Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003701
Chunk: 86

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 86
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 are accounted
for in accordance with the accounting procedures applicable to cash flow hedges, that is, with the effective portion recognized in shareholders'
equity, net of tax effects, and the non-effective portion recognized in the income statement. For derivatives classified in the hedge
accounting category, there is a monitoring of: (i) strategy effectiveness, through prospective and retrospective effectiveness tests,
and (ii) valuation of fair value of hedge instruments. A breakdown of amounts included as derivative financial instruments, in the statement
of financial position and memorandum accounts, is presented in Note 7. IV) Write-off Financial assets are written off when there is no
reasonable expectation of recovery, when the contractual rights to receive the cash flows from these assets have ceased to exist or the
assets have been transferred and substantially all the risks and rewards of ownership of the assets are also transferred. Financial liabilities
are written off by the Organization when they have been discharged, paid, redeemed, cancelled or expired. . V) Restructuring Restructured
financial assets are those in which there is a significant concessions to the counterpart, due to the relevant deterioration of its creditworthiness,
which would not be granted if such deterioration did not occur. The transactions of the restructuring portfolio are shown in Note 12 e.
VI) Determination of fair value The determination of fair value for the majority of financial assets and liabilities is based on the market
price or quotes of security dealers for financial instruments traded in an active market. The fair value for other instruments is determined
using valuation techniques. The valuation techniques which include use of recent market transactions, discounted cash flow method, comparison
with other instruments similar to those for which there are observable market prices and valuation models. For more commonly handled instruments,
the Organization uses widely accepted valuation models that consider observable market data in order to determine the fair value of financial
instruments. For more complex instruments, the Organization uses its own models that are usually developed from standard valuation models.
Some of the information included in the models may not be observable in the market and is derived from market prices or rates or may be
estimated on the basis of assumptions. BRADESCO | Consolidated Financial Statements 77 Consolidated Financial Statements | Notes to the
Consolidated Financial Statements The value produced by a model or by a valuation technique is adjusted to reflect various factors, since
the valuation techniques do not necessarily reflect all of the factors that market participants take into account during a transaction.
The valuations are adjusted to consider the risks of the models,