Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 345

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 345
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ais(R$), which is the Company’s
presentation currency. The domestic and foreign subsidiaries use the Realas their functional currency, except for the subsidiary
in Mexico, which has the Mexican Peso as its functional currency, and Bradesco Bank, which has the US dollar as its functional currency.

  ii.      Transactions and balances  

Foreign currency transactions, which are
denominated or settled in a foreign currency, are translated into the functional currency using the exchange rates prevailing on the dates
of the transactions.

Monetary items denominated in foreign currency
are translated at the closing exchange rate as at the reporting date. Non-monetary items measured at historical cost denominated in a
foreign currency are translated at exchange rate on the date of initial recognition; non-monetary items in a foreign currency that are
measured at fair value are translated using the exchange rates on the date when the fair value was determined.

Foreign exchange gains and losses resulting
from the settlement of foreign currency transactions and from the translation at each period exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in the consolidated statement of income as “ Net gains/(losses) of foreign currency
transactions”.

In the case of changes in the fair value
of monetary assets denominated in foreign currency classified as financial assets at fair value through other comprehensive income, a
distinction is made between translation differences resulting from changes in amortized cost of the security and other changes in the
carrying amount of the security. Translation differences related to changes in the amortized cost are recognized in the consolidated statement
of income, and other changes in the carrying amount, except impairment, are recognized in equity.

  iii.      Foreign operations  

The results and financial position of all
foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the
presentation currency are translated into the presentation currency as follows:

  Assets and liabilities for each consolidated statement of financial           

  Income and expenses for each consolidated statement of income                                                                                    

  All resulting exchange differences are recognized in other comprehensive  
  income.                                                                   
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Exchange differences arising from the above
process are presented in equity as “ Foreign currency translation adjustment”.

On consolidation, exchange differences
arising from the translation of the net investment in foreign entities are taken to “ Other comprehensive income”. If the
operation is a non-wholly owned subsidiary, then the relevant proportion of the transaction difference is