Published on June 26, 2024 by the National Monetary Council – CMN, CMN Resolution No. 5,146 proposes adjustments to CMN Resolution No. 4,966, of November 25, 2021, which establishes the criteria and concepts for classification, recognition, measurement, provisioning and write-off of financial instruments, as well as for the designation and recognition of protection relationships by financial institutions and others authorized to operate by the Central Bank of Brazil – BCB, harmonizing the Accounting Standard of institutions regulated by the BCB – Cosif, with the international pronouncement IFRS 9 issued by the International Accounting Standards Board (IASB).

In this sense, CMN Resolution 5,146/2024 seeks to increase convergence with the international standard, providing, for the purpose of achieving a simplified methodology, the same treatment applied in the complete methodology. Therefore, CMN Resolution 5,146/2024 characterizes all instruments of the same counterparty as a problematic asset when an instrument is characterized in this way, exceptionally allowing the non-characterization of a certain instrument that, due to its nature or purpose, presents a significantly lower credit risk.

Considering that, until 2027, there will continue to be relevant differences between the accounting criteria provided for in the regulation applicable to institutions authorized to operate by the BCB (Cosif standard) and the international standard, financial institutions and other institutions authorized by the BCB are authorized to prepare and disclose consolidated financial statements in accordance with Cosif, until the fiscal year 2027, in addition to the statements in the international accounting standard, as provided for in Resolution No. 4,818, of May 29, 2020. CMN Resolution No. 5,146/2024 shall come into effect on August 1, 2024.