Decree No. 473 / 2003 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
Valid
Order
Effective from 01.01.2004
Text versions:
01.01.2004
31.12.2003
473
DECLARATION
of 17 December 2003
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
The Ministry of Finance provides, pursuant to § 37b, for the implementation of § 4 paragraphs 8, § 24 paragraphs 4 and 5 and § 28 paragraph 1 of Act No. 563 / 1991 Coll., on Accounting, as amended by Act No. 437 / 2003 Coll., hereinafter referred to as "the 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, is amended as follows:
1. in Article 2, the following paragraph 4 is added:
"(4) This decree does not apply to entities pursuant to Sections 19 (9) and 23a of the Act, except as otherwise provided in the Special Legislation (8a).
8a) For example, Act No. 586 / 1992 Coll., on Income Tax, as amended. '
2. In the heading of Part Two, the words "Paragraph 18( 4) 'are replaced by the words" Paragraph 4 (8)'.
3. In the title of Title I, the words "and the method of assembly 'shall be inserted after the word" Scope'.
4. In the first sentence of Article 6 (1), the words "including accrued accessories' shall be inserted after the words" contain securities'.
5. In Article 6, the current text becomes paragraph 1 and the following paragraph 2 is added:
"(2) Under" 2. State zero coupon bonds and other securities accepted by a central bank for refinancing "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 the embedded derivative would meet the definition of a derivative as a separate instrument;
(c) the host instrument is not measured at fair value or is measured at fair value, but the valuation changes are reported under the relevant balance sheet item.
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." '
6. In the first sentence of Article 7 (1), the words "including loans granted to central banks and other banks in the framework of repurchase transactions' shall be inserted after the words" loans granted to central banks and other banks'.
7. In the first sentence of Article 7 (1), the words "issued by banks' shall be inserted after the words" securities issued in primary issues not intended for trading '.
8. In Article 7, the following paragraph 5 is added:
"(5) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2)."
9. In the first sentence of Article 8 (1), the words "loans granted under repurchase transactions' shall be inserted after the words" claims on guarantees, letters of credit '.
10. in Article 8 (2), the words "for subscribed capital" shall be replaced by "from subscribed capital."
11. in Article 8, the following paragraph 5 is added:
"(5) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2)."
12. in the first sentence of Article 9 (1), the words "including accrued accessories" shall be inserted after the words "fixed-yield securities."
13. in Paragraph 9 (2), the last sentence is deleted;
14. In Article 9, paragraphs 3 and 4 are added:
"(3) Debt securities acquired by an entity on behalf and for the benefit of a third party and taken over for safekeeping, deposit, administration or management are recorded under off-balance sheet items" 14. Values taken into custody, administration and storage "or" 15. Values taken into management. "
(4) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2). "
15. Paragraph 10, including the title, reads:
Shares, units and other shares
(1) The heading "6. Shares, units and other shares" includes share certificates, share certificates, interim certificates, shares and other shares in non-equity companies which do not have the character of a holding having a decisive or significant influence, are intended for trading or for sale, provided under repurchase agreements or borrowed. The item contains a correction item for other holdings. Own shares and own interim certificates shall be reported separately under item "8. Capital '. Own equity instruments shall be reported under item" 12.
(2) Shares, units and other shares acquired by an entity on behalf of and for the benefit of a third party and taken over for safekeeping, deposit, administration or management shall be recorded under off-balance-sheet items "14. Values taken into custody, administration and storage" or "15. Values taken into management."
(3) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2). "
16. Paragraph 14, including the title, reads:
Other assets
(1) The item "11. Other assets" includes, in particular, other claims on third parties, the positive fair value of derivatives, including the positive fair value of embedded derivatives, separated from the host instrument under Paragraph 6 (2), margin of exchange derivatives, deferred tax receivable, other cash values, gold, other precious metals, securities trading receivables, if not included in item "3. Claims on banks and cooperative backups" or "4. Claims on clients - members of cooperative backups."
(2) Under "11. Other assets" shall also be reported in particular in stocks if they are not included under item "13. Costs and revenue of future periods," settlement with state budget, operational advances provided, other unidentified claims on clients, members of cooperative advances, dubious accounts active. The item shall contain a corrective item relating to claims on third parties and to operational advances provided. This item does not include accrual accounts that are shown under item "13. Costs and accrued income." '
17. in Article 15, the title reads: "Claims on subscribed capital."
