Decree No. 252 / 2015 Coll.
Decree amending Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance undertakings, as amended
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01.01.2016
02.10.2015
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252
DECLARATION
of 16 September 2015
amending Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance undertakings, as amended
According to § 37b (1) of Act No. 563 / 1991 Coll., on Accounting, as amended by Act No. 437 / 2003 Coll. and Act No. 304 / 2008 Coll.:
Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance companies, as amended by Decree No. 474 / 2003 Coll., Decree No. 546 / 2004 Coll., Decree No. 399 / 2005 Coll., Decree No. 351 / 2007 Coll., Decree No. 411 / 2009 Coll., Decree No. 421 / 2010 Coll. and Decree No. 469 / 2013 Coll., is amended as follows:
1. In footnote 1, the sentence "Directive 2013 / 34 / EU of the European Parliament and of the Council of 26 June 2013 on the annual accounts, consolidated accounts and related reports of certain types of undertakings, amending Directive 2006 / 43 / EC of the European Parliament and of the Council and repealing Council Directives 78 / 660 / EEC and 83 / 349 / EEC is added. ';
2. footnote 1a shall read:
"(1a) Act No. 277 / 2009 Coll., on Insurance, as amended. '
3. In Paragraph 2 (2), "Paragraph 38a 'is replaced by" Paragraph 22 (6) of the Act'.
4. In Paragraph 3 (1), the words "may include an overview of cash flows and 'are deleted.
5. In Article 3, at the end of paragraph 4, the sentence "The information in the Annex shall be presented in the same order as the items in the balance sheet and the profit and loss account are presented. ';
6. Paragraph 3 (5) is deleted.
Paragraph 6 shall become paragraph 5.
7. In Paragraph 4 (3) (b), "a 'is replaced by a comma.
8. footnotes 4 to 6, including the footnotes, are deleted.
9. in § 5 (1), § 10 (1) and (15), § 12 (1), § 20 (3) (a), § 25 (1) (b), § 33 (6), Annex No 1 under asset item C. and Annex No 3, "Investment (investment)" is replaced by "Investments."
10. In Article 5 (1) and (3), Article 10 (3), (9) and (14), Article 19 (11), Article 20 (3) (a), the heading above § 25, Article 25 (1) (a), Article 29 (4) and (7), Article 33 (6), Annex 1 under asset items C.III.3., C.III.3. and D. and Annex 3, "Financial" is replaced by "Investment."
11. in § 8 (9), § 8a (4), § 10 (12) and Annex No 2 under item II.9., the words "investment" are replaced by "investment."
12. In § 8 (9), § 10 (1) and (12), § 19 (9), § 22 (1) (c), § 26 (2) and (3), § 29 (5) and (8) (b) and (c) and Annex 1 under asset item C.III.7, "investment" is replaced by "investment."
13. in § 8 (10), § 8a (3), § 19 (9) of the introductory part of the provisions and points (a) to (c), § 19 (10) of the introductory part of the provisions and points (a) and (b), § 19 (11), § 22 (1) (j), § 27 (1), § 29 (2), (5), (6) and (7), the words "investment" shall be replaced by "investment."
14. in Article 8 (10), Article 29 (2) and Annex 2, the words "investment (investment)" are replaced by the words "investment."
15. in Article 9 (2), the words "installation expenses," and the words "sub-heading (a) shall be deleted;
16. In Paragraph 10 (1), "other investments' is replaced by" other investments'.
17. in Paragraph 10 (6), "Other investments" is replaced by "Other investments."
18. footnotes 19, 23, 24, 27, 28 and 29 are deleted, including the footnotes.
19. Footnote 29a reads:
"29a) § 2758 (1) of the Civil Code. '
20. footnote 35 is deleted, including the footnote reference.
21. in Paragraph 14 (5), the words "or resources from free of charge" shall be replaced by the words "own resources."
22. in Paragraph 16 (1):
"(1) Summary item" C. Technical provisions "includes provisions under" C.1. Provisions for unearned premiums, "" C.2. Provisions for life insurance, "" C.3. Provisions for outstanding claims, "" C.4. Provisions for bonuses and discounts "and" C.6. Other technical provisions. "'
23. in Article 16 (2), the words ", C.7.a), C.8.a)" shall be deleted and the words "share of reinsurance undertakings" shall be replaced by "value of reinsurance."
