NOTE 12 INTANGIBLE ASSETS
a) Intangibles assets as December 31, 2017 and 2016 consisted of the following:
As of December 31, 2017
| Useful life | Remaining amortization |
Net Balance as of January 1, 2017 |
Gross balance | Accumulated amortization |
Net Balance | ||||||||
| Concept | years | years | MCh$ | MCh$ | MCh$ | MCh$ | |||||||
| Integrated banking system | 15 | 1 | 1,214 | 9,824 | (9,361 | ) | 463 | ||||||
| Computer equipment system or software | 3 | 1 | 86,110 | 193,256 | (80,364 | ) | 112,892 | ||||||
| IT Projects | 8 | 5 | 21,300 | 42,474 | (25,811 | ) | 16,663 | ||||||
| Generated in business combination | 1,505,034 | 1,502,615 | (70,625 | ) | 1,431,990 | ||||||||
| - Goodwill | 1,145,308 | 1,126,663 | — | 1,126,663 | |||||||||
| - Trademark | 10 | 9 | 47,209 | 51,417 | (9,311 | ) | 42,106 | ||||||
| - Customer relationship | 12 | 11 | 89,827 | 91,046 | (15,008 | ) | 76,038 | ||||||
| - Core deposit | 9 | 8 | 222,690 | 233,489 | (46,306 | ) | 187,183 | ||||||
| Other projects | 10 | 1 | 817 | 3,645 | (2,999 | ) | 646 | ||||||
| Total | 1,614,475 | 1,751,814 | (189,160 | ) | 1,562,654 |
As of December 31, 2016
| Useful life | Remaining amortization |
Net Balance as of January 1, 2016 |
Gross balance | Accumulated amortization |
Net Balance | ||||||||
| Concept | years | years | MCh$ | MCh$ | MCh$ | MCh$ | |||||||
| Integrated banking system | 15 | 2 | — | 9,825 | (8,611 | ) | 1,214 | ||||||
| Computer equipment system or software | 3 | 2 | 49,960 | 152,560 | (66,450 | ) | 86,110 | ||||||
| IT Projects | 8 | 6 | — | 42,447 | (21,147 | ) | 21,300 | ||||||
| Generated in business combination | 899 | 1,536,891 | (31,857 | ) | 1,505,034 | ||||||||
| - Goodwill | — | 1,145,308 | — | 1,145,308 | |||||||||
| - Trademark | 10 | 10 | — | 51,449 | (4,240 | ) | 47,209 | ||||||
| - Customer relationship | 12 | 12 | 899 | 96,674 | (6,847 | ) | 89,827 | ||||||
| - Core deposit | 9 | 9 | — | 243,460 | (20,770 | ) | 222,690 | ||||||
| Other projects | 10 | 2 | 950 | 3,645 | (2,828 | ) | 817 | ||||||
| Total | 51,809 | 1,745,368 | (130,893 | ) | 1,614,475 |
b) The movement of intangible assets in the period ended December 31, 2017 and 2016 was as follows:
| Integrated banking system |
Computer equipment system or software |
IT Projets | Generated in business combination |
Goodwill | Other projects |
Total | |||||||||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |||||||||
| Balances as of January 1, 2017 | 9,825 | 152,560 | 42,447 | 391,583 | 1,145,308 | 3,645 | 1,745,368 | ||||||||
| Purchases | 39 | 40,975 | 1,889 | — | — | — | 42,903 | ||||||||
| Integration Itaú Corpbanca | — | — | — | — | — | — | — | ||||||||
| Additions resulting from business combination | — | — | — | — | — | — | — | ||||||||
| Retirements | — | (123 | ) | — | — | — | — | (123 | ) | ||||||
| Exchange differences | (40 | ) | (156 | ) | (1,862 | ) | (15,631 | ) | (18,645 | ) | — | (36,334 | ) | ||
| Balances as of December 31, 2017 | 9,824 | 193,256 | 42,474 | 375,952 | 1,126,663 | 3,645 | 1,751,814 |
| Integrated banking system |
Computer equipment system or software |
IT Projets | Generated in business combination |
Goodwill | Other projects |
Total | |||||||||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | |||||||||
