Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 372

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 372
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  Select quantitative models and suitable assumptions;  

  Establish several prospective scenarios and assumptions;  

  Group similar financial assets; and  

  Define the expected time frame of exposure to credit risk for  

The process to determine the level of
provision for expected credit loss requires estimates and the use of judgment; it is possible that actual losses presented in subsequent
periods will differ from those calculated according to current estimates and assumptions.

The explanation of assumptions and estimation
techniques used in the measurement of expected credit loss is further detailed in Note 40.2. - credit risk.

Impairment of intangible assets
and goodwill

The Group analyzes, at least annually,
whether the carrying value of intangible assets and goodwill (including goodwill identified in the acquisition of associates and joint
ventures) is impaired. The first step of the process requires the identification of independent Cash-Generating Units and the allocation
of goodwill to these units. The carrying amount of the CGU, including the allocated goodwill, is compared to its recoverable amount to
determine whether any impairment exists. If the value in use of a cash-generating unit is less than its carrying value, goodwill will
be impaired. Detailed calculations may need to be carried out taking into consideration changes in the market in which a business operates
(e. g., competitive activity, regulatory change). The value in use is based upon discounting expected pre-tax cash flows at a risk-adjusted
interest rate appropriate to the operating unit, the determination of both requires one to exercise one’s judgment. While forecasts
are compared with actual performance and external economic data, expected cash flows naturally reflect the Group’s view of future
performance.

Realization of deferred income
tax

The determination of the amount of our
income tax liability is complex, and our assessment is related to our analysis of our deferred tax assets and liabilities and income tax
payable. In general, our evaluation requires that we estimate future amounts of current and deferred taxes. Our assessment of the possibility
that deferred tax assets are realized is subjective and involves assessments and assumptions that are inherently uncertain in nature.
The underlying support for our assessments and assumptions could change over time as a result of unforeseen events or circumstances, affecting
our determination of the amount of our tax liability.

Significant judgment is required in determining
whether it is more likely than not that an income tax position will be sustained upon examination, even after the outcome of any related
administrative or judicial proceedings based