24. in Article 16 (3), the words ", C.7.b), C.8.b) 'shall be deleted and the words" the share of reinsurance undertakings under the reinsurance contract, 36a) by which the gross amount of technical provisions is always reduced' shall be replaced by the words "the value of the reinsurance that includes the actual or estimated amounts by which the gross amount of technical provisions is reduced in accordance with the contractual terms of the reinsurance. As regards the provision for unearned premiums, the value of the collateral shall be calculated in accordance with the methods set out in Article 1 of Annex 4 and the terms of the reinsurance contract. '
footnote 36a is deleted, including the footnote reference.
25. in Article 16, paragraphs 4 to 9 read:
"(4) The item" C.1. Provisions for outstanding premiums "includes the amount representing the share of gross premiums written to be assigned to the following accounting year or to subsequent financial years. If item C.1. also includes the value of the provision for risks that arise from loss of insurance, the title of the item" Provision for unearned premiums and impending loss of insurance "shall be read. If the amount of losses to be incurred is significant, their value shall be disclosed separately in the notes in the financial statements. The provisions shall apply mutatis mutandis to unearned premiums.
(5) The item "C.2. Life insurance provision" includes the value of insurance liabilities, including premiums already declared, determined by an actuarial estimate after deduction of the actuarial value of future premiums.
(6) Heading "C.3. The provision for claims on outstanding claims" represents the sum of the expected final costs incurred by the insurance undertaking in the context of the settlement of any claims arising from events occurring by the end of the financial year, whether reported or not, reduced by the amounts already paid in relation to those claims. This reserve also includes a reserve for damage suffered and not reported yet. C0180 / R0290
(7) The item "C.4. Provisions for bonuses and discounts" represents amounts in the form of bonuses and discounts intended for policyholders or for a person with a contractual right of performance as defined in Section 19 (6), unless those amounts have been charged to the policyholder or the person with a contractual right of performance or are included in item C.2. In the course of the reinsurance business, that provision shall be made only if there is a reason for it under the reinsurance contract.
(8) Heading "C.6. Other technical provisions" includes, inter alia, a provision for impending loss of insurance, which is added in addition to the provision for unearned premiums in respect of risks assumed by the insurance undertaking after the end of the financial year in order to cover all claims and expenses associated with valid insurance contracts exceeding the amount of the provisions for unearned premiums and premiums due under those contracts. The provision for impending losses on insurance shall be reported under item C.6. only if it is not the content of item C.1. in accordance with paragraph 4. Heading C.6. also includes the "Provisions for the Office's liabilities," "Provisions to meet the liabilities of the applied technical interest rate" or other technical provisions where the entity is created.
(9) The item "D. Technical provisions for life insurance where policyholders are the bearer of investment risk" includes technical provisions created to cover liabilities relating to investments under life insurance contracts whose value or return is determined on the basis of financial investments for which the policyholder bears a risk or an indicator. Additional technical provisions that may be created to cover risks related to death, operating expenses or other risks, such as guaranteed benefits of insurance benefits due at the end of the contract or guaranteed value upon withdrawal of the insurance contract, are listed under item C.2. Item D.also includes technical provisions representing obligations of the tontine organiser towards its participants. ';
(26) footnotes 37, 37a, 37b, 38 and 39 are deleted, including the footnotes.
27. In Article 16, the following paragraph 11 is added:
"(11) Information on the methods used to calculate the individual technical provisions that are contained in the summary item" C. Technical provisions "or" D. "shall be shown in the notes in the financial statements."
28. The following Section 16a is inserted after Section 16:
(1) The "Code of Obligations of the Office" is a provision for fulfilling the liability obligations of the Office under the law governing the insurance of liability from the operation of the vehicle. The provision is intended to cover those liabilities which the Office does not have the corresponding assets to fulfil. This reserve shall be made up of the insurance undertaking to the extent that it participates in the Office's overall commitments, its amount being determined by mathematical and statistical methods.
(2) The "provision for the fulfilment of the technical interest rate obligations" is a provision intended to meet the obligations arising from the technical interest rate applied at an amount in which the life insurance provision referred to in Article 16 (5) is not sufficient to cover those obligations. The provisions shall apply mutatis mutandis to other numerical parameters. ';
29.
Provisions
The summary item "E. Provisions" contains reserves in accordance with Section 26 (3) of the Act, which are listed in the arrangements set out in Annex 1. '
30. in Paragraph 19 (1) (b) (2), "premium" is replaced by "bonuses."
31. in Article 19 (4), the words "and I.9." and Annex 2, entry I.9. shall be deleted;
32. in Paragraph 19 (6), the word "premium" is replaced by "bonus" and the word "premium" is replaced by "bonuses."
