Decree No. 109 / 1985 Coll.
Decree of the Federal Ministry of Finance on the financing of circulatory funds
Valid
Effective from 01.01.1986
109
DECLARATION
Federal Ministry of Finance
of 6 November 1985
on the financing of circulatory appropriations
According to § 391 (1) (a) (2) and (b) of the Economic Code No 109 / 1964 Coll., in the complete version published under No 45 / 1983 Coll.:
Preliminary provisions
Subject matter and scope of the adjustment
(1) This decree provides for the financing of the means of circulation of production units and enterprises (1) (hereinafter referred to as "organisations").
(2) The provisions of Part One do not apply to foreign trade organisation.2)
(3) The provisions of Part Two apply to foreign trade organisations.
FINANCING OF CIVIL ENVIRONMENT
Remuneration
(1) The usual means of organisation are:
(a) stocks,
(b) other devices.
(2) Stocks are material, fuel, items of gradual consumption, subcontracting, unfinished production, own-production semi-finished products, animals, goods and foodstuffs in the catering plant and restaurant.
(3) The stocks are also:
(a) the items acquired to deal with the tasks of the scientific and technical development plans and, where appropriate, their implementation, until their financing from the technical development fund, as well as the items taken into stock from research and development activities in accordance with a special regulation, 3)
(b) import products intended for the verification of the performance and utility characteristics of products of own productionirrespective of the price (4)
(4) The items of gradual consumption are small and short-term items, special tools and preparations, construction site equipment, materials in use, articles in rental shops, circulators, machines to be repaired in an exchange way, articles of precious metals and other objects of gradual consumption including teaching aids.
(5) Small and short-term articles are:
(a) articles which are not used together and which:
1. the price per item is less than 5000 CZK without regard to their fitness (small items); or
2. the fitness period is less than one year without regard to their price (short-term articles),
(b) irrespective of the price and time of fitness of the working clothes and footwear, the personal protective equipment and the bedding.
(6) Teaching aids are subjects exclusively used for teaching in schools of all stages, made according to lists issued by the competent central authority.
(7) The items of gradual consumption, other than small and short-term items, are not limited by price or fitness.
(8) The specific category of stocks in terms of method of financing is uninvoiced work and supplies.
(9) The other means of circulation are:
(a) costs of future periods;
(b) claims on customers both domestic and abroad and claims on suppliers abroad;
(c) other means of circulation involving other operating claims, claims against the State budget, means of payment and participation, funds in deposit and current accounts, and money and other funds in foreign currency.
Determination of planned stock levels
(1) The planned level of stocks is set out in the organisation's financial plan as at 31 December of the relevant calendar year, based on the inventory turnover indicator 5) or as an absolute stock limit. These indicators shall be determined by the competent authority.
(2) For state agricultural production organisations and agricultural services which are liable for agricultural tax on profits (hereinafter referred to as "state agricultural production organisations and agricultural services"), the planned level of stocks is determined in the organisation's economic plans.
(3) The planned level of stocks is the framework for their financing.
Resources for the coverage of circulatory funds
(1) The means of disposal shall cover:
(a) the turnover fund;
(b) permanent pasture,
(c) instalments for uninvoiced works and supplies and construction site equipment;
(d) operating loans, 7)
(e) other resources of organisations to which the balances of all funds, with the exception of the Investment and Turnover Funds, include operational commitments, with the exception of commitments included in permanent passports and retained earnings.
(2) If the Czechoslovak State Bank refuses to provide loans (7) for shortages in the management of circulation funds, the organisation is obliged to reduce other planned needs or increase its own resources to cover circulation funds.
(3) Remuneration may also cover temporary financial assistance from the reserve fund of a superior body under a special rule. 8)
Turnover Fund
(1) The Turnover Fund serves to cover stocks with the exceptions set out in paragraphs 2 and 4 of this Article.
(2) The Turnover Fund shall be established by all organisations referred to in Paragraph 1 (1), depending on the degree of centralisation of management and financing of stocks. 9) The Turnover Fund shall not be set up by organisations of ministries of culture of the Republics, state savings banks, state insurance companies, business, spa, supply and sales organisations with the exception of agricultural supply and purchase organisations.
