annual report grupo security - Banco Security

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S( i n t h o u s a n d s o f c o n s t a n t c h i l e a n p e s o s - T h C h $ )1 . R E G I S T R A T I O N I N T H E S E C U R I T I E S R E G I S T E RThe investment company Security Holdings S.A. (the Company) was formed by public deed on February 8, 1991, with the corporatepurpose of carrying out investments and performing consulting work of any kind in Chile.On January 31, 1995, the Company was registered in the Securities Register under No. 0499 and thus became subject to the control ofthe Superintendency of Securities and Insurance (the “Superintendency”).2 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E Sa . R e p o r t i n g p e r i o d sThese individual financial statements cover the years ended December 31, 2007 and 2006.b . B a s i s o f p r e p a r a t i o nThese stand-alone financial statements of Grupo Security S.A. at December 31, 2007 and 2006 have been prepared in accordance withaccounting principles generally accepted in Chile and with standards and instructions issued by the Superintendency of Securities andInsurance, which prevail over the accounting principles in the event of a discrepancy, except for the investments in subsidiaries, which arereported on a single line in the balance sheet under the equity method of accounting or at their equity value, as applicable, and, therefore,are not consolidated line-by-line. This treatment does not modify the net income for the year or the shareholders’ equity.These financial statements have been issued solely for a stand-alone analysis of the Company and, therefore, must be read together withthe consolidated financial statements, which are required by generally accepted accounting principles in Chile.c . B a s i s o f p r e s e n t a t i o nFor comparison purposes, all 2006 amounts have been price-level restated for a 7.4% variation in the Chilean Consumer Price Index (CPI)since the prior year.d . P r i c e - l e v e l r e s t a t e m e n tIn order to report the effects of change in the purchasing power of the currency during the year, non-monetary assets and liabilities,shareholders’ equity and income accounts have been restated according to Consumer Price Index (CPI) variations of 7.4% in 2007 (2.1%in 2006).