33.In Article 19 (8), the words "financial location (investments)" are replaced by the words "investment."
34. In Paragraph 19 (11), "investment 'is replaced by" investment'.
35. in Article 20 (3) (a), the words "financial location" shall be replaced by the words "investment" and "investment location" shall be replaced by the words "investment which."
36. in Paragraph 20 (3) (d), "4" is replaced by "6."
37.In Paragraph 20 (5) (d), "4" is replaced by "6."
38. In Article 20, the following paragraph 7 is added:
"(7) The items referred to in paragraphs 4 and 6 need not be shown in the profit and loss account. If an entity makes use of the option not to include those items, neither the items" III.13 "shall be entered in the Non-Technical Account nor the items" III.13 Exceptional profit or loss' and "III.14 Extraordinary income tax '. In this case, this information shall be shown in the notes in the financial statements.';
39. in Paragraph 22 (1) (c), the words "such investment" are replaced by the words "such investment."
40. in Paragraph 22 (1), point (e) is deleted;
Points (f) to (o) shall be renumbered as points (e) to (n).
41. in Paragraph 22 (1) (h), "premium" is replaced by "Bonuses."
42. In Paragraph 22 (1), the words "this is also the case if an entity makes use of the option under Paragraph 20 (7)" shall be added at the end of the text (l).
43. In Paragraph 22 (1), point (m) is deleted.
Point (n) shall be renumbered as point (m).
44. in Paragraph 22 (1) (m), "4" is replaced by "3."
45. in Paragraph 22 (2), the words "or if their presentation would seriously harm any entity to which they relate shall be added at the end of the text of point (b); information on the application of this provision shall always be provided '.
46. in Paragraph 22 (2) (e), the words "stock vouchers, warrants" shall be replaced by "any priority shares" and the words "warrants, options" shall be inserted after the words "bonds."
(47) footnote 42a is deleted, including the footnote reference.
48. In Article 22 (2), the words "at the end of the text of point (n) shall be added; this information may not be provided if their disclosure would allow the financial situation of a particular member of such an institution to be established '.
49. in Paragraph 22 (2), at the end of point (r), the dot is replaced by a comma and the following points (s) and (t) are added:
"(s) the proposed distribution of profits or settlement of losses;
(t) information on the events under Article 19 (6) of the Act. ';
50. In Article 22 (5), the words "the organisational component 'are deleted.
51. In Paragraph 22, the following paragraph 9 is added after paragraph 8:
"(9) The information referred to in paragraphs 1 and 2 (b) to (e), (h) to (n), (p) to (t), paragraphs 5 to 7, § 5 (3) and Article 25 (2) shall be reported by the entity as a public-interest entity."
52. In Paragraph 25 (1), footnotes 43 and 44 are deleted, including the footnote reference.
53.In Paragraph 25 (1) (b):
"(b) global items" C. Investments. "';
54. In Paragraph 25, the following paragraph 2 is added:
"(2) The valuation referred to in paragraph 1 shall be carried out in accordance with paragraphs 26 and 27. ';
Paragraph 2 shall become paragraph 3.
55. In the first sentence of Article 25 (3), the words "where investments are measured at fair value 'shall be inserted after the words" in the financial statements'.
56. The second sentence of Paragraph 25 (3) reads: "The fair value of the individual items referred to in paragraph 1, determined in accordance with Paragraph 27 (3) of the Act, shall be shown in the notes to the financial statements where the investments are valued at cost."
57. In Paragraph 25, the following paragraph 4 is added:
"(4) The same valuation method shall be used for all investments included in any of the items marked with an Arabic digit or under asset item C.I. The method used for each individual investment item shall be set out in the notes in the financial statements together with the amounts determined in accordance with it. ';
58. in Paragraph 26 (1), the words "other investments" shall be replaced by the words "other investments," the words "is" shall be replaced by the words "are," and at the end of the paragraph, the sentence "If the investment under the law governing the insurance sector would be the property referred to under" B. Long-term intangible assets, "the sentence of the first law shall apply to its valuation."
59. In Paragraph 26 (2), the words "to them 'are replaced by the words" to them' and the words "to them 'are replaced by the words" to them'.
60. In Article 26 (3), the words "investment valued 'are replaced by the words" investments valued' and the words "all 'are replaced by the words" all'.
