What is Full text of Act No. 31 / 2004 Coll.?

Full version of Act No. 31 / 2004 Coll., Act No. 563 / 1991 Coll., on Accounting, as resulting from subsequent amendments — Full text of Act No. 563 / 1991 Coll., on Accounting, as resulting from subsequent amendments.

When it became Full text of Act No. 31 / 2004 Coll. effectiveness?

Full text of Act No. 31 / 2004 Coll. became effective date not available.

Is Full text of Act No. 31 / 2004 Coll. still valid?

Yes, Full text of Act No. 31 / 2004 Coll. is still valid and effective.

Full text of Act No. 31 / 2004 Coll. - Full text of Act No. 563 / 1991 Coll., o...

31

PRESIDENT OF THE GOVERNMENT

Announces

full text of Act No. 563 / 1991 Coll., on Accounting, as is apparent from changes made by Act No. 117 / 1994 Coll., Act No. 227 / 1997 Coll., Act No. 492 / 2000 Coll., Act No. 353 / 2001 Coll., Act No. 575 / 2002 Coll. and Act No. 437 / 2003 Coll.

THE LAW

on accounting

The Federal Assembly of the Czech and Slovak Federal Republic decided on this law:

ČÁST PRVNÍ

GENERAL PROVISIONS

§ 1

(1) This law lays down, in accordance with the law of the European Communities (1), the scope and manner of keeping accountancy and the requirements for proving it.

(2) This law applies to:

(a) legal persons having their registered office in the Czech Republic;

(b) foreign persons, in so far as they are engaged or are engaged in other activities within the territory of the Czech Republic under specific legislation;

(c) the organisational elements of the State under specific legislation;

(d) natural persons registered as entrepreneurs;

(e) other natural persons who are entrepreneurs if their turnover under the Value Added Tax Act (1a), including taxable transactions exempt from that tax, exceeds CZK 6 000 000 for the immediately preceding calendar year, from the first day of the calendar year; the revenue from the activity showing all the characteristics of the business, in addition to the sign that it is carried out by the entrepreneur, shall not be included in the turnover;

(f) other natural persons keeping accounts on the basis of their decision;

(g) other natural persons who are entrepreneurs and are participants in an association without legal personality under a specific legislation, 1b) if at least one of the participants in that association is the person referred to in points (a) to (f) or (h); or

(h) other natural persons to whom special legislation imposes an obligation to keep accounts;

("entities').

§ 2

Subject matter of accounting

Entities shall account for the status and movement of assets and other assets, liabilities and other liabilities, costs and revenues, and profit or loss.

§ 3

(1) Entities shall account for double entry of facts which are the subject of accounting into a period with which such facts are related in time and in substance ("the accounting year"); If it is not possible to comply with this principle, they may also charge for the accounting year in which they have established those facts. In the accounting year, the entities shall account for those facts in accordance with accounting methods (Section 4 (8)); they shall account for all costs and revenues regardless of the time they are paid or received.

(2) The accounting year shall be continuous 12 months, unless otherwise specified. The accounting year shall either coincide with the calendar year or shall be the marketing year. The marketing year shall be the accounting year which may begin only on the first day of a month other than January. The accounting year immediately preceding the change in the accounting year may be shorter or longer than the 12 months indicated. The accounting period when an entity originates in the three months preceding the end of the calendar year or when the entity ceases to exist in the three months following the end of the calendar year or marketing year may be more than the 12 months indicated. In cases of transformation of companies or cooperatives, with the exception of a change in legal form (hereinafter referred to as "transformation of a company '), the accounting year shall begin on the operative day in accordance with a separate legal act and end on the last day of the accounting year in which the registration of the said facts was made in the business register, if it is a successor entity. For the entities involved, the accounting year shall end on the day preceding the applicable date in accordance with a specific legal act.

