Circular No. 1963 — Establishes the monthly recognition of the result of equity method investments abroad and in affiliates and controlled companies

CIRCULAR NO. 001963

TO
INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

ESTABLISHES THE MONTHLY RECOGNITION OF THE RESULT OF EQUITY METHOD INVESTMENTS ABROAD AND IN AFFILIATES AND CONTROLLED COMPANIES.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING HELD ON 22.05.91, BASED ON ART. 4, PARAGRAPH XII, OF LAW NO. 4.595, OF 31.12.64, BY COMPETENCE DELEGATED BY THE MONETARY NATIONAL COUNCIL, DECIDED:

ART. 1. THE CALCULATION OF PARTICIPATIONS IN INVESTMENTS EVALUATED BY THE EQUITY METHOD, INCLUDING ABROAD, MUST BE PERFORMED MONTHLY, BASED ON THE BALANCE SHEET OR THE TRIAL BALANCE RAISED ON THE SAME DATE OR UP TO, AT MOST, TWO MONTHS BEFORE, PROPERLY MONETARILY UPDATED, EFFECTUATING, IN THIS CASE, THE NECESSARY ADJUSTMENTS TO CONSIDER THE EFFECTS OF EXTRAORDINARY FACTS OCCURRED IN THE PERIOD.

SINGLE PARAGRAPH. QUARTERLY EVALUATION IS PERMITTED FOR INVESTMENTS IN COMPANIES NOT INTEGRATING THE NATIONAL FINANCIAL SYSTEM.

ART. 2. THIS CIRCULAR ENTERS INTO FORCE FROM 01.07.91.

BRASÍLIA (DF), MAY 23, 1991

GUSTAVO JORGE LABOISSIÈRE LOYOLA ELISEU MARTINS DIRECTOR DIRECTOR