NOTE 12
INTANGIBLE ASSETS
a) As of December 31, 2017 and 2016, the composition of intangible assets is as follows:
| As of December 31, 2017 | ||||||
Years of useful life |
Average remaining useful life | Net opening balance as of January 1, 2015 |
Gross balance | Accumulated amortization | Net balance | |
| MCh$ | MCh$ | MCh$ | MCh$ | |||
| Licenses | 3 | 1 | 1,656 | 10,932 | (9,732) | 1,200 |
| Software development | 3 | 2 | 56,429 | 314,115 | (252,096) | 62,019 |
| Total | 58,085 | 325,047 | (261,828) | 63,219 | ||
| As of December 31, 2016 | ||||||
Years of useful life |
Average remaining useful life | Net opening balance as of January 1, 2014 |
Gross balance | Accumulated amortization | Net balance | |
| MCh$ | MCh$ | MCh$ | MCh$ | |||
| Licenses | 3 | 2 | 2,060 | 10,932 | (9,276) | 1,656 |
| Software development | 3 | 2 | 49,077 | 286,781 | (230,352) | 56,429 |
| Total | 51,137 | 297,713 | (239,628) | 58,085 | ||
| b) | The changes in the value of intangible assets during the periods ended December 31, 2017 and December 31, 2016 is as follows: |
b. 1) Gross balance
| Gross balances | Licenses | Software development | Total |
| MCh$ | MCh$ | MCh$ | |
| Balances as of January 1, 2017 | 10,932 | 286,781 | 297,713 |
| Acquisitions | - | 32,624 | 32,624 |
| Disposals and impairment | - | (5,290) | (5,290) |
| Other | - | - | - |
| Balances as of December 31, 2017 | 10,932 | 314,115 | 325,047 |
| Balances as of January 1, 2016 | 10,932 | 259,500 | 270,432 |
| Acquisitions | - | 27,281 | 27,281 |
| Disposals and impairment | - | - | - |
| Other | - | - | - |
| Balances as of December 31, 2016 | 10,932 | 286,781 | 297,713 |
b. 2) Accumulated amortization
Accumulated amortization |
Licenses | Software development | Total |
| MCh$ | MCh$ | MCh$ | |
| Balances as of January 1, 2017 | (9,276) | (230,352) | (239,628) |
| Year’s amortization | (456) | (21,744) | (22,200) |
| Other changes | - | - | - |
| Balances as of December 31, 2017 | (9,732) | (252,096) | (261,828) |
| Balances as of January 1, 2016 | (8,872) | (210,423) | (219,295) |
| Year’s amortization | (404) | (19,929) | (20,333) |
| Other changes | - | - | - |
| Balances as of December 31, 2016 | (9,276) | (230,352) | (239,628) |
| c) | The Bank has no restriction on intangible assets as of December 31, 2017 and 2016. Additionally, the intangibles assets have not been pledged as guarantee for fulfillment of financial liabilities. Also, the Bank has no debt related to Intangible assets as of those dates. |