Circular Letter CVM/SEP 04/07

CIRCULAR LETTER/CVM/SEP/No. 004/2007
Rio de Janeiro, November 06, 2007.
SUBJECT: CVM Instruction No. 457/07 – Guidance on the submission of Consolidated Financial Statements in IFRS

Dear Investor Relations Director,

This Circular Letter aims to provide guidance regarding the submission of information by publicly held companies that voluntarily begin, from the 3rd quarter of 2007, to submit their consolidated financial statements prepared in accordance with international accounting standards, in accordance with CVM Instruction No. 457/07.

CVM Instruction No. 457/07, of July 16, 2007, allowed publicly held companies to present, until the fiscal year 2009, their "consolidated financial statements with the adoption of the international accounting standard, issued by the International Accounting Standards Board – IASB, in substitution for the Brazilian accounting standard".

Considering the deadline for submitting Form 3rd ITR/07, until 14.11.07 (or 29.11.07, in the situations provided for in CVM Instruction No. 245/96), in cases of the fiscal year ending on December 31, publicly held companies that opt to disclose their Consolidated Financial Statements in IFRS, as of September 30, 2007, must send this information via the IPE System, in the category "Economic-Financial Data", type "Financial Statements in International Standards", species "Financial Statements in IFRS". These financial statements must be accompanied by explanatory notes and, if applicable, a special audit review report (see CVM Instruction No. 245/96). When dealing with companies listed in Levels 1, 2, or the Novo Mercado of BOVESPA, given the specific regulation, it is necessary to verify the need to include the consolidated performance comment.

Furthermore, companies must include, in the Explanatory Notes contained in Form 3rd ITR/07, the information that the Consolidated Financial Statements in IFRS are available on the CVM and BOVESPA websites (in the case of companies registered there or registered in the organized over-the-counter market administered by BOVESPA), as well as on any other internet addresses. We highlight that, in this case, without prejudice to the provisions of Article 31 of CVM Instruction No. 247, the reconciliation mentioned in § 1 of Art. 2 of CVM Instruction No. 457/07 must appear in the explanatory notes to the Consolidated Financial Statements in IFRS.

CIRCULAR LETTER/CVM/SEP/No. 004/2007

It should be emphasized that (i) the aforementioned Instruction does not exempt the Company from sending the 3rd ITR/2007 via the CVMWIN System, with all other information, which include the individual balance sheet and income statement prepared in accordance with corporate legislation; and (ii) regardless of the submission of the Consolidated Financial Statements in IFRS, as mentioned above, the Company may send the Consolidated Financial Statements in accordance with corporate legislation in Form 3rd ITR/07.

Finally, we inform that CVM, with the assistance of BOVESPA, will arrange for the preparation of a new version of the CVMWIN System, with the objective of allowing the submission of Consolidated Financial Statements in IFRS in standardized forms.

Sincerely,

Original signed by
ELIZABETH LOPEZ RIOS MACHADO
Superintendent of Corporate Relations