(3) Entities which are not an organisational component of a State, a local government or an entity formed or established by a special law, (1c) may apply the marketing year. A marketing year may be applied only after notification of the intention to change the accounting year to the locally competent income tax administrator at least 3 months before the planned change in the accounting year, otherwise the accounting year shall remain unchanged. Similarly, entities also move from a marketing year to a calendar year.

§ 4

(1) The entities referred to in § 1 (2) (a) and (c) are required to keep accounts from their date of establishment until their date of demise; the entities referred to in Paragraph 1 (2) (b) are obliged to keep accounts from the date of commencement of business until the date of termination of business in the Czech Republic.

(2) The entities referred to in Paragraph 1 (2) (d) are required to keep accounts from the date of entry into the Commercial Register until the date of removal from the Commercial Register, unless they are required to keep accounts under § 1 (2) (e), (g) or (h).

(3) The entities referred to in Paragraph 1 (2) (e) are required to keep accounts from the first day of the accounting year following the calendar year in which they became an entity until the last day of the accounting year in which they ceased to be an entity, unless they are required to keep accounts under § 1 (2) (d), (g) or (h).

(4) The entities referred to in Paragraph 1 (2) (f) shall keep accounts from the first day of the financial year following that in which they decide to keep accounts, unless they decide to keep accounts from the date of commencement of business or other self-employed activities, until the date on which those activities cease or until the last day of the financial year in which they decide to close accounts, and if they are not obliged to keep accounts under § 1 (2) (d), (e), (g) or (h).

(5) The entities referred to in Paragraph 1 (2) (g) are required to keep accounts from the first day of the accounting year following that in which:

(a) have become parties to the association; or

(b) one of the participants in the association has become an entity;

until the last day of the accounting year in which they cease to be members of the grouping, unless they are required to keep accounts under § 1 (2) (d), (e) or (h).

(6) The entities referred to in Paragraph 1 (2) (h) are required to keep accounts from the date of commencement of business until the date of termination of business, unless otherwise provided for in a separate law and unless they are obliged to keep accounts under § 1 (2) (d), (e) or (g).

(7) Except in the case of termination of an activity, entities may terminate accounting in accordance with § 1 (2) (d) to (h) at the earliest after the expiry of the 5 consecutive accounting years in which they held accounts.

(8) Entities are required to comply with, in particular, the indicative financial statements, the layout and labelling of financial statements items and consolidated financial statements, the content of these statements and accounting methods. Implementing legislation according to the nature of the entities and their activities

(a) the extent and method of drawing up the accounts;

(b) the layout, labelling and content of the items of assets and other assets, liabilities and other liabilities in the accounts;

(c) the organisation, labelling and content of the costs, revenues and results of the financial statements;

(d) the structure and content of the explanatory and supplementary information in the Annex in the financial statements, including information on the management of the State budget and the budgets of the local authorities;

(e) the organisation and content of an inventory of cash flows and an inventory of changes in equity;

(f) an indicative chart of accounts;

(g) accounting methods, in particular methods of valuation and their application, procedures for the creation and use of adjustments, depreciation procedures, procedures for the creation and use of reserves;

(h) the methods of transition from simple accounting or tax records pursuant to the Special Code (1d) to accounting;

(i) the layout, labelling and content of the items in the consolidated accounts;

(j) methods of consolidation of financial statements; and

(k) the procedure for including entities in a consolidation unit;

for individual groups of entities, the National Property Fund of the Czech Republic and the Land Fund of the Czech Republic.

(9) Entities are required to keep one accounting for the entity as a whole.

(10) Entities are required to keep accounts as a set of accounting records; they may use technical means, information media and software. The accounting record shall mean the data which record all facts relating to the keeping of accounts. Any fact relating to the keeping of accounts shall be recorded solely by accounting records.

(11) Individual accounting records may be grouped in aggregated accounting records; such accounting records shall be, in particular, accounting documents, accounting records, books, depreciation plan, inventories, accounting schedules, financial statements and annual report. Entities are required to keep such accounting records to the minimum specified by this Act.

