Circular No. 2353 — Establishes procedures for monetary correction of equity, pursuant to Law No. 8.541/92

CIRCULAR NO. 002353

ESTABLISHES PROCEDURES FOR MONETARY CORRECTION OF EQUITY, PURSUANT TO LAW NO. 8.541/92.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 04.08.93, BASED ON ART. 4, ITEM XII, OF LAW NO. 4.595, OF 31.12.64, BY COMPETENCE DELEGATED BY THE NATIONAL MONETARY COUNCIL, AND IN VIEW OF THE CONTENT OF ARTS. 3, 23, AND 25 OF LAW NO. 8.541, OF 23.12.92, HAS DECIDED:

ART. 1. FINANCIAL INSTITUTIONS, OTHER ENTITIES AUTHORIZED TO OPERATE BY THE CENTRAL BANK, AND CONSORTIUM ADMINISTRATORS MAY, FOR THE PURPOSE OF SEGREGATION AND MONETARY CORRECTION OF MONTHLY RESULTS:

I - REGISTER, MONTHLY, THE DIFFERENCE CALCULATED BETWEEN REVENUES AND EXPENSES, CREDIT RESULT ACCOUNT GROUPS, CODE 7.0.0.00.00-9, AND DEBIT RESULT ACCOUNTS, CODE 8.0.0.00.00-6, OF THE ACCOUNTING PLAN OF THE NATIONAL FINANCIAL SYSTEM - COSIF, IN THE CALCULATION OF RESULTS, CODES 7.9.1.10.00-0 OR 8.9.1.10.00-7, OF COSIF, AS THE CASE MAY BE, HAVING AS THE COUNTERPART THE APPROPRIATE SUB-ACCOUNT FOR RECORDING MONTHLY RESULTS IN THE SEMESTER, OF THE TITLE ACCUMULATED PROFITS OR LOSSES OR SURPLUSES OR ACCUMULATED LOSSES, NOT CAUSING THE FORMAL CLOSURE OF REVENUE AND EXPENSE ACCOUNTS;

II - CORRECT, MONTHLY, FROM THE FOLLOWING MONTH, THE RESULT CALCULATED IN EACH MONTH, REGISTERED IN THE APPROPRIATE SUB-ACCOUNT OF ACCUMULATED PROFITS OR LOSSES OR SURPLUSES OR ACCUMULATED LOSSES, IN COUNTERPART OF MONETARY CORRECTION RESULT, SUB-ACCOUNT MONTHLY RESULTS IN THE SEMESTER, CODE 8.6.1.10.30-9, OF COSIF.

PARAGRAPH 1. IN THE PREPARATION AND PUBLICATION OF THE STATEMENT OF RESULTS OF THE SEMESTER/FISCAL YEAR, THE MONETARY CORRECTION OF MONTHLY RESULTS, IF CARRIED OUT, MUST BE THE OBJECT OF ADJUSTMENT, SO THAT ITS EFFECTS DO NOT ALTER THE RESULT OF THE SEMESTER/FISCAL YEAR.

PARAGRAPH 2. THE ENTRY CALCULATION OF RESULTS, CODE 750, IS MAINTAINED FOR THE PURPOSE OF BANKING STATISTICS - ESTBAN, WITH THE FUNCTION OF EXCLUSIVELY HOLDING THE BALANCE OF CALCULATION OF RESULTS, CODES 7.9.1.10.00-0 AND 8.9.1.10.00-7, OF COSIF.

ART. 2. THE RESULT CALCULATED IN THE FIRST SEMESTER, MAINTAINED IN ACCUMULATED PROFITS OR LOSSES, INCORPORATED INTO CAPITAL INCREASE OR CAPITAL, OR USED IN THE CONSTITUTION OF PROFIT RESERVES, MUST BE MONETARILY CORRECTED, DURING THE SECOND SEMESTER OF THE SAME YEAR, OBSERVING THE MONTHLY PERIODICITY AND COMPETENCE.

