CVM Instruction No. 170 of January 3, 1992 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 170, OF JANUARY 3, 1992, WITH CHANGES INTRODUCED BY CVM INSTRUCTION NO. 247/96.

CVM INSTRUCTION NO. 170, OF JANUARY 3, 1992.

Establishes accounting criteria to be adopted in the recording of the revaluation reserve and in the bookkeeping of the result of equity method investments abroad.

The BOARD OF DIRECTORS OF THE SECURITIES AND EXCHANGE COMMISSION makes it public that, in a meeting held on 01/02/92, based on article 22, sole paragraph, items II, IV and VII of LAW NO. 6385, of December 7, 1976, and on article 177 of Law No. 6404, of December 15, 1976,

resolved to issue the following Instruction:

Art. 1. The values accounted for by open companies as a revaluation reserve may not be used for an increase in social capital and amortization of losses, until realized.

Sole paragraph. If the open company has already made the accounting provided for in the caput of this article, it must disclose in explanatory notes to the financial statements the values that the equity accounts would have in each period, if the records were maintained in accordance with this standard.

Art. 2. The operational result of equity method shall be considered as the value of the difference between the exchange variation of the investment abroad and the monetary correction accounted for in the investment account, in the investor or controlling company.

• Article revoked by CVM Instruction No. 247, of March 27, 1996.

Art. 3. This Instruction enters into force on the date of its publication, producing its effects for financial statements closed by December 1991, inclusive, revoking provisions to the contrary.

Original signed by

FLORA VALLADARES COELHO
Acting President