BCB Resolution No. 504 — Amends BCB Resolution No. 352 of November 23, 2023, on accounting criteria for financial instruments and hedge accounting

BCB Resolution No. 504 amends Resolution No. 352 by adding an exception to Article 3, § 6, waiving the requirement for periodic payments with intervals of three months or more if specific evidence was observed for at least ninety days prior to derecognition. It also amends Article 49, § 2, mandating that derecognized instruments failing to meet original conditions be recognized under Articles 22 and 23 for restructurings or at present value otherwise, and characterized as having credit recovery problems with a 100% expected loss provision. This resolution enters into force on October 1, 2025.

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RESOLUTION

BCB RESOLUTION NO. 504, OF SEPTEMBER 23, 2025

Amends
BCB Resolution No. 352, of November 23, 2023, which disposes on the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) by securities brokerage firms, securities distribution firms, foreign exchange brokerage firms, consortium administrators, and payment institutions authorized to operate by the Central Bank of Brazil, and on accounting procedures for defining cash flows of financial assets as solely payments of principal and interest, the application of the methodology for calculating the effective interest rate of financial instruments, the establishment of provisions for losses associated with credit risk, and the disclosure of information relating to financial instruments in explanatory notes to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

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Lineage: In force

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This document amends: Resolution BCB No. 352 of November 23, 2023: Accounting Concepts and Criteria for Financial Instruments and Hedge Accounting

Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works