Normative Instruction BCB No. 442 of December 20, 2023

BCB NORMATIVE INSTRUCTION NO. 442, OF DECEMBER 20, 2023

Amends
BCB Normative Instructions Nos. 268, 270, 271, 273 and 275, all of April 1, 2022, and BCB Normative Instruction No. 315, of October 27, 2022, to create accounting line items in the account list of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif) for the recording of credit rights arising from judicial proceedings, as well as for liquidity financial lines.

The Head of the Department of Financial System Regulation (Denor), in use of the attribution conferred upon him by art. 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil, annexed to BCB Resolution No. 340, of September 21, 2023, based on arts. 12 of CMN Resolution No. 4.858, of October 23, 2020, and 10 of BCB Resolution No. 92, of May 6, 2021,

R E S O L V E S:

Art. 1 BCB Normative Instruction No. 268, of April 1, 2022, shall enter into force with the following alterations:

"Art. 48.
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VI - 1.8.6.00.00-7 Credit Rights Arising from Judicial Actions;

VII - 1.8.7.00.00-0 Specific Values;

VIII - 1.8.8.00.00-3 Miscellaneous; and

IX - 1.8.9.00.00-6 (-) Provisions for Other Credits." (NR)

"Art. 53-A. The accounting recording of the items of the breakdown of subgroup 1.8.6.00.00-7 Credit Rights Arising from Judicial Actions must be carried out in the following accounting titles, all with attributes UBDKIFJACTSWRLMNHYZ and Estban code 172:

I - 1.8.6.10.00-4 PRECATÓRIOS – OWN, whose function is to record the amounts to be received resulting from precatórios issued against the Union, the Federal District, the states and the municipalities, within the scope of actions owned by the institution itself;

II - 1.8.6.20.00-1 PRECATÓRIOS - ACQUIRED - WITH PUBLIC REGISTRATION, whose function is to record the amounts to be received resulting from precatórios issued against the Union, the Federal District, the states and the municipalities, acquired from third parties, with the public registration of assignment of credit rights;

III - 1.8.6.30.00-8 PRECATÓRIOS - ACQUIRED - WITHOUT PUBLIC REGISTRATION, whose function is to record the amounts to be received resulting from precatórios issued against the Union, the Federal District, the states and the Municipalities, acquired from third parties, without public registration of assignment of credit rights;

IV - 1.8.6.40.00-5 CREDIT RIGHTS IN EXECUTION PROCESS – OWN, whose function is to record the credit rights in execution processes against the Union, the Federal District, the states and the municipalities, within the scope of actions owned by the institution itself that meet the criteria provided for in the current accounting regulation for the recognition of an asset;

V - 1.8.6.50.00-2 CREDIT RIGHTS IN EXECUTION PROCESS - ACQUIRED - WITH PUBLIC REGISTRATION, whose function is to record the credit rights in execution processes against the Union, the Federal District, the states and the municipalities, acquired from third parties, with the public registration of assignment of credit rights, that meet the criteria provided for in the current accounting regulation for the recognition of an asset;

VI - 1.8.6.60.00-9 CREDIT RIGHTS IN EXECUTION PROCESS - ACQUIRED - WITHOUT PUBLIC REGISTRATION, whose function is to record the credit rights in execution processes against the Union, the Federal District, the states and the municipalities, acquired from third parties, without public registration of assignment of credit rights, that meet the criteria provided for in the current accounting regulation for the recognition of an asset; and

VII - 1.8.6.90.00-0 OTHER CREDIT RIGHTS ARISING FROM JUDICIAL ACTIONS, whose function is to record other credit rights arising from judicial actions that meet the criteria provided for in the current accounting regulation for the recognition of an asset, for which there is no specific account.

§ 1º The following accounting titles must be segregated into sub-titles:

I - 1.8.6.10.00-4 PRECATÓRIOS - OWN, all with attributes UBDKIFJACTSWRLMNHYZ:

a) 1.8.6.10.10-7 Against the Union; and

b) 1.8.6.10.20-0 Against States, Federal District and Municipalities;

II - 1.8.6.20.00-1 PRECATÓRIOS - ACQUIRED - WITH PUBLIC REGISTRATION, all with attributes UBDKIFJACTSWRLMNHYZ:

a) 1.8.6.20.10-4 Against the Union; and

b) 1.8.6.20.20-7 Against States, Federal District and Municipalities;

IV - 1.8.6.40.00-5 CREDIT RIGHTS IN EXECUTION PROCESS - OWN, all with attributes UBDKIFJACTSWRLMNHYZ:

a) 1.8.6.20.10-4 Against the Union; and

b) 1.8.6.20.20-7 Against States, Federal District and Municipalities; and

V - 1.8.6.50.00-2 CREDIT RIGHTS IN EXECUTION PROCESS - ACQUIRED - WITH PUBLIC REGISTRATION, all with attributes UBDKIFJACTSWRLMNHYZ:

a) 1.8.6.20.10-4 Against the Union; and

b) 1.8.6.20.20-7 Against States, Federal District and Municipalities.

