Circular Letter No. 1468: Accounting Entries for Share Transactions in the Spot, Forward, Futures and Options Markets by Mutual Investment Funds and Investment Companies

CENTRAL BANK OF BRAZIL

To
Mutual Investment Funds and Investment Companies - Foreign Capital

We hereby inform that operations involving shares, in the spot, forward, futures and options markets, both for purchase and for sale, shall be recorded in accordance with schemes no. 1 to 4 attached hereto.

2. The aforementioned accounting recording schemes shall be for internal use, until the new Accounting Plans are reissued and come into force.

3. Option premiums received or paid shall be recognized in income in proportion to the term of the operation "pro rata" days, observing the exponential method.

4. Circular Letter no. 1.393, dated 17.04.86, is hereby revoked.

Brasília (DF), 05 September 1986.

DEPARTMENT OF CAPITAL MARKET RULES
Gustavo Jorge Laboissière Loyola
CHIEF

This text does not replace the one published in the DOU and in Sisbacen

CIRCULAR LETTER NO. 1.468

CENTRAL BANK OF BRAZIL

TITLE: TRANSITORY PROVISIONS - 29
CHAPTER: Non-Codified Circular Letters - 3
SECTION:

Scheme no. 1 - Shares - Purchase and Sale for Own Account - Spot Market

order no.	Events	Accounting Entries
1	Purchase of shares in the spot market
1.1	Acquisition on the Exchange - recording of the cost of the securities and respective fees and stamp duties	D - VARIABLE INCOME SECURITIES - Adequate subtitle D - BROKERAGE AND STAMP DUTY EXPENSES C - CREDITORS - PENDING SETTLEMENTS ACCOUNT - Adequate subtitle
1.2	Payment to the creditor	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT - Adequate subtitle C - BANKS - DEPOSIT ACCOUNT
1.3	Daily recognition of share variation
1.3.1	Appreciation	D - ADJUSTMENTS OF VARIABLE INCOME SECURITIES C - UPDATES OF VARIABLE INCOME SECURITIES
1.3.2	Depreciation	D - UPDATES OF VARIABLE INCOME SECURITIES C - ADJUSTMENTS OF VARIABLE INCOME SECURITIES
1.4	Custody of shares at an institution authorized to maintain a custody service	D - SECURITIES DEPOSITARIES IN CUSTODY C - SECURITIES CUSTODIED ON OUR ORDER
2	Sale of shares in the spot market
2.1	Reversal of the appreciations recorded in the semester	D - UPDATES OF VARIABLE INCOME SECURITIES C - ADJUSTMENTS OF VARIABLE INCOME SECURITIES
2.2	Reversal of the depreciations recorded in the semester	D - ADJUSTMENTS OF VARIABLE INCOME SECURITIES C - UPDATES OF VARIABLE INCOME SECURITIES
2.3	With profit
2.3.1	Sale on the Exchange - write-off of the cost and recording of the fees and stamp duties	D - DEBTORS - PENDING SETTLEMENTS ACCOUNT - Adequate subtitle D - BROKERAGE AND STAMP DUTY EXPENSES C - VARIABLE INCOME SECURITIES - Adequate subtitle C - PROFITS ON VARIABLE INCOME SECURITIES - Adequate subtitle
2.4	With loss
2.4.1	Sale on the Exchange - write-off of the cost and recording of the fees and stamp duties	D - DEBTORS - PENDING SETTLEMENTS ACCOUNT - Adequate subtitle D - BROKERAGE AND STAMP DUTY EXPENSES D - LOSSES ON VARIABLE INCOME SECURITIES - Adequate subtitle C - VARIABLE INCOME SECURITIES - Adequate subtitle
2.5	Receipt upon settlement	D - BANKS - DEPOSIT ACCOUNT C - DEBTORS - PENDING SETTLEMENTS ACCOUNT - Appropriate subtitle
2.6	Write-off of custody of shares	D - SECURITIES HELD IN CUSTODY ON OUR ORDER C - SECURITIES DEPOSITARIES IN CUSTODY

