Explanatory Note to CVM Instruction 052

EXPLANATORY NOTE TO CVM INSTRUCTION NO. 52.
REF.: CVM INSTRUCTION NO. 052, of June 18, 1986, which provides for complementary monetary correction based on the OTN of CZ$ 106.40.

In order to maintain the balance between pro-rata monetary correction of monetary assets and liabilities and the monetary correction system of financial statements, it became necessary to also adopt a pro-rata value for the updating of permanent asset accounts and equity in the extraordinary financial statements of 28.02.86. For this purpose, CVM INSTRUCTION NO. 050/86 established the value of CZ$ 99.50, which corresponds to the geometric mean between the ORTN of February (Cr$ 93,039.40) and the OTN of March (Cz$ 106.40).

With the issuance of SRF Normative Instruction No. 074, of 28.05.86, providing for monetary correction on June 30 or December 31, 1986, based on the OTN of CZ$ 106.40, and in order to homogenize accounting procedures by open companies, it became necessary to issue this Instruction determining that complementary monetary correction be carried out on 30.06.86 on the balances of permanent asset and equity accounts presented in the extraordinary financial statements of 28.02.86.

However, it is admitted for open companies that closed their fiscal year in March, April, or May 1986 to carry out this monetary correction on the date of closing that fiscal year.

The balance of the counterparties of the complementary monetary correction shall be recorded, in a highlighted manner, directly in the account named "Adjustments of the Economic Stabilization Program-DL 2284/86", which will be subject to allocation at the end of the fiscal year.