Explanatory Note to CVM Instruction 72

EXPLANATORY NOTE TO CVM INSTRUCTION NO. 72/87.
Ref.: CVM INSTRUCTION NO. 72, of 30.11.87, which provides for the monetary update of dividends.

This Instruction deals with the accounting registration of two types of profit distribution: dividends distributed by open companies to their shareholders and dividends or profits received by open companies resulting from participation in other companies.

In the latter case, dividends/profits received from investments evaluated by the equity method are distinguished from those originating from investments evaluated at cost (transitory or permanent).

With regard to dividends distributed by open companies to their shareholders, they are to be segregated into dividends relating to profits obtained in previous fiscal years, dividends on account of the profit of the current fiscal year, and dividends proposed on account of the net profit determined at the end of the social year.

ACCUMULATED PROFITS/LOSSES
ACCUMULATED PROFITS OR LOSSES
MONETARY UPDATE OF DIVIDENDS
DIVIDENDS RECEIVED
UPDATE PERIOD
EFFECTIVE DATE

Original signed by
LUIS OCTÁVIO DA MOTTA VEIGA
President