PARAGRAPH 1. THE COUNTERPART OF THE MONETARY CORRECTION REFERRED TO IN THE "CAPUT" OF THIS ARTICLE MUST BE REGISTERED IN MONETARY CORRECTION RESULT, SUB-ACCOUNT RESULT OF THE 1ST SEMESTER, CODE 8.6.1.10.50-5, OF COSIF, DURING THE SECOND SEMESTER.

PARAGRAPH 2. IN THE PREPARATION AND PUBLICATION OF THE STATEMENT OF RESULTS OF THE FISCAL YEAR, THE MONETARY CORRECTION OF THE RESULT OF THE FIRST SEMESTER MUST BE THE OBJECT OF ADJUSTMENT, SO THAT ITS EFFECTS DO NOT ALTER THE RESULT OF THE FISCAL YEAR.

ART. 3. THE EFFECTS OF THE APPLICATION OF THE PROVISIONS IN ARTS. 1 AND 2 MUST BE ADJUSTED IN THE BALANCE SHEET OF THE INVESTOR OR CONTROLLING COMPANY, WHEN APPLICABLE TO EVALUATION BY THE EQUITY METHOD.

ART. 4. FOR THE PURPOSE OF PUBLISHING MONTHLY BALANCE SHEETS, THE BALANCES OF CALCULATION OF RESULTS AND OF MONETARY CORRECTION RESULT, SUB-ACCOUNT MONTHLY RESULTS IN THE SEMESTER, CODE 8.6.1.10.30-9, OF COSIF, MUST BE AGGREGATED INTO THE PUBLICATION ENTRY 618.

ART. 5. THE AMOUNTS PAID AS MONTHLY INCOME TAX AND MONTHLY SOCIAL CONTRIBUTION, CALCULATED BY ESTIMATION, MUST BE REGISTERED IN PROVISION FOR TAXES AND CONTRIBUTIONS ON PROFITS, CODE 4.9.4.15.00-3, OF COSIF, WITH SEGREGATION INTO AN INTERNAL USE SUB-ACCOUNT OF RECTIFICATION, UP TO THE LIMIT OF THE PROVISIONED TAX OBLIGATIONS.

PARAGRAPH 1. IN THE EVENT THAT THE AMOUNTS REFERRED TO IN THE "CAPUT" OF THIS ARTICLE ARE HIGHER THAN THE AMOUNT OF THE PROVISIONED TAX OBLIGATIONS, THE DIFFERENCE MUST BE REGISTERED IN INCOME TAX TO BE OFFSET, CODE 1.8.8.45.00-6, OF COSIF.

PARAGRAPH 2. THE REVENUE FROM MONETARY VARIATION APPROPRIATED TO THE AMOUNT REFERRED TO IN THE "CAPUT" OF THIS ARTICLE MUST BE REGISTERED IN OTHER OPERATING INCOMES, CODE 7.1.9.99.00-9, OF COSIF, WITH SEGREGATION INTO AN INTERNAL USE SUB-ACCOUNT.

ART. 6. THE EXPENSE FROM MONETARY VARIATION ON INCOME TAX, ADDITIONAL INCOME TAX AT THE STATE LEVEL, AND SOCIAL CONTRIBUTION, TO BE PAID, MUST BE REGISTERED IN OTHER OPERATING EXPENSES, CODE 8.1.9.99.00-6, OF COSIF, WITH SEGREGATION INTO AN INTERNAL USE SUB-ACCOUNT.

ART. 7. THE PROVISIONS IN THIS CIRCULAR DO NOT APPLY TO INVESTMENT FUNDS.

ART. 8. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION, WITH EFFECTS FROM 01.01.93.

ART. 9. CIRCULARS NO. 2,224, OF 03.09.92, AND NO. 2,266, OF 20.01.93, AND ART. 2 OF CIRCULAR NO. 2,281, OF 26.02.93, ARE REPEALED, AND THE PROVISIONS CONTAINED IN LETTER-CIRCULAR NO. 2,334, OF 06.11.92, ARE MAINTAINED.

BRASÍLIA (DF), AUGUST 4, 1993

CLÁUDIO NESS MAUCH
DIRECTOR OF NORMS AND ORGANIZATION
OF THE FINANCIAL SYSTEM