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Employee benefits | 12 Months Ended
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Dec. 31, 2017
Disclosure of Employee benefits [Abstract] |
Disclosure Of Employee Benefits Explanatory [Text Block] | Note 25 Employee Benefits The Company grants short term and employment termination benefits as part of its compensation policies. The Parent Company and its subsidiaries have collective agreements with their employees, which establish the compensation and/or short–term and long-term benefits for their staff, the main features of which are described below:
§ | Short-term benefits are generally based on combined plans or agreements, designed to compensate benefits received, such as paid vacation, annual performance bonuses and compensation through annuities.
§ | Long-term benefits are plans or agreements mainly intended to cover the post-employment benefits generated at the end of the labour relationship, be it by voluntary resignation or death of personnel hired.
The cost of such benefits is charged against income, in the “Personnel Expense” item. As of December 31, 2017 and 2016, the total staff benefits recorded in the Consolidated Statement of Financial Position is detaileds as follows:
|  | As of December 31, 2017 |  | As of December 31, 2016 |
Employees’ Benefits |  | Current |  | Non current |  | Current |  | Non current |
|  | ThCh$ |  | ThCh$ |  | ThCh$ |  | ThCh$ |
Short term benefits |  |  | 26,050,387 |  |  | - |  |  | 22,517,220 |  |  | - |
Employment termination benefits |  |  | 182,106 |  |  | 23,517,009 |  |  | 321,008 |  |  | 21,832,415 |
Total |  |  | 26,232,493 |  |  | 23,517,009 |  |  | 22,838,228 |  |  | 21,832,415 |
Employees’ Bonuses Short-term benefits are mainly comprised of recorded vacation (on accruals basis), bonuses and share compensation. Such benefits are recorded when the obligation is accrued and are usually paid within a 12-month periods, consequently, they are not discounted. The total short-term benefits recorded in the Consolidated Statement of Financial Position are detailed as follows:
Short-Term Employees’ Benefits |  | As of December 31, 2017 |  | As of December 31, 2016 |
|  | ThCh$ |  | ThCh$ |
Vacation |  |  | 9,932,727 |  |  | 9,405,040 |
Bonus and compensation |  |  | 16,117,660 |  |  | 13,112,180 |
Total |  |  | 26,050,387 |  |  | 22,517,220 |
The Company records staff vacation cost on an accrual basis. Severance Indemnity The Company records a liability for the payment of an irrevocable severance indemnity, originated by collective and individual agreements entered into with certain groups of employees. Such obligation is determined by means of the current value of the benefit accrued cost, a method that considers several factors for the calculation such as estimates of future continuance, mortality rates, future salary increases and discount rates. The Company periodically evaluates the above-mentioned factors based on historical data and future projections, making adjustments that apply when checking changes sustained trend. The so-determined value is presented at the current value by using the severance benefits accrued method. The discount rate is determined by reference to market interest rates curves for high quality entrepreneurial bonds. The discount rate in Chile was 5.96% (5.52% in 2016) and in Argentina 24.55% (31.88% in 2016). The obligation recorded for severance indemnity is detailed as follows:
Severance Indemnity |  | As of December 31, 2017 |  | As of December 31, 2016 |
|  | ThCh$ |  | ThCh$ |
Current |  |  | 182,106 |  |  | 321,008 |
Non-current |  |  | 23,517,009 |  |  | 21,832,415 |
Total |  |  | 23,699,115 |  |  | 22,153,423 |
