What is Decree No. 501 / 2002 Coll.?

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 — Decree implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions.

When it became Decree No. 501 / 2002 Coll. effectiveness?

Decree No. 501 / 2002 Coll. became effective 01.01.2003.

Is Decree No. 501 / 2002 Coll. still valid?

Yes, Decree No. 501 / 2002 Coll. is still valid and effective.

How many times was it Decree No. 501 / 2002 Coll. amended?

Decree No. 501 / 2002 Coll. has 15 time versions of the text.

Decree No. 501 / 2002 Coll. - Decree implementing certain provisions o...

501

DECLARATION

of 6 November 2002

implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions

According to § 37a (1) for the implementation of § 4 (2), § 14 (1), § 18 (4), § 22 (3) and § 23 (2) and (6) of Act No. 563 / 1991 Coll., on Accounting, as amended by Act No. 492 / 2000 Coll. and Act No. 353 / 2001 Coll., (hereinafter "the Act '):

ČÁST PRVNÍ

SUBJECT MATTER OF ADJUSTMENT AND SCOPE

§ 1

This decree implements the relevant European Union1 regulations and also follows the applicable European Union2 regulations and provides for the entities referred to in § 2

(a) the organisation and labelling of financial statements and consolidated financial statements and the content of the items of those accounts, accounting methods and their application, methods of consolidation of financial statements;

(b) accounting methods and their application;

(c) the indicative chart of accounts.

§ 2

(1) The Decree applies to entities under § 1 (2) (a), (b), (j) and (k) of the Act which are:

(a) a bank and a branch of a foreign bank under the law governing the activities of banks;

(b) by a savings and credit cooperative under the Act governing the activities of savings and credit cooperatives ("cooperative reserve"),

(c) by a securities dealer, an organisational part of a foreign securities dealer under the law governing the capital market business (hereinafter referred to as the securities dealer),

(d) an investment company and an investment fund or branch of a foreign person authorised to manage investment funds or foreign investment funds under the law governing the activities of investment firms and investment funds;

(e) a mixed holding company under the law governing the activities of banks;

(f) a financial holding person under the law governing the activities of banks;

(g) a pension company, a participating fund or a transformed fund under the Act governing supplementary pension savings;

(h) electronic money institutions, a branch of a foreign electronic money institution from a Member State under the law governing payment; or

(i) a payment institution, a branch of a foreign payment institution from a Member State under the law governing payment.

(2) This decree shall apply to the entities referred to in paragraph 1 (h) and (i) only if they are financial institutions under the law governing the activities of banks or branches of foreign persons that are comparable to financial institutions under the law governing the activities of banks.

(3) This decree also applies to the Czech National Bank with the exception of Sections 3, 4, 5 to 65 and the provisions of Part Five concerning consolidated accounts. 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.

(4) Of the entities referred to in paragraph 1, this decree shall not apply to entities under Paragraph 23a of the Act and to entities under Paragraph 19a of the Act, unless otherwise provided for in the specific legislation.

ČÁST DRUHÁ

FINANCIAL CONCLUSION

HLAVA I

SCOPE AND METHOD OF ACCOUNTING

§ 3

(1) The accounts of the entities referred to in Section 2 include balance sheet (balance sheet), profit and loss account, annex and an overview of changes in equity. An overview of cash flows is included in the accounts of the entities under Section 2 only if the conditions laid down in Section 18 (2) of the Act are met.

(2) The balance sheet shall include asset items and other assets, liabilities and other liabilities and off-balance sheet items. The arrangement and labelling of the balance sheet items are set out in Annex 1.

(3) The profit and loss account shall include cost and income items and profit or loss. The organisation and labelling of items in the profit and loss account are set out in Annex 2.

(4) The Annex explains and complements the information contained in the balance sheet and the profit and loss account, the information in the Annex pursuant to § 54 to 57 shall be shown in the same order as the items in the balance sheet and the profit and loss account in Annexes 1 and 2.

(5) An overview of changes in equity shall include items that reflect the overall change in equity for the financial year. An overview of changes in equity is not drawn up by entities pursuant to § 1 (2) (b), (j) and (k) of the Act. The organisation and labelling of the inventory items on changes in equity are set out in Annex 3.

