Circular No. 2682 — Provides for asset monetary correction as of 01.01.96, adjustments to results of prior periods and submission of financial statements

CIRCULAR N. 002682

Provides for asset monetary correction as of 01.01.96, adjustments to results of prior periods and submission of financial statements.

The Collegiate Board of the Central Bank of Brazil, in a session held on 29.04.96, based on art. 4, item XII, of Law No. 4,595, of 31.12.64, by competence delegated by the National Monetary Council, by act of 19.07.78, and in view of the provisions of art. 4 of Law No. 9,249, of 26.12.95,

DECIDED:

Art. 1. To clarify that, in the preparation of financial statements by financial institutions, by the other institutions authorized to operate by this Body and by consortium administrators, it is prohibited, as of 01.01.96, to carry out any monetary correction or updating, under the terms of art. 4 of Law No. 9,249, of 26.12.95.

Art. 2. For the purpose of preparing financial statements in accordance with corporate legislation, adjustments of income, expenses, gains, losses, profits or losses attributable to prior periods, which cease to be attributed to them, must be recorded:

I - in the appropriate income accounts of the second half-year, when they refer to the first half of the same fiscal year;

II - in ACCUMULATED PROFITS OR LOSSES, when arising from error or change in accounting criterion, which cannot be attributed to a subsequent fact, in the case of referring to prior fiscal years.

Sole paragraph. The effects of applying the procedure referred to in this article, if relevant, must be evidenced in a specific explanatory note when publishing the financial statements.

Art. 3. The entities referred to in art. 1 are exempt from submitting to this Body:

I - the following financial statements, prepared in accordance with corporate legislation:

a) Statement of Income for the Fiscal Year;

b) Consolidated Statement of Income for the Fiscal Year;

c) Statement of Sources and Applications of Funds for the Half-Year/Fiscal Year;

d) Consolidated Statement of Sources and Applications of Funds for the Half-Year/Fiscal Year;

e) Statement of Changes in Shareholders' Equity for the Half-Year/Fiscal Year;

II - the Statement of Income for the Quarter, in constant purchasing power currency, relating to the base date of 31.03.96.

Art. 4. Any balance existing in the accounting titles of the subgroup Capital Monetary Correction must be transferred to the title CAPITAL INCREASE, code 6.1.1.20.00-8, of COSIF, for subsequent incorporation into share capital.

Art. 5. Document No. 8 of COSIF is maintained, in the form of the annex to Circular No. 2,406, of 10.02.94, and shall now be named Statement of Income for the Half-Year/Fiscal Year.

Art. 6. This Circular enters into force on the date of its publication.

Art. 7. The following are revoked:

I - Circulars No. 831, of 23.12.83, 2,173, of 06.05.92, and 2,406, of 10.02.94, and Circular Letter No. 1,468, of 05.09.86;

II - items II and III of paragraph "a" of Circular No. 909, of 11.01.85, paragraphs "b" and "c" of Circular No. 943, of 04.07.85, paragraph 3 of art. 2 and the sole paragraphs of arts. 5 and 6 of Circular No. 2,328, of 07.07.93, paragraphs 1 and 2 of art. 1 of Circular No. 2,329, of 07.07.93, arts. 2, 3 and 7 of Circular No. 2,353, of 04.08.93, paragraph 1 of art. 8 of Circular No. 2,381, of 18.11.93, item I and paragraph 1 of art. 1 of Circular No. 2,387, of 14.12.93, art. 6 of Circular No. 2,571, of 17.05.95, and item 2 of Circular Letter No. 1,262, of 08.08.85.

Brasília (DF), April 30, 1996

Alkimar Ribeiro Moura
Director