CENTRAL BANK OF BRAZIL

TITLE: TRANSITIONAL PROVISIONS - 29

CHAPTER: Non-Codified Circular Letters - 3

SECTION:

Scheme No. 2 - Shares - Purchase and Sale for Own Account - Forward Market

No. order | Events | Accounting Entries

1 | Purchase in the forward market |

1.1 | Recording of the value of the contracted operation, the tax, the fees and emoluments | D - SHARE PURCHASE ACCOUNTS

• Appropriate subitem
  D - TAX EXPENSES
• Appropriate subitem
  D - BROKERAGE AND EMOLUMENT EXPENSES
  C - OBLIGATIONS FOR ACQUISITION AND/OR SUBSCRIPTION OF SECURITIES
• Appropriate subitem
  C - CREDITORS - PENDING SETTLEMENTS ACCOUNTS
• Appropriate subitem

1.2 | Payment of the tax, the fees and emoluments | D - CREDITORS - PENDING SETTLEMENTS ACCOUNTS

• Appropriate subitem
  C - BANKS - DEPOSIT ACCOUNTS

1.3 | Operation guarantee |

1.3.1 | In variable income securities | D - VARIABLE INCOME SECURITIES IN GUARANTEE

• Appropriate subitem
  C - VARIABLE INCOME SECURITIES
• Appropriate subitem

1.3.2 | In cash | D - DEPOSITS IN GUARANTEE

• Appropriate subitem
  C - BANKS - DEPOSIT ACCOUNTS

1.4 | Settlement of the operation at maturity | D - OBLIGATIONS FOR ACQUISITION AND/OR SUBSCRIPTION OF SECURITIES

• Appropriate subitem
  C - CREDITORS - PENDING SETTLEMENTS ACCOUNTS
• Appropriate subitem

1.5 | Payment of the value of the operation | D - CREDITORS - PENDING SETTLEMENTS ACCOUNTS

• Appropriate subitem
  C - BANKS - DEPOSIT ACCOUNTS

1.6 | Transfer of the shares to the appropriate subtitle and custody of the shares |

1.6.1 | By transfer | D - VARIABLE INCOME SECURITIES

• Shares of Publicly Traded Companies
  C - SHARE PURCHASE ACCOUNTS
• Appropriate subitem

1.6.2 | By custody | D - SECURITIES DEPOSITARIES IN CUSTODY
C - SECURITIES HELD IN CUSTODY ON OUR ORDER

1.7 | Return of guarantees |

1.7.1 | In variable income securities | D - VARIABLE INCOME SECURITIES

• Appropriate subitem
  C - VARIABLE INCOME SECURITIES IN GUARANTEE
• Appropriate subitem

1.7.2 | In cash | D - BANKS - DEPOSIT ACCOUNTS
C - DEPOSITS IN GUARANTEE

• Appropriate subitem

2 | Sales in the forward market |

2.1 | Operations with securities coverage |

2.1.1 | Recording of the value of the contract, the tax, the fees and emoluments | D - AMOUNTS RECEIVABLE FROM SALES OF SHARES

• Appropriate subitem
  D - TAX EXPENSES
• Appropriate subitem
  D - BROKERAGE COMMISSIONS AND FEES
  C - COMMITMENTS FOR SALES OF SHARES
• Appropriate subitem
  C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
• Appropriate subitem

[*] Circular Letter No. 1.468, dated 05.09.86.

TITLE: TRANSITIONAL PROVISIONS - 29
CHAPTER: Non-Codified Circular Letters - 3
SECTION:

