Decree No. 400 / 2005 Coll.
Decree amending Decree No. 504 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities for which the main activity is not business if they are accounting in the system of double accounting, as amended
Valid
Order
Effective from 01.01.2006
Text versions:
01.01.2006
05.10.2005
400
DECLARATION
of 22 September 2005
amending Decree No. 504 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities for which the principal object of the business is not business if they are accounting in the double accounting system, 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. 504 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities for which the principal activity is not business if they are accounting in the system of double accounting, as amended by Decree No. 476 / 2003 Coll. and Decree No. 548 / 2004 Coll., is amended as follows:
1. Paragraph 7 (1), including footnotes 11b and 11c, reads as follows:
"(1) The heading" A.I. Long-term intangible assets in total "includes, in particular, intangible research and development results, software, valuable rights and other long-term intangible assets with a useful life of more than one year and from the amount of the valuation determined by the entity and, in particular, by respecting the principle of materiality and fair and fair display of the property, in compliance with the obligations laid down by the law. The period of application shall be the period during which the property is usable for current or retaining activities or may serve as a basis or part of improved or other processes and solutions, including the period of verification of intangible results. It also contains greenhouse gas emission allowances (hereinafter referred to as" emission allowances') 11b) irrespective of the amount of the valuation and other similar rights, in particular individual preferential quantities of milk, individual production quotas and individual premium rights limit (hereinafter referred to as "preferential limits') 11c) irrespective of the amount of the valuation; for the first holder (11c) only if the cost of obtaining information on their valuation of the replacement purchase price would not exceed its significance.
11b) Paragraph 2 (1) of Act No. 695 / 2004 Coll., on the terms and conditions of greenhouse gas emission allowance trading and amending certain laws.
11c) For example, Act No. 256 / 2000 Coll., on the State Agricultural Intervention Fund and amending 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 for cow without market milk production, or for milk farming. '
2. In Article 7 (6), the words "in particular emission allowances and preferential limits, irrespective of the valuation level 'are added at the end of the sentence.
3. footnote 18 shall read:
"18) § 81 of Act No. 235 / 2004 Coll., on Value Added Tax, as amended by Act No. 635 / 2004 Coll. '.
4. Paragraph 15 (2) reads as follows:
"(2) Heading" B.II.15 The claims on fixed-term transactions and options "shall include claims arising from fixed-term transactions carried out with financial instruments, or changes in the fair value of such instruments, where they are of the nature of the claim."
5. In Article 15 (4), the last sentence is deleted.
6. Paragraph 18 (3) reads as follows:
"(3) Item" A.I.3. Valuation differences in the revaluation of financial assets and liabilities "includes, in particular, valuation differences in fair value and valuation of equity for securities and shares and valuation differences in fair value of a derivative providing expected cash flows. In the case of an active balance, this item shall be entered in balance sheet liabilities (balance sheet) at a negative value. ';
7. Paragraph 24 (3) reads as follows:
"(3) Heading" B.III.16 Liabilities arising from fixed-term operations and options "shall include liabilities arising from fixed-term operations undertaken with financial instruments, or changes in the fair value of such instruments, where they are of the nature of the liability."
8. In Article 24 (4), the last sentence is deleted.
9. In Article 26 (5), at the end of point (h), the sentence "It also contains the consumption of preferential limits and the consumption of emission allowances. The consumption of preferential limits and emission allowances shall be reported regardless of their subsequent decommissioning (27a). ';
Footnote 27a reads:
"27a) § 12 of Act No. 695 / 2004 Coll., on the Conditions of Trade in greenhouse gas emission allowances and on the amendment of certain laws."
10. In Paragraph 27 at the end of paragraph 7, the sentence "Free acquisition of preferential limits and emission allowances by the first holder or by the operator shall be added to be accounted for and reported as a grant equal to the value of the replacement purchase price. The valuation of emission allowances and preferential limits acquired free of charge by the first operator (11b) or holders (11c) shall not be reduced by the amount recognised in favour of the relevant account account of the group 34. In the event of consumption, sale or other loss of these assets, the corresponding amount recognised in favour of the relevant account account of the group 34 shall be entered in the relevant income accounts in the material and temporal context of the cost. ';
11. in Paragraph 30 (1), the sentence "Furthermore, the entity shall indicate the individual reference quantity of milk 11c), the individual production quota 11c), the individual premium law limit 11c) and other similar quotas and limits that the entity did not charge in the balance sheet or in the result account because the cost of obtaining information on their replacement cost exceeded its significance."
