Circular No. 2.285

CIRCULAR N. 002285 ------------------ ESTABLISHES PROCEDURES FOR THE PREPARATION OF COMPLEMENTARY FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER. WE INFORM THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 10.03.93, BASED ON ART. 4, ITEM XII, OF LAW N. 4.595, OF 31.12.64, BY COMPETENCE DELEGATED BY THE NATIONAL MONETARY COUNCIL, DECIDED: ART. 1. THEY SHALL PREPARE, SUBMIT AND PUBLISH COMPLEMENTARY FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, DULY AUDITED BY INDEPENDENT AUDITORS: I - FINANCIAL INSTITUTIONS AND OTHER ENTITIES AUTHORIZED TO OPERATE BY THIS BODY, WHICH ARE PUBLICLY TRADED COMPANIES; AND II - COMMERCIAL BANKS, MULTIPLE BANKS AND SAVINGS BANKS, WHICH ARE NOT PUBLICLY TRADED COMPANIES, WITH NET EQUITY OR PAID-IN CAPITAL GREATER THAN CR$146,800,000,000.00 (ONE HUNDRED FORTY-SIX BILLION EIGHT HUNDRED MILLION CRUZEIROS), ON THE BASE DATE OF 31.12.92. PARAGRAPH 1. THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, SHALL COMPRISE: A - THE BALANCE SHEET; B - THE STATEMENT OF INCOME FOR THE QUARTER/SEMESTER/FISCAL YEAR; C - THE STATEMENT OF SOURCES AND USES OF FUNDS; AND D - THE STATEMENT OF CHANGES IN NET EQUITY. PARAGRAPH 2. THE PREPARATION, SUBMISSION AND PUBLICATION OF THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, SHALL BE CARRIED OUT ON THE SAME BASE DATES AS THEIR CORRESPONDING CORPORATE FORM. PARAGRAPH 3. THE PUBLICATION OF THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, MAY BE CARRIED OUT WITH THE INCLUSION OF A SPECIFIC COLUMN IN THE RESPECTIVE DOCUMENT, PRESENTING THE AMOUNTS OBTAINED BY APPLYING THIS METHODOLOGY. PARAGRAPH 4. THE QUARTERLY INCOME STATEMENT REFERRED TO IN ITEM "B" OF PARAGRAPH 1 SHALL BE PREPARED ON THE BASE DATES OF 31 MARCH AND 30 SEPTEMBER, IN THE FORM OF DOCUMENT N. 8 OF COSIF, FOR SUBMISSION BY THE 20TH DAY OF THE SUBSEQUENT MONTH, WITH ITS PUBLICATION AND THE PREPARATION OF ITS CORRESPONDING CORPORATE FORM WAIVED. ART. 2. THE PROCEDURES FOR PREPARING THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, SHALL FOLLOW THE GUIDELINES OF THE SECURITIES AND EXCHANGE COMMISSION, IN PARTICULAR, CVM INSTRUCTION N. 191, OF 15.07.92, AND OTHER COMPLEMENTARY PROVISIONS ON THE MATTER. PARAGRAPH 1. FOR THE PURPOSE OF THE COMPANY'S COMMERCIAL BOOKKEEPING, THE ACCOUNTING VALUATION AND APPROPRIATION CRITERIA PROVIDED FOR IN THE ACCOUNTING PLAN FOR INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM - COSIF SHALL REMAIN IN EFFECT, INCLUDING WITH RESPECT TO THE DETERMINATION OF THE RESULT OF MONETARY CORRECTION FOR CORPORATE AND TAX PURPOSES. PARAGRAPH 2. IN THE PREPARATION OF THE COMPLEMENTARY FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, THE DAILY VALUE OF THE UMC - ACCOUNTING MONETARY UNIT, ESTABLISHED BY ART. 1 OF CVM INSTRUCTION N. 191/92, SHALL BE USED, AND THE ADOPTION OF THE MONTHLY AVERAGE VALUE OF THE UMC FOR MONETARY ASSETS AND LIABILITIES IS PERMITTED, WITH THE