Scheme No. 2 - Shares - Purchase and Sale for Own Account - Forward Market

order no.	Events	Accounting Entries
2.1.2	Hedging of the operation in variable income securities and of the income to be accrued	D - VARIABLE INCOME SECURITIES AS COLLATERAL - Appropriate subtitle C - VARIABLE INCOME SECURITIES - Appropriate subtitle C - INCOME TO BE ACCRUED
2.1.2.1	Pro rata accrual	D - INCOME TO BE ACCRUED C - PROFITS ON VARIABLE INCOME SECURITIES - Appropriate subtitle
2.2	Settlement of the operation at maturity
2.2.1	When hedged with the securities themselves that are the subject of the operation
2.2.1.1	For the amount to be received	D - DEBTORS - PENDING SETTLEMENTS ACCOUNT - Appropriate subtitle C - AMOUNTS TO BE RECEIVED FROM SALES OF SHARES - Appropriate subtitle
2.2.1.2	For the write-off of the commitment due to the settlement of the operation	D - COMMITMENTS FOR SALES OF SHARES - Appropriate subtitle C - VARIABLE INCOME SECURITIES AS COLLATERAL - Appropriate subtitle
2.2.2	Write-off of the custody of the securities	D - SECURITIES HELD IN CUSTODY ON OUR ORDER C - SECURITIES DEPOSITARIES IN CUSTODY

TITLE: TRANSITIONAL PROVISIONS - 29
CHAPTER: Non-Codified Circular Letters - 3
SECTION:

Scheme No. 3 - Shares - Purchase and Sale for Own Account - Futures Market

order no. | Events | Accounting Entries

1 | Purchases in the futures market |

1.1 | For the recording of the agreed value, the tax, | D - SHARE PURCHASE ACCOUNTS
| the fees and emoluments of the operation | - Appropriate subitem
| | D - MISCELLANEOUS EXPENSES
| | - Appropriate subitem
| | D - BROKERAGE COMMISSIONS AND FEES
| | C - PURCHASE AND/OR SUBSCRIPTION OPERATIONS OF
| | SECURITIES
| | - Appropriate subitem
| | C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem

1.2 | Payment of the tax, fees and emoluments | D - CREDITORS - PENDING SETTLEMENTS ACCOUNT
| due | - Appropriate subitem
| | C - BANKS - DEPOSIT ACCOUNT

1.3 | Collateral for the operation |

1.3.1 | In variable income securities | D - VARIABLE INCOME SECURITIES AS COLLATERAL
| | - Appropriate subitem
| | C - VARIABLE INCOME SECURITIES
| | - Appropriate subitem

1.3.2 | In cash | D - COLLATERAL DEPOSITS
| | - Appropriate subitem
| | C - BANKS - DEPOSIT ACCOUNT

1.4 | Closing of position through an operation |

1.4.1 | With profit | D - OPERATIONS BY PURCHASE AND/OR SUBSCRIPTION OF
| | SECURITIES
| | - Appropriate subitem
| | D - DEBTORS - PENDING SETTLEMENT ACCOUNTS
| | - Appropriate subitem
| | C - SHARE ACCOUNTS
| | - Appropriate subitem
| | C - PROFITS ON VARIABLE INCOME SECURITIES
| | - Appropriate subitem

1.4.1.2 | Receipt upon settlement | D - BANKS - DEPOSIT ACCOUNT
| | C - DEBTORS - PENDING SETTLEMENT ACCOUNTS
| | - Appropriate subitem

1.4.2 | With loss |

1.4.2.1 | Recording of closing | D - OPERATIONS BY PURCHASE AND/OR SUBSCRIPTION OF
| | SECURITIES
| | - Appropriate subitem
| | D - LOSSES ON VARIABLE INCOME SECURITIES
| | - Appropriate subitem
| | C - SHARE ACCOUNTS
| | - Appropriate subitem
| | C - CREDITORS - PENDING SETTLEMENT ACCOUNTS
| | - Appropriate subitem

1.4.2.2 | Payment upon settlement | D - CREDITORS - PENDING SETTLEMENT ACCOUNTS
| | - Appropriate subitem
| | C - BANKS - DEPOSIT ACCOUNT

1.5 | Appropriation of daily results in the ope- | D - DEBTORS - PENDING SETTLEMENT ACCOUNTS
| ration, credited or debited | - Appropriate subitem
| | C - PROFITS ON VARIABLE INCOME SECURITIES
| | - Appropriate subitem

1.5.1 | Recording of profits | D - DEBTORS - PENDING SETTLEMENT ACCOUNTS
| | - Appropriate subitem
| | C - PROFITS ON VARIABLE INCOME SECURITIES
| | - Appropriate subitem