18. In the first sentence of Article 15, the words "Claims on subscribed capital 'are replaced by the words" Claims on subscribed capital'.
19. In the first sentence of Article 16 (1), the words "and stocks, if they are not shown under" 11. Other assets "shall be inserted after the words" in other financial years. "'
20. In the first sentence of Paragraph 17 (1), the words "the Czech consolidation agency" shall be inserted after the words "they are a bank."
21. in the first sentence of Article 17 (1), the words "repos' are replaced by the words" repos';
22. In Paragraph 17 (2), the words "the Czech consolidation agency" shall be inserted after the words "they are not a bank."
23. in Article 17 (2), the words "repos' are replaced by" repos';
24. In Article 17, the following paragraph 3 is added:
"(3) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2). ';
25. In the second sentence of Article 18 (1), the words "including loans received under repurchase transactions' shall be inserted after the words" than banks or cooperative backups'.
26. In the second sentence of Paragraph 18 (3), the words "including repurchase commitments' are replaced by the words" including loans received under repurchase agreements'.
27. In Article 18, the following paragraph 4 is added:
"(4) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2). ';
28. In the first sentence of Article 19 (1), the words "own debt securities" shall be inserted after the words "and hereafter."
29. in Paragraph 19 (2), "accessories" is replaced by "costs."
30. In Article 19, the following paragraph 3 is added:
"(3) In the case of an embedded derivative, an entity shall proceed in accordance with Paragraph 6 (2). ';
31. in the second sentence of Article 20 (1), the words "derivatives with a negative fair value" are replaced by the words "negative fair value of derivatives, including embedded derivatives, separated from the host instrument pursuant to Article 6 (2), liabilities from short sales of shares and units, including the obligation to supply units at the merger of units."
32. In Section 21, "no accrued interest 'is replaced by" no accrued accessories'.
33. In the last sentence of Paragraph 21, the word "report 'is replaced by the word" report' and the word "relate 'by the word" apply'.
34. In Paragraph 24 (1), the word "registered 'is replaced by" registered or unregistered'.
35. In Paragraph 24, at the end of paragraph 1, the sentence "In a separate subheading, the entity shall indicate the paid-up capital."
36. in Article 24 (2), the words "company" shall be deleted;
37. in Paragraph 24 (2), the words "company" shall be inserted after the words "than in stock." This subheading reduces the value of the capital. '
38. In Paragraph 25, the present text becomes paragraph 1.
39. in Paragraph 25 (1), the last sentence, including footnote 11, shall be deleted;
40. The following paragraph 2 is added to Section 25, including footnote 11:
"(2) This item also includes the issue premium in the case of the issue of profit participation certificates (11) and the difference between the nominal value of the units and their purchase price at redemption at the time of the purchase.
11) Paragraph 12 (2) of Act No. 248 / 1992 Coll., as amended. '
41. in footnote 10), the words "as amended" shall be replaced by a comma at the end of the dot.
42. In the first sentence of Paragraph 27, the word "revaluation 'is replaced by" valuation'.
43. In Section 28, the sentence "This item also includes the nominal value of repurchased units' is inserted after the first sentence.
44. In Article 29 (1), the words "when revaluating hedge derivatives to fair value 'are replaced by the words" when measuring hedge derivatives to fair value'.
45. in Paragraph 29 (2), "revaluation" is replaced by "valuation."
46. At the end of § 30, the following sentence is added: "The item also contains changes to accounting methods and corrections to material errors in the costs and revenues of past financial years (" major error correction '). In the absence of major error corrections, these corrections shall be reported under the relevant items of the profit and loss account of the current period.';
47. In Article 33, the designation of paragraph 1 is deleted.
48. In Paragraph 40, paragraph 1 is deleted.
49. in Paragraph 41 (2), "§ 34 (2)" is replaced by "§ 35 (2)."
50. In Article 44, at the end of paragraph 2, the sentence "The income and cost of fees and commissions which are of interest and are calculated in relation to amounts receivable or payable, as well as gains or losses on hedge interest derivatives, shall be added. ';
51. in Paragraph 44 (4), the words "charging interest" shall be replaced by "accrued accessories" and "revaluation" shall be replaced by "valuation."
