Government Decree No. 111 / 1953 Coll.
Regulation on basic funds for economic organisations
Valid
Effective from 01.01.1954
111.
Government Regulation
of 18 December 1953
on basic funds for economic organisations.
The Government of the Czechoslovak Republic hereby orders pursuant to § 9 (2) and § 13 (2) of Act No. 106 / 1951 Coll., on the financing of national and municipal enterprises:
Purpose of the regulation.
The importance of the basic funds, which are in the administration of the economic organisations of the state socialist sector and as national property the source of wealth and well-being of the working people, requires their administration to be adapted in a consistent manner and to follow principles that would ensure their most efficient and cost-effective use and constant upbringing. These principles should apply mutatis mutandis to other economic organisations.
Scope of validity.
(1) This Regulation shall apply to all economic organisations (hereinafter referred to as "undertakings') with the exceptions set out below.
(2) For banks, state savings banks and the State Insurance Corporation, this Regulation applies only if the special rules on the management of these institutions provide otherwise.
(3) Only the provisions of Sections 3, 6 (1) and (2) and 7, 8, 14 and 15 of this Regulation apply to undertakings for foreign trade, the First Czech reinsurance undertaking and to folk cooperatives, mutatis mutandis.
The concept of basic funds.
(1) The basic funds of the undertaking are tangible objects whose fitness period is longer than one year and whose value is higher than the limit established under the accounting rules; These are mainly buildings, buildings, machinery and other equipment, inventory and land. Without regard to value, the basic funds are agricultural machinery and agricultural tools (not manual), adult towing and breeding animals, adult poultry and hives.
(2) The basic funds do not include work clothes, work footwear and bed linen, without regard to the value and duration of fitness, special tools and special preparations, without regard to value, and young animals and animals in fattening.
The nature of the administration.
The undertaking which manages the basic funds shall be entitled and required, on its own behalf, with the care of the proper economy and with the restrictions laid down in this Regulation, to hold and register them, to protect, maintain, enhance and use them and to treat them as effectively as possible, as required by the fulfilment of the tasks of the national economic development plan.
Jurisdiction of administration.
(1) The basic funds are intended in principle to manage an undertaking which is entrusted with tasks which the basic funds serve wholly or principally for the performance of; exemptions are only possible for serious economic or other reasons.
(2) In doubts as to the competence of the management of basic funds between undertakings subordinate to the same central office, the authority shall decide directly jointly by the supervisor; between undertakings in the field of competence of different central offices, those authorities shall decide by mutual agreement.
(3) The provisions of paragraph 2 shall apply mutatis mutandis to doubts as to the competence of the management of basic funds between undertakings and budgetary organisations.
Evidence.
(1) In particular, the sound management of the basic funds requires that the basic funds be identified, drawn up, valued and recorded under specific rules. Furthermore, the company is required to monitor, in particular in the course of the inventory, whether the basic funds in terms of actual quantity, type and condition agree to the registration.
(2) The company also ensures that the boundaries of its land are laid down and limited and the boundary features maintained.
(3) The company is obliged to take care of order in public books, in particular to register it as the owner of the Czechoslovak State with the label of the company which manages the basic funds.
Protection of basic funds.
(1) The undertaking shall be obliged to take the prescribed measures, after appropriate measures, in particular safety and fire protection, in order to prevent damage, destruction, loss or misuse of basic funds.
(2) In order to ensure the exercise of the rights deriving from the management of the basic funds, the undertaking is obliged to use all legal means in time, in particular to seek the protection of property and possession, to claim compensation and to initiate criminal prosecution.
Maintenance and overhaul.
The undertaking is obliged to maintain the basic funds in a sound and user-friendly state, in particular by timely, regular and economical implementation of normal repairs to avoid premature overhauls, after the procurement of new basic funds. Normal corrections should be ensured in the annual plan, overhauls also in the long-term plan.
Use of basic funds; surplus basic funds.
(1) Continuous increases in production, labour productivity and reductions in own costs require that all basic funds in enterprises are fully used. The company is therefore obliged to ensure the full use of the basic funds, and it is governed in detail by specific provisions, in particular by the Statute.
(2) Basic funds which an undertaking finds when drawing up or amending a plan that will not be used at all or that will be used only to a lesser extent are considered to be surplus. This does not apply to basic funds in the reserve and to basic funds installed in service, but according to the instructions of the competent authorities not used (given for preservation). The undertaking shall report to the supervisory authority on the surplus basic funds within 30 days of the finding of surplus and indicate which economic or budgetary organisation is interested in them.
(3) The management body shall transfer surplus basic funds to the undertaking or budget organisation in its field of competence where they are needed. If the supervisory authority finds that surplus basic funds cannot be used in its field of competence, it shall notify the central authority, which shall act mutatis mutandis. If the surplus basic funds cannot be used in the field of the central office, they shall be transferred to the management of the enterprise or budgetary organisation within the scope of another central office where they are interested.
(4) The Ministry of Finance shall, in agreement with the State Planning Office, determine how surplus basic funds are reported and identify the organisations for which such funds can best be used. The State Planning Office may determine which surplus basic funds may be transferred from the central office's responsibility only with the consent of the State Planning Office.
Disposal of basic funds.
(1) The basic funds of undertakings which have become unfit and cannot be made fit at all or only after a disproportionate cost correction are eliminated by liquidation. Disposal items shall be used in the undertaking or sold according to what is more economical. The sale of these items is carried out essentially through companies in the socialist sector.
(2) The head of the undertaking (s) shall decide on the liquidation of the basic funds and on how to dispose of the articles of disposal, on the basis of the opinion of a committee composed of the employees of the undertaking, in the case of other persons of expertise. The members of the panel shall be designated by the head of the undertaking (s); one of the members of the commission must be appointed as the principal (s) of the accounting officer or his representative. There will be a report on the liquidation. The disposal of machinery and other equipment into scrap requires the approval of the Central Authority.
