Resolution CMN No. 3989 — Establishes criteria and conditions for measurement, recognition, and disclosure of share-based payment transactions by financial institutions and other institutions authorized to operate by the Central Bank of Brazil

RESOLUTION NO. 003989

Establishes criteria and conditions for measurement, recognition, and disclosure of transactions with share-based payment made by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on June 30, 2011, based on
Article 4, items VIII and XII, of the aforementioned Law, and having in
view the provisions of Article 61 of Law No. 11,941, of May 27, 2009,

RESOLVES:

Article 1. Financial institutions and other institutions
authorized to operate by the Central Bank of Brazil must observe the Technical Pronouncement CPC 10 (R1) - Share-Based Payments, approved by the Accounting Pronouncements Committee (CPC) on December 3, 2010, in the measurement, recognition, and disclosure of share-based payment transactions.

§ 1. The CPC pronouncements cited in the text of CPC 10 (R1), while not endorsed by a specific act of the National Monetary Council, cannot be applied.

§ 2. The provisions of this Resolution do not apply to consortium administrators, which will follow the rules issued by the Central Bank of Brazil in the exercise of its legal competence.

Article 2. The Central Bank of Brazil will regulate the
procedures to be observed in the preparation and disclosure of information covered by this Resolution.

Article 3. This Resolution enters into force on the date of
its publication, producing effects from January 1, 2012.

Brasília, June 30, 2011.

Alexandre Antonio Tombini
President of the Central Bank