§ 2º The recording in the titles and sub-titles provided for in this article is applicable only to precatórios issued and to credit rights in execution process of sentence that meet the recognition criteria provided for in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil." (NR)

"Art. 56.
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I - 1.8.9.96.00-3 (-) PROVISION FOR AMOUNTS TO BE RECEIVED RELATING TO PAYMENT TRANSACTIONS, with attributes UBDIFJASERLMNYZ and Estban code 174, whose function is to record the provision regarding probable losses in amounts to be received from end users, relating to payment transactions;

II - 1.8.9.97.00-2 (-) PROVISION FOR LOSSES ON CREDIT RIGHTS ARISING FROM JUDICIAL ACTIONS, with attributes UBDKIFJACTSWRLMNHYZ, whose function is to record the provision for losses regarding assets representing credit rights arising from judicial actions; and

III - 1.8.9.99.00-0 (-) PROVISION FOR OTHER DOUBTFUL COLLECTION CREDITS, with attributes UBDKIFJACTSWERLMNHYZ and Estban code 174, whose function is to record the values intended to support possible losses in other doubtful collection credits.

Sole Paragraph.
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IV - 1.8.9.97.00-2 (-) PROVISION FOR LOSSES ON CREDIT RIGHTS ARISING FROM JUDICIAL ACTIONS, all with attributes UBDKIFJACTSWRLMNHYZ:

a) 1.8.9.97.10-5 (-) Precatórios - Own - Union;

b) 1.8.9.97.15-0 (-) Precatórios - Own - States, DF and Municipalities;

c) 1.8.9.97.20-8 (-) Precatórios - Acquired - with Public Registration - Union;

d) 1.8.9.97.25-3 (-) Precatórios - Acquired - with Public Registration - States, DF and Municipalities;

e) 1.8.9.97.30-1 (-) Precatórios - Acquired - without Public Registration;

f) 1.8.9.97.35-6 (-) Credit Rights in Execution Process - Own - Union;

g) 1.8.9.97.40-4 (-) Credit Rights in Execution Process - Own - States, DF and Municipalities;

h) 1.8.9.97.45-9 (-) Credit Rights in Execution Process - Acquired - with Public Registration - Union;

i) 1.8.9.97.50-7 (-) Credit Rights in Execution Process - Acquired - with Public Registration - States, DF and Municipalities;

j) 1.8.9.97.55-2 (-) Credit Rights in Execution Process - Acquired - without Public Registration; and

k) 1.8.9.97.90-9 (-) Other Credit Rights Arising from Judicial Actions." (NR)

Art. 2 BCB Normative Instruction No. 270, of April 1, 2022, shall enter into force with the following alterations:

"Art. 11.
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LXI - ..................................................................................................................

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b) control information relating to the patrimonial and result elements, as required by specific regulation;

LXII - 3.0.9.68.00-2 OPERATIONS OF THE DESENROLA BRASIL PROGRAM, with attributes UBDKFJSWRLMNZ, whose function is to record the values relating to debt renegotiation operations, of own portfolio or assumed from third parties, contracted in the capacity of financial agents, within the scope of the Emergency Debt Renegotiation Program for Defaulting Individuals - Desenrola Brasil, in counterpart to title 9.0.9.68.00-4 OPERATIONS OF THE DESENROLA BRASIL PROGRAM; and

LXIII - 3.0.9.74.00-3 ACCOUNTING BALANCE OF CREDIT RIGHTS FROM JUDICIAL PROCESSES ON 06/30/2023, with attributes UBDKIFJACTSWRLMNHYZ, whose function is to record, by net balances of provision, the accounting balance on June 30, 2023 of the credit rights resulting from judicial proceedings recognized in the asset according to the criteria provided for in the current accounting regulation, in counterpart to title 9.0.9.74.00 ACCOUNTING BALANCE CREDIT RIGHTS JUDICIAL PROCESSES ON 06/30 – CONTROL.

§ 1º
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XXVI - ...............................................................................................................

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b) 3.0.9.97.20-0 Interest Rate, which is intended for the recording of the net capital requirement to cover market risk of the total exposure to interest rate variation;

XXVII - ..............................................................................................................