(6) In order to compile an overview of the cash flows, the entity shall apply the 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 dual accounting system, as amended.

§ 4

(1) In the balance sheet and profit and loss account, the items and subheadings referred to in Annexes 1 and 2 are shown separately and in the order laid down and may not be aggregated. Further detailed breakdowns of these items and subheadings may be made provided that the specified arrangement is maintained.

(2) Each of the items in the balance sheet and the items in the profit and loss account shall also include information on the amount of that item in the immediately preceding financial year (hereinafter referred to as the "previous financial year"). In the event that the information provided for the previous and current financial years is not comparable, the information for the previous financial years shall be adjusted in the light of the significance referred to in Article 19 (7) of the Law and the Annex shall justify this adjustment.

(3) Balance sheet items and items of the profit and loss account at zero for the past and current financial years are not reported.

(4) Entities that commence or enter into liquidation in the current accounting year and entities whose assets are declared bankrupt in the current accounting year shall report on the balance sheet, instead of the information for the previous financial year, the opening balance sheet on the date of commencement or the date of entry into liquidation or the effective date of the bankruptcy declaration. In the profit and loss account, the information for the previous financial year shall not be provided. This rule shall also be applied by entities reborn by division and may also be used by entities reborn by merger through merger.

(5) The item designation shall consist of Arabic numerals and item name; the description of the subheadings consists of the letters of the small alphabet and the name of the subheading.

(6) An entity that changes the currency of accounting shall disclose in its financial statements the data for the previous financial year in the currency of the current period. Paragraph 80a shall apply to the conversion of these data.

(7) The accounts shall be drawn up in the currency of the accounts. Individual items in the financial statements shall be reported in thousands. An entity may report individual items in financial statements in whole million if its total assets (net) are at least 10 000 000 000 units of the currency of the accounting. The method of reporting each item and the designation of the currency of the accounts shall be indicated in all parts of the accounts.

(8) The items "Total assets" and "Total liabilities" must be equal. In the balance sheet, the amount of the individual items of assets and other assets shall be shown in amounts minus the adjustments and adjustments, i.e. net. The item "Profit or loss for the post-tax financial year 'shown in the profit and loss account shall be equal to the item" Profit or loss for the financial year' shown in the balance sheet.

§ 4a

(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.

HLAVA II

DEFINITION OF BALANCE SHEET ITEMS

§ 5

Cash and deposits with central banks

Item "1. Cash and deposits with central banks" includes banknotes and coins in the accounts in the treasury, deposits with the Czech National Bank and with the central banks of the country or countries in which the bank has its registered office or is a branch of the bank and which are due upon request; amounts due on demand for the purposes of this Order shall be those which may be collected at any time without notice or for which a notice period or maturity of 24 hours or one working day is agreed. Other claims on these institutions shall be reported under "3. Claims on banks and co-operative banks'.

§ 6

National zero-coupon bonds and other securities accepted by the central bank for refinancing

Item "2. State zero-coupon bonds and other securities received by a central bank for refinancing 'contain securities, including accrued facilities, received by the central bank for refinancing, broken down separately into securities issued by general government, securities issued by other companies, and adjustments to those securities. Debt securities issued by general government that do not meet the conditions for refinancing by a central bank shall be reported under" 5a) Debt securities issued by general government'; Other coupon-free bonds not accepted by the central bank for refinancing are reported under "5b) Debt securities issued by other persons'. This item is only reported by entities that are entitled to refinance with a central bank.

§ 7

Claims on banks and cooperative banks

(1) The item "3. Claims on banks and co-operative reserves" includes claims on loans and other claims on banks or co-operative reserves, including accrued facilities, in particular current accounts for banks or co-operative advances, fixed-term deposits with central banks, banks or co-operative advances, loans granted to central banks, banks or co-operative reserves, including loans granted to central banks, banks or co-operative repos in respect of repurchase transactions, other claims on banks or co-operative reserves, non-marketable debt securities issued by banks that are not valued at fair value, an allowance for such claims.

