Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 347

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 347
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 measurement at amortized cost or at FVOCI are classified as measured at FVTPL, in addition to those assets that in the initial
recognition are irrevocably designated at FVTPL, if this eliminates or significantly reduces asset-liability mismatches.

Financial assets measured at FVTPL are initially
recorded at fair value with subsequent changes to the fair value recognized immediately in profit or loss.

Financial assets are initially recognized
in the consolidated statement of financial position at fair value and the transaction costs are recorded directly in the consolidated
statement of income. Subsequent changes to the fair value are recognized immediately in profit or loss.

Gains and losses arising from changes in
fair value of non-derivative assets are recognized directly in the consolidated statement of income under “ Net gains/(losses) on
financial assets and liabilities at fair value through profit or loss”. Interest income on financial assets measured at FVTPL is
included in “ Interest and similar income”. For the treatment of derivative assets see Note 2(d)(iii).

  Measured at fair value through other comprehensive income  

They are financial assets that meet the criterion
of the SPPI test, which are held in a business model whose objective is both to maintain the assets to receive the contractual cash flows
as well as for sale.

These financial assets are initially recognized
at fair value, plus any transaction costs that are directly attributable to their acquisition or their issuance and are, subsequently,
measured at fair value with gains and losses being recognized in other comprehensive income, except for impairment losses and foreign
exchange gains and losses on debt securities, until the financial asset is derecognized. The expected credit losses are recorded in the
consolidated statement of income.

Interest income is recognized in the consolidated
statement of income using the effective interest method. Dividends on equity instruments are recognized in the consolidated statement
of income in ‘ Dividend income’, within “ Net Gains/(losses) on financial assets at fair value through other comprehensive
income” when the Company’s right to receive payment is established. Gains or losses arising out of exchange variation on
investments in debt securities classified as FVOCI are recognized in the consolidated statement of income. See Note 2(d)(viii) for more
details of the treatment of the expected credit losses.

The Group can also make an irrevocable designation
of an equity instrument for when there is no trading strategy for the category of Fair Value through Other Comprehensive Income. In this
case