Circular Letter No. 3360 — Creates and alters subgroups, titles, and subtitles in Cosif for accounting registration of financial asset sales or transfers

CARTER-CIRCULAR NO. 003360

Creates and alters the breakdown of subgroups, titles, and accounting subtitles in Cosif for the accounting registration of operations involving the sale or transfer of financial assets.

Based on item 4 of Circular No. 1,540, of October 6, 1989, and in view of the provisions of Resolution No. 3,533, of January 31, 2008, the following accounting titles and subtitles are created in the Accounting Plan of the Institutions of the National Financial System - Cosif, with the attributes UBDKIFJACTSWERLMNHZ:

I - with code ESTBAN and publication 172 and 187, respectively:

1.8.8.75.00-7 RECEIVABLES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 1.8.8.75.10-0 From Credit Operations 1.8.8.75.20-3 From Financial Leasing Operations 1.8.8.75.30-6 From Other Operations with Characteristics of Credit Granting 1.8.8.75.40-9 From Other Financial Assets

1.8.8.78.00-4 PREMIUM OR DISCOUNT IN OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS (+/-) 1.8.8.78.10-7 From Credit Operations 1.8.8.78.20-0 From Financial Leasing Operations 1.8.8.78.30-3 From Other Operations with Characteristics of Credit Granting 1.8.8.78.40-6 From Other Financial Assets;

II - with code ESTBAN and publication 500 and 503, respectively:

4.9.9.17.00-6 OBLIGATIONS FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 4.9.9.17.10-9 From Credit Operations 4.9.9.17.20-2 From Financial Leasing Operations 4.9.9.17.30-5 From Other Operations with Characteristics of Credit Granting 4.9.9.17.40-8 From Other Financial Assets;

III - with code ESTBAN and publication 711 and 718, respectively:

7.1.9.10.00-2 REVENUE FROM RECEIVABLES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 7.1.9.10.10-5 From Credit Operations 7.1.9.10.20-8 From Financial Leasing Operations 7.1.9.10.30-1 From Other Operations with Characteristics of Credit Granting 7.1.9.10.40-4 From Other Financial Assets

7.1.9.15.00-7 PROFITS FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 7.1.9.15.10-0 From Credit Operations 7.1.9.15.20-3 From Financial Leasing Operations 7.1.9.15.30-6 From Other Operations with Characteristics of Credit Granting 7.1.9.15.40-9 From Other Financial Assets;

IV - with code ESTBAN and publication 712 and 818, respectively:

8.1.9.12.00-7 EXPENSES FROM OBLIGATIONS IN OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 8.1.9.12.10-0 From Credit Operations 8.1.9.12.20-3 From Financial Leasing Operations 8.1.9.12.30-6 From Other Operations with Characteristics of Credit Granting 8.1.9.12.40-9 From Other Financial Assets

8.1.9.15.00-4 LOSSES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 8.1.9.15.10-7 From Credit Operations 8.1.9.15.20-0 From Financial Leasing Operations 8.1.9.15.30-3 From Other Operations with Characteristics of Credit Granting 8.1.9.15.40-6 From Other Financial Assets.

2. The title RECEIVABLES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 1.8.8.75.00-7, is intended for the registration, by the purchasing or acquiring institution, of receivables resulting from operations of sale or transfer of financial assets that were not derecognized, in whole or in part, by the selling or assigning institution. Such registration must be made at the value effectively paid, with revenues recognized in the result by the effective rate of the respective sale or transfer operation based on the remaining term, maintaining control of revenues to be recognized in a subtitle for internal use. The subtitle From Other Financial Assets, code 1.8.8.75.40-9, must be used only when there is no specific account, maintaining control by type of asset in a subtitle for internal use.

3. The title PREMIUM OR DISCOUNT IN OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 1.8.8.78.00-4, is intended for the registration, by the purchasing or acquiring institution, of the premium or discount in operations of sale or transfer of financial assets that were derecognized, in whole or in part, by the selling or assigning institution, corresponding to the positive or negative difference between the value effectively paid and the updated original contracted value, which must be recognized in the appropriate income account based on the remaining term of the operation.

