Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 349

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 349
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, subsequently, re-measured at their fair values with the changes recognized
in the statement of income under “ Net gains or losses on financial assets at fair value through profit or loss”.

Fair values are obtained from quoted market
prices in active markets (for example, for exchange-traded options), including recent market transactions, and valuation techniques (for
example for swaps and foreign currency transactions), such as discounted cash-flow models and options-pricing models, as appropriate.
In the calculation of fair value, the counterparty’s and the entity’s own credit risk are considered.

Certain derivatives embedded in other financial
instruments are treated as separate derivatives when their economic characteristics and risks are not closely related to those of the
host contract and the host contract is not recorded at fair value through profit or loss. These embedded derivatives are separately accounted
for at fair value, with changes in fair value recognized in the consolidated statement of income.

The Group has structures of cash flow hedges,
whose objective is to protect the exposure to variability in cash flows attributable to a specific risk associated with all the assets
or liabilities recognized, or a component of it. The details of these structures are presented in Note 40.3 - Market risk.

iv. Recognition

Initially, the Group recognizes deposits,
securities issued and subordinated debts and other financial assets and liabilities on the trade date, in accordance with the contractual
provisions of the instrument.

v. Derecognition

Financial assets are derecognized 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 derecognized when they have been discharged, paid, redeemed, cancelled or expired. If a renegotiation or modification
of terms of an existing financial asset is such that the cash flows of the modified asset are substantially different from those of the
original unmodified asset, then the original financial asset is derecognized and the modified financial asset is recognized as a new financial
asset and initially measured at fair value.

vi. Offsetting financial instruments

Financial assets and liabilities are offset
and the net amount reported in the consolidated statement of financial position when, the Group has the intention and the legally enforceable
right to offset the recognized amounts on a net basis or realize the asset and settle the liability simultaneously.

vii. Determination of fair value

The determination of the fair value for