Resolution CMN No. 4,842 — Consolidates General Criteria for Measurement and Recognition of Current and Deferred Tax Assets and Liabilities

Resolution CMN No. 4,842 consolidates the general criteria for measuring and recognizing current and deferred tax assets and liabilities for financial institutions and other entities authorized by the Central Bank of Brazil. It establishes strict conditions for recognizing deferred tax assets, including a requirement for a technical study demonstrating the probability of generating taxable profits within ten years and a history of profitability in at least three of the last five fiscal years. The resolution mandates the write-down of deferred tax assets if these conditions are not met or if realized values fall below 50% of projections, and it revokes several previous resolutions and circulars effective January 1, 2021.

BCB published 15 documents in the last 30 days — get each new one by email the day it lands.

Resolution No. 4,842

RESOLUTION CMN No. 4,842, OF JULY 30, 2020

Consolidates the general criteria for the measurement and recognition of current and deferred tax assets and liabilities by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes it known that the Monetary Council, in a session held on July 30, 2020, based on Arts. 4, items VIII and XII, and 31 of the aforementioned Law, and on Art. 61 of Law No. 11,941, of May 27, 2009, and considering the provisions of Decree No. 10,139, of November 28, 2019,

Read the rest free, and get an email when BCB publishes again

Email me when BCB publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: Amended

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

Amended 1 time · last 2024-01-25

2024-01-25BCBResolution CMN No. 5116 – Amendments to multiple resolutions to exclude securities brokerages, securities distributors and foreign‑exchange brokerages from their scopeamends

Source: Banco Central do Brasil — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works