Estados Financieros, (Inglés, Español) - Túnel San Cristóbal

IFRIC No. 12 “Service Concession Arrangements”, provides
guidelines for accounting for the Service Concession
Arrangements public services to private operators. This
accounting interpretation applies to the Company as the
following two premises contained in the same are met:
i) The grantor of the concession (State of Chile) controls or
regulates which services the operator must provide with
the infrastructure, to whom they should be provided and at
what price; and
ii) The grantor of the concession controls – via ownership,
right of usufruct or otherwise any material residual ownership
interest in the infrastructure upon completion of the term of
the agreement.
The company has recognized an intangible asset, in
accordance with what is set forth in paragraph No. 17 of
IFRIC No. 12: “The operator will recognize an intangible
asset to the extent that he receives a right (a license) to
charge users for the public service. A right to charge users
for a public service is not an unconditional right to receive
cash, since the amounts are subject to the extent to which
the public uses the service.”
The intangible asset specified in the paragraph above has a
definite useful life, which started in January 2009 with the
start of operations of the entire works (during the second
half of 2008 only one of the two tunnels was in operation,
and with time restrictions), and ends with the termination of
the concession contract on August 20, 2037. Consequently,
the total useful life is 344 months, and the remaining useful
life of the intangible asset at the date of these financial
statements is 308 months.
The valuation of the intangible asset was determined by
way of a survey performed, the conclusion of which was
the amount to be recognized in the books is the cost of
construction of the works, measured by fully applying the
IFRS as if those standards had been in force at the date on
which the asset came to exist. This has meant changing the
cost recognized under Chilean GAAP due to the elimination
of the monetary correction, deducting the indirect
construction costs and variations due to the financial effects
of the change in the methodology of recognition of debt for
the issuance of Bonds, primarily. The breakdown of these
adjustments has been published in the first annual financial
statements issued by the Company under International
Financial Reporting Standards, for the year ended at
December 31, 2010.
For amortization purposes, the aforesaid survey that
International Accounting Standard (IAS, forming part
of IFRS) No. 38 “Intangible Assets” allows the use of a
systematic methodology to reflect the greater or lesser use
of the works. The Company estimates that the growing
amortization method, based on the quotient resulting from
dividing accumulated accrued income by the total projected
income for all of the years in which the concession contract
will be in force, denominating those amounts to unidades
de fomento to eliminate the effect of inflation, meets that
condition.
For other minor intangible assets, the Company has
defined the cost benefit for their valuation, and straight-line
amortization on the basis of their useful life.
e) Property, plant and equipment
The Company chose to record property, plant and equipment
using the cost model, under IAS No. 16. In other words,
property, plant and equipment is recognized initially at
purchase or construction cost, plus other directly related
costs, net of accumulated depreciation and any impairment
loss.
Repair and maintenance costs are recorded as an expense in
the year in which they are incurred.
Property, plant and equipment, net as applicable of their
residual value, are depreciated by distributing on a straightline
basis the cost of the different elements comprising it
through the years of estimated useful life, namely the period
of time in which the Company expects to use them. The
useful life is revised periodically.
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