61. In Article 26, the following paragraph 5 is added:
"(5) In any event, the valuation method shall be accurately described and the reasons for its application shall be expressed in the notes in the financial statements. ';
62. In Article 27 (1), the word "is' is replaced by" are ', the words "provided for by a qualified estimate or expert opinion as the price at which land and buildings could be sold in' are replaced by the words" provided for in Article 27 (3) of the Act k 'and the words "adjusted where appropriate in accordance with paragraphs 3 and 4' are added at the end of the paragraph.
63. In Paragraph 27, the following paragraph 4 is inserted after paragraph 3:
"(4) The method used to determine the valuation of the land or buildings and their breakdown in the accounting year in which the valuation is made shall be shown in the notes in the financial statements. ';
Paragraph 4 shall become paragraph 5.
64. In Paragraph 27 (5), "1 to 3 'is replaced by" 1 to 4';
65. Paragraph 28, including the title, reads:
Technical provisions
The amount of technical provisions must at all times be sufficient to ensure that the insurance undertaking is able to meet its obligations arising from insurance contracts that can reasonably be expected. '
66. In Article 29 (2), the words "valuation differences' shall be inserted after the words" except '.
67.In Paragraph 29 (4) and Annex 2, items II.2.b and III.3.b, the words "other investments' are replaced by the words" other investments';
68. In Paragraph 29 (6), "Other investments' is replaced by" Other investments';
69. In Paragraph 29 (7), the word 'is' is replaced by 'is'.
70. In Paragraph 29 (9), the words "Article 14a, Article 54 and Article 54a shall apply mutatis mutandis' are replaced by the words" the relevant provisions shall apply mutatis mutandis'.
71.Paragraph 33 (3) is deleted.
Paragraphs 4 to 7 shall be renumbered paragraphs 3 to 6.
72. Paragraph 34, including the title, reads:
Procedure for the creation and use of reserves
(1) Reserves in accordance with § 26 (3) of the Act are listed in accordance with § 17, unless otherwise specified. The technical provisions shall be reported in accordance with Section 16.
(2) With the exception of technical provisions, the creation of provisions referred to in paragraph 1 shall be indicated in the Non-Technical Account under item "III.8. Other costs', use of reserves including their dissolution based on inventory in the Non-Technical Account under item" III.7. Other returns "."
73. In Article 35 (1), the introductory part of the provision reads: "Cases may be settled in the books and in the accounts under the conditions laid down in Article 7 (6) of the Act:"
74. Paragraph 38 (3) to (6) is deleted.
Article 75 (38a) shall be deleted;
76. In Paragraph 40 (1), the words "may include an overview of cash flows and 'are deleted.
77. In Paragraph 43, the following paragraph 1 is added:
"(1) The Annex shall include in the consolidated financial statements the information required under Paragraph 22, in order to facilitate the assessment of the financial position of the consolidation unit, with adjustments resulting from the consolidation arrangements used pursuant to Paragraph 39 (1) and the consolidation methods referred to in Paragraph 39 (3) as compared to the financial statements, including the following adjustments:
(a) when reporting transactions between related parties [Paragraph 22 (2) (i)], operations between related parties that are included in the consolidation and which are excluded from consolidation are not included;
(b) the average number of employees during the accounting year [Paragraph 22 (2) (k)] separately indicates the average number of employees employed by consolidated entities using the proportional consolidation method;
(c) when reporting amounts of remuneration, advances, loans and other claims, only the amounts of the consolidating entity and its controlled persons allocated to the persons listed in paragraphs (n) and (o) of Paragraph 22 (2) shall be reported. ";
Paragraphs 1 and 2 shall become paragraphs 2 and 3.
78. In the first sentence of Paragraph 43 (2), the word "further 'shall be inserted after the word" unit'.
79.In Article 43 (2) (c), the words "pursuant to Article 38 (4) 'are deleted.
80.In Paragraph 43 (2) (e), the words "under Paragraph 38 (6) 'are deleted.
81. in Paragraph 43 (2), the comma at the end of point (g) shall be replaced by a dot and points (h) to (j) shall be deleted;
82. Paragraph 43 (3) is deleted.
83. footnotes 30a, 48 and 51 are deleted, including the footnotes.
84. In Annex 1, under asset item B, the words "(a) establishment expenses' are deleted.
85. in Annex 1, under asset item C.III, "Other investments" is replaced by "Other investments."
86. In Annex 1, under liability item A.II., the word "ažio 'is replaced by the word" ažio'.
87. in Annex 1, in entries C.1.b), C.2.b), C.3.b), C.4.b), C.6.b) and D.b), liabilities, the words "share of reinsurance undertakings" are replaced by the words "value of reinsurance."
