Decree No. 421 / 2010 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 01.01.2011
Text versions:
01.01.2011
29.12.2010
421
DECLARATION
of 21 December 2010
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
The Ministry of Finance provides pursuant to § 37b (1) of Act No. 563 / 1991 Coll., on Accounting, as amended by Act No. 437 / 2003 Coll. and Act No. 304 / 2008 Coll., for the implementation of § 4 (8) of this Act:
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., Decree No. 546 / 2004 Coll., Decree No. 399 / 2005 Coll., Decree No. 351 / 2007 Coll. and Decree No. 411 / 2009 Coll., is amended as follows:
1. In Paragraph 2 (2), the words "This Order does not apply 'are replaced by the words" Of the entities referred to in paragraph 1, this Order does not apply, with the exception of the provisions of Paragraph 38a'.
2. In Paragraph 2 (2), the words "Paragraph 19 (9) and" shall be deleted and after the word "Law" shall be added the words "and further to entities under Paragraph 19a of the Act."
3. In Article 4 (7), the words "for whose assets bankruptcy is declared in the current accounting year 'are replaced by the words" bankruptcy' and the words "bankruptcy declaration 'are replaced by the words" bankruptcy decision'.
4. In Section 10, at the end of paragraph 8, the sentence "Under the heading" C.III.2. Debt securities "is added also to the mortgage certificates according to the special legislation (1a)."
5. In Article 10 (10), the words "the fulfilment of which is guaranteed by a bank guarantee 'are deleted.
6. In Paragraph 10 (12), the words "up to the limit 'are deleted.
7. Paragraph 10 (16) is deleted.
8. In Article 16, the words "and includes the amount representing the share of gross premiums written to be assigned to the following accounting year or to subsequent financial years' shall be added at the end of the text of paragraph 4.
9. In Section 16, the sentence "The provision shall be established under a separate legal provision (1a) at the end of paragraph 4 also for unearned premiums."
10. In Article 16 (6), the words "and other numerical parameters' are inserted after the words" interest rate '.
11. in Article 16 (7), the words "and other numerical parameters" shall be inserted after the words "interest rate."
12. in § 22 (2) (i), "§ 19 (9)" is replaced by "§ 19a."
13. In Article 22, the following paragraph 8 is added:
"(8) An entity that has applied accounting methods in a manner that is based on the assumption that it will continue its business continuously and that at the same time there is significant uncertainty, namely in fact which suggests that an entity may not be able to continue its business continuously and, as a result, in the course of its normal business, for example, to fulfil its obligations, shall disclose this fact in the notes in the financial statements. It shall further describe any measures or proposals to address these facts. ';
14. in Paragraph 23 (3), the words "Act No. 363 / 1999 Coll." are replaced by the words "Special Legislation (1a)."
15. Under the heading of Part Three, the words in brackets "(K § 14 (1) of the Act) 'are deleted.
16. Under the heading of Part Four, the words in brackets' (K § 4 (8) and § 24 (4) and (5) and § 28 (1) of the Act) 'are deleted.
17. in Paragraph 29 (9):
"(9) Paragraph 14a, 54 and 54a of Decree No 500 / 2002 Coll., as amended, shall apply mutatis mutandis to the valuation differences referred to in paragraph 1 in the conversion of an entity, with these differences being reported under" A.IV. Other equity "; for securities, shares and derivatives, the valuation differences shall be reported in accordance with this decree. '
18. Under the heading of Part Five, the words in brackets "(K § 4 (8) and (6)) 'are deleted.
19. Paragraph 38 (1) reads:
"(1) The consolidation entity pursuant to Paragraph 22 (6) of the Act consists of a consolidated entity and a consolidated entity."
20. Paragraph 38 (2) is deleted.
Paragraphs 3 to 5 shall be renumbered paragraphs 2 to 4.
21. in Paragraph 38 (2), the words "exclusively or mainly" shall be inserted after the words "consolidated entities."
22. in Paragraph 38 (2), the words "The consolidating entities referred to in paragraph 1 are also controlling entities acting in conformity" shall be replaced by "The consolidating entity referred to in paragraph 1 is also the controlling entity exercising influence."
23. In Paragraph 38 (3), the introductory part of the provision reads: "A consolidated entity may not be included in the consolidation whole:"
24. in Article 38 (3) (a), the words "the aggregate balance sheet, net turnover and equity." shall be replaced by "the submission of a true and fair picture of the subject matter of the accounts and the financial situation of the consolidation entity;"
25. in Paragraph 38 (3) (a), the word "If" is replaced by the word "if," after the words "a significant proportion," the word "are" and the words "nevertheless included in the consolidated accounts" are replaced by "included in the consolidation unit."
26. in Paragraph 38 (3) (c), the words "in the immediately following financial year" shall be deleted;
27. in Paragraph 38 (4):
"(4) The consolidated financial statements shall include both the consolidated entity and the entities under joint influence and the related entities, if those accounts are drawn up. ';
28. In Paragraph 38, paragraphs 5 and 6 are added:
"(5) Paragraph 3 shall apply mutatis mutandis to the inclusion of entities under joint influence in consolidated financial statements.
