Circular No. 2218 — Establishes Complementary Procedures for Monetary Correction of Equity

CIRCULAR NO. 2218

ESTABLISHES COMPLEMENTARY PROCEDURES
FOR EFFECT OF MONETARY CORRECTION OF EQUITY.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 26.08.92, HAVING REGARD TO THE PROVISIONS OF ARTS. 38 AND 51 OF LAW NO. 8,383, OF 30.12.91, AND OF PORTARIA NO. 441, OF 27.05.92, OF THE MINISTRY OF ECONOMY, FINANCE AND PLANNING, AND WITH FOUNDATION IN ART. 4, PARAGRAPH XII, OF LAW NO. 4,595, OF 31.12.64, BY COMPETENCE DELEGATED BY THE NATIONAL MONETARY COUNCIL, DECIDED:

ART. 1. THE PROCEDURES PROVIDED FOR IN CIRCULAR NO. 2,158, OF 10.04.92, DO NOT APPLY TO FINANCIAL INSTITUTIONS, TO ADMINISTRATORS OF CONSORTIUMS AND TO THE OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK THAT CHOOSE TO CONSOLIDATE SEMI-ANNUAL RESULTS.

SINGLE PARAGRAPH. THOSE THAT WERE ADOPTING THE SYSTEM OF DETERMINATION OF RESULTS IN THE MANNER OF THE REFERRED CIRCULAR ARE EXEMPT FROM PROCESSING ADJUSTMENTS IN BALANCE SHEETS/STATEMENTS OF FINANCIAL POSITION ALREADY CLOSED.

ART. 2. THE FINANCIAL INSTITUTIONS, THE ADMINISTRATORS OF CONSORTIUMS AND THE OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK THAT CHOOSE THE DETERMINATION OF MONTHLY RESULTS AS PROVIDED FOR IN ART. 38 OF LAW NO. 8,383, OF 30.12.91, SHALL CONTINUE TO OBSERVE THE PROVISIONS OF THE SAID CIRCULAR NO. 2,158/92.

ART. 3. THE RESULT
DETERMINED IN THE FIRST SEMESTER, MAINTAINED IN EQUITY, MUST BE MONETARILY CORRECTED DURING THE SECOND SEMESTER OF THE SAME YEAR, IN COUNTERPART OF MONETARY CORRECTION RESULT, OBSERVING THE PERIODICITY AND MONTHLY COMPETENCE.

PARAGRAPH 1. IN THE PREPARATION OF THE STATEMENT OF RESULTS OF THE FISCAL YEAR, THE MONETARY CORRECTION OF THE RESULT OF THE FIRST SEMESTER MUST BE SUBJECT TO ADJUSTMENT, IN SUCH A MANNER THAT ITS EFFECTS DO NOT ALTER THE RESULT OF THE FISCAL YEAR.

PARAGRAPH 2. THE EFFECTS OF THE
APPLICATION OF THE PROVISIONS
OF THIS ARTICLE MUST BE ADJUSTED IN THE BALANCE SHEET OF THE INVESTOR OR CONTROLLING COMPANY, WHEN APPLICABLE THE EVALUATION BY THE EQUITY METHOD.

ART. 4. FOR THE PURPOSE OF PUBLICATION, THE BALANCE OF DETERMINATION OF RESULTS MUST BE AGGREGATED INTO ITEM 618 OF PUBLICATION.

ART. 5. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 6. PARAGRAPH 3 OF ART. 2 OF
CIRCULAR NO. 2,158, OF 10.04.92, IS REPEALED.

BRASÍLIA (DF), AUGUST 26, 1992

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR