CVM Instruction No. 146 of June 13, 1991

CVM INSTRUCTION NO. 146, OF JUNE 13, 1991.

Amends provisions of CVM Instruction No. 64, of May 19, 1987, which provides for the procedures for the preparation and publication of supplementary financial statements in constant purchasing power currency. Revokes CVM Instruction No. 108 of December 4, 1989, and establishes the INPC as the indexer.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes it known that the Collegiate Board, in a session held on this date, based on Articles 176, "caput", and its paragraphs 1 and 4; 177, paragraph 3, and 249, sole paragraph, of Law No. 6,404, of December 15, 1976, and on Article 22, sole paragraph, items I, II, and IV of Law No. 6,385, of December 7, 1976,

RESOLVED:

Art. 1 The preparation of supplementary financial statements in constant purchasing power currency, starting from the quarter that includes the month of June 1991, must be based on the variation of the INPC - National Consumer Price Index during the period.

§1 For this purpose, monetary updating for the month of January 1991 must be considered, based on the BTN - Treasury National Bond at the value of Cr$ 126.8621, and from February 1991 onwards, based on the variation of the INPC.

§2 All references contained in CVM Instruction No. 64, of May 19, 1987, to the BTN monetary standard, as provided in CVM Instruction No. 108, of December 4, 1989, must be adapted taking into account the implementation of the INPC as the indexer.

Art. 2 Starting from the quarter that includes the month of June 1991, open companies may, at their option and provided that consistently throughout each fiscal year, use the following alternatives for recording their transactions:

I - variation of the INPC during the period;
II - pro-rata-day variation of the INPC for all transactions occurring during the period; III - average variation of the INPC during the period; IV - mixed criterion, being:

CVM INSTRUCTION NO. 146, OF JUNE 13, 1991.
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a) pro-rata-day variation of the INPC for transactions involving permanent asset and equity accounts and, if applicable, other non-monetary items; b) average variation of the INPC for other transactions, including for recording depreciation, amortization, and depletion quotas.

§1 The calculation to determine the average or pro-rata-day variation of the INPC must be made based on the exponential criterion, considering the calendar days of the month.

§2 The open company must indicate, in an explanatory note, the criterion used in the preparation of its supplementary financial statements, as well as the adjustments resulting from the reconciliation of results with corporate law.

§3 Exceptionally for the quarter that includes the month of June 1991, open companies must indicate, in an Explanatory Note, the effect on the net profit of the semester, of the monetary correction relative to the months of February and March 1991.

Art. 3 Adjustments to present value of credits and obligations may be made based on the real rates of transactions or by using the variation of the INPC in the closing month of the period, within the pro-rata-day criterion, with disclosure in an explanatory note of the alternative used.

Art. 4 Gains and losses on monetary items and present value adjustments must be distributed among the result accounts to which they are linked. In the event of a remaining balance that cannot be allocated, it shall be included in the group of other operating revenues or expenses.

§1 Disclosure of this eventual remaining balance shall be made in an explanatory note only if relevant.

§2 Also in an explanatory note, the fact of this distribution and the criteria used by the company shall be disclosed.

Art. 5 CVM Instruction No. 108, of December 4, 1989, and other provisions to the contrary are hereby revoked.

Art. 6 This Instruction enters into force on the date of its publication in the Official Gazette of the Union, applying to quarterly information that includes the month of June 1991.

Signed original by
ARY OSWALDO MATTOS FILHO
President