Decree No. 442 / 2017 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 01.01.2018
Text versions:
01.01.2018
15.12.2017
442
DECLARATION
of 7 December 2017
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
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., Act No. 304 / 2008 Coll., Act No. 221 / 2015 Coll. and Act No. 462 / 2016 Coll., for the implementation of § 4 (8) of this Act:
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., Decree No. 545 / 2004 Coll., Decree No. 398 / 2005 Coll., Decree No. 350 / 2007 Coll., Decree No. 470 / 2008 Coll., Decree No. 420 / 2010 Coll., Decree No. 408 / 2012 Coll., Decree No. 468 / 2013 Coll. and Decree No. 251 / 2015 Coll., is amended as follows:
1. in Article 2 (1) (g), the words "pension fund," and "pension fund under the law governing pension savings" shall be deleted;
2. In the first sentence of Article 2 (3), the words "the provisions of Part Two relating to financial statements' are replaced by the words" Sections 3, 4, 5 to 65 ', and at the end of paragraph 3, the sentences "The Czech National Bank may derogate from the provisions in other parts if it complies with the rules laid down by the European Central Bank for Accounting and Financial Reporting in the European System of Central Banks. The use of derogation procedures shall be described in the Annex to the accounts.';
3. In Article 3, at the end of paragraph 1, the sentence "An overview of cash flows is included in the accounts of the entities referred to in paragraph 2 only if the conditions laid down in paragraph 18 (2) of the Act are met."
4. In Article 3, the following paragraph 6 is added:
"(6) In order to compile an overview of the cash flows, the entity shall apply, mutatis mutandis, Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, to entities that are entities accounting in the double accounting system, as amended. '
5. The following Section 4a is inserted after Section 4, including footnote 23:
(1) An entity shall, for the purposes of reporting, valuing and reporting financial instruments in the financial statements in the Annex, follow the international accounting standards as adapted by the directly applicable European Union rules on the application of international accounting standards ("International Accounting Standard").
(2) The financial instrument referred to in paragraph 1 shall mean the financial instrument according to international accounting standards.
23) Regulation (EC) No 1606 / 2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, as amended. Commission Regulation (EC) No 1126 / 2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606 / 2002 of the European Parliament and of the Council, as amended. ';
6. In the first sentence of Article 6 (1), the words "institutions and 'shall be replaced by the words" institutions,'; the words "and the adjustments to these securities' shall be inserted after the words" companies'; the words "banks' shall be replaced by the words" central bank ';
7. Paragraph 6 (2) is deleted and paragraph 1 is deleted.
8. In Paragraph 7 (1), the words "acquired with the intention of immediate or early sale and not 'are deleted.
9. Paragraph 7 (3) is deleted.
10. in Paragraph 8 (1), the words "acquired with the intention of immediate or early sale and not 'shall be deleted.
11. in Article 8 (4), the text "Article 7 (4)" is replaced by "Article 7 (2)."
12. in Article 8, paragraph 5 is deleted;
13. in the second sentence of Article 9 (1), the words "accrued value, debt securities valued," the words "held to maturity" shall be deleted and the words "held to maturity" shall be replaced by the words "valued accrued value";
14. in Paragraph 9, paragraph 4 is deleted;
15. in Paragraph 10 (1), the last sentence is deleted;
16. Paragraph 10 (3) is deleted.
17. in the last sentence of Paragraph 11 (1), the words "fair value or" shall be inserted after the words "interest";
18. In the last sentence of Paragraph 11 (2), the words "fair value or 'shall be inserted after the words" participation evaluated'.
19. in Article 14 (1), "Article 6 (2)" is replaced by "Article 17 (3)."
20. in Article 17 (3) and (4):
"(3) Under item" 1. Liabilities to banks and cooperative advances "there is no embedded derivative that an entity must separate from the host instrument if the following conditions are met simultaneously:
(a) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host instrument;
(b) a financial instrument with the same conditions as an embedded derivative would meet the definition of a derivative as a separate instrument; and
(c) the host instrument is not measured at fair value against cost and income accounts.
(4) The embedded derivative, separated from the host instrument, is recognised under the relevant off-balance sheet item, the fair value of the embedded derivative is reported under "11. Other assets" or under "4. Other liabilities." '
21. in Article 18 (4), the text "Article 6 (2)" is replaced by "Article 17 (3) and (4)."
