Circular No. 3.386

CIRCULAR No. 003386 ------------------ Establishes procedures relating to the accounting record of revaluation of properties for own use by consortium administrators. The Collegiate Board of the Central Bank of Brazil, in a session held on 3 June 2008, based on art. 33 of Law No. 8.177, of 1 March 1991, D E C I D E D: Art. 1 The revaluation of assets for own use and the constitution of the respective revaluation reserves by consortium administrators is prohibited. Sole paragraph. The prohibition on the constitution of revaluation reserves applies, including, to those arising from the revaluation of assets of associates and subsidiaries. Art. 2 The balance of the revaluation reserves existing on the date of entry into force of this circular must be maintained until the date of its effective realization through depreciation and write-off, including through disposal of the revalued asset. Art. 3 As long as balances of revaluation reserves remain, consortium administrators must disclose, in explanatory notes to the financial statements, the criteria and procedures for realization of the reserve and the respective effects on the calculation basis for distribution of participations, dividends and bonuses. Art. 4 This circular enters into force on the date of its publication. Art. 5 Circular No. 2.824, of 18 June 1998, is revoked. Brasília, 3 June 2008. Alexandre Antonio Tombini Director ------------------------ Note: Republished, on 19.8.2008, at the request of the responsible area, for adjustment of form in the wording of art. 2.