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b) 3.0.9.68.20-8 Desenrola Brasil – Range 2, which is intended for the recording of Range 2 operations contracted within the scope of the Emergency Debt Renegotiation Program for Defaulting Individuals - Desenrola Brasil; and

XXVIII - 3.0.9.74.00-3 ACCOUNTING BALANCE OF CREDIT RIGHTS FROM JUDICIAL PROCESSES ON 06/30/2023, all with attributes UBDKIFJACTSWRLMNHYZ

a) 3.0.9.74.10-6 Precatórios - Own - Union;

b) 3.0.9.74.15-1 Precatórios - Own - States, DF and Municipalities;

c) 3.0.9.74.20-9 Precatórios - Acquired - with Public Registration - Union;

d) 3.0.9.74.25-4 Precatórios - Acquired - with Public Registration - States, DF and Municipalities;

e) 3.0.9.74.30-2 Precatórios - Acquired - without Public Registration;

f) 3.0.9.74.35-7 Credit Rights in Execution Process - Own - Union;

g) 3.0.9.74.40-5 Credit Rights in Execution Process - Own - States, DF and Municipalities;

h) 3.0.9.74.45-0 Credit Rights in Execution Process - Acquired - with Public Registration - Union;

i) 3.0.9.74.50-8 Credit Rights in Execution Process - Acquired - with Public Registration - States, DF and Municipalities;

j) 3.0.9.74.55-3 Credit Rights in Execution Process - Acquired - without Public Registration; and

k) 3.0.9.74.90-0 Other Credit Rights Arising from Judicial Actions.

................................................................................................................” (NR)

Art. 3 BCB Normative Instruction No. 271, of April 1, 2022, shall enter into force with the following alterations:

“Art. 34.
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I - 4.6.1.10.00-2 CENTRAL BANK - LIQUIDITY FINANCIAL LINES AND SPECIAL PROGRAMS, with attributes UBDIFJCTSWRLMNZ, Estban code 461, whose function is to record the values relating to obligations assumed as a result of operations carried out with the Central Bank of Brazil, according to the regularly provided modalities, including liquidity financial lines;

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§ 1º The title 4.6.1.10.00-2 CENTRAL BANK - LIQUIDITY FINANCIAL LINES AND SPECIAL PROGRAMS must be segregated into the following sub-titles:

I - 4.6.1.10.10-5 Immediate Liquidity Line (LLI), with attributes UBDIFJCTSWRLMNZ;

II - 4.6.1.10.11-2 Term Liquidity Line (LLT), with attributes UBIFRLMZ;

III - 4.6.1.10.20-8 Special Loans, with attributes UBDIFSWLMNZ; and

IV - 4.6.1.10.99-2 Other Operations, with attributes UBDIFSWLMNZ.

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Art. 4 BCB Normative Instruction No. 273, of April 1, 2022, shall enter into force with the following alterations:

"Art. 11.
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XVI - 7.1.9.84.00-7 INCOME FROM CREDIT RIGHTS ARISING FROM JUDICIAL ACTIONS, with attributes UBDKIFJACTSWRLMNHYZ, whose function is to record the income relating to credit rights arising from judicial actions resulting from the remuneration expressly provided for in the instrument;

XVII - 7.1.9.85.00-6 INCOME FROM SPECIFIC CREDITS, with attributes UBDKIFSWERLMNZ, Estban code 711, whose function is to record the income from the breakdown of subgroup 1.8.5.00.00-4 Specific Credits that constitute effective revenue of the institution in the period, for which there is no specific account for bookkeeping;

XVIII - 7.1.9.86.00-5 INTERCOOPERATIVE DEPOSIT INCOMES, with attribute R, whose function is to record the remuneration obtained by single credit cooperatives for the application of resources transferred to central credit cooperatives resulting from financial centralization;

XIX - 7.1.9.88.00-3 INCOME FROM OTHER NON-FINANCIAL ASSETS MEASURED AT FAIR VALUE, with attributes UBDKIFJACTSWERLMNHYZ, Estban code 711, whose function is to record positive adjustments in the fair value of other non-financial assets acquired with the purpose of future sale and profit generation;

XX - 7.1.9.90.00-8 REVERSAL OF OPERATIONAL PROVISIONS, with attributes UBDKIFJACTSWERLMNHYZ, Estban code 711, whose function is to record the reversals of provisions constituted in previous fiscal years or semesters, except reversals of provisions constituted to meet the monthly appropriation of expenses, whose adjustments are made by reversing the corresponding expense or complementing the provision, if applicable; and

XXI - 7.1.9.99.00-9 OTHER OPERATIONAL INCOME, with attributes UBDKIFJACTSWERLMNHYZ, Estban code 711, whose function is to record the operational income that constitutes effective revenue of the institution in the period for which there is no specific account for bookkeeping, as well as for the reclassification of creditor balances presented by result accounts of a debtor nature, resulting from the recording of the exchange variation incident on passive operations with exchange adjustment clause.

................................................................................................................” (NR)

Art. 5 BCB Normative Instruction No. 275, of April 1, 2022, shall enter into force with the following alterations:

"Art. 11.
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.........................................................................................................................