22. In Article 19, the following paragraph 3 is inserted after paragraph 2:
"(3) The revaluation of liabilities from debt securities to fair value is part of item" 3. Debt securities liabilities. "'
Paragraph 3 shall become paragraph 4.
23. in Article 19 (4), the text "Article 6 (2)" is replaced by "Article 17 (3) and (4)."
24. in the second sentence of Article 20 (1), "Article 6 (2)" is replaced by "Article 17 (3)."
25. in Paragraph 29 (1):
"(1) The item" 13. Valuation differences "includes, in particular, differences in the valuation of fair value securities against fair value equity and hedging derivatives accounts, in the case of the application of the cash flow hedge method or the method of hedge of net investment associated with the decisive or material influence of foreign exchange interests, and exchange differences in equity securities, in particular from shares and shares valued at fair value against equity accounts and from the recalculation of foreign exchange hedge instruments. It shall also include an adjustment to debt securities valued at fair value against equity accounts. ';
26. In Paragraph 30, the present text becomes paragraph 1 and the following paragraph 2 is added:
"(2) Entities under the heading" 14. In addition, undistributed profit or loss from previous periods "shall, when the equity securities, in particular shares and shares, are realised on a voluntary basis in securities valued at fair value against equity accounts, show the valuation differences of those securities, reported until they are realised under item" 13. Valuation differences. "'
27. in Paragraph 44, paragraphs 3 and 4 are deleted;
28. in Paragraph 47 (1):
"(1) Item" 6. Profit or loss on financial operations "includes, in particular, profit or loss on transactions in securities valued at fair value against cost or income accounts of securities recognised under" 2. National zero-coupon bonds and other securities received by the central bank for refinancing "," "3. Claims on banks and cooperative deposits", "4. Claims on clients - members of cooperative advances," "5. Debt securities" and "6. Shares, shares and other shares" excluding profit or loss on equity securities, in particular shares and shares, voluntarily included in securities valued at fair value against equity accounts, profit or loss on short-term sales. The item also includes profit or loss on hedge derivatives, excluding interest rate derivatives, profit or loss on foreign exchange activities, gains and losses on other purchase and sale operations related to financial instruments for trading, including precious metals, and gains or losses on non-hedging derivatives. The item also contains valuation differences from the valuation of debt securities valued at fair value against equity accounts, excluding exchange rate differences, in the execution of those securities. The item also includes losses on impairment of those debt securities measured at fair value against equity accounts. ';
29. in Paragraph 47 (2), the words "and participating with significant or decisive influence measured at fair value" shall be deleted.
30. In Article 50 (2), the words "securities' and" acquired in primary non-trading emissions' are replaced by the words "valued at accrued value '.
31. in Article 50 (3), the words "securities" and "non-trading debt securities" shall be inserted after the words "debt securities";
32. Article 52 shall be deleted;
33. in Paragraph 54 (1), point (e) is deleted;
Points (f) to (i) shall be renumbered as points (e) to (h).
34. in Paragraph 54 (1) (e), the word "at risk" shall be deleted;
35. in Paragraph 54 (2) (f), "financial instruments or assets" is replaced by "assets."
36. in Paragraph 54 (2) (f) (2), the words "financial instruments" shall be deleted;
37. in Article 54 (2) (f), point 3 is deleted;
Point 4 is renumbered point 3.
38. in Article 54 (3), points (a) to (c) are deleted;
Points (d) to (h) shall be renumbered as points (a) to (e).
39. in Article 54 (3), points (d) and (e) are deleted;
40. in Paragraph 60 (1), points (e) and (f) are deleted;
Points (g) to (p) shall be renumbered as points (e) to (n).
41. in Paragraph 60 (1), point (f) is deleted;
Points (g) to (n) shall be renumbered as points (f) to (m).
42. In Paragraph 60 (1) (h), the words "and extraordinary returns" and "and extraordinary costs" shall be deleted.
43.In Article 60 (1), point (k) is deleted.
Points (l) and (m) shall be renumbered as points (k) and (l).
