BCB Resolution No. 170 of December 9, 2021

BCB Resolution No. 222

BCB RESOLUTION NO. 170, OF DECEMBER 9, 2021

Dispenses with the criteria to be observed by consortium administrators and payment institutions authorized to operate by the Central Bank of Brazil in the accounting recognition, measurement, and disclosure of investment properties and non-financial assets acquired for the purpose of future sale and profit generation based on price variations in the market.

Dispenses with the criteria to be observed by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency brokerage firms authorized to operate by the Central Bank of Brazil in the accounting recognition, measurement, and disclosure of investment properties and non-financial assets acquired for the purpose of future sale and profit generation based on price variations in the the market. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

Dispenses with the criteria to be observed by institutions required to use the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – Cosif by virtue of BCB Resolution No. 92 of May 6, 2021, in the accounting recognition, measurement, and disclosure of investment properties and non-financial assets acquired for the purpose of future sale and profit generation based on price variations in the market. (Amended by BCB Resolution No. 553 of March 3, 2026.)

The Collegiate Board of Directors of the Central Bank of Brazil, in a session held on December 9, 2021, based on arts. 6 and 7, item III, of Law No. 11,795 of October 8, 2008, 9, item II, and 15 of Law No. 12,865 of October 9, 2013, and having in view the provisions of art. 61 of Law No. 11,941 of May 27, 2009,

RESOLVES:

CHAPTER I
OF THE OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes accounting criteria to be observed by consortium administrators and payment institutions authorized to operate by the Central Bank of Brazil in the recognition, measurement, and disclosure of:

Art. 1. This Resolution establishes accounting criteria to be observed by consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency brokerage firms authorized to operate by the Central Bank of Brazil in the recognition, measurement, and disclosure of: (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

Art. 1. This Resolution establishes accounting criteria to be observed by institutions required to use the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – Cosif in accordance with art. 1, caput, item I, of BCB Resolution No. 92 of May 6, 2021, in the recognition, measurement, and disclosure of: (Amended by BCB Resolution No. 553 of March 3, 2026.)

I - investment properties; and

II - non-financial assets acquired for the purpose of future sale and profit generation based on price variations in the market.

CHAPTER II
OF INVESTMENT PROPERTIES

Art. 2. Consortium administrators and payment institutions that, in legally permitted cases, maintain investment properties must observe Technical Pronouncement CPC 28 – Investment Property, approved by the Accounting Pronouncements Committee (CPC) on June 26, 2009, for the measurement, recognition, and disclosure of these assets.

Art. 2. The institutions mentioned in the caput of art. 1 that, in legally permitted cases, maintain investment properties must observe Technical Pronouncement CPC 28 – Investment Property, approved by the Accounting Pronouncements Committee (CPC) on June 26, 2009, for the measurement, recognition, and disclosure of these assets. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

§ 1. The technical pronouncements cited in the text of CPC 28, while not received by specific act of the Central Bank of Brazil, cannot be applied.

§ 2. In the application of the pronouncement referred to in the caput, the application of the provisions of item 84A is prohibited.

§ 3. References to other pronouncements in the text of CPC 28, for the purposes of this Resolution, must be interpreted as references to CPC pronouncements that have been received by the Central Bank of Brazil, as well as to other regulatory provisions.

§ 4. Investment properties must be evaluated by the cost method:

~~I - ~~ destined for use by controlled entities or by the controlling entity of the consortium administrator or payment institution ; and

I - destined for use by controlled entities or by the controlling entity of the institution mentioned in the caput of art. 1; and (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

II - resulting from non-financial assets held for sale received in settlement of difficult or doubtful financial instruments and transferred to an entity part of the same prudential conglomerate.

CHAPTER III
OF NON-FINANCIAL ASSETS ACQUIRED
FOR THE PURPOSE OF FUTURE SALE AND PROFIT GENERATION BASED ON PRICE VARIATIONS IN THE MARKET

Art. 3. Non-financial assets acquired by consortium administrators and payment institutions for the purpose of future sale and profit generation based on price variations in the market must be initially recognized at the cash purchase price, plus transaction costs.

Art. 3. Non-financial assets acquired by the institutions mentioned in the caput of art. 1 for the purpose of future sale and profit generation based on price variations in the market must be initially recognized at the cash purchase price, plus transaction costs. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

§ 1. The provisions of this Chapter do not apply to assets whose recognition and measurement criteria are provided for in specific regulation.

§ 2. In the installment acquisition of the non-financial asset, the difference between the cash price of the asset and the total payments must be appropriated monthly, pro rata temporis, in the appropriate expense account, according to the accrual basis.

Art. 4. The non-financial assets referred to in art. 3, after initial recognition, must be measured, at the time of interim and annual financial statements, at fair value, evaluated in accordance with specific regulation, net of selling expenses.

Sole paragraph. The gain or loss resulting from changes in the fair value of the non-financial assets mentioned in the caput must be recognized in the period's result.

Art. 5. If the non-financial asset ceases to meet the conditions referred to in art. 3, the consortium administrator or payment institution must reclassify it to the appropriate accounting group at fair value on the date of reclassification.

Art. 5. If the non-financial asset ceases to meet the conditions referred to in art. 3, the institution mentioned in the caput of art. 1 must reclassify it to the appropriate accounting group at fair value on the date of reclassification. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

Sole paragraph. After the reclassification referred to in the caput, the specific regulation applicable to the recognition, measurement, and disclosure of the asset, according to its nature, must be observed.

CHAPTER IV
GENERAL AND TRANSITIONAL PROVISIONS

Art. 6. The Central Bank of Brazil may determine adjustments to the models adopted by consortium administrators and payment institutions for fair value assessment of the assets referred to in this Resolution, if it identifies inadequacy in the definition of these models .

Art. 6. The Central Bank of Brazil may determine adjustments to the models adopted by the institutions mentioned in the caput of art. 1 for fair value assessment of the assets referred to in this Resolution, if it identifies inadequacy in the definition of these models. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

Art. 7. Consortium administrators and payment institutions must keep available to the Central Bank of Brazil the documentation that clearly and objectively evidences the criteria used for the measurement of the assets referred to in this Resolution, for a minimum period of five years, counted from the date of measurement, or for a longer period due to legal or regulatory determination.

Art. 7. The institutions mentioned in the caput of art. 1 must keep available to the Central Bank of Brazil the documentation that clearly and objectively evidences the criteria used for the measurement of the assets referred to in this Resolution, for a minimum period of five years, counted from the date of measurement, or for a longer period due to legal or regulatory determination. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

Art. 8. It is optional, until the end of the 2022 fiscal year, to measure the assets referred to in this Resolution that cannot be measured at level 1 of the fair value hierarchy, according to current regulation, at acquisition cost less any impairment loss.

Art. 9. The consortium administrators and payment institutions must apply the provisions of this Resolution prospectively from the date of its entry into force.

Art. 9. The institutions mentioned in the caput of art. 1 must apply the provisions of this Resolution prospectively from the date of its entry into force. (Amended, effective March 1, 2024, by BCB Resolution No. 367 of January 25, 2024.)

Sole paragraph. The effects of the adjustments resulting from the application of the accounting criteria established in this Resolution, including in the exercise of the option provided for in art. 8, must be recorded in counterpart to the accumulated profits or losses account by the net value of the tax effects.

Art. 10. This Resolution enters into force on January 1, 2022.

Otávio Ribeiro Damaso
Regulation Director