(6) Entities associated need not be included in consolidated financial statements items if the consolidated entity's equity share of that entity is insignificant in terms of submission of a true and fair view of the subject matter of the consolidation entity. ';
29. in Article 38a (1), the words "under Article 38 (1) and (2)" shall be deleted;
30. in Paragraph 38a (1) (a), the word "in" is deleted and the word "unit" is replaced by the word "unit."
31. in Paragraph 38a (1) (b), the word "v" shall be deleted; the word "unit" shall be replaced by the word "unit" and the words "consolidation unit" shall be deleted;
32. in Article 38a (2) (c), the words "; an officially certified translation is required" shall be deleted;
33. in Article 38a (3), the word "registered" shall be replaced by the words "admitted to trading" and the words "in any Member State" shall be replaced by "securities located in a Member State."
34. in Paragraph 38a (4), the words "controlled or controlled entity" are replaced by the words "consolidated entity" and the word "exempted" is replaced by "this entity."
35. in Paragraph 39 (1), the words "according to the relevant method," the words "consolidation," the words "consolidation unit" and the words "consolidation" shall be deleted;
36. In Article 39 (2), the words "(" sub-consolidation units') and "and consolidation 'are deleted.
37. in Paragraph 39, paragraph 3 is deleted;
Paragraphs 4 to 10 shall become paragraphs 3 to 9.
38. In Article 39 (3), in the introductory part of the provision, the words "for a consolidation whole 'are deleted.
39. in Paragraph 39 (3) (a), the words "controlled persons or controlled persons" are replaced by "consolidated entities."
40. In Paragraph 39 (3) (b), the words "a person controlled in accordance with another or other person, where such persons share the same share of the equity of controlled or controlled persons," shall be replaced by "entities under joint influence."
(41) In Paragraph 39 (3) (c), the words "persons under significant influence" are replaced by the words "associated entities."
42. In Paragraph 39 (4), the words "controlled or controlled persons' are replaced by the words" consolidated entities in full '.
43. In Paragraph 39 (5), the words "persons controlled in conformity 'are replaced by the words" entities under joint influence', the words "basic 'are replaced by the words" own' and the words "that person 'are replaced by the words" those entities'.
44. In Paragraph 39 (6), the words "controlling persons' are replaced by the words" consolidating entities' and the words "subject to significant influence 'are replaced by the words" associated entity'.
45. in Paragraph 39, the following paragraph 7 is inserted after paragraph 6:
"(7) For entities that are obliged to submit to the preparation of consolidated financial statements, the method of consolidation chosen may be amended only in exceptional cases. Such an amendment shall be included in the notes in the financial statements with a justification and an indication of its effect on the assets, liabilities and financial situation of the entities included in the consolidated financial statements. ';
Paragraphs 7 to 9 shall be renumbered paragraphs 8 to 10.
46. In Paragraph 39 (8), "persons' is replaced by" entities' and "consolidation unit 'is replaced by" consolidation'.
47. In Paragraph 39 (8), the words "only those relationships that were realised by the consolidation entity outside the consolidation entity have been recorded in the consolidated financial statements' are replaced by the words" the consolidated financial statements did not contain mutual transactions that were carried out by the consolidation entities'.
48. The fourth sentence of Paragraph 39 (8) reads: "These are, in particular, mutual claims and liabilities, dividends received and paid, gifts and other transactions between entities that have a significant impact on the consolidated result of the management. '
49. In Paragraph 39 (9), "consolidation unit 'is replaced by" consolidation'.
50. In Paragraph 39 (10), the words "consolidation unit 'are replaced by the words" consolidation', the words "public (organised) 'are replaced by the words" regulated', the words "profit or loss' are replaced by the words" profit or loss' and the words "consolidation unit 'are replaced by the words" consolidation'.
51. in Paragraph 40 (1), the words "an overview of changes in equity" shall be replaced by "may include an overview of cash flows and an overview of changes in equity."
52. In Article 40 (2), the first sentence is replaced by the following: "The information on consolidated financial statements is based on the accounts of the consolidating entity and consolidated entities, entities under joint influence and related entities, consolidated financial statements of the sub-entities and other information provided by those entities under Article 22b (1) of the law of the consolidating entity."
53. In Paragraph 40 (3), the words "consolidation unit 'are replaced by the words" which are required to submit to the preparation of consolidated accounts'.
54. in Paragraph 40 (4), "§ 3 (2), (3) and (5)" is replaced by "§ 3 (2) and (3)";
55. in Paragraph 42 (2), the words "(c) by the items" shall be inserted after the words "Settlement of the negative consolidation difference."