44. in Article 60 (1) (k), the words "from the conversion of hedging derivatives, available securities," shall be deleted;
45. in Article 60 (2) (c), the word "at risk" shall be deleted;
46. in Article 60 (2), points (e) to (g) are deleted;
47. Sections 67, 68 and 70 are deleted.
48. In Paragraph 72, the words "except for the acquisition of receivables subsequently measured at fair value against cost or income accounts' are inserted after the words" the prices of receivables'.
49. In Paragraph 74 (1), the words "which is demonstrated by inventory 'are replaced by the words" and in accordance with § 4a (1)'.
50. In Article 74 (2), the words "and Article 4a (1)" shall be inserted after the words "under Paragraph 27 of the Act," and the words "against cost and income accounts" shall be inserted after the words "under Paragraph 4a of the Act," and the words "against cost and revenue accounts" shall be inserted after the words "under Paragraph 4a (1)," and at the end of paragraph 2, the sentence "Corrections shall also not be made for equity securities, in particular shares and shares, which are voluntarily included in fair value securities against equity accounts."
51. in the second sentence of Paragraph 74 (4), the words "from adjustment appropriations" shall be inserted after the words "Exchange-rate differences."
52. In Paragraph 76 (1), "debts or expenses' is replaced by" commitments or costs'.
53. In the first sentence of Article 79 (2), the words "net investments associated with foreign exchange holdings having decisive or significant influence in foreign currency on the Czech currency and the exchange differences resulting from conversion 'are deleted and at the end of paragraph 2, the words" Net investments linked to foreign exchange holdings with decisive or significant influence in foreign currency shall be converted into Czech currency at the rate declared by the Czech National Bank for a date which is the moment of valuation in accordance with § 24 (2) (a) of the Act. "
54. in Paragraph 79 (5), the words "and realisable" are replaced by the words "or measured at fair value against equity accounts."
55. In Paragraph 79 (6), the words "or fair value 'shall be inserted after the words" or fair value'; the words "corresponding items' shall be inserted after the words" valuation of equivalents' shall be inserted after the words "or, together with a change in their fair value '.
56. Paragraph 80 is deleted.
57. In Annex 1, Part LIABILITIES, the words "Total alien resources' shall be inserted after the words" 7. Subordinated liabilities'.
58. In Annex 1, in point 10 (a) of Part Liabilities, the words "reserves' are replaced by the words" reserves'.
59. In Annex 1, Part Liabilities, point 13 (c), the word "participation 'is replaced by" foreign exchange hedge financial instruments'.
60. In Annex 1, part LIABILIA, after point "15. Profit or loss for the financial year 'shall be added the words" Total own funds'.
61. In Annex 2, points 12 and 13, the words "securities' shall be inserted after the words" to claims'.
62. In Annex 2, points 20 to 22 are deleted.
63. In Annex 4, point 21 reads as follows:
"21 and 24 Loans and other claims granted '.
64. In Annex 4, point 24 is deleted.
65. In Annex 4, point 36 reads as follows:
"36 Securities and other shares valued against equity accounts'.
66. In Annex 4, Accounting Section 4, the words "held-to-maturity 'are replaced by" valued at accrued value'.
67. In Annex 4, Accounting Section 6, point "67 Exceptional costs' is deleted.
68. In Annex 4, Accounting Section 7, point "77 Extraordinary income 'is deleted.
Transitional provisions
1. For the accounting year which began before the date of entry into force of this decree, Decree No. 501 / 2002 Coll., as effective before the date of entry into force of this decree, shall apply.
2. An entity shall apply, in accordance with Paragraph 2 (1) (c), (d) and (g) of Decree No 501 / 2002 Coll., as effective from the date of entry into force of this Order, for the financial years beginning before 1 January 2021, Decree No 501 / 2002 Coll., as effective before the date of entry into force of that Order, except for Sections 3, 52, 54 (3) (g), 60 (1) (k) and 60 (2) (g), which that entity shall apply as effective from the date of entry into force of that Order.
Efficacy
This Decision shall enter into force on 1 January 2018.
Minister:
Ing. Busy v. r.
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Regulation Information
| Citation | Decree No. 442 / 2017 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 | 15.12.2017 |
|---|---|
| Effective from | 01.01.2018 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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