CVM Instruction No. 464 of January 29, 2008

CVM INSTRUCTION NO. 464, OF JANUARY 29, 2008.

Amends CVM Instruction No. 247, of March 27, 1996.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes public that the Collegiate Body, in a meeting held on this date, and based on § 3 of art. 177 of Law No. 6,404, of December 15, 1976, combined with the provisions of item “c” of paragraph III of art. 248 of Law No. 6,404, of December 15, 1976, and items II and IV of § 1 of art. 22 of Law No. 6,385, of December 7, 1976, HAS RESOLVED to issue the following Instruction:

Art. 1. Art. 16 of CVM Instruction No. 247, of March 27, 1996, shall be effective with the following wording:

“Art. 16 ...

I - operational revenue or expense, when it corresponds to an increase or decrease in the net equity of the affiliate and controlled company, resulting from the calculation of net profit or loss for the period or corresponding to actual gains or losses resulting from the existence of capital reserves or adjustments from prior periods;

...

III - application in the amortization of goodwill resulting from the increase in net equity due to the revaluation of assets that gave rise to it;

IV - revaluation reserve when it corresponds to an increase in net equity due to the revaluation of assets in the affiliate and controlled company, subject to the provisions of the previous item; and

V - in the Accumulated Foreign Currency Translation Adjustment account, directly in its net equity, when it corresponds to an adjustment of the same nature in the net equity of the controlled or affiliate company with investment abroad, due to exchange rate variations governed by the CVM regulations in force.

Sole paragraph. Notwithstanding the provisions of Article 12, the negative result of the equity method shall have as a limit the carrying value of the investment, as defined in paragraph 1 of Article 4 of this Instruction.” (NR)

Art. 2. This Instruction enters into force on the date of its publication in the Official Gazette of the Union, applying to fiscal years ending from December 2008.

Signed Original by

MARIA HELENA DOS SANTOS FERNANDES DE SANTANA
President