(3) The provisions of paragraph 2 shall apply mutatis mutandis to the destruction of basic funds as a result of their loss or theft and, in the case of adult breeding and towing animals, adult poultry and hives, also as a result of their death.
(4) In the case of adult breeding and towing animals and adult poultry, the transfer to fattening, sale or killing shall also be considered as disposal, the sale of bees. The liquidation protocol may be replaced by another document.
(5) The date laid down in the liquidation decision, after the facts referred to in paragraph 4, the basic funds in the undertaking lose their character.
Rent.
(1) Surplus basic funds which cannot be transferred (§ 9 (3)) or disposed of may be leased, in particular to state socialist sector organisations. A charter will be drawn up on the lease.
(2) The rental of rooms for residential or operational purposes is governed by the rules on the management of apartments or other rooms.
Transfers of basic fund management.
(1) The management of basic funds is transferred between undertakings only if the basic funds are surplus or require a general interest. From corporate governance to budgetary organisation management and vice versa, basic funds may be transferred if the rules applicable to budgetary organisation so allow. The administrative transfer is done administratively and free of charge.
(2) The central authority or authority entrusted with it may, in its field of administrative measures, transfer the basic funds from the management of the enterprise to the management of another undertaking (allocate them and include them at the same time) or to the management of budgetary organisation; Where a transfer is made to the management of an undertaking or to a budgetary organisation within the scope of another central office, administrative measures shall be taken in agreement between the two central offices.
(3) In the case of basic funds of less economic importance, the administrative measure (paragraph 2) may be replaced by a written agreement between the undertaking and another undertaking or budgetary organisation approved by the competent central authority or by the authorities authorised by it. Approval shall not be required if it is a basic fund whose aggregate acquisition value in which they are recorded does not exceed 20.000 CZK, unless the central competent authority pays for the approval of transfers of basic fund management at a lower cost. The Minister of Finance may, in agreement with the heads of the participating central offices, increase the amount of CZK 20.000 either for the field of a central office or for certain types of basic funds.
(4) The administrative measure or agreement (paragraphs 2 and 3) must contain essential elements, in particular the name of the transferor's undertaking, the undertaking (budgetary organisation) of the transferee, the determination of the object of the transfer, its cost and the amount of the adjustments, following the provisions on defects, claims and commitments and the date on which the administrative transfer takes place.
(5) The authorisation of the Minister for Finance to give consent to the integration of national assets into enterprises reserved for him by the rules on national enterprises is without prejudice.
The disposal and burden of basic funds.
(1) The basic funds may not be disposed of or burdened, even in an executive capacity, unless otherwise provided in specific provisions or in this Regulation.
(2) Surplus basic funds which cannot be transferred (Paragraph 9 (3)) may be disposed of by the undertaking, in the interest of the development of the national economy or in the other general interest, to people's cooperatives or voluntary organisations, also to workers.
(3) Families and similar small buildings (e.g. cabins), their shares or land for their construction and for the establishment of a garden may be disposed of to workers. The land may also be disposed of to remove building, economic or health defects in buildings.
(4) The basic funds are essentially disposed of on a fee basis, at a normal price (Section 367), at a different price or free of charge only for particularly serious reasons.
(5) The disposal of basic funds takes place in writing and requires the approval of the Central Office.
Departure of basic funds.
(1) Proper depreciation of basic funds, i.e. money spent on the acquisition of basic funds, expressing their gradual wear, ensuring recovery and overhauls, and providing the basis for correct identification of production and circulation costs.
(2) The depreciation shall be calculated from the original or replacement cost (depreciation base) according to the general depreciation standards, the indicative depreciation standards or (special) depreciation standards.
(3) In agreement with the central authorities involved, the Ministry of Finance sets out details, in particular general and indicative depreciation standards. This is without prejudice to accounting rules authorising central entities to set depreciation standards.
General inventory.
If, as a result of the evolution of the price level, the value of the basic funds recorded in the accounting records does not correspond in general to their replacement cost, the basic funds shall be revalued on the basis of data provided by the general inventory. The general inventory associated with the new valuation shall be ordered by the Ministry of Finance and shall determine its scope, manner and conditions of implementation.
Power.
(1) The Ministry of Finance may provide for derogations and derogations from this Regulation in an agreement with the central authorities involved.
(2) The Ministry of Finance may lay down conditions for the acquisition of basic funds by undertakings from private individuals for the payment of the purchase of basic funds, after such acquisition, or exclude them.
In agreement with the central authorities involved, the Ministry of Finance shall, as appropriate, issue more detailed provisions for the implementation of this Regulation.
Efficiency.
This Regulation shall enter into force on 1 January 1954; All members of the government will do it.
Dr Dolansky v. r.
Maj-Gen Dr. Cap v. r.
Kopecký v. r.
Uher v. r.
Bark v. r.
Lamb
David v. r.
Dvořák v. r.
Děuriš v. r.
Ing. Jankovcová v. r.
Jonah v. r.
Krajčir v. r.
Kromir
Dr Kylý v. r.
Malek v. r.
Maurer v. r.
Dr. Unedible v. r.
Dr Neuman v. r.
Nosek v. r.
Plojhar v. r.
Polack v. r.
Pospíšil v. r.
Ing. Púčik v. r.
Reitmajer v. r.
Smida v. r.
Ing. Shimonek v. r.
Dr Skoda v. r.
Dr. Nove v. r.
Stoll v. r.
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Regulation Information
| Citation | Government Decree No. 111 / 1953 Coll., on Basic Funds of Economic Organisations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.1953 |
|---|---|
| Effective from | 01.01.1954 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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