(3) The reverse fund shall be increased or reduced, where appropriate, depending on the planned and actual development of stocks, according to the indicator of the share of the turnover fund in stocks on 31 December of the relevant calendar year, to be determined by the superior authority. In the case of state agricultural production organisations and agricultural services, the size of the stock financing by the Turnover Fund shall be determined in the organisation's economic plan.
(4) For the purposes of determining the increase or reduction in the turnover fund referred to in paragraph 3, stocks not covered by the turnover fund shall be excluded from stocks. They're:
(a) seasonal stocks;
(b) other stocks identified by the competent Ministry of Finance in an agreement with the Czechoslovak State Bank on a proposal from the competent central authority or, where appropriate, by a government resolution;
(c) stocks not used for which the Czechoslovak State Bank has granted a loan, 7)
(d) uninvoiced works and supplies and construction site equipment.
(5) The seasonal stocks are:
(a) nominally determined seasonal stocks of agricultural production in downstream processing organisations, namely seasonal stocks in food industry organisations, medical production and industry ministries, 10)
(b) stocks of goods and total stocks of fuels intended for energy and propulsion purposes for national agricultural production organisations and agricultural services;
(c) stocks of wood, seeds and agricultural production including animals for forest management organisations;
(d) stocks of timber and stocks in agricultural production for organisations of military forests and goods;
(e) stocks of fuels intended for energy and propulsion purposes, exceeding their standard levels established under a special regulation, (11) excluding fuel stocks for national agricultural production organisations and agricultural services;
(f) overland stocks of organisations engaged in the collection and treatment of waste and overland stocks of secondary raw materials of organisations engaged in their processing;
(g) overland stocks resulting from seasonal fluctuations in the purchase, import, production and accumulation of products for the non-allocation of public transport resources to which the Czechoslovak State Bank has granted a loan. 7)
(6) The planned increase in the turnover fund determined in accordance with paragraph 3 shall be reimbursed by allocation of the organisation's profits; for organisations where the planned profit is not sufficient to meet the planned needs and for organisations with planned loss, the planned allocation of the centralised profit of the superior authority to the distribution of the profit of the organisation shall be paid.
(7) If the Czechoslovak State Bank refuses to provide credit to the credit organisation for the planned increase in stocks covered by the Turnover Fund due to stock management deficiencies, the organisation is obliged to supplement its financial plan with the amount of the refused loan with a profit allocation.
(8) The planned reduction of the turnover fund provided for in paragraph 3 shall be drawn off by the superior authority and applied to the planned addition of the turnover funds of other organisations.
(9) If, on 31 December of the relevant calendar year, the organisation exceeds the planned amount of stocks covered by the Turnover Fund, it shall be required to supplement the Turnover Fund by an allocation of profits or, where applicable, a profit added by an allocation from the superior authority, by an amount corresponding to the excess of the planned amount of stocks at that date, as converted by the planned share of the Turnover Fund in stocks. If the Czechoslovak State Bank refuses to provide the relevant share of the loan to the organisation for this excess due to the stock management deficiencies, 7) the organisation is obliged to add both the turnover fund and the amount of the rejected loan above the specified share of the portfolio fund in the stocks. The completion of the turnover fund shall be carried out by the organisation in the accounts for the relevant calendar year.
(10) In the case of state agricultural production organisations and agricultural services, the amount of the turnover fund to cover overplains shall be determined on the accounts for the calendar year concerned. In the case of overpaid profits, the organisation may make a higher allocation to the reverse fund than was provided for in its economic plan.
(11) In the case of organisations with a net profit balance, the allocation to the revolving fund, when the stocks are exceeded on 31 December of the relevant calendar year, shall be reduced, as decided by the supervisory authority and with the approval of the relevant Ministry of Finance, by the contribution of the free profit balance.
(12) If, on 31 December of the relevant calendar year, the organisation reduces the amount of stocks covered by the turnover fund against the plan and if, in the following year, it plans a stock level at the most at the level of the previous year, it may, with the agreement of its superior authority, transfer from the turnover fund to the profit distribution an amount corresponding to the reduction of the planned stock level covered by the turnover fund at that date, as converted by the planned share of the turnover stock. A reduction in the turnover fund shall be made by the organisation in the accounts for the relevant calendar year or at the date of the accounts for the first quarter of the following year. This provision shall not apply to state economic organisations of agricultural production and agricultural services. An organisation with a net profit balance shall transfer the amount corresponding to the reduction of the turnover fund to the branch account of the redistribution of the turnover funds, or allocate it to the distribution, as decided by the superior authority and with the approval of the relevant Ministry of Finance, to the profit.
