CVM Resolution No. 205 of June 5, 2024

SECURITY AND EXCHANGE COMMISSION OF BRAZIL (CVM) 7 de Setembro Street, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Cincinato Braga Street, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Corporate Financial Center Building, S.404/4th Floor, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br

CVM RESOLUTION NO. 205, OF JUNE 5, 2024
Approves the Revision Document of Technical Pronouncements No. 26, issued by the Accounting Pronouncements Committee – CPC.

The PRESIDENT OF THE SECURITY AND EXCHANGE COMMISSION OF BRAZIL – CVM makes public that the Board, in a meeting held on May 29, 2024, based on §§ 3 and 5 of art. 177 of Law No. 6,404, of December 15, 1976, combined with items II and IV of § 1 of art. 22 of Law No. 6,385, of December 7, 1976, APPROVED the following Resolution:

Art. 1. It is made mandatory for publicly-held companies the Revision Document of Technical Pronouncements No. 26, issued by the Accounting Pronouncements Committee – CPC, as per Annex “A” to this Resolution.

Art. 2. This Resolution enters into force on July 1, 2024.

Signed electronically by
JOÃO PEDRO BARROSO DO NASCIMENTO
President

SECURITY AND EXCHANGE COMMISSION OF BRAZIL (CVM) 7 de Setembro Street, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Cincinato Braga Street, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Corporate Financial Center Building, S.404/4th Floor, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br

ANNEX “A”
ACCOUNTING PRONOUNCEMENTS COMMITTEE
REVISION OF TECHNICAL PRONOUNCEMENTS – NO. 26/2024

This revision document presents changes to Technical Pronouncements CPC 32 and 48.
This document establishes redactional changes to Technical Pronouncements CPC 32 - Income Taxes and CPC 48 - Financial Instruments, aiming to adjust the adherence of their text to international accounting standards. The added text is underlined and the excluded text is struck through. The validity of these changes will be established by the regulatory bodies.

1. It alters the table of Example 8 – Leases in CPC 32 - Income Taxes, which shall now have the following wording:

Example 8 – Leases
...
Summary of recognized deferred tax
...
Value
Book Value
Tax Base
Deductible/
(Taxable)
Temporary Difference
Deferred Tax
Asset /
Liability
Lease of asset
Leased asset 15 - (15) (3)
Prepaid lease payment
5 - (3) (5) (1)
Initial measurement value of lease liability
435 - (435) (87)
Lease liability
Lease liability
435 - 435 87
11

SECURITY AND EXCHANGE COMMISSION OF BRAZIL (CVM) 7 de Setembro Street, 111/2-5th and 23-34th Floors, Center, Rio de Janeiro/RJ – ZIP: 20050-901 – Brazil - Tel.: (21) 3554-8686 Cincinato Braga Street, 340/2nd, 3rd and 4th Floors, Bela Vista, São Paulo/SP – ZIP: 01333-010 – Brazil - Tel.: (11) 2146-2000 SCN Q.02 – Bl. A – Corporate Financial Center Building, S.404/4th Floor, Brasília/DF – ZIP: 70712-900 – Brazil - Tel.: (61) 3327-2030/2031 www.cvm.gov.br

2. It alters item 5.7.2 of CPC 48 - Financial Instruments, which shall now have the following wording:

5.7.2 The gain or loss on a financial asset that is measured at amortized cost and that is not part of a hedging relationship (see items 6.5.8 to 6.5.14 and, if applicable, items 89 to 94 of CPC 38 for the accounting of fair value hedge for a portfolio hedge of interest rate risk) shall be recognized in profit or loss when the financial asset is derecognized, reclassified in accordance with item 5.6.2, through the amortization process or to recognize impairment gains or losses. The entity shall apply items 5.6.2 and 5.6.4 if it reclassifies financial assets from the amortized cost measurement category. The gain or loss on a financial liability that is measured at amortized cost and that is not part of a hedging relationship (see items 6.5.8 to 6.5.14 and, if applicable, items 89 to 94 of CPC 38 for the accounting of fair value hedge for a portfolio hedge of interest rate risk) shall be recognized in profit or loss when the financial liability is derecognized and through the amortization process (see item B5.7.2 for guidance on foreign exchange gains or losses).