4. The title OBLIGATIONS FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 4.9.9.17.00-6, is intended for the registration, by the selling or assigning institution, of obligations resulting from operations of sale or transfer of financial assets that were not derecognized by it, in whole or in part. Such registration must be made at the value effectively received, with expenses recognized in the result by the effective rate of the respective sale or transfer operation based on the remaining term, maintaining control of expenses to be recognized in a subtitle for internal use. The subtitle From Other Financial Assets, code 4.9.9.17.40-8, must be used only when there is no specific account, maintaining control by type of asset in a subtitle for internal use.

5. The title REVENUE FROM RECEIVABLES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 7.1.9.10.00-2, is intended for the registration, by the purchasing or acquiring institution, of revenues related to receivables from operations of sale or transfer of financial assets that were not derecognized, in whole or in part, by the selling or assigning institution, recognized by the effective rate of the operation based on the remaining term.

6. The title PROFITS FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 7.1.9.15.00-7, is intended for the registration, by the selling or assigning institution, of the positive result calculated in an operation of sale or transfer of financial assets that were derecognized by it, in whole or in part. The subtitle From Other Financial Assets, code 7.1.9.15.40-9, must be used only when there is no specific account, maintaining control by type of asset in a subtitle for internal use.

7. The title EXPENSES FROM OBLIGATIONS IN OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 8.1.9.12.00-7, is intended for the registration, by the selling or assigning institution, of expenses related to obligations assumed in operations of sale or transfer of financial assets that were not derecognized by it, in whole or in part, recognized by the effective rate of the operation based on the remaining term.

8. The title LOSSES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS, code 8.1.9.15.00-4, is intended for the registration, by the selling or assigning institution, of the negative result calculated in an operation of sale or transfer of financial assets that were derecognized by it, in whole or in part. The subtitle From Other Financial Assets, code 8.1.9.15.40-6, must be used only when there is no specific account, maintaining control by type of asset in a subtitle for internal use.

9. Financial assets offered as collateral for operations of sale or transfer must be:

I - reclassified, separately from other financial assets of the same nature, to a specific account, if one exists, or to a subtitle for internal use, by the selling or assigning institution, if the purchasing or acquiring institution has the contractual right to sell them or offer them as collateral in another operation;

II - subject to a specific explanatory note, for disclosure purposes in the financial statements, segregated by type of financial asset.

10. For the purpose of calculating the effective rate, all revenues and expenses directly associated with the operation must be considered in the future cash flow, including all fees paid or received, transaction costs, premiums, or discounts.

11. Co-obligations offered in operations of sale or transfer of financial assets continue to be recorded in the appropriate clearing accounts.

12. Include in Document No. 8 of Cosif "Income Statement" the following aggregation codes:

I - 718 - Operations of Sale or Transfer of Financial Assets, positioned after aggregation code 719;

II - 818 - Operations of Sale or Transfer of Financial Assets, positioned before aggregation code 820.

13. The sign of the subgroup breakdown "Diversos" (Others), code 1.8.8.00.00-3, is altered in Cosif for double positioning.

14. The following titles must be created in Document No. 5 of Cosif "Consolidated Economic-Financial Statement - Conef", whose structure was published by Circular Letter No. 2,918, of June 15, 2000:

10.9.7.75.00-9 RECEIVABLES FROM OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS 10.9.7.78.00-6 PREMIUM OR DISCOUNT IN OPERATIONS OF SALE OR TRANSFER OF FINANCIAL ASSETS.

15. The following accounting titles must be aggregated in the document Annex II to Circular Letter No. 2,918, of 2000:

1.8.8.75.00-7 into 10.9.7.75.00-9
1.8.8.78.00-4 into 10.9.7.78.00-6
4.9.9.17.00-6 into 40.8.9.90.00-4.

16. The following lines must be included in tables 7003 - Income Statement, 7007 - Income Statement - Consolidated Corporate, 7011 - Income Statement - Financial Conglomerate, in the model of the document Quarterly Financial Information - QFI, Annex I to Circular Letter No. 2,959, of March 15, 2001:

10.1.1.10.10.21 Operations of Sale or Transfer of Financial Assets
10.1.1.10.20.19 Operations of Sale or Transfer of Financial Assets (-)

17. This circular letter enters into force on the date of its publication.

Brasília, December 18, 2008.

Department of Standards of the Financial System

Amaro Luiz de Oliveira Gomes
Chief