Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 355

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 355
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 and is subsequently reduced by the accumulated depreciation and any accumulated impairment losses, when applicable. The
right of use will also be adjusted in case of re-measurement of the lease liability. The depreciation is calculated in a linear fashion
by the term of the leases.

The lease term is defined as the non-cancellable
term of the lease, together with (i) periods covered by the option to extend the lease, if the lessee is reasonably certain to exercise
that option; and (ii) periods covered by the option to terminate the lease, if the lessee is reasonably certain that it will not exercise
that option. The Group has a descriptive policy for the property lease terms, which considers the business plan and management expectations,
extension options and local laws and regulations.

The lease liability is measured initially
at the present value of the future lease payments, discounted by the incremental rate applied to each contract in accordance with the
leasing term.

The lease payments include fixed payments,
less any lease incentives receivable, and variable lease payments that depend on an index or a rate. Variable lease payments that do not
depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs.

The incremental rate applied by the Group
considers the funding rate free of risk adjusted by the credit spread.

Subsequently, the lease liability is adjusted
to reflect the interest levied on the payment flows, re-measured to reflect any revaluation or modifications of leasing and reduced to
reflect the payments made.

Financial charges are recognized as “ Interest
and similar expenses” and are adjusted in accordance with the term of the contracts, considering the incremental rate.

The contracts and leases of properties
with an indefinite period are not considered in the scope of IFRS 16 - Leases, because they are leases in which the contract can
be terminated at any time without a significant penalty. In this way, the rental contract is not considered as executable.

Short-term leases and leases of low-value
assets

The Group applies the short-term lease
recognition exemption to its short-term leases (leases that have a lease term of 12 months or less from the commencement date and do not
contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low
value. Lease payments on short-term leases and leases of low-value assets are recognized as expense over the lease term.

  Impairment losses on non-financial assets (except for deferred