(2) If several entities join together to grant a loan ("a consortium loan ') to another person, each entity involved in the granting of a loan shall recognise only a proportion of the total credit on the balance sheet.

§ 8

Claims on clients - members of cooperative advances

(1) Item "4. Credits for clients - members of cooperative advances', in particular the debit balance of the current account, factoring claims, claims arising from financial leasing, claims on payments from guarantees, letters of credit, loans granted under repurchase transactions, advances on securities issued for a period of more than 30 calendar days, claims arising from the sale of securities with deferral of the sale price for more than 30 calendar days, claims arising from the sale of securities not settled within 30 days after the specified settlement date, non-marketable debt securities issued by persons other than banks that are not valued at fair value, and repayments to such claims.

(2) "4. Claims on clients - members of cooperative advances" does not include other unidentifiable claims on clients and members of cooperative advances recorded under "11. Other assets," unpaid cooperative interests recorded under "12. Claims on subscribed capital."

(3) Entities that are not a bank or a cooperative reserve shall designate this item as "4. The item includes in particular loans granted to non-bank or cooperative reserve persons, including repurchase transactions, advances on the acquisition of securities with deferral of the sale price for more than 30 calendar days, claims arising from the sale of securities not settled within 30 days after the specified settlement date, other claims arising from outstanding debt securities. Claims are reported, including accrued accessories.

(4) In the event of a consortium loan being granted to another person, an entity shall apply Paragraph 7 (2).

§ 9

Debt securities

(1) The heading "5. Debt securities" includes fixed-income securities, including accrued accessories, namely fixed-interest securities and variable-rate securities, where its variability is determined in advance in relation to the rates used on the market for specified dates or periods. The item includes debt securities issued by general government and other debt securities valued at amortised cost, debt securities valued at fair value, debt securities provided as collateral in repurchase transactions, debt securities provided by loan and adjustment to debt securities valued at amortised cost.

(2) "5. Debt securities" shall not be reported under "3." Claims on banks and co-operative deposits "and" 4. Claims on clients - members of cooperative advances "; debt securities reported under item" 2. National zero-coupon bonds and other securities accepted by the central bank for refinancing 'and own debt securities recorded under item "3. Debt securities liabilities'.

(3) Debt securities acquired by an entity on behalf and in favour 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."

§ 10

Shares, units and other shares

(1) The heading "6. Shares, units and other shares" includes shares which do not have the character of a participating party with decisive or significant influence, units, other securities and securities provided under repurchase agreements or loans.

(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."

§ 11

Participation with significant influence and decisive influence

(1) The heading "7. Significant participation" includes, in particular, shares, interim certificates, share certificates and other shares in non-equity companies having the character of a significant influence. Entities shall indicate in a separate subheading the significant influence applied in banks. The item shall also include an adjustment to those holdings where such participation is not measured at fair value or equivalent.

(2) The heading "8. Entities shall indicate in a separate sub-heading the decisive influence applied in banks. The item shall also include an adjustment to those holdings where such participation is not measured at fair value or equivalent.

§ 12

Long-term intangible assets

(1) The heading "9. Long-term intangible assets" includes in particular intangible research and development results, software, valuable rights and goodwill with a period of validity of more than one year and from the amount of the valuation determined by the entity, except goodwill, and, subject to the conditions set out below and subject to the obligations laid down by law, in particular by respecting the principle of significance and faithful and fair display of the property. This item is reported separately as goodwill.

(2) For the purposes of this decree, subheading "9b) Goodwill" contains a positive or negative difference between the purchase cost and the fair value of the assets acquired and liabilities at the time of the acquisition of the assets and liabilities. This sub-item also contains goodwill rights.

(3) The intangible results of research and development and software are those results and software which are either created by their own trading activities or acquired from other persons.

(4) Unless otherwise provided by this decree, in the details of the definition of the item "9. Long-term intangible assets", entities shall apply the provisions of 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 dual accounting system, as amended.

