Company: BBD
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001292814-25-003701
Chunk: 85

Company: BANK BRADESCO
Filing Date: 2025-10-30
Form: 6-K
Chunk 85
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value including direct and incremental costs, and accounted for, subsequently, at amortized cost, using the effective interest rate method.
In the case of expected loan loss, it is reported a deduction from the carrying value of the financial asset and is recognized in the
consolidated statement of income. II) Financial liabilities The Organization classifies its financial liabilities as measured at amortized
cost, using the effective interest rate method, except for financial liabilities held for trading. Financial liabilities held for trading
recognized by the Organization are derivative financial instruments that are recorded and assessed at fair value, and the respective changes
in fair value are immediately recognized in profit or loss. The Organization does not have any financial liabilities designated at fair
value through profit or loss. For the treatment of derivatives see Note 7. III) Derivative financial instruments and hedge operations
Derivative financial instruments are designed to meet the Organization’s own needs to manage its global exposure, as well to meet
customer requests, in order to manage their positions. The transactions are recorded at their fair value considering the fair value models
and methodologies adopted by Organization, and their adjustment is recorded in the income statement or equity, depending on the classification
as accounting hedge (and the category of accounting hedge). Derivative financial instruments used to mitigate the risks of exposures in
currencies, indexes, prices, rates or indexes are considered as hedge instruments, whose objectives are: (i) to ensure exposures remain
with risk limits; (ii) change, modify or reverse positions due to market changes and operational strategies; and (iii) reduce or mitigate
exposures of transactions in inactive markets, under stress or low liquidity conditions. Instruments designated for hedge accounting purposes
are classified according to their nature as: Market risk hedge: the gains and losses, realized or not, of the financial instruments classified
in this category as well as the financial assets and liabilities that are the object of the hedge, are recognized in the income statement;
Cash flow hedge: the effective portion of changes in fair value of the financial instruments classified in this category is recognized,
net of taxes, in a specific account in shareholders’ equity. The ineffective portion of the hedge is recognized directly in the
income statement; and BRADESCO | Consolidated Financial Statements 76 Consolidated Financial Statements | Notes to the Consolidated Financial
Statements Hedge of net investment in foreign operations: the financial instruments classified in this category are intended to hedge
the foreign exchange variation of investments abroad, whose functional currency is different from the Brazilian real, and