CVM Instruction No. 192 of July 15, 1992 (Revoked)

CVM INSTRUCTION NO. 192, OF JULY 15, 1992.

Provides for present value adjustment and monetary updating in accounting records in corporate form, for full compliance with Fundamental Accounting Principles, and gives other provisions.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that, the Collegiate Board, in a session held on this date, based on Articles 176, "caput" and its paragraph 4, 177, paragraphs 1 and 3, and 249, sole paragraph, of Law No. 6,404, of December 15, 1976, and on Article 22, sole paragraph, item IV, of Law No. 6,385, of December 7, 1976, and having in view, furthermore, the provisions set forth in the pronouncement attached to CVM Deliberation No. 29, of February 5, 1986,

RESOLVED:

ON THE DUTY OF FULL COMPLIANCE WITH FUNDAMENTAL ACCOUNTING PRINCIPLES

Art. 1. Publicly held companies shall prepare and disclose their financial statements in corporate form with full compliance with Fundamental Accounting Principles.

Sole paragraph. The provisions of this article apply to consolidated financial statements in corporate form.

ON THE QUANTIFICATION AND APPROPRIATION OF PRESENT VALUE ADJUSTMENT OF CREDITS AND OBLIGATIONS

Art. 2. Credits and obligations arising from fixed-rate operations shall be translated at present value, in accounting records, based on the average nominal interest rate published by the National Association of Investment Banks - ANBID.

§1. In the case of a fixed-rate financial operation involving a financial institution, the present value adjustment may be performed based on the interest rate effectively contracted, when the effect on the result does not present a relevant difference compared to that produced by the application of the interest rate provided in the "caput" of this article, observed the convention of conservatism.

§2. The quantification of the present value adjustment shall be performed on an exponential "pro rata die" basis, from the origin of each transaction.

CVM INSTRUCTION NO. 192, OF JULY 15, 1992.
2

§3. The calculation of the present value adjustment may be performed on a basis different from that provided in the previous paragraph, when the verified difference is not relevant.

§4. The appropriation of the present value adjustment shall be performed in the income account to which it

§5. The reversal of the present value adjustment shall be appropriated as financial revenue or expense.

§6. The provisions of this article apply to all transactions, including those that do not present an active or passive balance at the end of each month.

Art. 3. Shall be recorded at their present value, on the date of their acquisition or formation:
I - the elements of permanent assets;
II - inventories and warehouses;
III - temporary investments in gold and shares; IV - prepaid expenses and results of future periods; and V - other rights and obligations to be settled in goods and/or services.

ON MONETARY UPDATING
IN ACCOUNTING RECORDS

Art. 4. Shall be monetarily updated, in accounting records, from the date of their formation or acquisition.
I - the patrimonial elements discriminated in items I to V of the previous article and of net equity; and II - active and passive provisions.

Sole paragraph. The provisions of this article may imply adjustments so that the values adequately reflect the company's patrimonial situation, respecting the criteria for the valuation of assets and liabilities.

Art. 5. Publicly held companies shall use, in the preparation of financial statements in corporate form, from 1992, the variation of the Daily Fiscal Reference Unit - Daily UFIR - or another index that comes to replace it.

CVM INSTRUCTION NO. 192, OF JULY 15, 1992.
3

Art. 6. The monetary updating of interim results, in accounting records, shall not affect the result of the end of the period.

TRANSITIONAL AND FINAL PROVISIONS

Art. 7. Upon the initial adoption of the monetary updating of the items provided for in Art. 3 and of the present value adjustment of credits and obligations, publicly held companies shall make the necessary adjustments in their opening balance sheets, in corporate form, net of the tax effects resulting therefrom, disclosing the fact and the values involved in a note explanatory to the financial statements.

Sole paragraph. The adjustment referred to in the "caput" of this article shall be optional for publicly held companies that performed the present value adjustment of credits and obligations based on a rate different from that provided in the "caput" of Art. 2.

Art. 8. May be postponed to the fiscal year beginning after December 1992:
I - the monetary updating provided for in items II, IV and V of Art. 3 and of temporary investments in shares; II - the appropriation of the reversals of present value adjustments, in the form provided for in paragraph 5 of Art. 2; and III - the calculation of the present value adjustment on all transactions, provided for in paragraph 6 of Art. 2.

Sole paragraph. The adoption of any of the alternatives provided for in this article shall not imply the re-preparation of financial statements relating to the fiscal year that includes the month of December 1992.

Art. 9. This Instruction enters into force on the date of its publication, applying to financial statements relating to fiscal years ending from December 1, 1992, with CVM Instruction No. 187, of April 28, 1992, and other provisions to the contrary, being revoked.

Original signed by
ROBERTO FALDINI
President