Regulatory Alerts2014-10-25
CVM Instruction No. 232 of February 10, 1995
The Brazilian Securities and Exchange Commission (CVM) issued Instruction No. 232 to amend Articles 3, 4, and 5 of Instruction No. 207/1994, establishing the specific condensed financial information that publicly-held companies must disclose when publishing abbreviated financial statements. The regulation mandates that these summaries include condensed balance sheets and income statements with full monetary correction, along with detailed explanatory notes covering accounting changes, related-party investments, debt terms, and tax loss carryforwards. Additionally, the instruction requires companies to reconcile consolidated results with those of the controlling entity and to submit both complete and summarized financial reports to the CVM and relevant stock exchanges.