DENOR’s COSIF Restructuring Project, Changes and Impacts on Financial Institutions in Brazil

By: Marlene Dos Santos, Subject Matter Expert Brazil, AxiomSL

DENOR - COSIF Restructuring ProjectCOSIF – Accounting Plan for Financial Institutions – was created in 1987, by DemoCircular 1273, with the objective of unifying the plans of accounts and standardizing the procedures for accounting records and preparation of Financial Statements. DENOR’s COSIF Restructuring Project is being prepared to modernize the system which will be implemented on a Web platform, and the idea is to make it more agile, versatile and easy to use.

Below is the context and the main changes, according to the DENOR’s COSIF Restructuring Project document.

Despite a general recognition that nations often and quite rightly protect their sovereign interests in this way, there is a perception among investment management organizations that the beneficial ownership threshold bars are set quite high – high enough that sensitive industries monitoring may seem a less pressing concern.

Actual structure

  • 5 levels of accounts
  • Levels 1 to 3 with 1 digit
  • Attributes limited to the alphabet

Evolution of the National Financial System

  • New Products
  • New Institution segments

Current Restrictions

  • Outdated structure
  • Insufficient levels for registration in some account groups
    – Securities
    – Credit Operations
  • Loss of Consistency
  • Controls in compensation for information typical of equity or income accounts
  • Classification of securities
  • Tax credits


  • Increase to 2 digits in the subgroup (level 2) and split of subgroup (level 3).
    the Example:
  • Creation of additional subtitles (6th level or more) for accounts where current levels are insufficient
  • General rule remains 5 levels


Stage I: Standard effective from January 2022

  • 2nd digit in levels 2 and 3: addition of zero to the left in current accounts:
    – Current account:
    – New account:
  • Additional subtitles: standard provides for the possibility of creation, but will not be used in this stage
  • Deleting unnecessary or obsolete accounts

Stage II: Reformulation of COSIF

  • Full account review – Deleting all current accounts and creating new ones
  • Additional subtitles (6th level or more) in the accounts for which they are needed
  • Higher correlation Assets – Revenue / Liabilities – Expense
  • Reduction of controls in compensation

Impacts on Financial Institutions and other Institutions Authorized by BACEN due to DENOR’s COSIF Restructuring Project

  • Efforts by professionals in the area to interpret and implement the new details and new functions of the accounts.
  • A significant impact is expected for changes in accounting systems and legacy systems that generate accounting entries, to adapt to the new plan, which does not only imply linking to new accounts, but also analyzing the functions of accounts, changes and creating new accounts. accounting events and schemes to meet the new requirement.
  • Regulatory reports that use the Balance Sheet as a source of data, will have to analyze the impact of new or removed accounts, in addition to having to change the mappings of various documents. Example: DRM, DLO, SCR, Estban, etc.
  • Change in the configuration of the Federal Revenue reports, which use COSIF as a Data Source.
  • Internal reports of accounting and management reconciliations, may also have to be redesigned.

The system is already available for use testing and training in the approval environment, and user management must be performed by the unit’s master in that environment.

We look forward to discussing your concerns about DENOR’s COSIF Restructuring Project, its impact in regulatory reports and how AxiomSL’s solutions address these wave of changes – here!

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