Circular No. 2804 — Establishes Guidelines for the Publication of Financial Statements

CIRCULAR NO. 002804

Establishes guidelines for the publication of financial statements.

The Collegiate Board of the Central Bank of Brazil, in a session held on 11.02.98, based on the provisions of Article 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,

DECIDED:

Article 1. Determine that financial institutions and other institutions authorized to operate by the Central Bank of Brazil publish their semi-annual and annual financial statements in a widely circulated newspaper in the locality where the institution's headquarters is located.

Paragraph 1. In the case of monthly statements, publication in a specialized magazine or in a bulletin of information and dissemination of a class entity, or disclosure in an alternative communication medium, of general access, in an informatized system, is sufficient.

Paragraph 2. The institution must keep a copy of the documents proving the mandatory publications available to this Agency for a period of five years.

Paragraph 3. Without prejudice to mandatory publications, the institution may publish statements in reduced form, for advertising purposes, provided that it indicates the newspaper and the date of publication of the complete statements.

Article 2. The following documents of the Accounting Plan of the Institutions of the National Financial System - COSIF must be published:

I - balance sheet, document No. 2, with monthly frequency;

II - regarding the financial statements of the base dates of June 30 and December 31:

a) balance sheet, document No. 2;

b) statement of the result of the semester/fiscal year, document No. 8;

c) statement of changes in shareholders' equity, document No. 11;

d) statement of sources and applications of resources of the semester/fiscal year, document No. 12.

Paragraph 1. Institutions that hold branches abroad must publish financial statements with the consolidated position of operations carried out in the Country and abroad.

Paragraph 2. The financial statements of June 30 and December 31 must be published with values expressed in thousands of reais, accompanied by the opinion of the independent auditor and the administration's report on social business and the main administrative facts of the period.

Paragraph 3. The inclusion of data in the publication document models that improve the quality and transparency of information is permitted.

Article 3. The financial statements relating to the base dates of June 30 and December 31 must be published in a comparative manner with those of the previous period, observing:

I - base date of June 30:

a) balance sheet: position on June 30 of the current year compared with the position on June 30 of the previous year;

b) statement of results, changes in shareholders' equity, and sources and applications of resources: current first semester compared with the first semester of the previous fiscal year.

II - base date of December 31:

a) balance sheet: position on December 31 of the current year compared with that of December 31 of the previous year;

b) statement of results, changes in shareholders' equity, and sources and applications of resources: in addition to the statements relating to the second semester, those of the current fiscal year are published compared with those of the previous fiscal year.

Sole Paragraph. The statements relating to item II, letter "b", may be presented in three columns, so that the first corresponds to the second semester and the other two to the current and previous fiscal years, respectively.

Article 4. The publication of financial statements must comply with the following deadlines:

I - monthly, within thirty days of the base date;

II - those relating to the base date of June 30, within sixty days of the base date;

III - those relating to the base date of December 31, within ninety days of the base date.

Article 5. The Central Bank may determine, without prejudice to the applicable measures, the republication of financial statements, with the necessary corrections, for adequate expression of the economic and financial reality of the institution.

Sole Paragraph. In the event of disclosure of incorrect or incomplete data, new disclosure must be provided, which will be carried out through the same channels and with the same highlights, under explicit mention of the facts determining the republication.

Article 6. Whenever, between the date of the balance sheet preparation and the date of its respective publication, a relevant event occurs that modifies or may modify the financial position and/or influence future results, such event must be indicated with detailed explanations in explanatory notes.

Article 7. Investment funds must publish the statement of the evolution of shareholders' equity and the statement of composition and diversification of applications, documents 9 and 10 of COSIF, respectively, accompanied by explanatory notes and the opinion of the independent auditor, within a maximum period of 60 (sixty) days from the base date of the closing of the social fiscal year, only in a widely circulated newspaper in the locality of the headquarters of the administering institution.

Article 8. For credit cooperatives and consortium administrators, the provisions contained in Circulars No. 1,561, of 29.12.89, and 2,381, of 18.11.93, respectively, remain applicable.

Article 9. The provisions of this Circular contemplate only the aspects of interest of this Agency, being the full responsibility of the institution the observance of other pertinent norms regarding the matter.

Article 10. This Circular enters into force on the date of its publication.

Article 11. Circulars No. 696, of 19.05.82, 2,006, of 08.08.91, 2,194, of 30.06.92, and 2,533, of 04.01.95, are revoked.

Brasília, February 11, 1998

Sérgio Darcy da Silva Alves
Director