CVM Instruction No. 457 of July 13, 2007 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 457, OF JULY 13, 2007, WITH THE AMENDMENTS INTRODUCED BY CVM INSTRUCTION NO. 485/10.

CVM INSTRUCTION NO. 457, OF JULY 13, 2007

Provides for the preparation and disclosure of consolidated financial statements, based on the international accounting standard issued by the International Accounting Standards Board - IASB.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on July 11, 2007, based on the provision of the sole paragraph of Article 249 of Law No. 6,404, of December 15, 1976, and on items I, II, and IV of the sole paragraph of Article 22 of Law No. 6,385, of December 7, 1976, and

CONSIDERING:
a) the importance and necessity that Brazilian accounting practices be convergent with international accounting practices, whether due to the increase in transparency and reliability of our financial information, or by enabling, at a lower cost, access of national companies to external financing sources; b) that the CVM has been, since the last decade, developing efforts to enable this convergence, either by improving its regulations, or by presenting to the Executive Branch a bill, now transformed into Bill No. 3,741/2000; c) that the markets and regulators of other countries and international blocs, engaged in this process, are increasingly seeking to develop mechanisms restricting access for those countries that have not yet adopted or committed to adopting international accounting standards; and d) that it is essential to find alternatives to accelerate this convergence process, without imposing extraordinary costs without adequate return, and establishing a reasonable deadline for public companies to prepare.

RESOLVED:

Art. 1. Public companies shall, from the fiscal year ending in 2010, present their consolidated financial statements adopting the international accounting standard, according to the pronouncements issued by the International Accounting Standards Board – IASB.

§ 1. For the purpose of compliance with the provision of the caput of this article, the consolidated financial statements of public companies shall be prepared based on pronouncements fully convergent with international standards, issued by the Accounting Pronouncements Committee – CPC and endorsed by the CVM. The consolidated financial statements of public companies shall be called “Consolidated Financial Statements in IFRS.”

• § 1 included by CVM Instruction No. 485, of September 1, 2010.

§ 2. The early adoption of international pronouncements or the adoption of alternatives provided therein is conditioned upon prior approval in a normative act of this Commission.

• § 2 included by CVM Instruction No. 485, of September 1, 2010.

§ 3. Public companies shall present, in a note to the consolidated financial statements, an explicit and unqualified declaration that these statements are in conformity with the international accounting standards issued by the IASB and also in accordance with the accounting practices adopted in Brazil.

• § 3 included by CVM Instruction No. 485, of September 1, 2010.

§ 4. The provisions of this article also apply to the consolidated statements of the previous fiscal year presented for comparative purposes.” (NR)

• § 4 included by CVM Instruction No. 485, of September 1, 2010.

Sole paragraph. The provisions of the caput of this article also apply to the consolidated statements of the previous fiscal year presented for comparative purposes.

• Sole paragraph excluded by CVM Instruction No. 485, of September 1, 2010.

Art. 2. It is optional for public companies, until the fiscal year of 2009, to present their consolidated financial statements adopting the international accounting standard, issued by the International Accounting Standards Board – IASB, in substitution for the Brazilian accounting standard.

§ 1. In a note to the consolidated financial statements, and without prejudice to the provisions of Article 31 of CVM Instruction No. 247, of March 27, 1996, the effects of events that caused a difference between the amounts of the controlling company's equity and net profit or loss, in comparison with the corresponding amounts of consolidated equity and net profit or loss, due to the adoption of the provisions of this article, must be disclosed in the form of a reconciliation.

§ 2. In the first fiscal year of early adoption of this Instruction, the presentation of the consolidated statements of the previous year prepared in the Brazilian accounting standard for comparative purposes is dispensed with.

Art. 3. Public companies and their controlled companies included in the consolidation shall use, in the opening balance sheet of the 1st fiscal year of adoption of this Instruction, the information contained in their audited financial statements, which have been disclosed for the purpose of registration in the international market or for the purpose of complying with the rules of the Novo Mercado of Bovespa, and which have complied with IASB Standards since their first disclosure.

• Art. 3 revoked by CVM Instruction No. 485, of September 1, 2010.

Art. 4. Independent auditors shall issue an opinion on the adequacy of the consolidated financial statements to international accounting standards, as well as on the sufficiency and adequacy of the note referred to in § 1 of Art. 2.

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

Signed by
MARCELO FERNANDEZ TRINDADE
President