BCB Resolution No. 5, of August 12, 2020

Sets forth the accounting criteria for the recognition and measurement of non-financial assets held for sale by consortium administrators and payment institutions.

Sets forth the accounting criteria for the recognition and measurement of non-financial assets held for sale by consortium administrators, payment institutions, securities and currency brokerage firms, securities distribution firms, and foreign exchange brokerage firms authorized to operate by the Central Bank of Brazil. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Sets forth the accounting criteria for the recognition and measurement of non-financial assets held for sale 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. (Wording given by BCB Resolution No. 553, of 3/3/2026.)

The Collegiate Board of the Central Bank of Brazil, in a session held on August 12, 2020, 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,

R E S O L V E S:

Art. 1. This Resolution establishes the accounting criteria for the recognition and measurement of non-financial assets held for sale by consortium administrators and payment institutions.

Art. 1. This Resolution establishes the accounting criteria for the recognition and measurement of non-financial assets held for sale by the following institutions authorized to operate by the Central Bank of Brazil: (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Art. 1. This Resolution establishes the accounting criteria for the recognition and measurement of non-financial assets held for sale by institutions required to use the Accounting Standard of Institutions Regulated by the Central Bank of Brazil – Cosif under art. 1, caput, item I, of BCB Resolution No. 92, of May 6, 2021. (Wording given by BCB Resolution No. 553, of 3/3/2026.)

I - consortium administrators; (Included, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

I - (Revoked by BCB Resolution No. 553, of 3/3/2026.)

II - payment institutions; (Included, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

II - (Revoked by BCB Resolution No. 553, of 3/3/2026.)

III - securities and currency brokerage firms; (Included, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

III - (Revoked by BCB Resolution No. 553, of 3/3/2026.)

IV - securities distribution firms; and (Included, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

IV - (Revoked by BCB Resolution No. 553, of 3/3/2026.)

V - foreign exchange brokerage firms. (Included, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

V - (Revoked by BCB Resolution No. 553, of 3/3/2026.)

Art. 2. A non-financial asset held for sale is characterized as a non-financial asset not included in the concept of financial asset, according to specific regulation, or a disposal group that meets the following conditions:

I - it is realized through its sale, is available for immediate sale in its current condition, and its disposal is highly probable within a maximum period of one year; or

II - it was received in settlement of financial instruments of difficult or doubtful collection not intended for own use.

Sole paragraph. A disposal group is considered the group formed by non-financial assets not included in the concept of financial asset, according to specific regulation, and liabilities directly associated with these assets, intended for joint disposal.

Art. 3. Non-financial assets held for sale referred to in item I of art. 2 must be reclassified to the appropriate current asset account, on the date the consortium administrator or payment institution decides to sell them.

Art. 3. Non-financial assets held for sale referred to in item I of art. 2 must be reclassified to the appropriate current asset account, on the date the institution mentioned in art. 1 decides to sell them. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

§ 1. The assets referred to in the caput must be valued at the lower of:

I - the net book value of the asset, less provisions for impairment losses and accumulated depreciation or amortization; and

II - the fair value of the asset, evaluated as provided in specific regulation, net of selling expenses.

§ 2. The effects resulting from the application of the provisions of the caput on the value of the asset must be recognized in counterpart to the period's result.

Art. 4. Non-financial assets held for sale referred to in item II of art. 2 must be initially recognized in the appropriate current asset account or non-current asset realizable at long term, according to the expected selling period, on the date of their receipt by the consortium administrator or payment institution.

Art. 4. Non-financial assets held for sale referred to in item II of art. 2 must be initially recognized in the appropriate current asset account or non-current asset realizable at long term, according to the expected selling period, on the date of their receipt by the institution mentioned in art. 1. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

§ 1. The assets referred to in the caput must be valued at the lower of:

I - the gross book value of the respective financial instrument of difficult or doubtful collection; and

II - the fair value of the asset, evaluated as provided in specific regulation, net of selling expenses.

§ 2. The eventual difference between the book value of the respective financial instrument of difficult or doubtful collection, net of provisions, and the value measured as provided in the caput must be recognized in the period's result.

§ 3. For the purposes of the provisions of the caput, the receipt date is considered the date on which the consortium administrator or payment institution obtained possession, control, and ownership of the asset.

§ 3. For the purposes of the provisions of the caput, the receipt date is considered the date on which the institution mentioned in art. 1 obtained possession, control, and ownership of the asset. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

§ 4. The measurement method referred to in § 1 also applies to the initial measurement of non-financial assets received in settlement of financial instruments of difficult or doubtful collection that the consortium administrator or payment institution has decided to allocate for own use.