The change in the severance indemnity is detailed as follows:
Severance Indemnity |  | ThCh$ |
Balance as of January 1, 2016 |  |  | 19,043,559 |
Current cost of service |  |  | 1,650,484 |
Interest cost |  |  | 1,702,662 |
Actuarial (Gain) losses |  |  | 2,342,336 |
Paid-up benefits |  |  | (2,490,851) |
Past service cost |  |  | 342,039 |
Conversion effect |  |  | (670,709) |
Others |  |  | 233,903 |
Movements of the year |  |  | 3,109,864 |
As of December 31, 2016 |  |  | 22,153,423 |
Current cost of service |  |  | 1,942,099 |
Interest cost |  |  | 1,850,598 |
Actuarial (Gain) losses |  |  | (99,357) |
Paid-up benefits |  |  | (1,934,587) |
Past service cost |  |  | 604,337 |
Conversion effect |  |  | (694,189) |
Others |  |  | (123,209) |
Movements of the year |  |  | 1,545,692 |
As of December 31, 2017 |  |  | 23,699,115 |
The figures recorded in the Consolidated Statement of Income, are detailed as follows:
|  | For the years ended as of December 31, |
Expense recognized for severance indemnity |  | 2017 |  | 2016 |  | 2015 |
|  | ThCh$ |  | ThCh$ |  | ThCh$ |
Current cost of service |  |  | 1,942,099 |  |  | 1,650,484 |  |  | 1,023,969 |
Past service cost |  |  | 604,337 |  |  | 342,039 |  |  | 131,204 |
Accrued paid benefit |  |  | 6,023,869 |  |  | 7,851,201 |  |  | 4,377,570 |
Other |  |  | 269,377 |  |  | 1,114,112 |  |  | 646,502 |
Total expense recognized in Consolidated Statement of Income |  |  | 8,839,682 |  |  | 10,957,836 |  |  | 6,179,245 |
Actuarial Assumptions As mentioned in Note 2.20 – Employees’ Benefits, the severance payment obligation is recorded at its actuarial value. The main actuarial assumptions used for the calculation of the severance indemnity obligation are detailed as follows:
|  |  |  |  |  | Chile |  | Argentina |
Actuarial Assumptions |  | As of December 31, |  | As of December 31, |
|  |  |  |  |  | 2017 |  | 2016 |  | 2017 |  | 2016 |
Mortality table |  |  |  |  |  | RV-2014 |  | RV-2014 |  | Gam '83 |  | Gam '83 |
Annual interest rate |  |  |  |  |  | 5.96% |  | 5.52% |  | 24.55% |  | 31.88% |
Voluntary employee turnover rate |  |  |  |  |  | 1.90% |  | 1.90% |  | "ESA 77 Ajustada" - 50% |  | "ESA 77 Ajustada" - 50% |
Company’s needs rotation rate |  |  |  |  |  | 5.30% |  | 5.30% |  | "ESA 77 Ajustada" - 50% |  | "ESA 77 Ajustada" - 50% |
Salary increase (*) |  |  |  |  |  | 3.70% |  | 3.70% |  | 18.68% |  | 26.25% |
|  | Officers |  |  |  | 60 |  | 60 |  | 60 |  | 60 |
Estimated retirement age for (*) |  | Other |  | Male |  | 65 |  | 65 |  | 65 |  | 65 |
|  |  |  | Female |  | 60 |  | 60 |  | 60 |  | 60 |
(*) Average of the Company. Sensitivity Analysis The Following is a sensitivity analysis based on increased (decreased) of 1 percent on the discount rate:
Sensitivity Analysis |  | As of December 31, 2017 |  | As of December 31, 2016 |
|  | ThCh$ |  | ThCh$ |
1% increase in the Discount Rate (Gain) |  |  | 1,457,410 |  |  | 1,421,484 |
1% decrease in the Discount Rate (Loss) |  |  | (1,684,968) |  |  | (1,649,255) |
Personnel expense The amounts recorded in the Consolidated Statement of Income are detailed as follows:
|  | For the years ended as of December 31, |
Personal expense |  | 2017 |  | 2016 |  | 2015 |
|  | ThCh$ |  | ThCh$ |  | ThCh$ |
Salaries |  |  | 151,944,702 |  |  | 145,766,757 |  |  | 138,359,074 |
Employees’ short-term benefits |  |  | 27,588,955 |  |  | 23,189,206 |  |  | 24,693,325 |
Employments termination benefits |  |  | 8,839,682 |  |  | 10,957,836 |  |  | 6,179,245 |
Other staff expense |  |  | 32,485,170 |  |  | 30,971,754 |  |  | 28,683,507 |
Total (1) |  |  | 220,858,509 |  |  | 210,885,553 |  |  | 197,915,151 |
(1) See Note 29.

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