SÃO PAULO, Feb. 5, 2018
/PRNewswire/ -- We present below the differences between our
financial statements in BRGAAP1 and in International
Financial Reporting Standards - IFRS. We emphasize that the main
difference in the result and equity relates to the allowance for
loan losses, that uses the concept of incurred loss in IFRS and of
expected loss in BRGAAP.
The complete consolidated financial statements under IFRS for
January to December 2017 are
available at our website:
www.itau.com.br/investor-relations.
Comparison between
BRGAAP1 and IFRS
|
|
R$
million
|
|
|
|
|
|
|
|
|
|
Balance
Sheet
|
BRGAAP
|
Adjustments
and
Reclassifications 2
|
IFRS
|
|
BRGAAP
|
Adjustments
and
Reclassifications 2
|
IFRS
|
|
Dec/31/2017
|
|
Dec/31/2016
|
Total
Assets
|
1,503,503
|
(68,534)
|
1,434,969
|
|
1,427,084
|
(73,843)
|
1,353,241
|
Cash and Cash
Equivalents, Reserve Requirements, Interbank Deposits,
Securities Under Repurchase Agreements, Financial Assets and
Derivatives ³
|
834,616
|
(9,718)
|
824,900
|
|
767,222
|
(16,395)
|
750,827
|
Loan
Operations
|
493,595
|
(228)
|
493,367
|
|
491,225
|
(859)
|
490,366
|
(-) Allowance for
Loan Losses4
|
(35,360)
|
7,465
|
(27,895)
|
|
(35,986)
|
9,014
|
(26,972)
|
Other Financial
Assets 5
|
111,780
|
(52,212)
|
59,568
|
|
106,458
|
(52,541)
|
53,917
|
Tax
Assets6
|
59,648
|
(17,720)
|
41,927
|
|
61,210
|
(16,936)
|
44,274
|
Investments in
associates and jointly controlled entities, Goodwill, Fixed and
Intangible Assets, Assets Held for Sale and Other Assets
|
39,224
|
3,879
|
43,102
|
|
36,954
|
3,875
|
40,829
|
|
|
|
|
|
|
|
|
Current
Liabilities and Long Term Liabilities
|
1,364,565
|
(77,603)
|
1,286,964
|
|
1,299,869
|
(81,442)
|
1,218,427
|
Deposits
|
402,938
|
-
|
402,938
|
|
329,414
|
-
|
329,414
|
Deposits Received
Under Securities Repurchase
Agreements3
|
323,910
|
(11,276)
|
312,634
|
|
366,038
|
(16,874)
|
349,164
|
Financial Liabilities
Held for Trading, Derivatives, Interbank and Institutional
funding
|
255,100
|
207
|
255,309
|
|
257,167
|
(228)
|
256,939
|
Other Financial
Liabilities 5
|
129,770
|
(52,157)
|
77,613
|
|
123,604
|
(51,772)
|
71,832
|
Reserves for
Insurance, Private Pension and Capitalization
|
183,747
|
786
|
184,533
|
|
156,656
|
567
|
157,223
|
Provisions and Other
Liabilities
|
48,660
|
(2,561)
|
46,098
|
|
49,320
|
(1,301)
|
48,019
|
Tax Liabilities
6
|
20,440
|
(12,602)
|
7,839
|
|
17,670
|
(11,834)
|
5,836
|
|
|
|
|
|
|
|
|
Total
Stockholders' Equity
|
138,938
|
9,069
|
148,005
|
|
127,215
|
7,599
|
134,814
|
Non-controlling
interests
|
12,014
|
1,152
|
13,165
|
|
11,625
|
607
|
12,232
|
Controlling
Stockholders' Equity 7
|
126,924
|
7,917
|
134,840
|
|
115,590
|
6,992
|
122,582
|
|
|
|
|
|
|
|
|
1BRGAAP represents the accounting
practices adopted in Brazil for financial institutions, according
to regulation of the Brazilian Central Bank;
|
2Resulted from reclassifications
between assets and liabilities and other effects from IFRS
adoption;
|
3Resulted from the elimination of
transactions between the parent company and exclusive funds (mainly
PGBL and VGBL fund quotas), which are consolidated under
IFRS;
|
4Implementation of the criteria for
calculating the Allowance for Loan Losses as defined in
IFRS;
|
5Difference in accounting, mainly
for Foreign Exchange Portfolio, which started to be considered as
net effect of Assets and Liabilities;
|
6Difference in accounting, mainly
for deferred taxes, which are now treated as a net effect of Assets
and Liabilities in each of the consolidated companies;
|
7Conciliation of Controlling
Stockholders' Equity is presented in the following
table.
|
Below, the conciliation of the Result and Equity, and the
conceptual description of the major adjustments.