12. in Article 32 (1) (f):
"(f) the decommissioning of existing buildings or parts thereof as a result of new construction. The residual prices of the decommissioning buildings or parts thereof and the cost of decommissioning are part of the costs of the new construction, '.
13.
Valuation differences in fair value and fair value valuation of equity
(Articles 4 (8) and 27 (6) of the Law)
(1) Changes in fair value for securities held for the purpose of performing transactions on the public market, such as the domestic or foreign exchange, in order to obtain a profit from price differences in the public market in the short term shall be accounted for as a cost or yield.
(2) Changes in the fair values of other securities measured at fair value (available-for-sale securities) are accounted for through balance sheet accounts in account group 92. If there is evidence that there has been a permanent impairment in the value (impairment) of those securities, which is likely to be permanent, the impairment shall be entered in the relevant cost accounts without undue delay. The amount of this impairment corresponds to the positive difference between the valuation of the security on acquisition and the current fair value taking into account previous impairment losses. If, following accounting for impairment through 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 recognised in accordance with the previous sentence in the income accounts.
(3) Changes in the valuation of securities and shares valued in equity (equivalents) shall be accounted for through balance sheet accounts in the account group 92. "
14.
Valuation differences in fair value applied to hedging derivatives
(Articles 4 (8) and 27 (6) of the Law)
(1) Changes in the fair value of a derivative that hedge the fair value of a balance sheet asset or liability shall be accounted for as a cost or return. The change in fair value of the secured balance sheet asset or liability on the basis of a specific risk shall be accounted for through cost and income accounts.
(2) Changes in the fair value of a derivative providing expected cash flows shall be accounted for through the balance sheet accounts in account group 92. They are accounted for in the same periods in which the costs or revenues associated with the hedged items are accounted for.
(3) A derivative is considered as hedging only if it meets the following conditions:
(a) the hedging relationship is formally documented at the beginning of the hedge;
(b) the collateral is effective;
(c) efficiency is reliably measurable and continuously assessed.
(4) The documentation shall be an accounting record and shall include the identification of the hedged items and hedging derivatives, the precise definition of the risk that is the subject of the hedge, the method of calculating the effectiveness. Collateral is effective if at the beginning and during the hedging relationship the ratio between changes in fair value or cash flows of hedged items due to the hedged risk and changes in fair value or cash flows of the hedging derivative corresponding to the hedged risk is 80% - 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.
(5) If a hedging derivative ceases to comply with the conditions set out in paragraph 3, it shall be treated as a derivative for trading from that moment on.
(6) A contractual relationship for 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. ';
15.
Valuation differences when applying fair value to derivatives to trading
(Articles 4 (8) and 27 (6) of the Law)
Changes in the fair value of derivatives to be traded which are derivatives that do not meet the conditions set out in paragraphs 3 and 4 of Article 35 shall be accounted for as a cost or yield. ';
16. Paragraph 36a, including the title, reads:
Valuation differences in fair value for receivables acquired and designated for trading by an entity
(Articles 4 (8) and 27 (6) of the Law)
Changes in fair value of receivables acquired and designated for trading by an entity shall be accounted for as a cost or return. ';
17. In Article 39, at the end of point (f), the dot is replaced by a comma and the following point (g) is added:
"(g) emission allowances and preferential limits.";
18. In Paragraph 42 (3), the first sentence is replaced by the following: "Exchange differences in securities and shares at the end of the balance sheet day or at any other time at which the financial statements are drawn up shall be included in the fair value measurement or measurement of equivalents, irrespective of whether they are accounted for in profit or loss."
19. in Annex 1, the title of liability item A.I.3. reads: "Valuation differences in the revaluation of financial assets and liabilities."
20. In Annex No 1, the title of asset item B.II.15. reads: "Claims on fixed-term operations and options'.
21. In Annex No 1, the name of entry B.III 16. liabilities are: "Liabilities arising from fixed-term operations and options."
Transitional provision
For accounting for the preferential limits acquired during the financial years preceding the accounting period started in 2006, entities shall use the methods used for their acquisition until they are eliminated, irrespective of the effectiveness of this decree.
Efficacy
This Decree shall take effect on 1 January 2006.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Decree No. 400 / 2005 Coll., amending Decree No. 504 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities for which the principal activity is not business if they are accounting in the dual accounting system, 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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