Circular No. 2571 — Amends procedures regarding the option for consolidated balance sheet/accounting calculations for the purposes of Resolution No. 2,099/94

Circular No. 2571, of May 17, 1995

CIRCULAR NO. 2571

Amends procedures regarding the option for consolidated balance sheet/accounting calculations for the purposes of Resolution No. 2,099/94 and provides other measures.

The Board of Directors of the Central Bank of Brazil, in a session held on May 17, 1995, having regard to the provisions of Article 1 of Law No. 8,981, of January 20, 1995, and Article 47 of Provisional Measure No. 978, of April 20, 1995, and based on Article 4, item XII, of Law No. 4,595, of December 31, 1964, by competence delegated by the National Monetary Council, by act of July 19, 1978, in Article 11 of Resolution No. 1,974, of December 4, 1992, and Article 7 of Resolution No. 2,099, of August 17, 1994,

D E C I D E D:

Art. 1 Institutions that opt for the consolidated calculation of the net worth referred to in Article 4 of the Regulation annexed to Resolution No. 2,099, of August 17, 1994, must communicate, through the leading institution defined in terms of COSIF 1.21.1.5, the decision to the Department of Registration and Information (DECAD) of this Body, after the Extraordinary General Assembly provided for in paragraph 2 of Article 4 of the aforementioned Resolution No. 2,099/94 has been held.

Paragraph 1 The communication of the decision referred to in this article must be made by the last business day of November and shall only be valid from the following fiscal year, and the document used for this purpose must:

I - contain the name and the registration number in the General Register of Taxpayers (CGC) of the institutions comprising the conglomerate;

II - be signed by an administrator or legal representative of each of the institutions comprising the conglomerate.

Paragraph 2 The return to the non-consolidated calculation method shall also be the subject of a decision in an extraordinary general assembly and shall prevail from the fiscal year following the option, and the decision must be communicated by the last business day of November.

Paragraph 3 The holding of the general assembly referred to in paragraph 2 of the cited Article 4 is dispensed with when it concerns a wholly-owned subsidiary.

Paragraph 4 The option referred to in this article may only be exercised by institutions that also opt for the use of consolidated financial statements in terms of Resolution No. 1,990, of June 30, 1993;

Paragraph 5 The leading institution is also responsible for the calculation and compliance with the consolidated limits of the financial conglomerate.

Circular No. 2571, of May 17, 1995

Art. 2 The consolidated accounting statements mentioned in the previous article must be prepared in accordance with the procedures provided for in Circular No. 2,397, of December 29, 1993, including branches and corporate participations in financial institutions, subsidiaries, and controlled entities, in the country and abroad.

Sole Paragraph. The consolidated balance sheets/financial statements of the conglomerate, CADOC codes 42.1.6.005-6 and 42.1.6.010-4, respectively, must be sent to this Body:

I - by the 25th day of the month following the base date for documents relating to the months of January to May, and July to November;

II - by the 30th day of the month following the base date for documents relating to the months of June and December.

Art. 3 The provisions contained in Circulars No. 1,490, of June 1, 1989, and No. 1,949, of April 24, 1991, and complementary regulation, regarding the monetary fine for late submission of consolidated balance sheets/financial statements, apply to the leading institution of the financial conglomerate.

Art. 4 In the conversion of foreign currency into national currency, referred to in Article 9 of Circular No. 2,397, of December 29, 1993, direct conversion of the balances contained in the balance sheets/financial statements of branches and corporate participations abroad is admitted, using the rate in effect on the base date, except if in the country where the investment is located there are high inflation indices and there are no official mechanisms for recognizing the loss of purchasing power of the currency.

Art. 5 Amend item III of Article 2 of Circular No. 2,502, of October 26, 1994, which shall enter into force with the following wording:

"III - the change of social object, merger, spin-off, or incorporation of an institution that results in a securities brokerage company, securities distribution company, currency brokerage company, or mortgage company;".

Art. 6 The patrimonial monetary correction referred to in COSIF 1.20.3 must be carried out quarterly.

Art. 7 This Circular enters into force on the date of its publication.

Art. 8 Articles 1 and 4 of Circular No. 2,353, of August 4, 1993, and Article 3 of Circular No. 2,500, of October 26, 1994, and Circular No. 2,522, of December 20, 1994, are hereby repealed.

Brasília, May 17, 1995.

Cláudio Ness Mauch
Director of Standards and Organization

Edson Bastos Sabino
Director of Supervision of the Financial System

This text does not replace the published version in the DOU and Sisbacen.