88. In Annex No 1 under heading C.2. of liabilities, the words "Life insurance provisions' are replaced by the words" Life insurance provisions'.
89. In Annex No 1, under item C.3 of liabilities, the words "Provisions for claims' are replaced by the words" Provisions for claims outstanding '.
90. In Annex 1, under item C.4. of liabilities, the word "premium 'is replaced by" bonuses'.
91. In Annex 1, item C.5. of the liabilities is deleted.
92.In Annex 1, entries C.7 and C.9 of the liabilities are deleted.
93. In Annex 1, under liability item D, the words "Technical provision for life insurance, if the policyholder is the holder of investment risk 'are replaced by the words" Technical provisions for life insurance where the policyholders are the holder of investment risk'.
94. In Annex 1, under liability item E.1, the word "pensions' is replaced by the word" pensions'.
95.In Annex No 2, entry I.6., "Premium" is replaced by "Bonuses."
96. In Annex No 2, entry II.7, "Premium 'is replaced by" Bonuses'.
97.In Annex No 2, entry III.5., "investment" is replaced by "investment."
98. In Annex 3, "Other investments' is replaced by" Other investments'.
99. In Annex 3, the words "profit or loss' are replaced by the words" profit or loss'.
100. In Annex 3, "Economic result 'is replaced by" Economic result';
101. In Annex 3, "Other provisions' is replaced by" Provisions'.
102. The following Annex 4 is inserted after Annex 3:
"Annex No 4 to Decree No 502 / 2002 Coll.
Some methods for calculating technical provisions
A. Reserve for unearned premiums
(1) The provision for unearned premiums shall in principle be calculated separately for each insurance contract.
2. For insurance categories where it is not possible to establish a time correlation between risks and premiums, calculation methods shall be used which take into account the same time development of risk.
3. If the time perspective cannot be applied in the calculation of the reserve in accordance with Paragraph 16 (4), the mathematical statistical methods may be used to determine the amount of the reserve.
B. Provision for imminent losses
The provision for impending losses referred to in Article 16 (9) shall be calculated on the basis of claims and administrative overheads likely to arise after the end of the accounting year in accordance with the insurance contracts concluded before that date, provided that their estimated amount exceeds the amount of the provision for outstanding premiums and the amount of the premiums due resulting from the insurance contracts in question. In calculating the provision, the deferred cost of insurance contracts under Section 30 shall also be taken into account.
C. Life insurance provision
The life insurance provision referred to in Article 16 (5) shall in principle be calculated separately for each life insurance contract. The negative values of the individual life insurance provisions arising from the application of the actuarial method shall be replaced by zero values. An overview of the underlying assumptions chosen shall be provided in the notes to the financial statements.
D. Provisions for claims outstanding
1. Non-life insurance
(a) The provision referred to in Article 16 (6) shall in principle be calculated separately for each insurance event on the basis of the expected value of future costs.
(b) The reserve must also take into account the damage incurred but not reported on the balance sheet date; the value of such a provision is determined in the light of experience as regards the number and severity of claims on claims reported after the balance sheet date. If this information is not available, the amount of the reserve shall be determined by actuarial methods and, if this is not possible for objective reasons, the qualified estimate method shall be used.
(c) The calculation of the provision shall take into account the cost of the insurance claims of Paragraph 19 (5) (a) irrespective of their origin.
(d) the amounts referred to in Article 19 (5) (b) shall be deducted from the provision for outstanding claims; their estimation shall be treated on the basis of the precautionary principle. If these amounts are significant, they shall be shown in the notes in the financial statements.
(e) Where the compensation for insurance benefits must be paid in the form of annual instalments, the amount of the provision which is created for that purpose must be calculated on the basis of recognised methods of insurance mathematics.
(f) Discounting or deductions may not be used, regardless of whether they result from the application of the valuation method to the provision for outstanding claims, which are expected to be settled at a later date at a higher value, or are expected to be carried out otherwise.
2. Life insurance
The amount of the provision for claims outstanding referred to in Article 16 (6) shall be equal to the amounts due to beneficiaries of the right to claims, plus the cost of claims. ';
Transitional provisions
1. The provisions of Decree No 502 / 2002 Coll., as effective from the date of entry into force of the Order, shall apply for the first time in accounting years beginning on or after 1 January 2016, unless otherwise specified in point 2.
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Regulation Information
| Citation | Decree No. 252 / 2015 Coll., amending Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance undertakings, as amended |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 02.10.2015 |
|---|---|
| Effective from | 01.01.2016 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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