ADJUSTMENTS REQUIRED SO THAT THE REVENUES AND EXPENSES REPRESENTING THE TRANSACTIONS CARRIED OUT ARE ADEQUATELY REFLECTED. ART. 3. FINANCIAL INSTITUTIONS AND OTHER ENTITIES AUTHORIZED TO OPERATE BY THIS BODY, WHICH ARE PUBLICLY TRADED COMPANIES, ARE EXEMPT FROM SUBMITTING TO THIS BODY THE FOLLOWING FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER: I - QUARTERLY INCOME STATEMENT, RELATING TO THE BASE DATE OF 31.03.93; AND II - THOSE REFERRED TO IN PARAGRAPH 1 OF ART. 1, RELATING TO THE BASE DATE OF 30.06.93. ART. 4. COMMERCIAL BANKS, MULTIPLE BANKS AND SAVINGS BANKS, WHICH ARE NOT PUBLICLY TRADED COMPANIES, SUBJECT TO THE PROVISIONS OF THIS CIRCULAR, ARE EXEMPT: I - FROM THE PREPARATION OF THE FOLLOWING FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER: A - QUARTERLY INCOME STATEMENT, RELATING TO THE BASE DATES OF 31.03.93 AND 30.09.93; B - THOSE REFERRED TO IN PARAGRAPH 1 OF ART. 1, RELATING TO THE PERIOD FROM 1.01.93 TO 30.06.93; AND C - THOSE REFERRED TO IN PARAGRAPH 1 OF ART. 1, RELATING TO THE PERIOD FROM 1.01.93 TO 31.12.93; AND II - FROM THE PUBLICATION, THE MANDATORY INDEPENDENT AUDIT AND THE COMPARABILITY IN THE FISCAL YEAR, OF THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, REFERRED TO IN PARAGRAPH 1 OF ART. 1, RELATING TO THE PERIOD FROM 1.07.93 TO 31.12.93. ART. 5. COMMERCIAL BANKS, MULTIPLE BANKS AND SAVINGS BANKS, WHEN THEY REACH THE AMOUNT OF NET EQUITY OR PAID-IN CAPITAL PROVIDED FOR IN ART. 1, ITEM II OF THIS CIRCULAR, MONETARILY UPDATED, FROM 1.01.93, BY THE SAME INDEX USED FOR THE MONETARY CORRECTION OF THE FINANCIAL STATEMENTS PREPARED IN CORPORATE FORM, SHALL ADOPT THE PROCEDURES PROVIDED FOR IN THIS REGULATION, FROM THE SUBSEQUENT SEMESTER. PARAGRAPH 1. FOR THE PURPOSE OF CLASSIFICATION, THE NET EQUITY VALUE OF THE BASE DATES OF 30.06 AND 31.12 SHALL BE CONSIDERED. PARAGRAPH 2. THE REDUCTION IN THE AMOUNT OF NET EQUITY, BELOW THE LEVELS SET IN THIS CIRCULAR, SHALL NOT IMPLY EXEMPTION FROM THE PREPARATION, SUBMISSION AND PUBLICATION OF THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER. ART. 6. THE DOCUMENTS BANKING STATISTICS - ESTBAN AND ECONOMIC-FINANCIAL STATISTICS - ESTFIN (DOCUMENTS NOS. 13 AND 15 OF COSIF) ARE EXCLUDED FROM THE REQUIREMENTS OF THIS CIRCULAR. ART. 7. THE FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER, SHALL BE SENT IN MAGNETIC MEDIUM, ACCORDING TO INSTRUCTIONS TO BE DISCLOSED IN DUE COURSE. ART. 8. FINANCIAL INSTITUTIONS AND OTHER ENTITIES AUTHORIZED TO OPERATE BY THIS BODY, SUBJECT TO THE PROVISIONS OF THIS CIRCULAR, SHALL KEEP IN GOOD ORDER, FOR A PERIOD OF 05 (FIVE) YEARS, AND BY ANY ADEQUATE MEANS, THE SAFEKEEPING OF WORKING PAPERS AND CALCULATION MEMORANDA RELATING TO THE PREPARATION OF THE COMPLEMENTARY FINANCIAL STATEMENTS, IN CURRENCY OF CONSTANT PURCHASING POWER. ART. 9. THE PUBLICATION, IN THE CORPORATE FORM, OF THE STATEMENT OF SOURCES AND USES OF FUNDS AND THE STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, FOR THE
BASE DATE OF 30 JUNE, IS WAIVED FOR PUBLICLY-HELD COMPANIES AND, AS FROM THE BASE DATE OF 30.06.94, INCLUSIVE, FOR THE INSTITUTIONS REFERRED TO IN ART. 1, ITEM II, OF THIS CIRCULAR. ART. 10. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION. ART. 11. CIRCULAR No. 2.200, OF 17.07.92, IS REVOKED. BRASÍLIA (DF), 10 MARCH 1993 GUSTAVO JORGE LABOISSIÈRE LOYOLA LUIZ NELSON GUEDES DE CARVALHO PRESIDENT DIRECTOR