Normative Instruction BCB No. 426 of December 1, 2023

NORMATIVE INSTRUCTION BCB NO. 426, OF DECEMBER 1, 2023

Defines the accounting line items of the Realizable Asset group of the account list of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) for use by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

The Head of the Financial System Regulation Department (Denor), using the authority granted by Art. 23, item I, letter "a" of the Internal Regulations of the Central Bank of Brazil, annexed to Resolution BCB No. 340, of September 21, 2023, based on Art. 12 of CMN Resolution No. 4.858, of October 23, 2020, and Art. 10 of BCB Resolution No. 92, of May 6, 2021,

RESOLVES:

Art. 1. This Normative Instruction defines the accounting line items of the Realizable Asset group of the account list of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), for use by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Art. 2. The institutions mentioned in Art. 1 must register the items of current assets and long-term realizable non-circulating assets in group 1 – Realizable Asset, segregated into subgroups, observing the breakdowns and the respective codes and names of the accounts, attributes and functions defined in Annexes I to IX, as detailed below:

Art. 2. The institutions mentioned in Art. 1 must register the items of current assets and long-term realizable non-circulating assets in group 1.0.0.00.00.00-9 Realizable Asset, segregated into subgroups, observing the breakdowns and the respective codes, names of the accounts and functions defined in Annexes I to IX, as detailed below: (Wording given, from 1/8/2024, by Normative Instruction BCB No. 493, of 7/26/2024.)

I - 1.1.0.00.00.00-2 AVAILABILITIES, segregated into the line items defined in Annex I;

II - 1.2.0.00.00.00-5 INTERFINANCIAL LIQUIDITY APPLICATIONS, segregated into the line items defined in Annex II;

III - 1.3.0.00.00.00-8 SECURITIES AND MONETARY AND FINANCIAL DERIVATIVE INSTRUMENTS, segregated into the line items defined in Annex III;

IV - 1.4.0.00.00.00-1 INTERFINANCIAL RELATIONS, segregated into the line items defined in Annex IV;

V - 1.5.0.00.00.00-4 INTERDEPENDENCE RELATIONS, segregated into the line items defined in Annex V;

VI - 1.6.0.00.00.00-7 CREDIT OPERATIONS, segregated into the line items defined in Annex VI;

VII - 1.7.0.00.00.00-0 LEASING OPERATIONS, segregated into the line items defined in Annex VII;

VIII - 1.8.0.00.00.00-3 OTHER CREDITS, segregated into the line items defined in Annex VIII; and

IX - 1.9.0.00.00.00-6 OTHER VALUES AND ASSETS, segregated into the line items defined in Annex IX.

§ 1. In the bookkeeping in the subheadings with the following nomenclatures, the following functions must be observed:

I - Contractual Balance: record the balance of the operation, considering the initial value and the appropriation of interest and other remuneration and charges according to the terms and conditions provided in the contract, observing the criteria for cessation of the recognition of revenue from assets with credit recovery problems provided for in the current regulation;

II - (+/-) Transaction Costs and Revenues Included in the EIR: recording, by institutions that do not opt for the application of the differentiated effective interest rate, of the value of transaction costs and revenues included in the calculation of the effective interest rate of the financial asset, so that the book value in this line item corresponds to the difference between the balance calculated by the effective interest method and the value recorded in the Contractual Balance line item;

III - (-) Deferred Revenues - Differentiated EIR: recording, by institutions that opt for the application of the differentiated effective interest rate, of the value of revenues received in the origination or issuance of the financial asset that will be appropriated over the term of the operation;

IV - Deferred Transaction Costs - Differentiated EIR: recording, by institutions that opt for the application of the differentiated effective interest rate, of the value of transaction costs attributable to the acquisition, origination or issuance of the financial asset that will be appropriated over the term of the operation;

V - (+/-) Premium or Discount: record any premiums paid or discounts received in the acquisition of financial assets, which are not added to or deducted from the Contractual Balance;

VI - (+/-) Adjustment to Present Value - Restructured Operations: adjustment to present value, by the original effective interest rate, of the cash flows contracted in restructured operations;

VII - (-) Incurred Loss Associated with Credit Risk: record the value of the provision for incurred credit risk losses, according to the percentages defined in Annex I of BCB Resolution No. 352, of November 23, 2023;

VIII - (-) Additional Provision: recording of the value of the additional provision for expected loss established by Art. 78 of BCB Resolution No. 352, of 2023, by the institutions mentioned in the caput and in § 3 of the aforementioned article;

IX - (-) Expected Loss Associated with Credit Risk: record the value of the expected loss associated with credit risk calculated by the institution as provided in the specific regulation;

X - (+/-) Fair Value Hedge Adjustment: record the value of the adjustment resulting from the application of fair value hedge accounting, according to specific regulation; and

XI - (+/-) Fair Value Adjustment: record the value of the adjustments resulting from fair value measurement, in cases where this form of measurement is required or permitted by specific regulation.

