Normative Instruction BCB No. 429 — Defines the accounting items of the Required Liabilities group of the Chart of Accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif)

BCB NORMATIVE INSTRUCTION NO. 429, OF DECEMBER 1, 2023

Defines the accounting items of the Required Liabilities group of the Chart of Accounts 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), in the exercise of the authority conferred 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 items of the Required Liabilities group of the Chart of Accounts 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 required liabilities in group 4.0.0.00.00.00-6 Required Liabilities, segregated into subgroups, observing the breakdowns and the respective codes and names of the accounts and functions defined in Annexes I to IX, as detailed below: (Wording given, from 1/8/2024, by BCB Normative Instruction No. 496, of 7/26/2024.)

I - 4.1.0.00.00.00-9 DEPOSITS, segregated into the items defined in Annex I;

II - 4.2.0.00.00.00-2 OBLIGATIONS BY COMMITTED OPERATIONS, segregated into the items defined in Annex II;

III - 4.3.0.00.00.00-5 OTHER DEBT INSTRUMENTS, segregated into the items defined in Annex III;

IV - 4.4.0.00.00.00-8 INTERFINANCIAL RELATIONS, segregated into the items defined in Annex IV;

V - 4.5.0.00.00.00-1 INTERDEPENDENCY RELATIONS, segregated into the items defined in Annex V;

VI - 4.6.0.00.00.00-4 OBLIGATIONS BY LOANS AND RE-PASSING, segregated into the items defined in Annex VI;

VII - 4.7.0.00.00.00-7 FINANCIAL DERIVATIVE INSTRUMENTS, segregated into the items defined in Annex VII;

VIII - 4.8.0.00.00.00-0 PROVISIONS AND OTHER OBLIGATIONS WITH FINANCIAL INSTRUMENTS, segregated into the items defined in Annex VIII; and

IX - 4.9.0.00.00.00-3 OTHER OBLIGATIONS, segregated into the items defined in Annex IX.

Sole Paragraph. For the purposes of bookkeeping in the items created by this Normative Instruction, the following are considered:

I - affiliated companies: affiliated, controlled, or controlling companies, as well as companies that, through direct or indirect common control, form the same prudential conglomerate of the institution, according to current regulation; and

II - natural or legal persons affiliated with the institution: its administrators and other members of statutory bodies, its controllers and companies controlled by them, directly or indirectly, and affiliated companies under common control.

Art. 3 The accounting items that make up the breakdown of subgroup 4.5.0.00.00.00-1 INTERDEPENDENCY RELATIONS must be used for bookkeeping of interdependency operation balances during the period.

Sole Paragraph. The accounting items referred to in the main text 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 January 2025 reporting base.

Sole Paragraph. From the reporting base mentioned in the main text, the accounting balances of required liabilities must be reclassified into the adequate accounting items created by this Normative Instruction.

Art. 5 BCB Normative Instruction No. 271, 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 915/2023 – BCB/DENOR, OF DECEMBER 1, 2023

Justifies the proposal for the issuance of a normative instruction that defines the accounting items of the Required Liabilities group of the Chart of Accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil - Cosif.

Dear Head of Denor:

This Note justifies the proposal for the issuance of a normative instruction by the Financial System Regulation Department (Denor), in the exercise of the authority conferred 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 items of the Required Liabilities 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 provide for the concepts and accounting criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) and for the 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 the Central Bank of Brazil, the CMN and the BCB concluded the process of harmonizing 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 accounting criteria and procedures established in the regulation issued by the CMN and the BCB, it is necessary to alter the accounting items of the Required Liabilities group of the Cosif chart of accounts.

3. Thus, based on BCB Resolution No. 92, of May 6, 2021, which reorders the current account structure in order to allow the creation of new items and to meet the needs derived from the implementation of international standards, this proposal for a normative instruction consolidates the accounting items of the Required Liabilities group, establishes the codes and nomenclatures of subgroups, subgroup breakdowns, accounting titles and subtitles, as well as the functions and attributes of the accounting titles and subtitles and the Estban code of the accounting titles. Consequently, BCB Normative Instruction No. 271, 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, autarchic, and foundation federal public administration, as well as by collegial bodies through the body or entity responsible for providing them with 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. Thus, 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