Conciliation
|
|
|
|
|
|
|
R$
million
|
Adjustments
|
Equity
|
Result
|
|
Dec/31/2017
|
4thQ/17
|
3rdQ/17
|
4thQ/16
|
jan-dec/17
|
jan-dec/16
|
BRGAAP - Values
Attributable to Controlling Stockholders
|
126,924
|
5,821
|
6,077
|
5,543
|
23,965
|
21,639
|
(a) Allowance
for Loan Losses
|
5,257
|
(291)
|
(89)
|
240
|
(457)
|
1,325
|
(b) Adjustment
to market value of shares and quotas
|
186
|
-
|
-
|
-
|
-
|
-
|
(c)
Acquisition of interest in Porto Seguro Itaú Unibanco Participações
S.A.
|
450
|
(4)
|
(4)
|
(4)
|
(15)
|
(15)
|
(d) Effective
interest rate
|
(84)
|
(7)
|
(2)
|
(5)
|
(8)
|
20
|
(e) Financial
Leasing Operation
|
586
|
(40)
|
(33)
|
2
|
(131)
|
125
|
(f) Other
adjustments
|
1,520
|
5
|
98
|
218
|
549
|
171
|
IFRS - Values
Attributable to Controlling Stockholders
|
134,840
|
5,485
|
6,048
|
5,994
|
23,903
|
23,263
|
IFRS - Values
Attributable to Minority Stockholders
|
13,165
|
195
|
(130)
|
(52)
|
365
|
319
|
IFRS - Values
Attributable to Controlling Stockholders and Minority
Stockholders
|
148,005
|
5,680
|
5,918
|
5,942
|
24,268
|
23,582
|
|
|
|
|
|
|
|
Differences
between IFRS and BRGAAP Financial Statements
|
(a) On IFRS (IAS 39),
loan losses allowances must be made when there is objective
evidence that loan operations have suffered a reduction in its
value (Incurred Loss). On BRGAAP, the expected loss model is used
8.
|
(b) On IFRS (IAS 39
and 32), stocks and quotas classified as permanent investments were
measured at fair value and its gains and losses were recorded
directly on Equity, with no impact on the income statement of the
period.
|
(c) On IFRS, the
effect of accounting at fair value the acquisition of the
participation in Porto Seguro Itaú Unibanco Participações S.A. was
recognized.
|
(d) On the IFRS (IAS
39), the assets and financial liabilities measured at amortized
cost are recognized according to the methodology of effective
interest rate, which appropriates the revenues and costs directly
attributed to the acquisition, issue or disposal for the period of
operation. On BRGAAP, the recognition of expenses and revenues from
fees occurs at the time of contracting these operations.
|
(e) Under IFRS (IAS
17) the financial leasing operations are recorded as Fixed Assets
on the other hand of Other Financial Liabilities. On BRGAAP, as of
September 30, 2015, the consideration of these transactions are now
recorded in income in accordance with CMN Resolution No.
3,617/08.
|
(f) Other
Adjustments mainly comprise the difference in the eligibility of
operations of the Cash Flow Hedge for purposes of IFRS and the
reversal of the Goodwill
Amortizations pursuant
the BRGAAP.
|
8For more
details see our Complete Financial Statements for January to
December, 2017
|
For comparison purposes, we present on the table below the
Result and the Recurring Result according to the IFRS and the
BRGAAP.
|
|
|
|
R$
million
|
Recurring
Result
|
4thQ/17
|
3rdQ/17
|
jan-dec/17
|
jan-dec/16
|
|
BRGAAP
|
IFRS
|
Variation
|
BRGAAP
|
IFRS
|
Variation
|
BRGAAP
|
IFRS
|
Variation
|
BRGAAP
|
IFRS
|
Variation
|
Result -
Attributable to Controlling Stockholders
|
5,821
|
5,485
|
(336)
|
6,077
|
6,048
|
(29)
|
23,965
|
23,903
|
(62)
|
21,639
|
23,263
|
1,624
|
Exclusion of the
Non-Recurring Events
|
459
|
424
|
(35)
|
177
|
52
|
(125)
|
914
|
496
|
(418)
|
583
|
251
|
(332)
|
Provision Expenses
for Citibank Integration
|
277
|
277
|
-
|
-
|
-
|
-
|
277
|
277
|
-
|
-
|
-
|
-
|
Goodwill
Amortization
|
135
|
-
|
(135)
|
125
|
-
|
(125)
|
508
|
-
|
(508)
|
441
|
-
|
(441)
|
Disposal of IRB
shares
|
-
|
-
|
-
|
(155)
|
(155)
|
-
|
(155)
|
(155)
|
-
|
-
|
-
|
-
|
Liability Adequacy
Test
|
(145)
|
(45)
|
100
|
-
|
-
|
-
|
(165)
|
(74)
|
91
|
(109)
|
-
|
109
|
Civil Lawsuits -
Economic Plans
|
-
|
-
|
-
|
61
|
61
|
-
|
101
|
101
|
-
|
224
|
224
|
-
|
Tax Contingencies and
Legal Liabilities
|
184
|
184
|
-
|
9
|
9
|
-
|
226
|
226
|
-
|
6
|
6
|
-
|
Impairment
|
7
|
7
|
-
|
137
|
137
|
-
|
152
|
152
|
-
|
181
|
181
|
-
|
Program for the
Settlement or Installment Payment of Taxes
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(14)
|
(14)
|
-
|
Pension
Fund
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(130)
|
(130)
|
-
|
Others
|
-
|
-
|
-
|
-
|
-
|
-
|
(31)
|
(31)
|
-
|
(18)
|
(18)
|
-
|
Recurring Result -
Attributable to Controlling Stockholders
|
6,280
|
5,909
|
(371)
|
6,254
|
6,100
|
(154)
|
24,879
|
24,399
|
(481)
|
22,222
|
23,514
|
1,291
|
|
|
|
|
|
|
|
The tables in this report show the figures in millions.
Variations and summations, however, are calculated in units.
São Paulo, February 5,
2018.
Alexsandro Broedel
Lopes
Group Executive Finance Director and
Investor Relations Officer
View original
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SOURCE Itau Unibanco Holding S.A.