| Balances as of January 1, 2016 | — | 73,554 | — | 1,284 | — | 1,520 | 76,358 | ||||||||
| Purchases | 511 | 80,509 | 738 | — | — | — | 81,758 | ||||||||
| Integration Itaú Corpbanca | 9,342 | 81,446 | 41,714 | 319,733 | 338,909 | 2,239 | 793,383 | ||||||||
| Additions resulting from business combination | — | — | — | 389,558 | 1,144,338 | — | 1,533,896 | ||||||||
| Retirements | — | (83,205 | ) | — | (319,733 | ) | (338,909 | ) | (532 | ) | (742,379 | ) | |||
| Exchange differences | (28 | ) | 312 | (5 | ) | 741 | 970 | — | 1,990 | ||||||
| Others | — | (56 | ) | — | — | — | 418 | 362 | |||||||
| Balances as of December 31, 2016 | 9,825 | 152,560 | 42,447 | 391,583 | 1,145,308 | 3,645 | 1,745,368 |
c) Movements of accumulated amortization of intangible assets as of December 31, 2017 and 2016 were detailed as follows:
| Integrated banking system |
Computer equipment system or software |
IT Projets | Generated in business combination |
Other projects |
Total | ||||||||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||||||||
| Balances as of January 1, 2017 | (8,611 | ) | (66,450 | ) | (21,147 | ) | (31,857 | ) | (2,828 | ) | (130,893 | ) | |
| Amortization (Note 30) | (788 | ) | (15,819 | ) | (4,672 | ) | (41,038 | ) | (158 | ) | (62,475 | ) | |
| Exchange differences | 38 | 1,905 | 8 | 2,270 | (13 | ) | 4,208 | ||||||
| Balances as of December 31, 2017 | (9,361 | ) | (80,364 | ) | (25,811 | ) | (70,625 | ) | (2,999 | ) | (189,160 | ) |
| Integrated banking system |
Computer equipment system or software |
IT Projets | Generated in business combination |
Other projects |
Total | ||||||||
| MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | MCh$ | ||||||||
| Balances as of January 1, 2016 | — | (23,594 | ) | — | (385 | ) | (570 | ) | (24,549 | ) | |||
| Amortization (Note 30) | (855 | ) | (13,727 | ) | (3,693 | ) | (31,431 | ) | (152 | ) | (49,858 | ) | |
| Integration Itaú Corpbanca | (7,755 | ) | (29,184 | ) | (17,452 | ) | (49,762 | ) | (1,688 | ) | (105,841 | ) | |
| Retirements | — | — | — | 49,762 | — | 49,762 | |||||||
| Exchange differences | — | — | — | (41 | ) | — | (41 | ) | |||||
| Others | (1 | ) | 55 | (2 | ) | — | (418 | ) | (366 | ) | |||
| Balances as of December 31, 2016 | (8,611 | ) | (66,450 | ) | (21,147 | ) | (31,857 | ) | (2,828 | ) | (130,893 | ) |
d) As of December 31, 2017 and 2016, the Bank has entered into the following contractual commitments for the acquisition of intangible assets:
| As of December 31, | |||||
| 2017 | 2016 | ||||
| License detail | MCh$ | MCh$ | |||
| IBM | 1,154 | 851 | |||
| Microsoft | — | 726 | |||
| ULA | — | 426 | |||
| Kony | 321 | — | |||
| Vcloud Suite | 169 | — | |||
| MIS | 129 | — | |||
| Identify Guard IDG) | 116 | — | |||
e) Impairment
At each reporting date, Banco Itaú Corpbanca evaluates whether there is any indication of impairment of any asset. Should any such indication exist, or when impairment testing is required, the entity will estimate the asset’s recoverable amount, (see note 30).
f) Restrictions
As of December 31, 2017 and 2016, the Bank and its subsidiaries have no restrictions on intangible assets. In addition, no intangible assets have been given in guarantee for compliance of any obligations. There are also no amounts owed by the Bank on intangible assets as of the aforementioned dates.