Circular No. 2461 — Dispenses on the Accounting Registration of Real Estate Not Intended for the Maintenance of Consortium Administrator Activities

CIRCULAR NO. 002461

Dispenses on the Accounting Registration of Real Estate Not Intended for the Maintenance of Consortium Administrator Activities.

The Board of Directors of the Central Bank of Brazil, in a session held on 10.08.94, having regard to the provisions of Law No. 8.177, of 01.03.91,

DECIDED:

Art. 1. Real estate that is not intended for the maintenance of the activities of consortium administrators, maintained on a permanent basis, must be accounted for under the OTHER INVESTMENTS title, code 2.1.9.90.00-3, of the Chart of Accounts of Institutions of the National Financial System - COSIF, at acquisition value and monetarily corrected, observing the following:

I - may be depreciated;

II - cannot be revalued.

Paragraph 1. The depreciation referred to in item I must be recorded in an internal sub-account of the account that records the value of the asset, with the OTHER INVESTMENTS title as the counterpart, DEPRECIATION EXPENSES, code 8.1.8.20.00-3, of COSIF.

Paragraph 2. A provision must be established to cover permanent losses, effective or potential, with the OPERATIONAL PROVISIONS EXPENSES title, Other sub-account, code 8.1.8.30.99-0, as the counterpart.

Art. 2. This Circular enters into force on the date of its publication.

Brasília, August 10, 1994.

Cláudio Ness Mauch
Director of Standards and Organization of the Financial System