52. In Paragraph 44 (4), the word "expected 'is inserted after the word" discounting'.
53. In Paragraph 44, the following sentence is added at the end of paragraph 4: "For securities to be traded, for securities to be sold, for securities to be traded, for securities held to maturity, for residual maturity at the time of settlement of the purchase less than one year, for securities purchased in primary issues not intended to be traded in residual maturity at the time of settlement of the purchase less than one year and for issued short-term securities, an entity may use a linear method. The Linear Method may also be used by an entity to recognise interest income on receivables and interest expense on liabilities in periods between instalments if these periods are less than one year. ';
54.
Profit or loss on financial operations
(1) Item "6. Profit or loss on financial operations' includes, in particular, profit or loss on transactions in securities intended for trading or selling that are recognised under item" 2. National zero-coupon bonds and other securities accepted by the central bank for refinancing ', "5. Debt securities' and" 6. Shares, units and other shares', from short sales, valuation differences of securities. The item also includes profit or loss on hedge derivatives, excluding interest rate derivatives, profit or loss on the sale of other shares for sale, together with adjustments made to those other shares, profit or loss on the held-to-maturity securities, plus adjustments made to those securities, 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.
(2) Investment companies report for their holdings, investment funds and pension funds under item "6. Profit or loss on financial operations" valuation differences in assets and liabilities measured at fair value and hedging derivatives only at the time of their loss or settlement. "
55. In Section 52, the words "neither repair of the costs and revenues of past financial years' are deleted.
56. in Paragraph 54 (f), the word "bank" is replaced by "financial institution."
57. in Paragraph 60 (3), the words "on a regulated market" shall be added at the end of the text in point (e).
58. in Paragraph 63, the following point (b) is inserted after point (a):
"(b) the amount of the registered and unregistered capital;"
Points (b) to (h) shall be renumbered (c) to (i).
59. In Paragraph 65, the words "rectification of major errors' shall be inserted after the words" accounting methods'.
60. In the heading of Part Four, "2 'is replaced by" 8'.
61. In Section 67, "paragraph 2 'is replaced by" paragraph 8';
(62) In footnote 15, the words "as amended" shall be replaced by a comma at the end of the dot.
63.In Paragraph 68 of the title:
"Valuation differences in fair value for securities
(K § 27 (6) of the Act) '.
64. In the first sentence of Paragraph 68 (1), the words "revaluing to fair value 'are replaced by the words" measuring to fair value'.
65.In the second sentence of Paragraph 68 (1), "Changes in fair value 'is replaced by" Valuation differences'.
66. In Article 68 (2), the words "changes in fair value 'are replaced by" valuation differences' and "changes in fair value '.
67. Paragraph 68 (4) is deleted.
68. The following Section 68a is inserted after Section 68:
Valuation differences in fair value for fixed assets
The Investment Fund and the Pension Fund shall value non-operational fixed assets under special legislation. Changes in valuation of such assets shall be recognised under the relevant liability item at least annually. In the event of the loss of such assets, the resulting change shall be recognised in the profit and loss account. ';
69. In Section 69, "paragraph 2 'is replaced by" paragraph 8' and "paragraph 4 'is replaced by" paragraph 6'.
70. In the first sentence of Paragraph 69 (3), the word "overrated 'is replaced by" appreciated'.
71. In the second sentence of Article 69 (3), the word "overrated 'is replaced by" appreciated'.
72. In the third sentence of Paragraph 69 (3), the word "revaluation 'is replaced by" valuation'.
73. In the last sentence of Paragraph 69 (3), "revaluation 'is replaced by" valuation'.
74. In the first sentence of Paragraph 69 (4), "revaluation 'is replaced by" valuation'.
75. In the heading of Section 70, "paragraph 2 'is replaced by" paragraph 8' and "paragraph 4 'by" paragraph 6';
76. In Paragraph 70 (2), "revaluation 'is replaced by" valuation'.
77. In the second sentence of Paragraph 70 (3), "revaluation 'is replaced by" valuation'.
78. In Paragraph 70 (5), the word "revaluation 'is replaced by" valuation'.
79.In Paragraph 70 (6) (c), "changes in fair values" is replaced by "valuation differences."
