Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 352

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 352
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Income from financial assets measured
at amortized cost and at FVOCI and interest costs from liabilities classified at amortized cost are recognized on an accrual basis in
the consolidated statement of income, using the effective interest rate method, except instruments of equity cost. The effective interest
rate is the rate that discounts estimated future cash payments and receipts throughout the expected life of the financial asset or liability
(or, when appropriate, a shorter period) to the carrying amount of the financial asset or liability. When calculating the effective rate,
the Company estimates future cash flows considering all contractual terms of the financial instrument, but not future loan losses.

The calculation of the effective
interest rate includes all commissions, transaction costs, discounts or bonuses which are an integral part of such rate. Transaction costs
are incremental costs directly attributable to the acquisition, issuance or disposal of a financial asset or liability.

  Non-current assets held for sale  

Under certain circumstances, property
is repossessed following foreclosure of loans that are in default. Repossessed properties are measured at the lower of their carrying
amount or fair value less the costs to sell and are included within non-current assets held for sale.

  Property and equipment  

  Recognition and valuation  

Property and equipment are measured at
cost less accumulated depreciation and accumulated impairment losses (see Note 2(i) below), if any. The cost includes expenses directly
attributable to the acquisition of an asset.

The cost of assets internally produced
includes the cost of materials and direct labor, as well as any other costs that can be directly allocated and that are necessary for
them to function.

When parts of an item have different useful
lives, and separate control is practical, they are recorded as separate items (main components) comprising the property and equipment.

Useful lives and residual values are reassessed
at each reporting date and adjusted, if appropriate.

Gains and losses from the sale of property
and equipment are determined by comparing proceeds received with the carrying amount of the asset and are recorded in the consolidated
statement of income under the heading “ Other operating income/(expenses)”.

  ii.      Subsequent costs  

Expenditure on maintenance and repairs
of property and equipment items is recognized as an asset when it is probable that future economic benefits associated with the items
will flow to the Group for more than one year and the cost can be measured reliably the carrying amount of the replaced part is derecognized.
All other repairs and maintenance costs are charged to the consolidated statement of income during the reporting