CMN Resolution No. 5,100 — Amending CMN Resolution No. 4,966 on Accounting Concepts and Criteria for Financial Instruments and Hedge Accounting

CMN Resolution No. 5,100 amends CMN Resolution No. 4,966 by introducing new definitions for transfer of control, gross book value, and credit-granting characteristics, and by modifying accounting rules for expense recognition, materiality thresholds (set at 1%), and revenue recognition upon actual receipt. It mandates that financial instruments allocated to Stage 3 trigger the reallocation of all instruments from the same counterparty to Stage 3, while offering optional simplified expected loss assessments for low-risk, short-term assets. The resolution requires hedge accounting relationships to be reclassified to new categories and allows for their redefinition effective January 1, 2027, with most provisions entering into force on October 1, 2023, and specific repeals taking effect on January 1, 2025.

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Resolution No. 5,100

RESOLUTION
CMN No. 5,100, OF AUGUST 24, 2023

Amending
CMN Resolution No. 4,966, of November 25, 2021, which provides for the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the Monetary National Council, in a session held on August 24, 2023, based on Art. 4, items VIII and XII, of the aforementioned Law, and considering the provisions of Art. 61 of Law No. 11,941, of May 27, 2009,

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Lineage: In force

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This document amends: Resolution CMN No. 4,966 — Accounting Concepts and Criteria for Financial Instruments and Hedge Accounting, Circular No. 3082 — Establishes and Consolidates Criteria for the Accounting Recording and Valuation of Derivative Financial Instruments

Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works