6. ARGENTINA’S HYPERINFLATIONARY ECONOMY

Since July 2018 Argentina's economy is considered hyper-inflationary under the provisions of International Accounting Standard No. 29 - Financial Reporting in Hyperinflationary Economies. A number of qualitative and quantitative criteria led to this qualification; chief among them is the cumulative inflation rate over three years exceeding 100%.

In accordance with the provisions of IAS 29, the financial statements of the Argentine branch owned by GasAtacama Group in which Enel Generación Chile has an interest have been retrospectively restated by applying a general price index to the historical cost, in order to reflect changes in the purchasing power of the Argentine currency as of the closing date of these financial statements.

Considering that Enel Generación Chile functional and presentation currency is not that of a hyper-inflationary economy, according to the guidelines of IAS 29, the restatement of comparative periods is not required in the Group's consolidated financial statements.

The general price indices used at the close of the reporting periods are as follows:


	General price index (*)
Historical inflation accumulated up to December 31, 2017.	82.52%
From January to December 2018	47.83%

(*) Source National Institute of Statistics and Censuses of Argentina (INDEC, in its Spanish acronym).

Following, a summary of the effect on consolidated comprehensive income of Enel Generación:


		12-31-2018
Hyperinflation results		ThCh$
Intangible assets other than goodwill		180
Property, plant and equipment		1,035,084
Equity		(3,743,959)
Other Services Provision		(1,189,452)
Other Variable Provisioning and Services		21,503
Employee benefits expenses		143,148
Other Fixed Operating Expenses		147,975
Financial income		(268,511)
Financial costs		67,707
Total Hyperinflation (*)		(3,786,325)

(*) Corresponds to the financial effect from the application of IAS 29 "Financial Reporting in Hyperinflationary Economies", which arises from gain/loss on the net position of monetary assets and liabilities, as defined by IAS 29. This profit or loss is determined by restating non-monetary assets and liabilities, as well as those income statement accounts that have not already been updated (see Note 32).