1.5.2 | Receipt upon settlement | D - BANKS - DEPOSIT ACCOUNT
| | C - DEBTORS - PENDING SETTLEMENTS ACCOUNT
| | - Adequate subitem

CENTRAL BANK OF BRAZIL

• 2 -

TITLE: TRANSITIONAL PROVISIONS - 29 CHAPTER: Non-Codified Circular Letters - 3 SECTION:

Scheme No. 3 - Shares - Purchase and Sale on Own Account - Futures Market

order no.	Events	Accounting Entries
1.5.3	Recording of losses	D - LOSSES ON VARIABLE INCOME SECURITIES; - Adequate subtitle; C - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle
1.5.4	Payment upon settlement	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - BANKS - DEPOSIT ACCOUNT
1.6	Settlement of the transaction at maturity
1.6.1	Recording of the agreed value	D - OBLIGATIONS FOR PURCHASE AND/OR SUBSCRIPTION OF SECURITIES; - Adequate subtitle; C - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle
1.6.2	Transfer of shares to own account	D - VARIABLE INCOME SECURITIES; - Adequate subtitle; C - SHARE PURCHASE CONTRACTS; - Adequate subtitle
1.6.3	Payment upon settlement	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - BANKS - DEPOSIT ACCOUNT
1.6.4	Custody of shares	D - SECURITIES DEPOSITARIES IN CUSTODY; C - SECURITIES CUSTODIED ON OUR ORDER
2	Sale in the futures market
2.1	For recording the agreed value, the tax, the fees and emoluments of the transaction	D - AMOUNTS TO BE RECEIVED FROM SALES OF SHARES; - Adequate subtitle; D - TAX EXPENSES; - Adequate subtitle; D - FEES AND EMOLUMENTS EXPENSES; C - COMMITMENTS FOR SALES OF SHARES; - Adequate subtitle; C - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle
2.2	Payment of the tax, fees and emoluments	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - BANKS - DEPOSIT ACCOUNT
2.3	Collateral for the transaction
2.3.1	In variable income securities	D - VARIABLE INCOME SECURITIES AS COLLATERAL; - Adequate subtitle; C - VARIABLE INCOME SECURITIES; - Adequate subtitle
2.3.2	In cash	D - COLLATERAL DEPOSITS; - Adequate subtitle; C - BANKS - DEPOSIT ACCOUNT
2.4	Closing by means of an offsetting transaction
2.4.1	With profit
2.4.1.1	Recording of the closing	D - COMMITMENTS FOR SALES OF SHARES; - Adequate subtitle; D - DEBTORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - AMOUNTS TO BE RECEIVED FROM SALES OF SHARES; - Adequate subtitle; C - PROFITS ON VARIABLE INCOME SECURITIES; - Adequate subtitle
2.4.1.2	Receipt upon settlement	D - BANKS - DEPOSIT ACCOUNT; C - DEBTORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle

Circular Letter No. 1.468, dated 05.09.86.

• 3 -

TITLE: TRANSITIONAL PROVISIONS - 29 CHAPTER: Non-Codified Circular Letters - 3 SECTION:

Scheme No. 3 - Shares - Purchase and Sale on Own Account - Futures Market

nº ordem	Events	Accounting Entries
2.4.2	With a loss
2.4.2.1	Recording of closing	D - COMMITMENTS FOR SALES OF SHARES; - Adequate subtitle; D - LOSSES ON VARIABLE INCOME SECURITIES; - Adequate subtitle; C - AMOUNTS TO RECEIVE FROM SALES OF SHARES; - Adequate subtitle; C - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle
2.4.2.2	Payment upon settlement	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - BANKS - DEPOSIT ACCOUNT
2.5	Recognition of daily results on the operation, credited or debited
2.5.1	Recording of profits	D - DEBTORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - PROFITS ON VARIABLE INCOME SECURITIES; - Adequate subtitle
2.5.2	Receipt upon settlement	D - BANKS - DEPOSIT ACCOUNT; C - DEBTORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle
2.5.3	Recording of losses	D - LOSSES ON VARIABLE INCOME SECURITIES; - Adequate subtitle; C - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle
2.5.4	Payment upon settlement	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - BANKS - DEPOSIT ACCOUNT
2.6	Settlement of the operation at maturity
2.6.1	Recording of the agreed value	D - DEBTORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle; C - AMOUNTS TO RECEIVE FROM SALES OF SHARES; - Adequate subtitle
2.6.2	For the reversal of the increases recorded in the semester	D - UPDATES OF VARIABLE INCOME SECURITIES; C - ADJUSTMENTS OF VARIABLE INCOME SECURITIES
2.6.3	For the reversal of the decreases recorded in the semester	D - ADJUSTMENTS OF VARIABLE INCOME SECURITIES; C - UPDATES OF VARIABLE INCOME SECURITIES
2.6.4	Write-off when there is coverage with the securities themselves that are the object of the operation and the respective recognition of the result	D - COMMITMENTS FOR SALES OF SHARES; -Adequate subtitle; D - VARIABLE INCOME SECURITIES IN COLLATERAL; - Adequate subtitle
2.6.4.1	With a profit	C - PROFITS ON VARIABLE INCOME SECURITIES; - Adequate subtitle
2.6.4.2	With a loss	D - LOSSES ON VARIABLE INCOME SECURITIES; - Adequate subtitle
2.6.5	Return of collateral
2.6.5.1	In kind	D - BANKS - DEPOSIT ACCOUNT; C - COLLATERAL DEPOSITS; - Adequate subtitle
2.7	Write-off in custody	D - SECURITIES CUSTODIED ON OUR ORDER; C - CUSTODIANS OF SECURITIES IN CUSTODY
2.8	Receipt of the agreed value	D - BANKS - DEPOSIT ACCOUNT; C - DEBTORS - PENDING SETTLEMENTS ACCOUNT; - Adequate subtitle

Circular Letter n° 1.468, of 05.09.86.

TITLE : TRANSITIONAL PROVISIONS - 29
CHAPTER: Non-Codified Circular Letters - 3
SECTION :

Scheme No. 4 - Shares - Purchase and Sale on Own Account - Options Market

nº ordem | Events | Accounting Entries

1 | Purchase in the options market |

1.1 | Registration of the operation |

1.1.1 | Registration of the agreed value, the tax, the fees and emoluments of the operation | D - SHARE PURCHASE ACCOUNTS

• Appropriate subtitle
  D - TAX EXPENSES
• Appropriate subtitle
  D - BROKERAGE AND EMOLUMENT EXPENSES
• Appropriate subtitle
  C - SHARE ACCOUNTS
• Appropriate subtitle
  C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
• Appropriate subtitle

1.1.2 | Coverage of the operation in variable income | D - VARIABLE INCOME SECURITIES UNDER MAINTENANCE

• Appropriate subtitle
  C - VARIABLE INCOME SECURITIES
• Appropriate subtitle

1.1.3 | By the premium to be paid on the purchase of the option | D - CALL OPTION PREMIUMS TO BE EXERCISED
C - CREDITORS - PENDING SETTLEMENTS ACCOUNT

• Appropriate subtitle

1.1.4 | Payment of the premium, tax, fees and emoluments due | D - CREDITORS - PENDING SETTLEMENTS ACCOUNT

• Appropriate subtitle
  C - BANKS - DEPOSIT ACCOUNT

1.2 | Daily allocation of the premium, observing the exponential method | D - LOSSES WITH VARIABLE INCOME SECURITIES
C - CALL OPTION PREMIUMS TO BE EXERCISED

1.3 | Closing of position through an inverse operation | D - WRITE-OFF OF COMMITMENT AT THE AGREED VALUE

• Appropriate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Appropriate subtitle

1.3.1 | Write-off of the commitment at the agreed value of the day | D - WRITE-OFF OF COMMITMENT AT THE AGREED VALUE

• Appropriate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Appropriate subtitle

