CVM ORIENTING OPINION NO. 13, OF JULY 06, 1987.

SUMMARY: The application of the procedures regarding the change in the exchange rate provided for by CVM DELIBERATION NO. 08, of 08.01.80, applied exclusively to changes that occurred during the fiscal year that included the month of December 1979; adjustments resulting from changes in the exchange rate constitute revenue or expense of the period and are included in the calculation of the result, except for net financial charges that refer to obligations linked to the financing of assets in the formation or pre-operational phase.

1. The Securities and Exchange Commission (Comissão de Valores Mobiliários), by virtue of its functions as a regulatory and supervisory body of the market, must ensure that the accounting records of openly-held companies comply with the provisions of commercial legislation and the fundamental principles of accounting, observing uniform accounting methods or criteria over time and recording asset mutations according to the accrual basis.

2. On 08.01.80, the CVM, in an extraordinary manner, issued DELIBERATION NO. 08, which allowed openly-held companies to defer the effects resulting from the change in the exchange rate throughout the fiscal year that included the month of December 1979.

3. It should be emphasized that the procedures then authorized were of a transitory nature, as they referred solely and exclusively to the effects resulting from the change in the exchange rate on the company's result whose fiscal year included the month of December 1979. Consequently, that Deliberation became inapplicable to subsequent situations.

4. Guided by the fundamental principles of accounting, the Securities and Exchange Commission clarifies that the openly-held company must observe the following procedures regarding exchange rate variations resulting from changes in the exchange rate:

   a) variations resulting from the adjustment of credits and obligations in foreign currency, due to a change in the exchange rate, constitute revenue or expense and are included in the calculation of the result of the fiscal year in which the exchange rate changes occur.

   b) when referring to obligations linked to the financing of assets in the formation or pre-operational phase, the expenses, conceptualized then as net financial charges, must be added to the deferred amount for amortization as provided for in paragraph 3 of article 183 of Law No. 6.404 of December 15, 1976. For this purpose, net financial charges are conceptualized as the portions of nominal financial charges, including the effect of the change in the exchange rate, that exceed the variation of the monetary update index that, by virtue of art. 185 of Law No. 6.404/76, is applicable to the fiscal year.

CVM ORIENTING OPINION NO. 13, OF JULY 06, 1987.

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5. The openly-held company that, for consolidation purposes or for evaluating its investments by the equity method, uses a balance sheet or trial balance of a controlled and/or affiliated company must, when necessary, make the necessary adjustments that, due to the use of different procedures, have significant effects on the determination of the net equity of the controlled or affiliated company.

Signed original by

HUGO ROCHA BRAGA
Superintendent of Accounting Standards

Signed original by

LUIS OCTÁVIO DA MOTTA VEIGA
President