INFORMATION TO THE SECURITIES MARKET STANDARDIZATION




MERCOSUL/CMC/DEC. No. 13/94



REGARDING:


Article 10 of the The Mercosul Agreement, the decisions No. 08/93 and 09/93 of the Common Market Council (CMC).



CONSIDERING:


That the existance of a harmonized securities market makes viable important projects to the achievement of the purposes that steered the creation of The Common Market of the South - Mercosul;

That the integration process requires harmonized disclosure rules of information by the capital demanding coorporations, being companies or investment funds;

The issue of the attached document to the "Minimum Proposal for the Capital Markets Regulation".



THE COMMON MARKET COUNCIL DECIDES


To approve the attached document to the "Minimum Proposal for the Capital Markets Regulation", attached to this Decision.



WORK GROUP IV DOCUMENT - CAPITAL MARKETS



ATTACHED DOCUMENT TO THE "MINIMUM PROPOSAL FOR THE CAPITAL MARKETS REGULATION" STATED IN THE DECISION No. 8/93 of the CMC.


1.- ACCOUNTING INFORMATION PRESENTATION


1.1.- ACCOUNTING PRINCIPLES

The Financial Statements presetation shall be done in accordance with the principles of the company's host country, in such way that these statements are compared to the previous period's statement.


1.2.- MINIMUM ACCOUNTING INFORMATION TO BE PRESENTED

1.2.1.- Information to be presented yearly

The Annual Financial Statements and the Consolidated Financial Statements shall be presented with the independent auditor's report.

1.2.2.- Information to be presented quaterly

- Balance Sheet

- Statement of Income.

- Financial Statements Notes

The quaterly Financial Statements shall be presented with the external independent auditor's report or Limited Review.

In Argentina, the Statement of Change in Financial Position and the Statement of Stockholder's Equity will also be required for listing purposes.

1.2.3.- Material effects of the accounting diferences

Material effects stemming from accounting diferences will be detailed and quantified, in respect to its impact in the income and in the net worth, in specific notes.


1.3.- ACCOUTING PERIOD'S CLOSING

The accountig period's closing will be in accordance with the company host country rules.



2.- INVESTMENT FUNDS


The agreement stated in item 2 of the Cologne Agreement, which refers to the capital market regulation, is hereby ratified, with the following addition:



MATERIAL EVENTS

The extraordinary events, that may significantly influence the quotation and/or the issue of shares or the investor's decision in purchase or trade them, shall be disclosed by the managing companies immediately, in the countries that these shares are purchased or traded.