13.1 Classes of Intangible Assets
Balances in the different classes of intangible assets are as follows:
| As of December 31, 2017 |
As of December 31, 2016 |
|||||||
| Description of classes of intangible assets | ThCh$ | ThCh$ | ||||||
| Intangible assets, net | 43,426,623 | 40,647,715 | ||||||
| Net intangible asset with finite life | 18,083,654 | 7,683,605 | ||||||
| Brands, net | 15,533,324 | 24,435,655 | ||||||
| Water rights, net | 9,755,585 | 8,474,387 | ||||||
| Easements right, net | 54,060 | 54,068 | ||||||
| Net identifiable intangible assets | 43,426,623 | 40,647,715 | ||||||
| Patents, trademarks and other rights, net | 40,281,203 | 37,709,777 | ||||||
| Computer software, net | 3,145,420 | 2,937,938 | ||||||
| Intangible assets, gross | 57,244,405 | 53,356,735 | ||||||
| Identifiable intangible assets, gross | 57,244,405 | 53,356,735 | ||||||
| Patents, trademarks and other rights, gross | 43,909,217 | 40,909,615 | ||||||
| Computer software, gross | 13,335,188 | 12,447,120 | ||||||
| Total accumulated amortization and impairment, intangible assets | (13,817,782 | ) | (12,709,020 | ) | ||||
| Patents, trademarks and other rights | (3,628,014 | ) | (3,199,838 | ) | ||||
| Computer software | (10,189,768 | ) | (9,509,182 | ) | ||||
As of December 31, 2017, the Company has no restrictions on intangible assets and does not maintain acquisition commitments.
The book value of intangible with indefinite useful life was assigned to the cash generating unit (CGU) which corresponds to agricultural land, within the Wines segment. These intangible assets have been tested for impairment, together with agricultural land, i.e. CGUs were assessed, and no impairment was identified.
Changes of intangible as of December 31, 2017 are detailed as follows:
| Patents, trademarks and other rights, net |
Computer software, net |
Identifiable intangible assets, net |
||||||||||
| Changes in identifiable intangible assets | ThCh$ | ThCh$ | ThCh$ | |||||||||
| Beginning balance | 37,709,777 | 2,937,938 | 40,647,715 | |||||||||
| Changes : | ||||||||||||
| Additions | 5,198,154 | 897,339 | 6,095,493 | |||||||||
| Effect of translation in foreign subsidiaries | (1,720,256 | ) | (9,271 | ) | (1,729,527 | ) | ||||||
| Withdrawals | (478,296 | ) | — | (478,296 | ) | |||||||
| Amortization | (428,176 | ) | (680,586 | ) | (1,108,762 | ) | ||||||
| Total changes | 2,571,426 | 207,482 | 2,778,908 | |||||||||
| Final balance as of December 31, 2017 | 40,281,203 | 3,145,420 | 43,426,623 | |||||||||
The amount due to amortization amounted to ThCh$ 1,108,762, ThCh$1,119,655 and ThCh$1,098,051 as of December 31, 2017, 2016 and 2015, respectively, which is reflected in the statement of income included within item “depreciation and amortization”, within the line “administrative expenses” and line “costs of sales” corresponding to the portion which forms part of the inventory cost.
Changes of intangibles as of December 31, 2016 are detailed as follows:
| Patents, trademarks and other rights, net |
Computare software, net |
Identifiable intangible assets, net |
||||||||||
| Movements in identifiable intangible assets | ThCh$ | ThCh$ | ThCh$ | |||||||||
| Beginning balance | 38,270,211 | 2,860,286 | 41,130,497 | |||||||||
| Changes : | ||||||||||||
| Additions | 1,577,330 | 899,667 | 2,476,997 | |||||||||
| Effect of translation in foreign subsidiaries | (1,635,856 | ) | 108,482 | (1,527,374 | ) | |||||||
| Withdrawals | (62,454 | ) | (250,296 | ) | (312,750 | ) | ||||||
| Amortization | (439,454 | ) | (680,201 | ) | (1,119,655 | ) | ||||||
| Total changes | (560,434 | ) | 77,652 | (482,782 | ) | |||||||
| Final balance as of December 31, 2016 | 37,709,777 | 2,937,938 | 40,647,715 | |||||||||
Intangible assets with a finite useful life are amortized on a lineal basis during its useful life, beginning at the moment when these are ready to be used. Those intangibles with indefinite useful lives are not amortized and are subject to the application of an impairment test at least once a year, in conformity with IAS 36.