CVM Resolution No. 41 of July 22, 2021

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

CVM RESOLUTION NO. 41, OF JULY 22, 2021
Approves the Revision Document of Technical Pronouncement No. 18, issued by the Accounting Pronouncements Committee – CPC.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION OF BRAZIL – CVM makes public that the Board, in a meeting held on July 21, 2021, 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 Pronouncement No. 18 issued by the Accounting Pronouncements Committee - CPC, attached to this Resolution.

Art. 2. This Resolution enters into force on August 2, 2021, applying to fiscal years beginning on or after January 1, 2021, and to those whose financial statements had not been authorized for release on the date of entry into force of this Resolution.

Signed electronically by
MARCELO BARBOSA
President

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

CVM RESOLUTION NO. 41, OF JULY 22, 2021
ACCOUNTING PRONOUNCEMENTS COMMITTEE
REVISION OF TECHNICAL PRONOUNCEMENTS – NO. 18/2021

This document establishes changes in Technical Pronouncement CPC 06 (R2) - Leases due to Benefits beyond June 30, 2021 related to Covid-19 Granted to Lessees in Lease Contracts. The effectiveness of this change will be established by the regulatory bodies that approve it.

1. Amends letters b and c of item 46B and includes items C1C, C20BA, C20BB and C20BC, which shall enter into force with the following wording:

46B. The practical expedient of item 46A applies only to Benefits Granted in Lease Contracts that occur as a direct consequence of the Covid-19 pandemic and only if all of the following conditions are met:
(a) the change in lease payments results in a revised consideration for the lease that is substantially the same as or less than the consideration for the lease immediately prior to the change; (b) any reduction in lease payments affects only payments originally due on or before June 30, 2022 (for example, a benefit granted in a lease would meet this condition if it resulted in reduced lease payments on or before June 30, 2022 and in increased lease payments that extend beyond June 30, 2022); and (c) there is no substantial change in other terms and conditions of the lease contract.

Appendix C
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Effective Date

C1C. The Revision of Technical Pronouncements No. 18, approved on June 11, 2021, regarding Covid-19-Related Benefits Granted to Lessees in Lease Contracts that go beyond June 30, 2021, approved by the CPC in 2021, modified item 46B and added items C20BA and C20BB. The effectiveness of this revision of pronouncements will be established by the regulatory bodies that approve it.

This revision document presents changes in Technical Pronouncement CPC 06 (R2), regarding Covid-19-Related Benefits Granted to Lessees in Lease Contracts that go beyond June 30, 2021.

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

CVM RESOLUTION NO. 41, OF JULY 22, 2021
Covid-19-related benefit in lease contract for lessees

C20BA. The lessee must apply the Covid-19-Related Benefit Granted in Lease Contracts that go beyond June 30, 2021 (see item C1B) retrospectively, recognizing the cumulative effect of initial application of this revision as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the period in which the lessee first applies the revision.

C20BB. In the period in which the lessee first applies the Covid-19-Related Benefit Granted in Lease Contracts that go beyond June 30, 2021, the lessee does not need to disclose the information required by item 28 (f) of CPC 23 – Accounting Policies, Changes in Accounting Estimates and Errors.

C20BC. When applying item 2 of this Pronouncement, the lessee must apply the practical expedient of item 46A consistently to contracts that meet the conditions and have similar characteristics and are in similar circumstances, regardless of whether the contract became eligible for the practical expedient regarding Covid-19-Related Benefits Granted to Lessees in Lease Contracts (as described in item C1A) or after June 30, 2021 (as described in item C1C).