56. In Paragraph 43, the following paragraph 1 is added:
"(1) The consolidating entity shall disclose in its notes the consolidated financial statements:
(a) the method of consolidation referred to in Article 39 (1) and the method of consolidation referred to in Article 39 (3);
(b) the trading firm and the registered office of consolidated entities included in the consolidation unit, indicating the equity interest in those entities held by persons other than the consolidating entity or persons acting in their own name but on behalf of those entities; indicate the reasons on the basis of which it became the controlling person,
(c) the trading firm and the registered office of consolidated entities not included in the consolidation unit pursuant to Paragraph 38 (4), including the reasons for not including them, indicating the equity interest in those entities held by persons other than the consolidating entity;
(d) the business firm and the registered office of the related entities which are included in the consolidated financial statements, indicating the share of their equity held by the entities included in the consolidation or by persons acting in their own name but on behalf of those entities;
(e) the business firm and the registered office of the related entities not included in the consolidated financial statements referred to in Article 38 (6), including an indication of the reason for the non-inclusion;
(f) the trading firm and the registered office of the entities under joint influence included in the consolidated accounts, indicating the proportion of their capital held by the entities included in the consolidation or by persons acting in their own name but on behalf of those entities; indicate the reasons on which the joint influence is exercised,
(g) the business firm and the registered office of the entities that are not listed under (b) to (f) in which the consolidating entity itself or through a person acting in his own name on his behalf has a share in equity of less than 20%; the amount of the equity share, including the total amount of equity, of the profit or loss for the last financial year of those entities, shall be indicated; that information does not need to be disclosed if these entities are not significant in terms of submitting a true and fair picture of the subject matter of the accounts and the financial situation in the consolidated financial statements; information on equity and profit or loss shall also not be reported if it is not disclosed and if the consolidated entity's share of equity directly or through other entities is less than 50%;
(h) information on the accounting methods and principles used, changes in valuation methods, accounting procedures, the layout of consolidated financial statements items and the content of the definition of items in relation to the previous accounting year, indicating the reasons for such changes; for items included in consolidated financial statements that are or were originally expressed in a foreign currency, information on how they are converted into the currency in which the consolidated financial statements were drawn up,
(i) an explanation of the items "Positive consolidation difference" and "Negative consolidation difference," methods for determining them and any significant changes compared to the previous accounting year;
(j) the average recalculated number of consolidation staff during the financial year for which consolidated financial statements are drawn up, broken down by category; the average number of employees in the course of the accounting year for entities under joint influence shall be reported separately. ';
The current text becomes paragraph 2.
57. in Article 43 (2), in the introductory part of the provision, the word "further" shall be inserted after the words "accounts."
58. in Paragraph 43 (2) (a), the words "former members" shall be replaced by "former members."
(59) In Paragraph 43 (2) (b), "other claims" is replaced by "loans" and "amount of guarantees granted" is replaced by "amount of all forms of collateral."
60.In Article 43 (2) (c) and (d):
"(c) the total amount of liabilities which, at the date on which the consolidated accounts are drawn up, have a maturity of more than five years and the total amount of liabilities secured, indicating the nature and form of such collateral;
(d) the aggregate amount of financial liabilities not included in the consolidated balance sheet where such information is useful for assessing the financial situation; all liabilities related to pensions and liabilities between the consolidating entity and entities not included in the consolidated financial statements shall be reported separately; ';
61.In Paragraph 43 (2), points (e) to (h) are deleted.
Points (i) to (o) shall be renumbered as points (e) to (k).
62. In Paragraph 43 (2), the words "if a security, derivative and interest have not been measured at fair value or equity, the entity shall state the reasons and, where applicable, the amount of the adjustment item."
63.In Article 43 (2), points (f) and (g) are deleted.
Points (h) to (k) shall be renumbered as points (f) to (i).
64. in Paragraph 43 (2) (f), the words "for a consolidation whole" shall be deleted;
65. In Paragraph 43 (2) (g), the words "consolidation unit" are deleted.
66. In Paragraph 43 (2) (h), the words "within a consolidation unit" are replaced by the words "between consolidation entities," the words "included in a consolidation unit" are replaced by the words "jointly influenced entities or associated entities" and the words "conditions usual on a regulated market42b" are replaced by the words "normal market conditions."
footnote 42b is deleted.
67. in Article 43 (2) (h), the words "or," "consolidation unit" and "consolidation unit" shall be deleted;
68. In Annex 1, under the heading "5. Compensation reserve" the words "(a) gross amount..... X" and "(b) the share of reinsurance undertakings (-) shall be deleted."
69. In Annex 1, the words "and other numerical parameters' shall be inserted after the words" 7. Provisions for fulfilling the technical interest rate commitments'.
Transitional provisions
1. The provisions of Decree No 502 / 2002 Coll., as effective from the date of entry into force of the Order, shall apply for the first time in the accounting year which began in 2011 or later, unless otherwise specified in point 2.
2. Paragraphs 2 (2) and 38 to 40, 42 and 43 of Decree No. 502 / 2002 Coll., as effective from the date of entry into force of this Order, shall apply for the first time when drawing up consolidated accounts for the financial year which began in 2010 or later.
Efficacy
This Decree shall take effect on 1 January 2011.
Minister:
Ing. Kalousek v. r.
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Regulation Information
| Citation | Decree No. 421 / 2010 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 | 29.12.2010 |
|---|---|
| Effective from | 01.01.2011 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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