Business Context and Reporting Period
This Form 6-K filing by Banco Bradesco S.A. (Bradesco) serves as a notice to the market regarding the preparation of complete consolidated financial statements for the years ended December 31, 2016, and December 31, 2015. The statements are prepared in accordance with International Financial Reporting Standards (IFRS). The filing was signed on February 24, 2017.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it outlines the methodology for reconciling Shareholders' Equity and Net Income between Brazilian GAAP (BR GAAP) and IFRS. Key accounting adjustments noted include:
- Loan Impairment: IFRS uses a "loss incurred" concept based on clear evidence of loss after initial recognition, whereas BR GAAP uses an "expected losses" concept.
- Business Combinations: Assets and liabilities are recognized at fair value based on purchase price allocation studies. Goodwill is not amortized under IFRS but is tested periodically for impairment.
- Portfolio Presentation: Loans and advances to customers are presented net of provision for impairment losses.
Material Changes Versus Prior Period
The filing details the structural changes in financial reporting due to the adoption of IFRS for the 2016 and 2015 periods compared to previous BR GAAP reporting. Specific quantitative material changes in financial performance between 2016 and 2015 are not disclosed in this text; the document focuses on the reconciliation of accounting standards rather than operational performance trends.
Guidance, Outlook, and Risks
The document contains a standard Forward-Looking Statements disclaimer. It notes that statements regarding future economic circumstances, industry conditions, company performance, dividend declarations, and capital expenditure plans are based on management's current views and estimates. These statements are subject to risks and uncertainties, including general economic and market conditions, and there is no guarantee that expected results will occur.
Important Facts for Investors to Verify
- Complete consolidated financial statements under IFRS for 2016 and 2015 are available on the company's investor relations website (www.bradesco.com.br/ir).
- The financial statements have been audited by KPMG Independent Auditors without modification.
- Investors should review the specific reconciliation tables for Shareholders' Equity and Net Income on the company website to understand the quantitative impact of the IFRS adoption.
- Contact information for Investor Relations is provided for further inquiries regarding the financial data.