BACEN Resolution N° 4.817

May 29, 2020 – Resolution 4.817  establishes the criteria for measurement and accounting recognition, by financial institutions and other institutions authorized to operate by the Central Bank of Brazil, of investments in affiliated, controlled and jointly controlled entities, in Brazil and abroad, including operations to acquire interest , incorporation, merger and spin-off of entities, to which these institutions belong.

Institutions must maintain the following documents for a minimum period of five years, or for a longer period due to an express determination of the Central Bank of Brazil:
1. In the case of institutions involved in incorporation, merger and spin-off operations:

  1. the financial statements prepared and published in the five years prior to the merger, merger or spin-off process;
  2. the diary book or daily balance sheets and balance sheets of the merged, merged or spun-off entities for the five years prior to the merger, merger or spin-off process;
  3. the general inventories and the reconciliation of the assets and liabilities carried out during the work of quantifying and qualifying the equity elements for the purpose of incorporation, merger or spin-off;
  4. the accounting documentation related to the bookkeeping, adjustments and accounting reconciliation of the five years prior to the process, up to the base date of the operation; and
  5. the other documents that served as basis for the equity accounting valuation and the fair value valuations resulting from the merger, merger or spin-off operation;

2. In the case of investments abroad, the working papers, calculation memories, exchange rates used, the sources of these rates and the documents related to the conversions.

Jurisdictions affected: Brazil

For more information, visit Banco Central do Brasil.

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