CMN Resolution No. 4,877 — General Criteria for Measurement and Recognition of Social and Labor Obligations by Institutions Authorized by the Central Bank of Brazil

Resolution No. 4,877

CMN RESOLUTION NO. 4,877, OF DECEMBER 23, 2020

Establishes the general criteria for measurement and recognition of social and labor obligations by institutions authorized to operate by the Central Bank of Brazil.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the Monetary Council, in a session held from December 18 to 23, 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,

R E S O L V E D:

Art. 1 This Resolution consolidates the general criteria for measurement and recognition of social and labor obligations by institutions authorized to operate by the Central Bank of Brazil.

Sole Paragraph. The provisions of this Resolution do not apply to consortium administrators and payment institutions, which must observe the regulations issued by the Central Bank of Brazil.

Sole Paragraph. The provisions of this Resolution do not apply to consortium administrators, payment institutions, securities brokerage firms, securities distribution firms, and currency brokerage firms, which must observe the regulations issued by the Central Bank of Brazil in the exercise of their legal duties.

(Wording given, as of March 1, 2024, by CMN Resolution No. 5,116, of January 25, 2024.)

Art. 2 The institutions mentioned in Art. 1 must recognize, monthly, upon the preparation of trial balances or balance sheets, as a liability, the amounts due for the current period and previous periods relating to:

I - portions of the period's result attributed or to be attributed to employees and administrators or to assistance funds, based on legal, statutory, or contractual provisions, or proposed by management for approval by the ordinary general assembly or meeting of unitholders or partners; and

II - other obligations assumed with employees.

Sole Paragraph. In the monthly recognition of obligations relating to vacation, thirteenth salary, premium leave, and other known or calculable charges, amounts resulting from future wage increases provided for by law, contract, or collective labor agreement and in the institution's internal policy must be included.

Art. 3 The institutions mentioned in Art. 1 must observe Technical Pronouncement CPC 33 (R1) – Employee Benefits, approved by the Accounting Pronouncements Committee (CPC) on December 7, 2012, in the measurement, recognition, and disclosure of employee benefits.

§ 1 The technical pronouncements cited in the text of Pronouncement CPC 33 (R1), while not also received by a specific act of the Monetary Council or the Central Bank of Brazil, cannot be applied.

§ 2 References to other CPC pronouncements in the text of Pronouncement CPC 33 (R1) must be interpreted, for the purposes of this Resolution, as references to other pronouncements by the Committee that have been received by a specific act of the Monetary Council or the Central Bank of Brazil, as well as to provisions of the Accounting Plan of the Institutions of the National Financial System (Cosif) that establish accounting criteria related to the pronouncements subject to the references.

§ 3 The determination of the discount rate referred to in items 83 to 86 of Pronouncement CPC 33 (R1) is permitted based on the average market yield calculated in the six months preceding the date to which the financial statements refer, observing the other provisions provided in the Pronouncement.

§ 4 The institutions mentioned in Art. 1 that use the option provided in § 3 must:

I - apply the change prospectively;

II - disclose, in an explanatory note, the value of the effect on Equity if the rate referred to in item 83 of Pronouncement CPC 33 (R1) were used; and

III - apply the discount rate referred to in § 3 consistently over time.

Art. 4 The Central Bank of Brazil is authorized to issue norms and adopt measures necessary for the execution of the provisions of this Resolution, including regarding the disclosure of information in explanatory notes.

Art. 5 The Central Bank of Brazil may determine a change in the discount rate referred to in § 3 of Art. 3, if it identifies non-compliance with the provision in item III of § 4 of Art. 3.

Art. 6 Resolution No. 4,424, of June 25, 2015, is hereby revoked.

Art. 7 This Resolution enters into force on January 1, 2021.

Bruno Serra Fernandes
President of the Central Bank of Brazil, substitute