Decree No. 399 / 2005 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
Valid
Order
Effective from 01.01.2006
Text versions:
01.01.2006
05.10.2005
399
DECLARATION
of 22 September 2005
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 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. 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. and Decree No. 546 / 2004 Coll., is amended as follows:
1. In Paragraph 17 (1), "E. Provisions for other risks and losses' is replaced by" E. Other provisions';
2. In Article 20 (3) (c), "E. Provisions for other risks and losses' is replaced by" E. Other provisions';
3. In Article 20 (5) (c), "E. Provisions for other risks and losses' is replaced by" E. Other provisions'.
4. In Paragraph 22 (1), the dot at the end of point (l) is replaced by a comma and the following points (m) to (o) are added:
"(m) under" III.11. Exceptional costs "and" III.12. Exceptional income ", of the amount and nature of such costs and revenues for current or previous financial years, where relevant (4) for the result of the management,
(n) under item "B.a) establishment expenses" an explanation of the amounts shown under this item;
(o) to "B.b) goodwill" on the depreciation procedure applied pursuant to Paragraph 33 (4), with the appropriate justification for such use. "
5. In Paragraph 22 (2), at the end of point (m), the dot is replaced by a comma and the following point (n) is added:
"(n) to the firm or name, seat and legal form of each of the entities in which the entity is a member with unlimited liability."
6. In Article 22, the following paragraph 7 is added:
"(7) An entity shall also specify in the Annex:
(a) the name and registered office of the consolidating entity of the higher consolidation entity (Paragraph 39 (2)) to which the entity belongs as controlled or controlled entity;
(b) the name and registered office of the consolidating entity of the lower consolidation entity (Paragraph 39 (2)) entering the consolidation entity as referred to in (a) to which the entity belongs as controlled or controlled entity;
(c) the place where the consolidated accounts of the consolidating entities referred to in points (a) and (b) may be obtained. ';
7. In Paragraph 34 (1), "E. Provisions for other risks and losses' is replaced by" E. Other provisions';
8. In Article 34 (2), the words "risks, losses and others' are deleted.
9. In Paragraph 34 (4), the third sentence is replaced by "Reserves may not be used to adjust the value of assets."
10. Paragraph 38 (1), including footnotes 48 and 48a, reads as follows:
"(1) A consolidated entity 48) and a consolidated entity shall be included in the consolidation whole, meaning:
(a) persons who are controlled or controlled by persons (48a), irrespective of their registered office;
(b) the persons in which the consolidating entity exercises a material influence (48), irrespective of their registered office.
48) Paragraph 22 (2) of Act No. 563 / 1991 Coll., as amended.
48a) § 66a (2) and (7) of the Commercial Code. '
11. In Paragraph 38, 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.
12. Paragraph 38 (4) is deleted.
Paragraphs 5 and 6 shall be renumbered paragraphs 4 and 5.
13. In Article 38 (5), the words "to the consolidation unit 'shall be inserted after the word" units'.
14. The following Section 38a is inserted after Section 38:
(1) A consolidation entity does not create a consolidated entity pursuant to Paragraph 38 (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 another consolidated entity, regardless of its registered office, governed by the law of a Member State of the European Union (hereinafter 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; these accounting records are 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 exempted by the consolidating entity jointly own at least 10% of the share in the equity company or at least 20% of the other types of company have not requested consolidated financial statements at least 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. ';
15. In Annex No 1, Part Liabilities, "E. Provisions for other risks and losses' is replaced by" E. Other provisions'.
16. In Annex 4, in account class 4, "Provisions for other risks and losses' is replaced by" Other provisions'.
Transitional provisions
1. Even point 5 of this Order shall be used by the entities for the first time to draw up the financial statements for the financial years beginning in 2005.
2. Even points 10 to 14 shall be used by entities for the first time to prepare consolidated financial statements for the financial years beginning on or after 1 January 2005.
3. Point 2 shall not apply to consolidated accounts already drawn up before the entry into force of this Order.
Efficacy
This Decree shall take effect on 1 January 2006, with the exception of Article I (5), (10) to (14), which shall take effect on the date of its publication.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Decree No. 399 / 2005 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 | 05.10.2005 |
|---|---|
| Effective from | 01.01.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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