1.3.2 | With profit | D - SHARE PURCHASE ACCOUNTS

• Appropriate subtitle
  C - PROFITS WITH VARIABLE INCOME SECURITIES
• Appropriate subtitle

1.3.3 | With loss | D - LOSSES WITH VARIABLE INCOME SECURITIES

• Appropriate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Appropriate subtitle

1.3.4 | Receipt of the respective value | D - BANKS - DEPOSIT ACCOUNT
C - DEBTORS - PENDING SETTLEMENTS ACCOUNT

• Appropriate subtitle

1.4 | Settlement of the operation at maturity |

1.4.1 | With exercise of the option |

1.4.1.1 | Recording of the obligation at the agreed value for the counterparty | D - OBLIGATIONS FOR ACQUISITION AND/OR SUBSCRIPTION OF SECURITIES

• Appropriate subtitle
  C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
• Appropriate subtitle

1.4.1.2 | Transfer of the agreed value to the own account | D - VARIABLE INCOME SECURITIES

• Appropriate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Appropriate subtitle

1.4.2 | With profit | D - SHARE PURCHASE ACCOUNTS

• Appropriate subtitle
  C - PROFITS WITH VARIABLE INCOME SECURITIES
• Appropriate subtitle

1.4.3 | With loss | D - LOSSES WITH VARIABLE INCOME SECURITIES

• Adequate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Adequate subtitle

1.4.4 | Receipt of the respective amount | D - BANKS - DEPOSIT ACCOUNT
C - DEBTORS - PENDING SETTLEMENTS ACCOUNT

• Adequate subtitle

1.4.5 | Settlement of the operation at maturity |

1.4.5.1 | Upon exercise of the option |

1.4.5.1.1 | Recording of the obligation at the agreed amount for the counterparty | D - OBLIGATIONS FOR PURCHASE AND/OR SUBSCRIPTION OF SECURITIES

• Adequate subtitle
  C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
• Adequate subtitle

1.4.5.1.2 | Transfer of the agreed amount to the own account | D - VARIABLE INCOME SECURITIES

• Adequate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Adequate subtitle

1.4.5.2 | With profit | D - SHARE PURCHASE ACCOUNTS

• Adequate subtitle
  C - PROFITS ON VARIABLE INCOME SECURITIES
• Adequate subtitle

1.4.5.3 | With loss | D - LOSSES ON VARIABLE INCOME SECURITIES

• Adequate subtitle
  C - SHARE PURCHASE ACCOUNTS
• Adequate subtitle

1.4.5.4 | Receipt of the respective amount | D - BANKS - DEPOSIT ACCOUNT
C - DEBTORS - PENDING SETTLEMENTS ACCOUNT

• Adequate subtitle

BANCO CENTRAL DO BRASIL

TITLE : TRANSITIONAL PROVISIONS - 29
CHAPTER: Uncodified Circular Letters - 3
SECTION :

Scheme No. 4 - Shares - Purchase and Sale on Own Account - Options Market

item no. | Events | Accounting Entries

1.4.1.3 | Payment of the agreed amount | D - CREDITORS - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem
| | C - BANKS - DEPOSIT ACCOUNT

1.4.1.4 | Custody of the shares | D - SECURITIES DEPOSITARIES IN CUSTODY
| | C - SECURITIES HELD IN CUSTODY ON OUR BEHALF,

1.4.2 | With the exercise of the option |

1.4.2.1 | Derecognition of the obligation at the agreed amount | D - OBLIGATIONS FOR ACQUISITION AND/OR SUBSCRIPTION OF SECURITIES
| | - Appropriate subitem
| | C - SHARE PURCHASE ACCOUNTS
| | - Appropriate subitem

1.5 | Derecognition of the commitment, due to the settlement of the transaction | D - EQUITY SECURITIES PAYABLES
| | C - EQUITY SECURITIES PAYABLES IN GUARANTEE
| | - Appropriate subitem

2 | Sale in the options market |

2.1 | Recording of the agreed amount, fees and charges of the transaction |

2.1.1 | Recording of the contract amount | D - AMOUNTS RECEIVABLE FROM SHARE SALES
| | - Appropriate subitem
| | C - COMMITMENTS FOR SHARE SALES
| | - Appropriate subitem

