Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 348

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 348
---
, there is no record of any effects on the Consolidated Statement of Income of subsequent events related to this asset, except for
dividends that represent the investment result itself.

  Measured at amortized cost  

Financial assets that meet the criterion
of the SPPI test and which are held in a business model whose objective is to maintain the assets to receive the contractual cash flows.

These financial assets are recognized
initially at fair value including direct and incremental costs, and are subsequently recorded at amortized cost, using the effective interest
rate method.

Interest is recognized in the consolidated
statement of income and presented as “ Interest and similar income”. In the case of expected credit 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 Group classifies its financial liabilities
as subsequently measured at amortized cost, using the effective interest rate method, except in cases of trading financial liabilities.

Financial liabilities for trading recognized
by the Group are derivative financial instruments that are recorded and measured at fair value, with the respective changes in fair value
recognized immediately in profit or loss.

The Group does not have any financial
liabilities designated at fair value through profit or loss.

For more details on the treatment of derivatives,
see Note 2(d) (iii).

  Financial guarantee contracts and  

Financial guarantees are contracts that require
the Group to make specific payments under the guarantee for a loss incurred when a specific debtor fails to make a payment when due in
accordance with the terms of the debt instrument.

Financial guarantees are initially recognized
in the statement of financial position at fair value on the date the guarantee was given. After initial recognition, the Group’s
obligations under such guarantees are measured by the higher value between (i) the value of the provision for expected losses and (ii)
the value initially recognized, minus, if appropriate, the accumulated value of the revenue from the service fee. The fee income earned
is recognized on a straight-line basis over the life of the guarantee. Any increase in the liability relating to guarantees is reported
in the consolidated statement of income within “ Other operating income/ (expenses)”.

The expected credit losses, referring to
loan commitments, are recognized in liabilities and are calculated, as described in Note 40.2. - Credit Risk.

iii. Derivative financial instruments and hedge transactions

Derivatives are initially recognized at
fair value on the date the respective contract is signed and are