Resolution CMN No. 4776 — General Criteria for Preparation and Disclosure of Consolidated Financial Statements by Financial Institutions

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 January 29, 2020, based on Articles 4 (items VIII and XII), 31, and 37 of the aforementioned Law, and Article 61 of Law No. 11,941 of May 27, 2009,

R E S O L V E D:

CHAPTER I

OF THE OBJECT AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes the general criteria for the preparation and disclosure of consolidated financial statements by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Sole Paragraph. The provisions of this Resolution do not apply:

I - to credit cooperatives; and

II - to consortium administrators and payment institutions, which must observe the regulations issued by the Central Bank of Brazil in the exercise of their legal duties.

CHAPTER II

OF THE PREPARATION AND PRESENTATION OF CONSOLIDATED STATEMENTS

Art. 2. The institutions mentioned in the caput of Art. 1, constituted as open companies or that are leaders of prudential conglomerates classified in Segment 1 (S1), Segment 2 (S2), or Segment 3 (S3), according to current regulations, must prepare consolidated annual financial statements adopting the international accounting standard, in accordance with pronouncements issued by the International Accounting Standards Board (IASB), translated into Portuguese by a Brazilian entity accredited by the International Financial Reporting Standards Foundation (IFRS Foundation).

§ 1. The provisions of the caput also apply:

I - to the institution constituted as a closed company, leader of an economic group integrated by an institution constituted as an open company; and

II - to the institution leader of an economic group that meets the criteria provided for in specific regulation for classification in Segment 1 (S1), Segment 2 (S2), and Segment 3 (S3).

§ 2. In the preparation of the consolidated financial statements referred to in the caput, the effective date of validity of the pronouncements issued by the IASB must be observed.

§ 3. The early adoption of the pronouncements provided for in the caput is conditioned to specific normative provision.

Art. 3. The institutions mentioned in the caput of Art. 1, which, not being constituted as open companies and not being leaders of prudential conglomerates classified in Segment 1 (S1), Segment 2 (S2), and Segment 3 (S3), disclose or publish consolidated financial statements, voluntarily or due to legal, regulatory, statutory, or contractual provisions, must adopt, from January 1, 2022, the international accounting standard, as provided in Art. 2, in the preparation of these statements.

Sole Paragraph. The provisions of the caput:

I - also apply to consolidated financial statements relating to periods of less than one year;

II - cannot be applied before January 1, 2022, except in the case of voluntary disclosure or publication; and

III - do not apply to the consolidated financial statements of the Prudential Conglomerate.

Art. 4. The institutions mentioned in the caput of Art. 1 must report, in explanatory notes to the financial statements governed by this Resolution, any existing differences between the criteria, procedures, and rules for identification, classification, recognition, and measurement applied in the consolidated statements and those applied in the financial statements for mandatory disclosure or publication relating to the same accounting period.

CHAPTER III

OF THE DISCLOSURE OF CONSOLIDATED STATEMENTS

Art. 5. Subject to other legal and regulatory provisions in force, the financial statements governed by this Resolution must be disclosed in the Central Financial Statements of the National Financial System, on the official electronic address of the Central Bank of Brazil on the internet.

Sole Paragraph. In the case of new disclosures of the consolidated financial statements governed by this Resolution, carried out voluntarily or by determination of the Central Bank of Brazil in the exercise of its legal duties, the institution must mention in explanatory notes the facts determining the new disclosure.

Art. 6. The financial statements governed by this Resolution must be disclosed accompanied by the report of the independent auditor and the management report on the business affairs and main administrative facts of the period.

Sole Paragraph. In the intermediate consolidated financial statements, the disclosure of the management report is optional.

CHAPTER IV

GENERAL, FINAL AND TRANSITORY PROVISIONS

Art. 7. The institutions mentioned in Art. 1 must immediately, in an integral and unrestricted manner, comply with the requests of the Central Bank of Brazil for access to information, data, consolidation maps, documents, interrogations, questions, and verifications necessary for the adequate assessment of the active and passive operations and the risks assumed by the consolidated entities, regardless of their nature or operational activity.

Art. 8. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution, including providing for:

I - the deadlines for preparation and disclosure and the format of the consolidated financial statements; and

II - the accounting criterion to be observed by institutions in cases where there is more than one option provided for in the accounting standard referred to in Art. 2.

Art. 9. It is optional, until January 1, 2022, for the institutions mentioned in Art. 1 that, on the date of entry into force of this Resolution, were not obliged to prepare and disclose financial statements in accordance with the provisions of Art. 2, to prepare and disclose such statements.

Art. 10. The Regulation Annexed to Resolution No. 3,198 of May 27, 2004, shall enter into force with the following alteration:

“Art. 21. .....................................................

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§ 4. In the intermediate financial statements, the substitution of the independent auditor's report referred to in item I of the caput by the limited review report of the independent auditor is optional.” (NR)

Art. 11. The following are revoked:

I - Resolution No. 3,786 of September 24, 2009; and

II - Resolution No. 3,853 of April 29, 2010.

Art. 12. This Resolution enters into force on the date of its publication.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil