Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 371

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 371
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      6 / 8 / 29 / 30 and 40.4  
  ● Expected credit loss                                        10 / 11 and 40.2          
  ● Impairment of intangible assets and goodwill                15                        
  ● Insurance contract liabilities                              21                        
  ● Other provisions                                            22                        
  ● Realization of deferred income tax                          37                        

Fair value of financial instruments

Financial instruments recognized at fair
value in our consolidated financial statements consist primarily of financial assets measured at fair value through profit or loss, including
derivatives and financial assets classified as measured at fair value through other comprehensive income. The fair value of a financial
instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the reporting date.

These financial instruments are categorized
within a hierarchy based on the lowest level of input that is significant to the fair value measurement. For instruments classified as
level 3, we have to apply a significant amount of our own judgment in arriving at the fair value measurement. We base our judgment decisions
on our knowledge and observations of the markets relevant to the individual assets and liabilities, and those judgments may vary based
on market conditions. In applying our judgment, we look at a range of third-party prices and transaction volumes to understand and assess
the extent of market benchmarks available and the judgments or modeling required in third-party processes. Based on these factors, we
determine whether the fair values are observable in active markets or whether the markets are inactive.

Imprecision in estimating unobservable
market inputs can impact the amount of revenue or loss recorded for a particular position. Furthermore, while we believe our valuation
methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine
the fair value of certain financial instruments could result in a different estimate of fair value on the reporting date. For a detailed
discussion about the determination of fair value of financial instruments, see Note 40.5. - fair value of financial assets and liabilities.

Expected credit loss

The provision for expected credit losses
on loans and advances to customers, loan commitments, financial guarantees, financial assets are measurement at fair value through other
comprehensive income and securities at amortized cost.

Several significant judgments are also
required to apply the accounting requirements for the measurement of the expected credit loss, such as:

  Determine the criteria in order to identify the significant increase  
  of credit risk;                                                       
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