face value, net of retention and unearned price difference.j . A l l o w a n c e f o r u n c o l l e c t i b l e a c c o u n t sThe allowance for uncollectible accounts mainly pertains to the direct subsidiary Factoring Security S.A. This subsidiary has madeallowance at each year end to cover the risk of losses on assets of doubtful recovery. Such allowance is calculated based on a risk analysisperformed by management.k . F a c t o r e d r e c e i v a b l e sFactored receivables are present at the acquisition value of invoices and documents corresponding to their face value net of which consistof non-disbursed amount and the unearned factoring income. They are shown under “Notes Receivables”.l . R e c o g n i t i o n o f p r i c e d i f f e r e n c eFactoring income is recognized based on passage of time for the interest component in its Factoring Security S.A. subsidiary and maturityof the purchase portfolio for the tee component.m . A l l o w a n c e f o r a s s e t s a t r i s kAt each year-end the Company has accrued an allowance to cover the risks of losses on assets of doubtful recovery. Such allowance hasbeen calculated based on a risk analysis performed by management (Note 5).n . I n v e n t o r i e sThe apartments, parking lots and warehouses in the buildings owned by the direct subsidiary Inmobiliaria Security S.A., which arecurrently completed and available for sale, are valued at their price-level restated construction cost. The values thus determined do notexceed their net realizable values.o . R e s a l e a g r e e m e n t sResale agreements are valued at purchase cost plus accrued interest based on the interest rate determined between the purchase costand the value of the sale on the promised date of sale. Resale agreements are included under “Other current assets”.