Decree No. 397 / 2005 Coll.
Decree amending Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are entities accounting in the system of double accounting, as amended by Decree No. 472 / 2003 Coll.
Valid
Order
Effective from 05.10.2005
Text versions:
01.01.2006
05.10.2005
397
DECLARATION
of 22 September 2005
amending Decree No 500 / 2002 Coll., implementing certain provisions of Act No 563 / 1991 Coll., on Accounting, as amended, for entities that are entities accounting in the double accounting system, as amended by Decree No 472 / 2003 Coll.
According to Section 37b of Act No. 563 / 1991 Coll., on Accounting, as amended, ("the Act '), the Ministry of Finance provides for the implementation of Sections 4 (8), 24 (4) and (5) and 28 (1):
Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are entrepreneurs accounting in the double-accounting system, as amended by Decree No. 472 / 2003 Coll., is amended as follows:
1. In Paragraph 6 (1), the sentence "It also contains emission allowances and preferential limits' is inserted after the first sentence.
2. In Article 6 (3), at the end of point (d), the dot is replaced by a comma and the following points (e) and (f) are added:
"(e) emission allowances for greenhouse gas emission allowances (5a) irrespective of the amount of the valuation;
(f) preferential limits in particular individual reference quantities of milk 5b), individual production quotas 5b) and individual premium rights 5b) irrespective of the amount of the valuation; for the first holder (5b) only if the cost of obtaining information on their valuation of the replacement purchase price would not exceed its significance.
5a) Paragraph 2 (1) of Act No. 695 / 2004 Coll., on the terms and conditions of greenhouse gas emission allowance trading and amending certain laws.
5b) For example Act No. 256 / 2000 Coll., on the State Agricultural Intervention Fund and on the amendment of certain other laws (Act on the State Agricultural Intervention Fund), as amended by Act No. 128 / 2003 Coll., Act No. 41 / 2004 Coll., Act No. 85 / 2004 Coll., Act No. 237 / 2004 Coll. and Act No. 482 / 2004 Coll., Decree No. 244 / 2004 Coll., on the establishment of closer conditions for the application of the levy in the milk and milk products sector in the framework of the common organisation of the market in milk and milk products, as amended by Decree No. 517 / 2004 Coll., and Decree No. 196 / 2005 Coll., on the establishment of certain conditions for the implementation of premium rights to raise cows without market milk production, or for milk. '
3. In Article 6, the following paragraph 5 is inserted after paragraph 4:
"(5) Item" B.I.6. Other long-term intangible assets "include long-term intangible assets not reported in other items of long-term intangible assets, in particular emission allowances and preferential limits. '
Paragraphs 5 to 7 shall be renumbered paragraphs 6 to 8.
4. At the end of Paragraph 28, the following sentence is added: "It also includes the consumption of preferential limits that cannot be amortised by time or power and the consumption of emission allowances. The consumption of allowances shall be reported regardless of their subsequent disposal (13a). ';
Footnote 13a reads:
"13a) § 12 of Act No. 695 / 2004 Coll., on the terms and conditions of greenhouse gas emission allowance trading and on the amendment of certain laws."
5. In Paragraph 39 (2), the sentence after the third sentence is added: "An entity shall also disclose the business name, registered office and legal form of each of the entities in which the entity is a member with unlimited liability."
6. In Paragraph 39, the sentence "In addition, an indication of the individual reference quantity of milk (5b), the individual production quota (5b), the individual limit of premium rights (5b) and other similar quotas and limits that the entity did not charge in the balance sheet and profit or loss accounts, as the cost of obtaining information on their valuation of the replacement purchase price would exceed its significance 'is added at the end of paragraph 6.
7. In Article 47 (1), "Article 6 (7) 'is replaced by" Article 6 (8)';
8. In Article 47 (4), the words "except for emission allowances and preferential limits obtained free of charge by the first operator (5a) or holders (5b) 'shall be added at the end of the sentence of the first.
9. In Paragraph 47, the following paragraph 5 is inserted after paragraph 4:
"(5) The free acquisition of preferential limits and emission allowances by the first holders (5b) or operators (5a) shall be accounted for and reported as a grant equal to the replacement cost valuation. The valuation of emission allowances and preferential limits acquired free of charge by the first operator (5a) or holders (5b) shall not be reduced by the amount recognised in favour of the relevant account account of the group 34. For the consumption, sale or other loss of these assets or for the write-off of the preferential limit of the first debited holder (5b) that can be amortised, the corresponding amount entered in the account group account (34) concerned shall be entered in the relevant income accounts in the material and temporal context of the costs. ';
Paragraphs 5 and 6 shall become paragraphs 6 and 7.
10. In Paragraph 51 (2), the words "(viable securities) 'shall be inserted after the word" value' and, at the end of paragraph 2, the words "If there is evidence of impairment (impairment) of those securities, which is likely to be permanent, shall be entered in the relevant financial cost accounts without undue delay. The amount of this impairment corresponds to the positive difference between the valuation of the viable security on acquisition and the current fair value taking into account previous impairment losses. Where, following accounting for impairment on financial cost accounts, there is a demonstrable increase in the fair value of available debt securities, the increase in fair value shall be accounted for at most at the amount of impairment entered in the previous sentence into financial income accounts. ';
11. In Paragraph 52 (4), the second sentence is replaced by the following: "The hedge is effective if, at the beginning and during the course of the hedging relationship, the ratio between changes in the fair value or cash flows of the hedged items due to the hedged risk and changes in the fair value or cash flows of the hedging derivative corresponding to the hedged risk is between 80% and 125%. An entity shall determine whether the hedge is effective at the beginning of the hedge and at least at the time the financial statements are drawn up. ';
12. In Paragraph 52, the dot is replaced by a semicolon at the end of paragraph 6 and the words "the contractual relationship to which the purchase, sale or use of the commodity is subject is not considered a derivative and is expected to be fulfilled by the supply of the commodity."
13. In Paragraph 56 (1), the first sentence is replaced by the sentence "Subscribed intangible and tangible fixed assets shall be deducted from the valuation provided for in Paragraph 25 of the Act gradually during its application."
14. in Article 56 (2), at the end of point (e), the dot is replaced by a comma and the following point (f) is added:
"(f) a preferential limit which may be amortised according to time or performance."
15. in Article 56 (9), at the end of point (f), the dot is replaced by a comma and the following point (g) is added:
"(g) preferential limits which cannot be amortised by time or performance and emission allowances.";
16. In Paragraph 57, paragraph 6 is added:
"(6) An entity shall verify the amount of provisions created and their justification at least at each inventory. ';
17. In Article 60, the following paragraph 5 is added:
"(5) The exchange differences in assets and liabilities in foreign currency that an entity has shown in the balance sheet and which it has decided to hedge against the foreign risk already incurred or expected contractual relationships, the performance of which is denominated in foreign currency and which are not yet accounted for, but not for derivatives, shall be accounted for in the balance sheet accounts of the group. 41 These exchange differences shall be accounted for in the relevant cost or income accounts at the time when the relevant contractual relations are entered into or where the expected contractual relations do not arise. The assets and liabilities referred to in the first sentence shall meet the conditions applicable to the hedging derivative in accordance with paragraphs 3 and 4 of Paragraph 52; if they cease to meet those conditions, the entity shall proceed from that date in accordance with paragraphs 1 to 4. ';
18. in Paragraph 62 (1):
"(1) A consolidated entity (17) and a consolidated entity (17) shall be included in the consolidation whole, meaning:
(a) persons who are controlled or controlled by 12a) irrespective of their registered office;
(b) persons in whom the consolidating entity exercises a material influence (17), regardless of their registered office. ';
19. In Paragraph 62, the following paragraph 2 is inserted after paragraph 1:
"(2) The basis of the consolidation unit shall be the consolidated entity and the consolidated entities listed in paragraph 1 (a). The consolidated entities under the material influence listed in paragraph 1 (b) shall be included in the consolidation base thus created. ';
Paragraphs 2 to 5 shall be renumbered paragraphs 3 to 6.
20. Paragraph 62 (3) reads:
"(3) A consolidated entity constituting a consolidation entity pursuant to paragraphs 1 and 2 need not be included in a consolidation entity:
(a) for which the share of the consolidation unit is not significant, in particular in terms of balance sheet total (balance), net turnover and equity. If, for two or more of those consolidated entities, their aggregate proportion is significant, those entities are nevertheless included in the consolidated financial statements, or
(b) for which long-term restrictions significantly prevent a consolidating entity from exercising its rights to dispose of the assets or management of those consolidated entities, or, exceptionally, if it fails to obtain the information necessary for drawing up the consolidated accounts under this Order without proving the undue costs necessary or without proving the unnecessary delay; or
(c) if the shares or shares of consolidated entities are held solely for the purpose of their sale in the immediate subsequent financial year. "
21. Paragraph 62 (5) reads:
"(5) The consolidation entity shall not create a consolidating entity as referred to in paragraphs 1 to 4, which is at the same time a person included in the consolidation entity of another consolidating entity governed by the law of the Czech Republic or of another consolidating entity, regardless of its registered office, which is governed by the law of a Member State of the European Union (" the consolidating foreign person '), provided that:
(a) the other consolidating entity or consolidated foreign entity holds all shares or shares of the consolidating entity; shares or shares held by members of administrative, management and supervisory bodies established under specific legislation, statutes or social contracts shall not be taken into account;
(b) the other consolidating entity or consolidated foreign person holds at least 90 per cent of the shares or shares of the consolidating entity and the absence of consolidated financial statements for the consolidated entity has been approved by the other shareholders or members of the consolidating entity; or
(c) in cases other than those referred to in (a) or (b), persons holding a particular holding in a consolidated entity, with a total of at least 10 per cent for a public limited company and 20 per cent for other commercial companies, have not requested, at the latest, six months before the end of the financial year to draw up consolidated accounts. "
22. In Paragraph 62, the following paragraphs 6 to 7 are inserted after paragraph 5:
"(6) In accordance with paragraph 5, all the following conditions shall be met:
(a) the consolidating entity and all its consolidated entities are included in the consolidated financial statements of the consolidating entity of another consolidating entity or consolidated foreign persons;
(b) the consolidated financial statements referred to in point (a) and the consolidated annual report shall be drawn up by another consolidated entity or by a consolidated foreign person and shall be verified by the auditor in accordance with the law of the State by which that other consolidated entity or consolidated foreign entity is governed;
(c) the consolidated financial statements referred to in (a) and the consolidated annual report referred to in (b) and the audit report responsible for the verification of those consolidated financial statements and consolidated annual reports, the consolidating entity shall publish the report in accordance with Section 21a of the Act; such accounting records must be published in the Czech language; an officially certified translation is required; and
(d) the notes on the financial statements of the consolidating entity shall include the business firm and the head office of another consolidating entity or of a consolidated foreign person that has prepared the consolidated financial statements referred to in (a) and information on the application of paragraph 5.
(7) Where consolidated accounts and consolidated annual reports are required for the purposes of informing staff or their representatives in accordance with specific legislation, or at the request of administrative or judicial authorities, the procedure laid down in paragraphs 5 and 6 shall not apply. ';
Paragraph 6 shall become paragraph 8.
23. In Paragraph 62 (8), in the introductory part of the provision, the words "entities shall be described by the consolidating entity in the Annex, in particular" shall be replaced by the words "consolidated entities shall be described by the consolidating entity in the Annex; in particular: '.
Transitional provisions
1. Article I (1) to (9) and (13) to (15) of this Decree shall be used by the entities for the first time for accounting for the financial years beginning in 2005 and for drawing up the accounts for the financial years beginning in 2005.
2. In order to account for the preferential limits acquired in the financial years preceding the financial year beginning in 2005, the entities shall use the methods used for their acquisition until they are eliminated, regardless of the effectiveness of this decree.
3. Even points 18 to 23 shall be used by entities for the first time for consolidated financial statements prepared after 1 January 2005 inclusive; This provision does not affect consolidated accounts already drawn up before the entry into force of this Order.
Efficacy
This Decree shall take effect on the date of its publication, with the exception of the provisions of points 10 to 12, 16 and 17, which shall take effect on 1 January 2006.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Decree No. 397 / 2005 Coll., amending Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are entities accounting in the dual accounting system, as amended by Decree No. 472 / 2003 Coll. |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 05.10.2005 |
|---|---|
| Effective from | 05.10.2005 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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