Normative Instruction BCB No. 537 of November 5, 2024

NORMATIVE INSTRUCTION BCB NO. 537, OF NOVEMBER 5, 2024

Amends Normative Instruction BCB No. 426, of December 1, 2023, which defines the accounting line items of the Realizable Asset group in the list 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 upon him 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 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. 1st An accounting line item is included in Annex VII of Normative Instruction BCB No. 426, of December 1, 2023, published in the Official Gazette of the Union on December 14, 2023, as follows, observing the order of the "Account Code" column:

Account Code	Account Name	Estban	Function
1.7.5.20.60.00-5	(-) Expected Loss Associated with Credit Risk	-

Art. 2nd The following accounting line items are excluded from Annex VII of Normative Instruction BCB No. 426, of 2023:

Account Code	Account Name	Estban	Function
1.7.4.20.50.00-1	(-) Additional Provision	-
1.7.5.20.70.00-2	(-) Expected Loss Associated with Credit Risk	-

Art. 3rd The following accounting line item is amended in Annex VIII of Normative Instruction BCB No. 426, of 2023:

Account Code	Account Name	Estban	Function
1.8.1.20.00.00-8	ADVANCE ON FOREIGN EXCHANGE CONTRACT	172	Record values related to advances in foreign exchange contracts.

Art. 4th The following accounting line item is amended in Annex IX of Normative Instruction BCB No. 426, of 2023:

Account Code	Account Name	Estban	Function
1.9.8.90.40.00-1	Works of Art	-	Record works of art maintained by the entity.
1.9.9.00.00.00-9	Expenses to be Appropriated	-

Art. 5th An accounting line item is included in Annex IX of Normative Instruction BCB No. 426, of 2023, as follows:

Account Code	Account Name	Estban	Function
1.9.9.20.00.00-7	LOSSES IN INITIAL RECOGNITION TO BE APPROPRIATED	190	Record deferred losses resulting from the difference, at initial recognition, between the value of the consideration paid or received in the acquisition, origination, or issuance of the financial instrument, except those classified in the amortized cost category, and its fair value, when this is measured at level 3 of the fair value hierarchy.

Art. 6th This Normative Instruction enters into force on November 11, 2024.

GILNEU FRANCISCO ASTOLFI VIVAN

NOTE 757/2024
– BCB/DENOR, OF NOVEMBER 5, 2024

Supports proposal for issuance of normative instruction that alters accounting line items of the Realizable Asset group in the list of accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif).

Dear Head of Denor,

This Note supports the proposal for issuance of a normative instruction that alters accounting line items in the list of accounts of the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), according to the competence of the Financial System Regulation Department (Denor), in the exercise of the authority conferred in 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 Arts. 12 of CMN Resolution No. 4,858, of October 23, 2020, and 10 of BCB Resolution No. 92, of May 6, 2021.

2.             After completion of the harmonization process of the accounting standards provided for in Cosif with the international pronouncement IFRS 9 – Financial Instruments, issued by the International Accounting Standards Board (IASB), it was necessary to promote changes in the structure of the Cosif chart of accounts, in order to allow the creation of new line items and to meet the needs derived from the implementation of international standards.
   

3.                 Thus, in December 2023, based on Resolution BCB No. 92, of 2021, normative instructions were issued consolidating the structure of the Cosif chart of accounts, with effect from January 2025. However, after the issuance of the normative instructions, it was found necessary to make some adjustments, in order to incorporate new changes to the structure of accounts, to meet new legal and regulatory requirements, correct improprieties, and improve the quality of information provided. Therefore, it is necessary to adjust Annexes VII, VIII, and IX of Normative Instruction BCB No. 426, of December 1, 2023, which defines the accounting line items of the Realizable Asset group in the list of accounts of Cosif.
   

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 collegiate bodies through the body or entity responsible for providing them administrative support, must be preceded by Regulatory Impact Analysis (RIA).
   

5.               However, as provided in Art. 4, items II, IV, and VII, of this Decree, the obligation to prepare 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, that aims to update or revoke norms considered obsolete, without change of merit, and also for normative acts that reduce requirements, obligations, restrictions, requests, or specifications with the objective of reducing regulatory costs. In view of these provisions, the normative instruction now proposed is exempt from the preparation of RIA.
   
                        For your consideration,
   

UVERLAN RODRIGUES PRIMO
Deputy Chief

Agreed.

GILNEU FRANCISCO ASTOLFI VIVAN
Department Head