§ 2. For the purpose of bookkeeping in the subheading (-) Expected Loss referred to in item IX of § 1, in the case of an asset for which there is a request for the establishment of an incurred loss or additional provision, the value of the expected loss calculated by the institution that exceeds the values related to these requests must be recorded in this line item.

§ 3. For the purpose of bookkeeping in the line items created by this Normative Instruction, affiliated companies are considered to be affiliated, controlled or controlling companies, as well as companies that, through direct or indirect common control, are part of the same prudential conglomerate of the institution, according to current regulation.

Art. 3. The accounting line items that make up the breakdown of subgroup 1.5.0.00.00-2 INTERDEPENDENCE RELATIONS must be used to book interdependence operation balances during the period.

Art. 3. The accounting line items that make up the breakdown of subgroup 1.5.0.00.00.00-4 INTERDEPENDENCE RELATIONS must be used to book interdependence operation balances during the period. (Wording given, from 1/7/2025, by Normative Instruction BCB No. 619, of 5/9/2025.)

Sole paragraph. The accounting line items referred to in the caput must be balanced and show a zero balance in trial balances and balance sheets.

Art. 4. The provisions of this Normative Instruction apply to accounting documents prepared from the reference date of January 2025.

Sole paragraph. From the reference date mentioned in the caput, the balances of realizable assets must be reclassified to the appropriate accounting line items created by this Normative Instruction.

Art. 5. Normative Instruction BCB No. 268, of April 1, 2022, is hereby revoked.

Art. 6. This Normative Instruction enters into force on January 1, 2025.

João André Calvino Marques Pereira

TABLES AVAILABLE IN ANNEX.

NOTE 912/2023 – BCB/DENOR, OF DECEMBER 1, 2023

Justifies the proposal for the issuance of a normative instruction that defines the accounting line items of the Realizable Asset group of the account list of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil - Cosif.

Head of Denor,

The present Note justifies the proposal for the issuance of a normative instruction by the Financial System Regulation Department (Denor), using the authority granted by Art. 23, item I, letter "a" of the Internal Regulations of the Central Bank of Brazil (BCB), annexed to Resolution BCB No. 340, of September 21, 2023, and based on Art. 10 of BCB Resolution No. 92, of May 6, 2021, to define the accounting line items of the Realizable Asset group of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif).

2. With the issuance of CMN Resolution No. 4.966, of November 25, 2021, and BCB Resolution No. 352, of November 23, 2023, which deal with the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) and on accounting procedures for defining cash flows of financial assets as solely payments of principal and interest, the application of the methodology for calculating the effective interest rate of financial instruments, the establishment of provisions for losses associated with credit risk and the disclosure of information relating to financial instruments in explanatory notes to be observed by financial institutions and other institutions authorized to operate by this Central Bank, the CMN and the BCB concluded the process of harmonization of the accounting standards provided for in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) with the international pronouncement IFRS 9 – Financial Instruments issued by the International Accounting Standards Board (IASB). In order to allow accounting bookkeeping in the Cosif chart of accounts to be aligned with the criteria and accounting procedures established in the regulation issued by the CMN and the BCB, it is necessary to alter the accounting line items of the Realizable Asset group of the Cosif account list.

3. Thus, based on BCB Resolution No. 92, of May 6, 2021, which reorders the structure of current accounts in order to allow the creation of new line items and to meet the needs arising from the implementation of international standards, the present proposal for a normative instruction consolidates the accounting line items of the Realizable Asset group, establishes the codes and nomenclatures of the subgroups, breakdowns of subgroups, titles and subheadings of accounts, as well as the functions and attributes of the titles and subheadings of accounts and the Estban code of the account titles. Consequently, Normative Instruction BCB No. 268, of April 1, 2022, will be revoked.

4. Finally, in compliance with the provisions of Art. 5 of Law No. 13.874, of September 20, 2019, Decree No. 10.411, of June 30, 2020, determines that proposals for normative acts of general interest of economic agents formulated by bodies and entities of the direct federal administration, autonomous bodies and foundations, as well as by collegial bodies through the body or entity responsible for providing administrative support, must be preceded by a Regulatory Impact Analysis (RIA).

5. However, as provided for in Art. 4, items II and VI, of this Decree, the obligation to prepare an RIA may be waived for a normative act that aims to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives or that aims to maintain convergence to international standards. In light of these provisions, the normative instruction now proposed is exempt from the preparation of an RIA.

                        For your consideration.
   

Uverlan Rodrigues Primo
Deputy Head

Agreed.

João André Calvino Marques Pereira
Department Head