This excerpt taken from the UBB 20-F filed Jun 30, 2008.
f. Notional Interest Charge on Own Capital
Subject to certain limitations, Brazilian GAAP permits companies to distribute or capitalize an amount of interest on shareholders equity based on the TJLP. Such amounts are deductible for tax purposes and are presented as a direct reduction of shareholders equity.
Notes to the financial statements
(In thousands of Reais)
No similar concept exists under U.S. GAAP and such payments would be recorded in the same manner as dividends.