(12) Entities are required to keep accounts in the currency of the Czech currency. In the case of receivables and liabilities, shares in companies, (2) securities (3) and derivatives, (4) prices, if expressed in foreign currency, foreign exchange values, (5) excluding gold, entities are required to use foreign currency at the same time; (6) where the assets and liabilities to which they relate are denominated in foreign currency.

(13) Entities are required to keep accounts in the Czech language. The accounting documents may be drawn up in a foreign language only if the condition of clarity laid down in Paragraph 8 (5) is met.

(14) Accountancy can only be considered as a whole as an information system under a specific legislation7.

(15) Entities shall apply the accounting methods referred to in paragraph 8 in the version in force at the beginning of the accounting year.

§ 5

(1) Entities may entrust the management of their accounts to another legal or natural person.

(2) The delegation referred to in paragraph 1 shall not relieve an entity of its liability to keep accounts.

§ 6

(1) Entities are required to recognise the facts that are the subject of accounting (hereinafter referred to as "accounting cases') by accounting documents.

(2) Entities shall only be required to record accounting cases in books (hereinafter referred to as "accounting records') on the basis of the accounting records referred to in paragraph 1.

(3) Entities are obliged to inventory assets and liabilities under Sections 29 and 30.

(4) Entities are required to draw up the financial statements in accordance with Paragraph 18 as regular or, where appropriate, as exceptional or interim, and in addition, they shall draw up consolidated financial statements in the cases provided for in Section 22.

§ 7

(1) Entities are required to keep accounts in such a way that the financial statements drawn up on the basis of them give a true and fair view of the entity's subject matter and financial situation.

(2) The display is faithful if the contents of the financial statements' items correspond to the actual state which is shown in accordance with the accounting methods the entity is required to use under this Act. The display is fair when the accounting methods are used in a way that leads to the achievement of loyalty. Where an entity can choose between several options of the accounting method and the option chosen would mask the actual situation, an entity shall choose another option that corresponds to the actual situation. If, in exceptional cases, the application of the accounting methods set out in the implementing legislation is incompatible with the obligation under paragraph 1, the entity shall, by way of derogation, apply a fair and fair view.

(3) An entity is required to apply accounting methods in a manner that is based on the assumption that it will continue its activities continuously and that there is no fact that would restrict it or prevent it from continuing it in the foreseeable future. If an entity has information that such a fact occurs to it, it shall apply the accounting methods in a manner appropriate to that effect, and the information on the method used shall be included in the notes in the financial statements.

(4) The organisation and labelling of balance sheet items and profit and loss accounts, and their content and valuation methods used in one accounting year, may not change an entity in the following financial year. Entities may change those arrangements, labelling and content definitions and valuation methods in whole or in part between periods of accounting solely for reasons of change in the subject matter of business or other activity, or for reasons of precision of the faithful presentation or improvement of the reporting capacity of financial statements, the information on any such change with due justification being given in the notes to the financial statements.

(5) Entities shall always be required to provide information in the notes to the financial statements [Paragraph 18 (1) (c)] on the accounting methods used and, where applicable, on deviations from those methods in accordance with paragraph 2, with due justification for them and indicating their impact on the entity's assets and liabilities, financial position and outcome.

(6) Entities are required to account for assets and liabilities, as well as the funds of the state budget and the funds of the budgets of the local authorities, costs and revenues in the books, and to show them separately in the financial statements without clearing them. The infringement of mutual settlement is not a case governed by accounting methods.

§ 8

(1) Entities are required to keep the accounts accurate, complete, conclusive, understandable, clear and in a way that guarantees the continuity of the accounting records.

(2) The accounting of an entity is correct if the entity keeps accounting in such a way that it does not contradict or circumvent this law or other legislation.

(3) The accounting of an entity is complete when an entity has recorded in its books all accounting cases that it should have recorded in accordance with Paragraph 3 in the financial year, and at the latest by the end of that period it has drawn up for its immediately preceding financial years the financial statements and, where applicable, consolidated financial statements, prepared an annual report and, where appropriate, a consolidated annual report, published the information in accordance with Paragraph 21a and has all accounting records on these facts, and clearly arranged.

(4) An entity's accounting records are conclusive if all accounting records of such accounts are conclusive (Paragraph 33a) and the entity has made an inventory.

(5) An entity's accounting is understandable if it allows reliably and unequivocally to be determined individually and in a context

(a) the content of accounting cases using at least the accounting methods referred to in Article 4 (8);

(b) the content of the accounting records using the instruments referred to in Article 4 (10).

(6) The accounting of an entity shall be conducted in a manner that guarantees the continuity of accounting records if the entity is able to fulfil its custody and processing obligations in accordance with paragraphs 31, 32 and 33 (3) and (6) for as long as they are imposed by this law.

ČÁST DRUHÁ

SCOPE OF ACCOUNTING, ACCOUNTING DOCUMENTS, ACCOUNTS AND ACCOUNTS

§ 9

Scope of accounting

(1) Unless otherwise provided for in this Act or in a separate law, entities are required to keep accounts in full.

(2) The entities referred to in Articles 19 (9) and 23 (a) shall apply the methods in full in accordance with those provisions when carrying out their accounts.

(3) Of the entities referred to in Article 1 (2) (a) and (b), accounts may be kept in a simplified manner

(a) civil associations, their organisational units, (8) having legal personality, churches and religious society8a) or church institutions which are religious legal persons, (9) community of general interest, society of interest, 10) foundation funds and community of owners of units, 10a)

(b) housing cooperatives which are not obliged to have their accounts audited by the auditor and cooperatives which are established solely for the purpose of ensuring the economic, social or other needs of their members, 10b)

(c) local authorities and voluntary associations of municipalities,

(d) the contribution organisations for which the contractor so decides;

(e) other entities covered by a separate law.

(4) The entities referred to in Paragraph 1 (2) (c) shall keep accounts in a simplified manner.

(5) Of the entities referred to in § 1 (2) (d) to (h), accounts may be kept to a simplified extent by those which are not required to have their accounts audited by the auditor, or those on which a separate law so provides.

(6) An entity is required to keep accounting in full if it no longer fulfils the conditions set out in paragraph 3 or 5 for carrying out accounting to a simplified extent; to keep accounts to a simplified extent, an entity may switch if it meets the conditions set out in paragraph 3 or 5 for keeping accounts to a simplified extent. Changes in the scope of accounting may be made only on the first day of the financial year following the accounting year in which the entity has established those facts.

§ 10

repealed

§ 11

Accounting documents

(1) The accounting documents are evidence of accounting records which must include:

(a) the identification of the accounting document;

(b) the content of the accounting case and its participants;

(c) the amount of money or information on the price per unit of measurement and the expression of quantities;

(d) the moment when the accounting document is drawn up;

(e) the time at which the accounting case is carried out, unless it is identical with that referred to in (d);

(f) the signature pursuant to Paragraph 33a (4) of the person responsible for the accounting case and the signature of the person responsible for its entry.

The facts referred to in points (a) to (f) relating to one accounting document may be included in several accounting records. The facts referred to in points (b) and (c) may relate to several accounting cases. The signature referred to in point (f) may be common to several accounting documents.

(2) Entities are required to draw up accounting documents without undue delay after the facts that are recognised by them have been established so that the content of each individual accounting case can be determined in accordance with Paragraph 8 (5).

§ 12

Accounting records

(1) Accounting records are accounting records, the content of which is determined by the provisions of this Act relating to books.

(2) Entities are required to carry out accounting records on an ongoing basis in the accounting year following the completion of the accounting document in such a way as not to jeopardise compliance with other legal requirements. A signature of the person responsible for carrying it out shall be attached to the accounting record unless it is identical to the signature of the person responsible for accounting the accounting case.

(3) Accounting records may not be carried out by entities outside the books.

§ 13

Accounting books

(1) Entities shall account, unless otherwise provided for in this Act, for:

(a) in the diary (s) in which the accounting records are organised in terms of time (chronological) and by which they show that all accounting cases are recorded in the accounting year;

(b) in the main book in which the accounts are organised in substance (systematically);

(c) in the books of the analytical accounts in which the accounts of the main book are detailed;

(d) in the books of off-balance-sheet accounts which show accounting entries not made in the books referred to in (a) and (b).

(2) The main book includes synthetic accounts according to the schedule containing at least the following information:

(a) balances of accounts on the date on which the main book is opened;

(b) the aggregate turnover of the party has to give and give accounts, for at least a calendar month;

(c) balances of accounts on the date on which the accounts are drawn up.

(3) Entities may not set up accounts outside the accounts and books.

§ 13a

Simplified scope of accounting

(1) Entities that keep accounts to a simplified extent,

(a) draw up an account schedule in which only accounting groups may indicate, unless special legislation11a) more detailed breakdown is required;

(b) may combine the accounts in the journal with those in the main book,

(c) they shall not apply the provisions of Paragraph 25 (2), except for depreciation;

(d) the provisions of Paragraph 26 (3) concerning provisions and adjustments, with the exception of provisions and adjustments under special legislation, 11b)

(e) they shall not apply the provisions of Paragraph 27 except in Article 27 (3) for the conversion of housing cooperatives;

(f) draw up financial statements to the extent specified for each group of entities (Section 4 (8)) by implementing legislation.

(2) Entities that keep accounts to the simplified extent referred to in paragraph 1 need not apply the provisions of Paragraph 13 (1) (c) and (d).

(3) Application of the procedure laid down in paragraphs 1 and 2 does not infringe the provisions of Articles 3 (1) and 7 (1) and (2).

§ 14

Indicative schedule and schedule of accounts

(1) The indicative chart of accounts determines the layout and designation of the accounting classes, or groups of accounts, or, where appropriate, of the synthetic accounts for accounting for the status and movement of assets and other assets, liabilities and other liabilities, as well as costs and revenues and the result of the management; the arrangements must ensure that the accounts are drawn up.

(2) On the basis of the indicative chart of accounts referred to in paragraph 1, entities shall draw up an accounting schedule specifying the accounts required to account for all accounting cases and to draw up the accounts in the entity.

(3) Entities shall draw up the accounting schedule referred to in paragraph 2 for each financial year; the accounting schedule may be supplemented during the accounting year. If the first day of the financial year does not change the accounting schedule in force in the previous financial year, the entity shall also proceed according to that financial year.

§ 15

repealed

§ 16

Other provisions on books

(1) The cash amounts in the books of the analytical accounts must correspond to the respective aggregate amounts of turnover or balances of the synthetic accounts to which those accounts are kept.

(2) A statement in cash shall be used in the books of the analytical accounts; the units of measurement and the quantity cannot be used.

§ 17

Opening and closing books

(1) Unless otherwise specified, entities open accounting books

(a) on the date on which the obligation to keep accounts arises;

(b) on the first day of the accounting year,

(c) on the date of entry into liquidation;

(d) on the date following the date of processing of the application for the distribution of the winding-up balance or on the date following the date of processing of the report on the disposal of the property under special legislation;

(e) on the date on which the bankruptcy declaration takes effect,

(f) on the date on which the compensation authorisation takes effect;

(g) on the date on which the confirmation of the compulsory compensation takes effect;

(h) on the date following the date on which the confirmation of the compensation takes effect;

(i) on the date following the date on which the effect of the compulsory compensation is due;

(j) on the date following the date on which the cancellation of the bankruptcy takes effect; or

(k) on the date on which specific legislation provides for the establishment of the opening balance sheet.

(2) Unless otherwise specified, entities shall close their books

(a) on the date of expiry of the obligation to keep accounts,

(b) on the last day of the accounting year,

(c) on the date preceding the date of entry into liquidation;

(d) on the date of cancellation without liquidation, except for the conversion of companies or cooperatives;

(e) on the date preceding the date on which the bankruptcy declaration takes effect;

(f) on the date preceding the date on which the compensation authorisation takes effect;

(g) on the date preceding the date on which the confirmation of the compulsory compensation takes effect;

(h) on the date on which the certification of the compensation takes effect;

(i) on the date on which the effect of fulfilling the compulsory compensation occurs;

(j) on the date on which the cancellation of the bankruptcy takes effect; or

(k) on the date on which specific legislation provides for the closure of books and the drawing up of accounts.

(3) Entities involved in the transformation of a company shall open the books on the relevant date of the transformation of the company and keep the books separately from the relevant date of the transformation of the company until the date of the transformation of the company is entered in the business register. The transferee entity shall adjust the accounts of the participating entities at the date of registration of the transformation of the company (11c) with effects from the relevant date. The financial statements shall not be drawn up on the date of registration of the transformation of the company into the business register, on the date preceding or following the date of registration of the transformation of the company.

(4) After the clearance of the financial statements, the entity may not add further accounting entries at any later date to closed books, except in cases of transformation of the company referred to in paragraph 3. By the time the accounts are cleared, but not later than the end of the following financial year, an entity may only, on the grounds that the contents of the financial statements' items do not correspond to the actual state that the closed books have been re-opened and, if necessary, corrected accounting records and draw up new financial statements which thus become financial statements under this Act.

ČÁST TŘETÍ

FINANCIAL CONCLUSION

§ 18

Financial statements

(1) Entities shall draw up financial statements in the cases provided for by this Act. The accounts shall be an integral whole and shall comprise:

(a) balance sheet (balance sheet);

(b) a statement of profit and loss; The National Property Fund of the Czech Republic, the Land Fund of the Czech Republic and the State Funds do not compile a profit and loss account,

(c) an Annex which explains and complements the information contained in the parts referred to in points (a) and (b), in particular by fulfilling Sections 7 (3) to (5) and 19 (5); the Annex shall also include information on the amount of the social security contributions due and the contribution to the State's employment policy, the amount of public health insurance obligations due and the amount of tax arrears registered with the local competent financial authorities.

Financial statements may include an overview of cash flows or an overview of changes in equity.

(2) The accounts referred to in paragraph 1 shall include:

(a) the name and surname, business name or name of the entity; for entities under § 1 (2) (a) to (c), the head office or for entities under § 1 (2) (d) to (h), residence and place of business, if different from residence,

(b) the identification number if the entity has it;

(c) the legal form of the entity;

(d) the subject matter of the business or other activity or, where appropriate, the purpose for which it was established;

(e) the balance sheet date (§ 19 (1)) or other time at which the accounts are drawn up (§ 19 (3)),

(f) the time when the accounts are drawn up,

and it must be accompanied by a signature of an entity's statutory body as referred to in paragraphs 1 (2) (a) to (c) or a signature of an entity as described in paragraphs 1 (2) (d) to (h); the addition of that signature record shall be considered as drawn up in accordance with point (f).

(3) Entities shall draw up financial statements in full or in a simplified manner. Unless otherwise provided for in this Act, they may, to a simplified extent, draw up the financial statements of the entity which are not required to have financial statements certified by the auditor, with the exception of public limited liability companies which complete the financial statements.

Citation	Full version of Act No. 31 / 2004 Coll., Act No. 563 / 1991 Coll., on Accounting, as resulting from subsequent amendments
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	30.01.2004
Effective from	-
Effective until	-
Status	Valid

Full text of Act No. 31 / 2004 Coll.

Full text of Act No. 563 / 1991 Coll., on Accounting, as resulting from subsequent amendments

Contents