2.1.2 | For the premium and/or received on the writing | D - SUNDRY - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem
| | C - PREMIUMS ON WRITTEN OPTIONS

2.1.3 | For the receipt of the premium | D - BANKS - DEPOSIT ACCOUNT
| | C - SUNDRY - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem

2.1.4 | Recognition of expenses with fees and charges due | D - EXPENSES ON PURCHASES AND SALES OF SECURITIES AND MARKETABLE SECURITIES
| | C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem

2.1.5 | Payment of fees and charges | D - CREDITORS - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem
| | C - BANKS - DEPOSIT ACCOUNT

2.1.6 | Daily recognition of the premium, observing the exponential method | D - PREMIUMS ON WRITTEN OPTIONS
| | C - PROFITS ON EQUITY SECURITIES
| | - Appropriate subitem

2.1.7 | Coverage of the transaction in equity securities | D - EQUITY SECURITIES IN GUARANTEE
| | - Appropriate subitem
| | C - EQUITY SECURITIES
| | - Appropriate subitem

2.2 | Closing of position by means of an offsetting transaction |

2.2.1 | Derecognition of the commitment at the agreed amount | D - COMMITMENTS FOR SHARE SALES
| | - Appropriate subitem
| | C - AMOUNTS RECEIVABLE FROM SHARE SALES
| | - Appropriate subitem

2.2.2 | With profit |

2.2.2.1 | Derecognition of the premium amount and recognition of the result | D - PREMIUMS ON WRITTEN OPTIONS
| | C - CREDITORS - PENDING SETTLEMENTS ACCOUNT
| | - Appropriate subitem
| | C - PROFITS ON EQUITY SECURITIES
| | - Appropriate subitem

2.2.3 | With loss |

[1] Circular Letter No. 1.468, of 05.09.86.

TITLE : TRANSITIONAL PROVISIONS - 29
CHAPTER: Uncodified Circular Letters - 3
SECTION :

Scheme No. 4 - Shares - Purchase and Sale for Own Account - Options Market

order no.	Events	Accounting Entries
2.2.3.1	Write-off of the premium amount and recognition of the result	D - PREMIUMS ON WRITTEN OPTIONS D - LOSSES ON VARIABLE INCOME SECURITIES - Appropriate subheading C - CREDITORS - PENDING SETTLEMENTS ACCOUNT - Appropriate subheading
2.2.4	Payment of the respective amount	D - CREDITORS - PENDING SETTLEMENTS ACCOUNT - Appropriate subheading C - BANKS - DEPOSIT ACCOUNT
2.3	Settlement of the transaction at maturity, with the exercise of the option
2.3.1	Recording of the amount receivable, at the agreed amount	D - DEBTORS - PENDING SETTLEMENTS ACCOUNT - Appropriate subheading C - AMOUNTS RECEIVABLE FROM SALES OF SHARES - Appropriate subheading
2.3.2	For the reversal of the appreciations recorded in the semester	D - UPDATES OF VARIABLE INCOME SECURITIES C - ADJUSTMENTS OF VARIABLE INCOME SECURITIES
2.3.3	For the reversal of the devaluations recorded in the semester	D - ADJUSTMENTS OF VARIABLE INCOME SECURITIES C - UPDATES OF VARIABLE INCOME SECURITIES
2.3.4	Derecognition of the commitment due to the exercise of the option	D - COMMITMENTS FOR SALES OF SHARES - Appropriate subheading C - VARIABLE INCOME SECURITIES IN GUARANTEE - Appropriate subheading
2.3.4.1	With profit	C - PROFITS WITH VARIABLE INCOME SECURITIES - Appropriate subheading
2.3.4.2	With loss	D - LOSSES WITH VARIABLE INCOME SECURITIES - Appropriate subheading
2.3.5	Derecognition of the custody	D - SECURITIES HELD IN CUSTODY ON OUR BEHALF C - SECURITIES DEPOSITORIES IN CUSTODY