Decree No. 350 / 2007 Coll.
Decree amending Decree No. 501 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions, as amended
Valid
Order
Effective from 01.01.2008
Text versions:
01.01.2008
21.12.2007
350
DECLARATION
of 17 December 2007
amending Decree No. 501 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions, as amended
The Ministry of Finance provides pursuant to Section 37b of Act No. 563 / 1991 Coll., on Accounting, as amended by Act No. 437 / 2003 Coll., ("the Act ') for the implementation of Sections 4 (8), 24 (4) and (5) and 28 (1):
Decree No. 501 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions, as amended by Decree No. 473 / 2003 Coll., Decree No. 545 / 2004 Coll. and Decree No. 398 / 2005 Coll., is amended as follows:
1. Paragraph 1, including footnote 1, reads as follows:
This decree implements the relevant regulations of the European Community1) and provides for the entities referred to in § 2
(a) the organisation and labelling of financial statements and consolidated financial statements and the content of the items of those statements, the accounting methods and their application, the methods for consolidation of financial statements and the procedure for the inclusion of entities in the consolidation unit;
(b) accounting methods and their application;
(c) the indicative chart of accounts.
1) Council Directive of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions (86 / 635 / EEC). Directive 2001 / 65 / EC of the European Parliament and of the Council amending Directives 78 / 660 / EEC, 83 / 349 / EEC and 86 / 635 / EEC as regards valuation rules for the annual and consolidated accounts of certain types of companies, banks and other financial institutions. Directive 2003 / 51 / EC of the European Parliament and of the Council amending Directives 78 / 660 / EEC, 83 / 349 / EEC, 86 / 635 / EEC and 91 / 674 / EEC on the annual and consolidated accounts of certain types of companies, banks and other financial institutions and insurance undertakings. Directive 2006 / 46 / EC of the European Parliament and of the Council of 14 June 2006 amending Council Directive 78 / 660 / EEC on the annual accounts of certain types of companies, 83 / 349 / EEC on consolidated accounts, 86 / 635 / EEC on the annual accounts and consolidated accounts of banks and other financial institutions and 91 / 674 / EEC on the annual accounts and consolidated accounts of insurance undertakings. ';
2. Paragraph 2 (1), including footnotes 2 to 6a, reads as follows:
(1) The Decree applies to entities under § 1 (2) (a) and (b) of the Act which are:
(a) bank2),
(b) a branch of a foreign bank;
(c) savings and credit cooperatives), hereinafter referred to as "cooperative reserve";
(d) a securities trader (4);
(e) the organisational part of the foreign securities dealer;
(f) investment social5),
(g) investment fondem5),
(h) mixed holding person (2);
(i) a financial holding person (2);
(j) the pension fund (6); or
(k) electronic money institutions (a).
2) Act No. 21 / 1992 Coll., on Banks, as amended.
3) Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on income taxes, as amended.
4) Act No. 256 / 2004 Coll., on Capital Market Business, as amended.
5) Act No. 189 / 2004 Coll., on Collective Investment, as amended.
6) Act No. 42 / 1994 Coll., on supplementary pension insurance with a State contribution and on amendments to certain laws related to its implementation, as amended.
6a) Act No. 124 / 2002 Coll., on transfers of funds, electronic means of payment and payment systems (Law on payment), as amended. '
3. Paragraph 7 (1) reads as follows:
"(1) Item" 3. Claims on banks and co-operatives "includes claims on loans and other claims on banks or co-operative reserves, including accrued facilities, in particular current accounts for banks or co-operative advances, fixed-term deposits with central banks, banks or co-operative advances, loans granted to central banks, banks or co-operative reserves, including loans granted to central banks, banks or co-operative reserves in respect of repurchase transactions, other claims on banks or co-operative reserves, non-marketable debt securities issued by banks that are acquired with the intention of immediate or early sale and are not valued at fair value, amending items on such claims."
Paragraphs 2 and 3 are deleted.
Paragraphs 4 and 5 shall be renumbered paragraphs 2 and 3.
4. in § 8 (3), § 17 (1) and (2), § 18 (3), § 44 (1) and (2), the words "the Czech consolidation agency" shall be deleted.
5. in § 8 (1), § 18 (1), the words "the Czech consolidation agency and" shall be replaced by the words "or."
6. In Article 9 (2), the words "debt securities issued in primary issues not intended for trading 'are replaced by the words" non-marketable debt securities not purchased with the intention of immediate or early sale and not measured at fair value'.
7. In Paragraph 10 (1), the third sentence is replaced by the sentence "Own shares and own interim certificates shall be reported under" 8. Capital. "'.
8. In paragraph 12, in paragraph 1, the words "establishment expenses," are deleted.
9. Paragraph 12 (2) is deleted.
Paragraphs 3 to 5 shall be renumbered paragraphs 2 to 4.
10. in Article 15, footnote 9 reads:
"9) § 4a of Act No. 87 / 1995 Coll., as amended."
11.
Capital
Item "8. The capital" contains subscribed capital, for the cooperative reserve both registered and non-registered capital. An entity shall indicate in a separate subheading the paid-up capital. This item also includes own shares and own provisional notes without taking into account the purpose of the acquisition, if the entity is a public limited liability company, or own shares without taking into account the purpose of the acquisition, if the entity is other than a public limited liability company that reduces the value of capital. '
12. In Paragraph 25 (2), footnote 11 is renumbered footnote 5, including the footnote references.
13. In Article 29 (2), the words "and participation with significant or decisive influence 'shall be inserted after the words" property'.
14. In Paragraph 47 (2), the words "and a holding with significant or decisive influence measured at fair value only at the time of their loss and in cases where a permanent impairment of their value is demonstrated 'shall be inserted after the word" property'.
15.
Extraordinary income and extra costs
The items "20. Extraordinary income" and "21. Extraordinary costs" contain the proceeds and costs of accounting cases which are entirely exceptional in view of the entity's normal activities as well as the income and costs of incidents occurring at random. These items shall not include manka and damage, compensation for mank and damage to be recorded under item "7. Other operating income" or "8. Other operating costs." '
16. in Article 60 (1) (h), the words "establishment expenditure," shall be replaced by the words "own shares and provisional notes,"
17. in Article 60 (1), at the end of point (o), the dot is replaced by a comma and the following point (p) is added:
"(p) time resolution if this amount is significant."
18. in Paragraph 60 (2), the words "the extent to which income taxes affect profit or loss from normal and exceptional activities shall be added at the end of the text in point (a);"
19. in Paragraph 60 (2), the dot is replaced by a comma at the end of point (f) and the following point (g) is added:
'(g) extraordinary costs and revenues, if their amount is significant, indicating their nature and amount. The same information shall also be provided for costs and revenues relating to another accounting year.';
20. in Paragraph 60 (3) (f), footnote 12 is renumbered as footnote 4, including the footnote references.
21. in Paragraph 62 (a), footnote 13 shall be renumbered footnote 5, including the footnote references.
22. In Part Three, the words "(Paragraph 14 (1) of the Act) 'are deleted.
23. in § 67, the words "(K § 4 (8), § 25 (4) of the Act)" are deleted.
24. In § 68, under the heading "(K § 27 (6) of the Act) ', the words" (K § 27 (6))' are deleted.
25. In Article 68, the following paragraph 3 is added:
"(3) Investment companies for their controlled holding funds and investment funds measure fair value holdings under Act No. 189 / 2004 Coll., on Collective Investment. Changes in valuation of such assets shall be recognised under the relevant liability item. In the event of the loss of such assets, the resulting change shall be recognised in the relevant item of the profit and loss account. If there is evidence that there has been a permanent impairment in the value (impairment) of that interest, this loss shall be reported in the relevant item of the profit and loss account without undue delay. The amount of this loss shall correspond to the difference between the valuation at the acquisition of the holding and the current fair value taking into account previous reported impairment losses. ';
26. In Paragraph 69, the words "(K § 4 (8) and § 27 (6) of the Act) 'are deleted.
27. in Paragraph 69 (1) of footnote 16:
"16) § 27 (7) of Act No. 563 / 1991 Coll., on Accounting, as amended."
28. in Sections 70 and 72a, under the heading "(K 4 (8) and 27 (6) of the Act)" shall be deleted.
29. In Article 71, the words "(K § 4 (8) and Article 25 (4) of the Act) 'are deleted.
30. In parts 2 and 4, in Sections 74, 76, 78 and 80, under the heading "(K § 4 (8) of the Act)" shall be deleted.
31. In Paragraph 75, the words "(K § 4 (8) and § 28 (1) of the Act) 'are deleted.
32. In Paragraph 76 (1), the words "or certain 'shall be inserted after the words" likely'.
33. In Article 77, the words "(K § 4 (8) and § 7 (6) of the Act) 'are deleted.
34. In Paragraph 79, the words "(K 8 (2) of the Act) 'are deleted under the heading.
35. In Part Five, under the heading "(K § 22 (3), § 23 (2) and (5) of the Act) 'is deleted.
36. in Paragraph 86 (1), the words "separate information on the total cost of remuneration to statutory auditors (18b) or audit firms for the financial year, broken down into:
1. statutory audit 18c) annual accounts,
2. other verification services;
3. tax advice,
4. other non-audit services, '.
footnotes 18b and 18c are as follows:
18b) Article 2 (2) of Directive 2006 / 43 / EC of the European Parliament and of the Council.
(18c) Article 1 (2) of Directive 2006 / 43 / EC of the European Parliament and of the Council.
37. in Paragraph 86 (1) (j):
"(j) the nature and business purpose of the transactions not included in the consolidated balance sheet and the financial impact of those transactions where the risks or benefits of such transactions are significant and where the disclosure of those risks or benefits is necessary to assess the financial situation of the consolidation entity;"
38. in Paragraph 86 (1), the dot is replaced by a comma at the end of point (l) and the following point (m) is added, including footnotes 18d and 18e:
"(m) transactions, with the exception of transactions within a consolidation entity that have been concluded by a consolidated entity or other consolidated entities with a related party, including the volume of such transactions, the nature of the related party relationship and other information on such transactions that are necessary to understand the financial situation of the consolidation entity, 18d) where such transactions are significant and are not concluded under conditions usual on a regulated market18e). Information on individual transactions may be grouped according to their nature except where separate information is necessary to understand the impact of related party transactions on the financial situation of the consolidation entity. For the purposes of this decree, the term" related party 'has the same meaning as in the international accounting standards set out in Section 23a (1) of the Act.
Article 21 (3) of the Accounting Act.
18e) § 27 (5) of the Accounting Act. '
39. In Annex No 1, in the part of Liabilities under entry No 8 (b), the text is deleted.
40. In Annex No 1 to Part Liabilities under subheading 10a, footnote 20 is replaced by the following:
"20) § 67 paragraphs 1 and 2, § 217 of the Commercial Code. § 10 (1) of Act No. 87 / 1995 Coll., as amended. '
Transitional provisions
1. The provisions of this decree shall be applied by the entities for the first time in accounting periods beginning on or after 1 January 2008, unless otherwise specified in point 2.
2. Article I (36), within the scope of Paragraph 86 (1) (a), shall apply to entities for financial statements and consolidated financial statements prepared on or after 29 June 2008.
Efficacy
This Decree shall take effect on 1 January 2008.
Minister:
Ing. Kalousek v. r.
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Regulation Information
| Citation | Decree No. 350 / 2007 Coll., amending Decree No. 501 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions, as amended |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.12.2007 |
|---|---|
| Effective from | 01.01.2008 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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