CMN Resolution No. 4,858 — Establishes the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif)

Resolution No. 4,858

CMN RESOLUTION NO. 4,858, OF OCTOBER 23, 2020

Establishes the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif).

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes it public that the National Monetary Council, in a session held on October 22, 2020, based on Articles 4, items VIII and XII, and 31 of the aforementioned Law, and Article 61 of Law No. 11,941 of May 27, 2009,

HAS RESOLVED:

CHAPTER I
ON THE OBJECT AND SCOPE OF APPLICATION

Article 1. This Resolution establishes the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif).

Article 2. Institutions authorized to operate by the Central Bank of Brazil must observe Cosif in accounting recording, recognition, measurement, and disclosure.

Sole Paragraph. The provisions of the main text do not apply to consortium administrators and payment institutions, which must observe the regulation issued by the Central Bank of Brazil, in the exercise of their legal powers.

Sole Paragraph. The provisions of the main text do not apply to consortium administrators, payment institutions, securities brokerage companies, securities distribution companies, and foreign exchange brokerage companies, which must observe the regulation issued by the Central Bank of Brazil in the exercise of their legal powers. (Wording given, from 1/3/2024, by CMN Resolution No. 5,116, of 1/25/2024.)

CHAPTER II
ON THE OBJECTIVE AND STRUCTURE OF COSIF

Article 3. Cosif is a consolidation of the norms for accounting recognition, measurement, and disclosure established in the regulation issued by the National Monetary Council and the Central Bank of Brazil, and the list of accounts to be observed by institutions authorized to operate by the Central Bank of Brazil in accounting recording.

Article 4. Cosif aims to standardize the accounting records of events, transactions, and administrative acts and facts practiced, rationalize the use of accounts, establish rules and procedures necessary for obtaining and disclosing accounting and financial information, provide information for the supervision of regulated institutions, as well as for analysis, performance evaluation, and control by users of accounting information, so that financial statements and other accounting documents express, with fidelity and clarity, the economic-financial situation of the institution and the conglomerates of which they are part.

Article 5. Cosif will be disclosed by the Central Bank of Brazil on its website structured in the following chapters, with their respective functions:

I - Chapter 1 – Basic Norms: consolidates the principles, criteria, and accounting procedures established in the regulation issued by the National Monetary Council or the Central Bank of Brazil;

II - Chapter 2 – Chart of Accounts: consolidates the accounting items and their respective functions;

III - Chapter 3 – Models: presents the models of documents that must be prepared by institutions authorized to operate by the Central Bank of Brazil; and

IV - Chapter 4 – Complementary Documents: presents accounting standards and pronouncements issued by other entities that have been received by the regulation issued by the National Monetary Council or the Central Bank of Brazil.

Article 6. The content of Cosif does not replace the current regulation issued by the National Monetary Council or the Central Bank of Brazil.

CHAPTER III
ON THE COSIF CHART OF ACCOUNTS

Article 7. The institutions mentioned in Article 2 must use a specific chart of accounts defined by the Central Bank of Brazil according to their type, with the institution permitted to record only in the accounting items provided therein.

Article 8. The Cosif chart of accounts is formed by:

I - balance sheet accounts, in which the institution's assets, liabilities, and equity must be recorded;

II - income statement accounts, in which revenues and expenses must be recorded; and

III - clearing accounts, in which the following must be recorded:

a) information on events and transactions whose effects may translate into future modifications to the institution's equity; and

b) control information regarding balance sheet and income statement elements.

Article 9. The structure of the accounting items in the Cosif chart of accounts is formed by the following components:

I - code;

II - nomenclature; and

III - function.

§ 1. The Central Bank of Brazil may add elements to the structure of the accounting items referred to in the main text.

§ 2. It is prohibited for the institution to modify the structure of the Cosif accounting items or to alter any of its characteristic elements.

§ 3. The institution may adopt internal breakdowns for the purposes of its internal and managerial control needs, provided that they are convertible to the most analytical level applicable to the Cosif chart of accounts.

CHAPTER IV
FINAL PROVISIONS

Article 10. The criteria and procedures embodied in Cosif, as well as the existence of accounting items, do not presuppose permission for the practice of operations or services prohibited by law, regulation, or administrative act, or dependent on prior authorization by the Central Bank of Brazil.

Article 11. References to the Chart of Accounts of the Institutions of the National Financial System (Cosif) in the current regulation issued by the National Monetary Council or the Central Bank of Brazil refer to the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif) established by this Resolution.

Article 12. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution, including providing for:

I - the structure of the Cosif chart of accounts;

II - the accounting items and their respective functions;

III - the models of documents referred to in Chapter 3 of Cosif; and

IV - the procedures for the adequate accounting recording of events and transactions carried out by the institutions mentioned in Article 2.

Article 13. Circular No. 1,273 of December 29, 1987 is hereby revoked.

Article 13. (Revoked, from 1/1/2022, by CMN Resolution No. 4,966, of 11/25/2021.)

Article 14. This Resolution enters into force on January 1, 2022.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil