Decree No. 398 / 2005 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 01.01.2006
Text versions:
01.01.2006
05.10.2005
398
DECLARATION
of 22 September 2005
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
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. 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. and Decree No. 545 / 2004 Coll., is amended as follows:
1. In Article 5, the words "and which may be drawn upon request or within 24 hours after notification 'are replaced by" and which are due upon request; amounts due on demand for the purposes of this Order shall be those which may be collected at any time without notice or for which a notice period or maturity of 24 hours or one working day is agreed.';
2. In Paragraph 17, the words "or" 4. Other liabilities "shall be added at the end of the text of paragraph 1."
3. In Article 18, the words "or" 4. Other liabilities "shall be added at the end of the text of paragraph 2."
4. In Paragraph 29 (1), the words "fair value 'are inserted after the words" viable securities'.
5. Paragraph 60 (1) shall be added at the end of the text in point (b) "; subordinated assets shall, for the purposes of this decree, be those assets which have been contractually agreed to be satisfied in the event of liquidation, bankruptcy, forced settlement or settlement of the debtor only after the full satisfaction of all other claims by other creditors, except those which are subject to the same or similar condition of subordination '.
6. In Article 68, the following sentence is added at the end of paragraph 2: "The amount of this loss corresponds to the difference between the valuation on the acquisition of the security reduced or increased by the accrual of the premium or discount and the current fair value, taking into account previous recognised impairment losses. If, following the recognition of impairment in the profit and loss account, there is a demonstrable increase in the fair value of available debt securities, such increase in the fair value of available debt securities shall be reported in the profit and loss account, up to the amount of impairment reported in the third sentence. ';
7. In Paragraph 70, at the end of paragraph 7, the dot is replaced by a semicolon and the words "a contractual relationship with the purchase, sale or use of a commodity is not considered a derivative and is expected to be met by the supply of a commodity."
8. In Article 79 (3), the words "not for derivatives' shall be inserted after the words" shall be reported '.
9. In Paragraph 79 (4), the words "not for derivatives' shall be inserted after the words" shall be reported '.
10. Paragraph 81 (1), including footnotes 18 and 18a, reads as follows:
"(1) A consolidated entity (18) and a consolidated entity (18) shall be included in the consolidation whole, meaning:
(a) persons who are controlled or controlled by18a) irrespective of their registered office;
(b) persons in whom the consolidating entity exercises a material influence (18), regardless of their registered office.
18) Paragraph 22 (2) of Act No. 563 / 1991 Coll., as amended.
18a) § 66a paragraphs 2 and 7 of the Commercial Code. '
11. In Paragraph 81, 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 4 shall become paragraphs 3 to 5.
12. in Article 81 (3) (a), the words "paragraph 1" shall be inserted after the words "under Article 2";
13. in Paragraph 81 (3) (b), the words "paragraph 1" shall be inserted after the words "under Paragraph 2."
14. Paragraph 81 (4) is deleted.
Paragraph 5 shall become paragraph 4.
15. in Paragraph 81 (4), the words "to the consolidation unit" shall be inserted after the words "entities."
16. The following Section 81a is inserted after Section 81:
(1) A consolidation entity does not create a consolidated entity under Paragraph 81 (1) and (2), which is at the same time a person included in the consolidation entity of another consolidated entity governed by the law of the Czech Republic, or other consolidated entities, regardless of its registered office, governed by the law of a Member State of the European Union ("the consolidating foreign person"), provided that:
(a) the other consolidating entity or the consolidating foreign entity holds all shares in 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; or
(b) the other consolidating entity or a consolidating foreign person holds at least 90 per cent of the shares or shares in 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.
(2) In accordance with paragraph 1, 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 consolidating entity or by a consolidating foreign person and shall be verified by an auditor under the law of the State by which another consolidating entity or consolidated foreign entity is governed;
(c) the consolidated financial statements referred to in (a), the consolidated annual report referred to in (b) and the audit report responsible for verifying them shall be published by the consolidating entity in accordance with Paragraph 21a of the Act; such accounting records must be published in the Czech language; an officially certified translation is required; and
(d) the notes to the financial statements of the consolidating entity shall include the business firm and the head office of another consolidated 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 1.
(3) Paragraphs 1 and 2 do not apply to entities whose securities are registered on a regulated market in any Member State of the European Union.
(4) In cases other than those referred to in paragraph 1, a consolidation entity shall not create a consolidated entity that is at the same time a controlled or controlled entity included in the consolidation entity of another consolidated entity or a consolidated foreign entity, provided that all the conditions set out in paragraph 2 are met and that the shareholders or members exempt by the consolidating entity, who jointly hold at least 10% of the share capital or at least 20% of the other types of company, have not requested consolidated financial statements no later than 6 months before the end of the financial year.
(5) Where consolidated financial statements and consolidated annual reports are drawn up for the purposes of informing staff or their representatives in accordance with specific legislation, or at the request of administrative or judicial authorities, the provisions of paragraphs 1 to 4 shall not apply. ';
17. in Paragraph 86 (1), the dot is replaced by a comma at the end of point (k) and the following point (l) is added:
"(l) in the event of an entity being a bank or other financial institution being not included in a consolidation entity pursuant to Paragraph 81 (3) (c), the consolidating entity shall attach the financial statements of that entity to the consolidated financial statements and provide additional information on financial assistance in the Annex."
Transitional provisions
1. Even points 10 to 17 shall be used by entities to prepare consolidated financial statements for financial years beginning on or after 1 January 2005.
2. Point 1 shall not apply to consolidated accounts already drawn up before the entry into force of this Order.
Efficacy
This Decree shall enter into force on 1 January 2006, with the exception of the provisions of Article 4 (1) (a) and (b) of Regulation (EU) No 1308 / 2013. I points 10 to 17, which take effect on the day of its publication.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Decree No. 398 / 2005 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 | 05.10.2005 |
|---|---|
| Effective from | 01.01.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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