annual report grupo security - Banco Security

annual report 2007grupo securitypage 113p . F i x e d a s s e t sFixed assets are valued at cost plus price-level restatement.q . D e p r e c i a t i o n o f f i x e d a s s e t sDepreciation has been calculated using the straight-line method, based on the estimated remaining useful life of the assets.r . C a p i t a l l e a s e sReal estate and chattel under lease, with the characteristics of a capital lease, are booked as purchases of fixed assets, with the totalliability and the related interest being recorded on the accrual basis. These assets are not legally owned by the Company and itssubsidiaries, so, until they exercise their purchase option, they may not freely dispose of them.s . O t h e r a s s e t sBond discount is shown price-level restated and is amortized on the straight-line method within the maturity term of the debtinstrument issued. Discount resulting from debt instrument placements of securization of an equity separated is shown price-levelrestated and is amortized on the straight-line method within the maturity term of the debt instrument issued. Lease contracts ofthe direct subsidiary Factoring Security S.A. are rendered at face value of the contracts net of deferred interest and provisions on thecontracts.t . I n v e s t m e n t s i n r e l a t e d c o m p a n i e sInvestments in related companies made prior to January 1, 2004 are valued under the equity method of accounting. This methodincludes recognizing share in income on an accrual basis.Investments in related companies made after January 1, 2004 are valued at equity value, as provided for in Technical Bulletin 72 of theChilean Institute of Accountants and Circular 1,697 of the Superintendency of Securities and Insurance.u . G o o d w i l l o n i n v e s t m e n t sGoodwill on investments is excess paid over the equity method of accounting for investments made prior to January 1, 2004 and theexcess paid for the equity value paid for the purchase of shares of related companies made after January 1, 2004, as provided for inTechnical Bulletin 72 of the Chilean Institute of Accountants and the regulations of the Superintendency of Securities and Insurance.Goodwill is being amortized over the investment’s expected term of return.