LXI - ..................................................................................................................

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b) control information relating to the patrimonial and result elements, as required by specific regulation;

LXII - 9.0.9.68.00-4 OPERATIONS OF THE DESENROLA BRASIL PROGRAM, with attributes UBDKFJSWRLMNZ, whose function is to record the values relating to debt renegotiation operations, of own portfolio or assumed from third parties, contracted in the capacity of financial agents, within the scope of the Emergency Debt Renegotiation Program for Defaulting Individuals - Desenrola Brasil, in counterpart to title 3.0.9.68.00-2 OPERATIONS OF THE DESENROLA BRASIL PROGRAM; and

LXIII - 9.0.9.74.00-5 ACCOUNTING BALANCE CREDIT RIGHTS JUDICIAL PROCESSES ON 06/30 – CONTROL, with attributes UBDKIFJACTSWRLMNHYZ, whose function is to record, by net balances of provision, the accounting balance of the credit rights resulting from judicial proceedings on June 30, 2023, in counterpart to title 3.0.9.74.00-3 ACCOUNTING BALANCE CREDIT RIGHTS JUDICIAL PROCESSES ON 06/30.

...............................................................................................................” (NR)

Art. 6 BCB Normative Instruction No. 315, of October 27, 2022, shall enter into force with the following alterations:

"Art. 11.
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Sole Paragraph.
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IV - ...................................................................................................................

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r) 8.1.8.30.97-6 (-) Losses from Reduction to Recoverable Value - Assets and Liabilities Not Recorded in the Investee, with attributes UBDKIFJACTSWELMNHYZ;

s) 8.1.8.30.98-3 (-) Provisions for Losses on Credit Rights Arising from judicial actions, with attributes UBDKIFJACTSWRLMNHYZ; and

t) 8.1.8.30.99-0 (-) Others, with attributes UBDKIFJACTSWERLMNHYZ; and

...............................................................................................................” (NR)

Art. 7 The provisions of this Normative Instruction apply to accounting documents prepared from the January 2024 reference date.

Sole Paragraph. From the reference date mentioned in the caput, any accounting balances relating to credit rights in judicial processes registered in other accounting line items must be reclassified to the adequate accounting line items created by this Normative Instruction.

Art. 8 Letters “a” and “b” of item I of art. 34 of BCB Normative Instruction No. 271, of April 1, 2022, are hereby repealed.

Art. 9 This Normative Instruction enters into force on January 1, 2024.

Renato Kiyotaka Uema

NOTE 949/2023 – BCB/DENOR, OF DECEMBER 20, 2023

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

Head of Denor:

This Note justifies the proposal for the issuance of a normative instruction that creates accounts for the accounting recording of credit rights arising from judicial actions, according to the competence of the Department of Financial System Regulation (Denor), in use of the attribution conferred upon him by art. 23, item I, letter "a", of the Internal Regulations of the Central Bank of Brazil (BCB), annexed to BCB Resolution No. 340, of September 21, 2023, based on arts. 12 of CMN Resolution No. 4.858, of October 23, 2020, and 10 of BCB Resolution No. 92, of May 6, 2021.

2. BCB Resolution No. 346, of October 5, 2023, established specific prudential treatment for exposures resulting from judicial actions against the Union, the States, the Federal District and the Municipalities. Thus, this normative instruction aims to update the account plan of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), in order to allow better accounting disclosure and prudential monitoring of these assets.

3. It is worth highlighting that the accounting treatment now established is applicable only to precatórios issued and to credit rights in execution process of sentence that meet the recognition criteria provided for in Cosif, which are aligned with international accounting standards. According to these criteria, only items that, in addition to meeting the definition of an asset, allow a faithful representation, that is, that can be measured reliably, should be included in the balance sheet. Furthermore, according to Technical Pronouncement CPC 25, received by CMN Resolution No. 3.823, of December 16, 2009, and by BCB Resolution No. 9, of August 12, 2020, the entity should not recognize a contingent asset, thus considered the possible asset that results from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future uncertain events not fully under the control of the entity. When the realization of the gain is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.

4. Additionally, this normative instruction adds to the list of Cosif accounts the line items necessary for the specific accounting recording of participations in the Liquidity Financial Lines (LFL), instituted by BCB Resolution No. 110, of July 1, 2021.

5. In compliance with the provisions of art. 5 of Law No. 13.874, of September 20, 2019, Decree No. 10.411, of 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).

6. However, as provided for in art. 4, items II and III, of this Decree, the obligation to prepare an RIA may be waived for a normative act of low impact or that aims to regulate rights or obligations defined in a hierarchically superior norm that does not allow, technically or legally, different regulatory alternatives. 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 Chief

In agreement.

Renato Kiyotaka Uema

Head of Department - Substitute