CVM Instruction No. 197 of January 19, 1993

CVM INSTRUCTION NO. 197, OF JANUARY 19, 1993.

Provides for the application of Articles 1 and 2 of CVM INSTRUCTION NO. 189, of June 25, 1992, and revokes CVM Instruction No. 192, of July 15, 1992.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM, makes public that, "ad referendum" of the Collegiate Board, in accordance with Article 17, Item XVII, of Ordinance 327, of July 11, 1977, as amended by Ordinance 16, of January 15, 1993, and based on items I, II, and IV of the sole paragraph of Article 22 of LAW NO. 6,385, of December 7, 1976, and on paragraph 3 of Article 177 of LAW NO. 6,404, of December 15, 1976, as well as on Article 48 of DECREE NO. 332, of November 4, 1991,

RESOLVED:

Art. 1. Publicly held companies shall use, for the preparation of financial statements in corporate form, starting in 1992, the variation of the Daily Reference Unit - Daily UFIR - or another index that may replace it.

Art. 2. The monetary update of interim results, in accounting records, shall not affect the result at the end of the period.

Art. 3. The application of the procedures provided for in Articles 1 and 2 of CVM INSTRUCTION NO. 189/92, of June 25, 1992, shall only be mandatory for revaluation reserves established starting from 01/01/93.

§ 1. Publicly held companies that do not adopt these procedures for revaluation reserves established prior to 01/01/93 shall disclose in a note to their financial statements:

a) the portion related to monetary correction provided for in LAW NO. 8,200, of June 28, 1991, included in the revaluation reserve;

b) the amount realized during the period;

c) the tax effects levied on the balance of the revaluation reserve that exceed the portions referred to in item "a".

§ 2. The norms issued by these Autarchies shall apply to financial institutions and other societies authorized to operate by the Central Bank of Brazil and by the Superintendence of Private Insurance, which are publicly held companies.

CVM INSTRUCTION NO. 197, OF JANUARY 19, 1993.
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Art. 4. CVM Instruction No. 192, of July 15, 1992, is hereby revoked.

Art. 5. This Instruction shall enter into force on the date of its publication in the Official Gazette of the Union.

Original signed by

LUIZ CARLOS PIVA
President