On Feb. 27, BRZ SP issued rules on real estate depreciation recording.
BRZ SP issued Decree 63.231 to establish rules for the calculation and recording of depreciation of real estate in the municipality of São Paulo, in the cases it specifies.
The rules in this decree are complimentary to Decree 60.246, from May 14, 2021.
Decree 63.231
Depreciation and residual value table for each class of fixed assets hereby established.
Tables for each class established in accordance with the Single Annex of this decree.
Applies to bodies that are part of the Direct Administration; municipalities, foundations of the Municipality; and the public accounting of dependent municipal companies.
Dependent companies may use different rules to comply with corporate accounting.
Application of provisions provided for in this decree for public accounting is mandatory.
Differentiated useful life, residual value parameters may be used, exceptionally, for specific assets, with peculiar characteristics, require different accounting treatment.
Assets fully depreciated to their residual value and still usable, must be revaluated.
Depreciation amounts, calculated monthly, are itemized in profit/loss for the period.
The depreciation calculations are carried out automatically by the Real Estate Assets System (SBPI); recognized until net book value of the asset is equal to residual value.
Procedures established in this decree must be fully implemented by Dec. 31, 2024.
Effectiveness
Decree 63.231 on real estate depreciation comes into force on the date of publication.
Regulators
BRZ SP
Entity Types
Auditor; Corp
Reference
Decree 63.231, 2/27/2024;
Functions
Accounting; Financial; Record Retention; Reporting; Tax; Technology; Treasury
