Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 346

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 346
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 allocated to the non-controlling
interest. When a foreign operation is partially sold or disposed, such exchange differences, which were recognized in equity, are recognized
in the consolidated statement of income as part of the gain or loss on sale.

  Cash and cash equivalents  

Cash and cash equivalents include: cash,
bank deposits, unrestricted balances held with the Central Bank of Brazil and other highly liquid short-term investments, with original
maturities of three months or less and which are subject to insignificant risk of changes in fair value, used by the Company to manage
its short-term commitments. See Note 5 (a) - “ Cash and cash equivalents”.

  Financial assets and liabilities  

i. Financial assets

The Company classifies and measures financial
assets based on the business model for the management of financial assets, as well as on the characteristics of contractual cash flow
of the financial asset.

The Company classifies financial assets
into three categories: (i) measured at amortized cost; (ii) measured at fair value through other comprehensive income (FVOCI); and (iii)
measured at fair value through profit or loss (FVTPL).

- Business model: it relates to
the way in which the Company manages its financial assets to generate cash flows. The objective (business model) of management in relation
to each portfolio is defined as either: (i) to maintain the assets to receive contractual cash flows; (ii) to maintain the assets to receive
the contractual cash flows and sales; or (iii) any other model. When the financial assets conform to the business models (i) and (ii)
the SPPI test (Solely Payment of Principal and Interest) is applied. Financial assets held under business model (iii) are measured at
FVTPL.

- SPPI Test: the purpose of this
test is to assess the contractual terms of the financial instruments to determine if they give rise to cash flows at specific dates that conform
only to the payment of the principal and interest on the principal amount.

In this context, the principal refers to
the fair value of the financial asset at the initial recognition and interest refers to the consideration for the time value of money,
the credit risk associated with the principal amount outstanding for a specific period of time and other risks and borrowing costs. Financial
instruments that do not meet the SPPI test are measured at FVTPL, such as derivatives.

  Measured at fair value through profit  

All financial assets that do not meet the
criteria of