CVM decide in favor of Petrobras on hedge accounting
The Board of Securities and Exchange Commission of Brazil ("CVM"), in a meeting held July 12 2017, upheld the appeal filed by Petrobras regarding Letter No. 30/2017/CVM/SEP/GEA-5, which dealt with the hedge accounting, the state-owned company said in a press release.
The CVM Board decision reverses the decision made by the CVM technical area calling for a restatement of the company's annual financial statements for 2013, 2014, 2015 and 2016 due to an alleged misuse of hedge accounting practices.
Therefore, the CVM Board decision has confirmed Petrobras’ understanding on the application of this practice in its financial statements.
Petrobras a publicly-held company operating on an integrated basis and specializing in the oil, natural gas and energy industry. The Company is present in the exploration and production, refining, marketing, transportation, petrochemicals, oil product distribution, natural gas, electricity, chemical-gas and biofuel segments.