(13) In order to cover the increase in stocks for new or significantly emerging organisations, subsidies may be granted to supplement the turnover fund up to the limit agreed in the state budget12) or the national committee budget.
Permanent pasture
(1) The permanent liabilities are:
(a) liabilities towards non-investment suppliers (both domestic and abroad);
(b) commitments towards workers;
(c) provisions for the costs and liabilities of other time differentiating costs and revenues;
(d) the obligations arising from the clearance of contributions and taxes with the state budget and the budgets of the national committees;
(e) liabilities arising from the settlement of contributions with a superior authority;
(f) commitments for the means of circulation to be used by national economic organisations for agricultural production and agricultural services;
(g) other types of commitments specified by the competent Ministry of Finance on a proposal from the competent central authority.
(2) The method of calculating the amount of permanent passports for the purposes of planning and financing circulatory funds is laid down in specific measures. 13) This measure shall not apply to state economic organisations of agricultural production and agricultural services for which permanent pasture includes the items referred to in paragraph 1 at the planned and actual levels.
FINANCING OF CIVIL ENVIRONMENTAL TRADE ORGANISATIONS
Remuneration
The usual means are:
(a) the stock of export goods in stock in domestic and abroad;
(b) supplies of export goods on the way;
(c) stocks of import goods;
(d) stocks within the meaning of Article 2 (1) (a);
(e) other devices within the meaning of § 2 (1) (b).
Determination of planned stock levels
(1) The planned amount of stocks as defined in points (a) to (d) of Article 7 as at 31 December of the planning year is set out in the financial plan.
(2) The planned amount is the framework for financing stocks.
Financing of circulation
(1) The stocks referred to in § 7 (a) to (c) are financed as follows:
(a) the stock of export goods in stock in domestic and abroad shall be covered by the reverse fund and the credit of the Czechoslovak Commercial Bank, 7) or paid-up share capital;
(b) the stocks of export goods on the way are covered by commitments to non-investment suppliers or, where appropriate, by a loan from the Czechoslovak Commercial Bank;
(c) the stocks of import goods are covered by commitments to foreign suppliers of import goods and the credit of the Czechoslovak Commercial Bank.
(2) The provisions of Section 4 are applicable to the financing of the stocks and other means of circulation referred to in Sections 7 (d) and 7 (e).
Turnover Fund
(1) The amount of the Turnover Fund shall be determined by the Federal Ministry of Foreign Trade to the Foreign Trade Organisation by an absolute amount as at 31 December of the relevant calendar year.
(2) The planned addition of the turnover fund is paid by allocation of the company's profits. For organisations with a planned profit shortfall or for organisations with a planned loss, the planned gain in the turnover fund shall be reimbursed by the planned allocation of the Federal Ministry of Foreign Trade within the framework of the redistribution of the turnover funds or the planned allocation of the profit distribution.
(3) The planned reduction in the turnover fund will be drawn by the Federal Ministry of Foreign Trade to the profit centralization account.
(4) The Turnover Fund does not constitute foreign economic service organisations, 2) which take the form of public limited liability companies or associations.
COMMON AND FINAL PROVISIONS
Securities Fund
The securities fund serves exclusively to cover domestic shares, other domestic securities, foreign securities and participating interests. This fund (14) is created by a profit allocation approved in the organisation's financial plan.
Exceptions
The Federal Ministry of Finance may, at the request of the competent central authority, authorise exemptions from the provisions of Sections 1, 2, 3, 4, 5, 8, 9, 10 and 11 for organisations managed by the Federation authorities. The Ministry of Finance of the Republics may allow exemptions from the same provisions for organisations managed by the authorities of the Republics; in so doing, except for organisations managed by national committees in agreement with the Federal Ministry of Finance.