80. In the second sentence of Paragraph 70 (7), "revaluation 'is replaced by" valuation'.
81. In Paragraph 70, paragraph 8 is added:
"(8) A derivative that is not designated by an entity as an entity for the purpose of hedge is treated as a derivative for trading and the valuation differences are recognised in the profit and loss account at least at the time of drawing up the sound, exceptional or interim financial statements and at the time of drawing up the statements under specific legislation."
82. In Section 71, "paragraph 2 'is replaced by" paragraph 8';
83. After Paragraph 72, the following Section 72a is inserted:
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 shall be reported under the relevant item of the profit and loss account. ';
84. In the heading of Section 74, "2 'is replaced by" 8'.
85. in the second sentence of Paragraph 74 (4), "revaluation" is replaced by "valuation."
86. Paragraph 74 (6) is deleted.
87. In Section 75, "paragraph 2 'is replaced by" paragraph 8';
88. In Article 75, the following paragraph 7 is added:
"(7) The non-operational fixed assets, which are measured at fair value under Paragraph 27 of the Act, are not amortised. '
89. In Section 76, "2 'is replaced by" 8'.
90. In the second sentence of Paragraph 76 (10), the word "Above 'is replaced by the word" Higher'.
91. In Section 77, "2 'is replaced by" 8'.
92. In Section 78, "2 'is replaced by" 8'.
93. In Section 79, "2 'is replaced by" 8'.
94. In Paragraph 79 (6), "revaluation 'is replaced by" valuation'.
95. In the heading § 80, "2 'is replaced by" 8'.
96.In Article 80 (4) (a), a comma is inserted after the words "classical repo" and the words "which means accepting a credit with a hedge transfer of a financial asset" and the words "which mean granting a credit with a hedging transfer of a financial asset" are added after the words "classical reverse repo"; "
97. Paragraph 80 (5) is deleted.
Paragraphs 6 and 7 shall become paragraphs 5 and 6.
98. In the heading of Part Five, "6 'is replaced by" 5'.
99. In the first sentence of Paragraph 81 (3), the words "or consolidated foreign persons' shall be inserted after the words" consolidated entities'.
10. in Paragraph 86 (1) (i), "changes in fair value" is replaced by "valuation differences."
101. Point 12 of Annex 1 to the Assets reads as follows:
'12. Claims on subscribed capital '.
102. Point 6 of Annex 2 reads as follows:
"6. Profit or loss on financial operations."
103.
"Annex 3 to Decree No 501 / 2002 Coll.
104. In Annex 4, class 1 to account group 12, the words "Deposits and loans with central banks' are replaced by the words" Deposits, loans and other liabilities and claims on central banks'.
105. In Annex 4, class 1 to account group 14, the words "(only cooperative advances) 'are added after the words" Collaborative advances'.
106. In Annex 4, class 1 to account group 15, the words "(only cooperative advances) 'are added after the words" Cooperative advances'.
Transitional provisions
1. Unless otherwise provided for in point 2, the provisions of this Order shall not apply to the financial statements and consolidated financial statements drawn up for the financial years beginning before the date of application of this Order.
2. Even point 99 may also be used by entities to draw up financial statements for financial years beginning on or after 1 January 2003.
3. At the 1 day of the financial year beginning on 1 January 2004 and thereafter, the adjustments for claims acquired by an entity in financial years before 1 January 2004 and designated for trading shall be dissolved in profit or loss. The impairment in value of these claims, expressed by means of adjustments, shall be recognised as a impairment in value of the claim against item "14. Undistributed gains or losses from previous periods'.
4. The Investment Fund and the Pension Fund in the depreciation of non-operational fixed assets acquired by 31 December 2003 for the accounting period beginning on or after 1 January 2004 shall not continue. Up to date approvals shall be dealt with under item "10. Long-term tangible assets" without influence on the entity's financial result.
Efficacy
This Decree shall enter into force on 1 January 2004, with the exception of the provisions of Article 4 (1) (a) and (b) of Regulation (EU) No 1308 / 2013. I, point 1, which shall apply for the first time in the accounting year closest to that in which the Treaty of Accession of the Czech Republic to the European Union entered into force.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Decree No. 473 / 2003 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 |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.2003 |
|---|---|
| Effective from | 01.01.2004 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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