§ 4. The measurement method referred to in § 1 also applies to the initial measurement of non-financial assets received in settlement of financial instruments of difficult or doubtful collection that the institution mentioned in art. 1 has decided to allocate for own use. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Art. 5. Non-financial assets held for sale that are not sold within a one-year period counted from their reclassification or initial recognition, according to arts. 3 and 4, must be reclassified to the appropriate long-term non-current asset group.

Art. 6. Consortium administrators and payment institutions must reassess the fair value of non-financial assets held for sale, net of selling expenses, whenever there is evidence or new facts indicating a significant reduction in this value.

Art. 6. The institutions mentioned in art. 1 must reassess the fair value of non-financial assets held for sale, net of selling expenses, whenever there is evidence or new facts indicating a significant reduction in this value. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

§ 1. Consortium administrators and payment institutions must evaluate, at least annually, whether there is evidence or new facts indicating a significant reduction in the value referred to in the caput.

§ 1. The institutions mentioned in art. 1 must evaluate, at least annually, whether there is evidence or new facts indicating a significant reduction in the value referred to in the caput. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

§ 2. If the fair value determined according to the caput is lower than the asset's value, measured according to § 1 of art. 3 and § 1 of art. 4 or determined in the last reassessment, the consortium administrator and payment institution must recognize the difference as an impairment loss on the asset.

§ 2. If the fair value determined according to the caput is lower than the asset's value, measured according to § 1 of art. 3 and § 1 of art. 4 or determined in the last reassessment, the institution mentioned in art. 1 must recognize the difference as an impairment loss on the asset. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

§ 3. Consortium administrators and payment institutions may recognize a gain from an increase in the fair value net of selling expenses of the asset occurring subsequent to the reassessment referred to in the caput, limited to the accumulated impairment loss recognized in previous periods.

§ 3. The institutions mentioned in art. 1 may recognize a gain from an increase in the fair value net of selling expenses of the asset occurring subsequent to the reassessment referred to in the caput, limited to the accumulated impairment loss recognized in previous periods. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Art. 7. The recognition of depreciation or amortization related to non-financial assets held for sale is prohibited.

Art. 8. If the non-financial asset held for sale is put into use by the consortium administrator or payment institution in its activities, the asset must be reclassified to the appropriate accounting group:

Art. 8. If the non-financial asset held for sale is put into use by the institution mentioned in art. 1 in its activities, the asset must be reclassified to the appropriate accounting group: (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

I - at its original book value before being classified as an asset held for sale, adjusted by depreciation or amortization that would have been recognized if the asset had not received this classification, in the case of assets referred to in item I of art. 2; or

II - at the lower of its book value on the date of reclassification referred to in the caput or its fair value, in the case of assets referred to in item II of art. 2.

§ 1. The effects resulting from the application of the provisions of the caput on the value of the asset must be recognized in counterpart to the period's result.

§ 2. After the reclassification referred to in the caput, specific regulation for the recognition, measurement, and disclosure applicable to the asset, according to its nature, must be observed.

Art. 9. The Central Bank of Brazil may determine adjustments to the models adopted by consortium administrators or payment institutions for fair value assessment of non-financial assets held for sale, if it identifies inadequacy in the definition of these models, including regarding discount rates to present value and expected selling periods of these assets.

Art. 9. The Central Bank of Brazil may determine adjustments to the models adopted by the institutions mentioned in art. 1 for fair value assessment of non-financial assets held for sale, if it identifies inadequacy in the definition of these models, including regarding discount rates to present value and expected selling periods of these assets. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Art. 10. 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 non-financial assets held for sale, 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. 10. The institutions mentioned in 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 non-financial assets held for sale, for a minimum period of five years, counted from the date of measurement, or for a longer period due to legal or regulatory determination. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Art. 11. Consortium administrators and payment institutions must apply the provisions of this Resolution prospectively from the date of its entry into force.

Art. 11. The institutions mentioned in art. 1 must apply the provisions of this Resolution prospectively from the date of its entry into force. (Wording given, effective 1/3/2024, by BCB Resolution No. 367, of 1/25/2024.)

Art. 12. Circular No. 3,965, of October 2, 2019, is revoked.

Art. 13. This Resolution enters into force on January 1, 2021.

Otávio Ribeiro Damaso
Director of Regulation