Repeal
(1) The following shall be deleted:
(a) Federal Ministry of Finance Order 164 / 1980 Coll., on the financing of circulatory funds, as amended by Decree 48 / 1983 Coll.,
(b) the decree of the Federal Ministry of Finance on the financing of circulatory funds in state economic organisations of agricultural production and agricultural services, e.g. V / 1-24 618 / 80 of 18 February 1981, published in the Financial Rapporteur No 4 / 1981 under order number 27 and registered in the amount of 13 / 1981 Coll.,
(c) the decree of the Federal Ministry of Finance on the definition of stocks of state economic organisations, other state socialist organisations, single agricultural cooperatives, joint agricultural holdings and melliorative cooperatives, No V / 1-24 125 / 80 of 31 December 1980, published in the Financial Rapporteur No 1 / 1981 and registered in the amount of 4 / 1981 Coll.
(2) The Federal Ministry of Finance Directive on the financing of circulation in foreign trade organisations, No V / 1-24 118 / 80 of 15 December 1980, expires.
(3) Any exemptions granted under the Decree, Decree, Decree and Directives referred to in paragraphs 1 and 2 shall be abolished.
Efficacy
This Decree shall take effect on 1 January 1986.
Minister:
v. Ing. Jombib CSc. v. r.
1) Paragraph 2 (2) and (3) of the Decree of the Government of the Government of the Czech Republic No. 161 / 1980 Coll., on the financial management of production units and enterprises as amended by the Decree of the Government of the Czech Republic No. 100 / 1985 Coll. (Full version No. 106 / 1985 Coll.).
2) § 3 (c) of Act No. 42 / 1980 Coll., on Economic Relations with Foreign Affairs.
3) Paragraph 6 (1) (c) of the Decree of the Federal Ministry of Finance, the Ministry of Finance of the Czech Republic and the Ministry of Finance of the SSR No. 118 / 1984 Coll., on the financing of non-investment expenditure for the development of science and technology.
4) Principles No. 138 / 1979 Coll. to ensure economy in the verification of utility properties of products and in the implementation of promotion, approved by the Government Resolution No. 301 of 8 November 1979.
5) The method of calculation is governed by the Federal Ministry of Finance's income to direct stocks of the items IV / 1-19 445 / 1985, II / 4-21091 / 1985 of 21 November 1985.
6) Act No. 103 / 1974 Coll., on Agricultural Tax, as amended.
7) Decree of the President of the State Bank of Czechoslovakia No. 103 / 1985 Coll., on the provision of loans and on interest rates.
8) Sections 9, 25 and 67 of the Decree of the Government of the Czech Republic No. 161 / 1980 Coll., as amended by the Decree of the Government of the Czech Republic No. 100 / 1985 Coll. (Full version No. 106 / 1985 Coll.).
9) Sections 8 and 14 of the Decree of the Government of the Czech Republic No 161 / 1980 Coll., as amended by the Decree of the Government of the Czech Republic No 100 / 1985 Coll. (Full version No 106 / 1985 Coll.).
10) The seasonal stocks are determined by the Federal Ministry of Finance in agreement with the Ministry of Finance of the Republics and the State Bank of Czechoslovakia on a proposal from the competent central authority.
11) Decree of the State Planning Commission No. 80 513 / 1978 of 30 May 1978 laying down the principles for stock normalisation, registered at the amount of 21 / 1978 Coll.
12) Guidelines on the granting and drawing of non-investment subsidies from the state budget in the period after 1985, namely FMF-II / 12 600 / 1985, MF ČSR-11 / 13 330 / 1985 and MF SSR-1 / 1170 / 1985 of 30 August 1985.
13) Guidelines of the Federal Ministry of Finance No V / 1-30 305 / 1975 of 15.12.1975 for the definition and calculation of permanent passports, published in No 15 / 1975 of the Financial Rapporteur.
14) Sections 8 (6) and 14 (4) of the Decree of the Government of the Czech Republic No 161 / 1980 Coll., as amended by the Decree of the Government of the Czech Republic No 100 / 1985 Coll. (Full version No 106 / 1985 Coll.).
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Regulation Information
| Citation | Decree of the Federal Ministry of Finance No. 109 / 1985 Coll., on the Financing of Circular Funds |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 09.12.1985 |
|---|---|
| Effective from | 01.01.1986 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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