Circular Letter CVM/SNC/SEP No. 01/2009

Circular Letter CVM/SNC/SEP No. 01/2009
Rio de Janeiro, January 30, 2009
Subject: Clarifications on the 2008 Financial Statements OCPC Orientation 02

Gentlemen,

This Circular Letter aims to provide public companies and their respective independent auditors with clarifications on certain points of the Pronouncements of the Accounting Pronouncements Committee – CPC, approved by this Securities and Exchange Commission.

Several doubts and inquiries were, in some cases, brought to the Superintendence of Accounting Standards and Auditing – SNC, and in others, to the CPC itself. Following an analysis conducted jointly by the SNC and the CPC, OCPC Orientation 02 – Clarifications on the 2008 Financial Statements was issued, which is attached to this Circular Letter and is being endorsed by the Superintendence of Corporate Relations – SEP and the Superintendence of Accounting Standards and Auditing – SNC.

It should be noted that the adoption of the exceptional treatments referred to in items 18, 22, and 121 of OCPC Orientation 02 must be subject to an express request for authorization to the Securities and Exchange Commission, and must be accompanied by a detailed exposition of the reasons supporting the request for exceptional treatment, as well as the opinion of the independent auditors regarding its relevance. The request must be submitted to the Superintendence of Accounting Standards and Auditing with sufficient advance notice for its review, considering, in particular, that, due to the complexity of the request or the insufficiency of data in its formulation or justification, additional clarifications and proofs may be required.

Finally, we alert public companies and independent auditors to the proper compliance with CVM Instruction No. 475, which, in addition to requiring information on financial instruments as a whole, and not only derivatives, made the disclosure of the sensitivity analysis table mandatory. This alert arises from the monitoring work of the quarterly information as of September 30, 2008, carried out by the CVM, in which failures in the full compliance with CVM Deliberation No. 550 were observed, and for this reason, the redoing of some Quarterly Information Reports (ITRs) and the improvement of others were determined, with the objective of guiding companies so that the same deviations do not occur in the financial statements as of December 31, 2008.

Click to access the full text of OCPC Orientation 02

Sincerely,

ELIZABETH LOPEZ RIOS MACHADO
Superintendent of Corporate Relations

ANTÔNIO CARLOS DE SANTANA
Superintendent of Accounting Standards and Auditing