§ 13

Long-term tangible assets

(1) Item "10. Long-term tangible assets" contain mainly land, buildings, buildings, sets of tangible movable assets including accessories, means of transport, light advertising. Part of the long-term tangible property is its technical evaluation. The item contains outstanding fixed assets, advances on the acquisition of fixed assets, rights and allowances. In addition, long-term tangible assets include assets written down and not written down. Unwritten fixed tangible property means land, works of art, collections, in particular coins and currency and library collections. This item does not include provisions that are reported under "11. Other assets" or "13. Costs and revenue of future periods'.

(2) Entities shall indicate in a separate subheading land and buildings used for operating activities. Operating tangible fixed assets means assets used by an entity in the performance of its principal activities; non-operational tangible assets are assets that an entity does not use in the performance of its principal activities.

(3) Unless otherwise provided for in this decree, details of the scope of the heading '10. Long-term tangible assets "entities shall apply mutatis mutandis the provisions of 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 dual accounting system, as amended.

§ 14

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 17 (3), 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 '.

§ 15

Claims on subscribed capital

Item "12. Credits on subscribed capital" shall include the outstanding part of the subscribed and payable capital or, where applicable, the issue premium, the outstanding cooperative shares of members of cooperatives and the outstanding share of members of cooperatives in respect of the member's obligation to pay.

§ 16

Costs and revenue of future periods

Item "13. Prepayments and revenue" shall include expenditure incurred during the financial year but relating to subsequent periods, revenues of the period to be payable in subsequent financial years and stocks, if not declared under "11. Other assets." The criterion for accounting for accruals is the fact that their actual definition, the amount and the period to which they relate are known. All these criteria must be met simultaneously. This item does not include accrued accessories that are recognised under the relevant asset item to which they relate.

§ 17

Liabilities to banks and co-operative reserves

(1) Item "1. Liabilities to banks and cooperative reserves" includes, for entities that are a bank or a cooperative reserve, debt from loans and other debts to central banks, other banks or cooperative reserves, including accessories, in particular loans received, loans received under repurchase transactions, guarantees payments, credits. This item also includes current accounts and fixed-term deposits of central banks, other banks or cooperative advances. This item does not include liabilities arising from securities recorded under item "3. Debt securities liabilities" or "4. Other liabilities."

(2) For entities that are not a bank or a cooperative reserve, this item contains in particular loans received from banks and loans received under repurchase agreements.

(3) Under "1. Liabilities to banks and brokerage facilities" shall not be recognised as an 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."

§ 18

Liabilities to customers - members of cooperative advances

(1) Item "2. Liabilities vis-à-vis customers - members of cooperative advances' includes, for entities that are a bank or a cooperative reserve, debts arising from financial activities including accrued facilities, in particular balances of current accounts, savings deposits repayable on demand, fixed-term deposits redeemable at notice or maturity, savings deposits redeemable at notice or maturity, deposit certificates and deposit certificates of clients or members of cooperative advances. The item also includes loans received from general government and other persons other than banks or co-operative reserves, including loans received under repurchase transactions, assigned deposits, public funds deposits, deposits from state bodies, deposits from local authorities.

(2) Under "2. Liabilities to customers - members of cooperative advances' are not reported other unidentified liabilities to clients or members of cooperative advances that are recognised under item" 4. Other liabilities' and securities liabilities that are recognised under item "3. Debt securities liabilities' or" 4. Other liabilities'.

(3) Entities that are not a bank or a cooperative reserve shall designate this item as "2. Liabilities to non-banks." The item includes, in particular, loans received from persons other than banks or cooperative backups, including loans received under repurchase transactions. Liabilities arising from short sale of securities that are shown under item "3. Debt securities liabilities" or "4. Other liabilities."

(4) In the case of an embedded derivative, an entity shall apply paragraphs 3 and 4 of Paragraph 17.

§ 19

Debt securities liabilities

(1) The heading "3. Debt securities liabilities" includes, in particular, issued short and long-term debt securities, coupon and zero-coupon bonds, mortgage bonds and notes, outstanding debt securities liabilities, compound bond premiums, and their own debt securities and short-term debt securities sales liabilities. Liabilities arising from short sales of shares and units shall be reported under "4. Other liabilities."

(2) The issued security is valued at the issue price including the direct cost of the issue; from the time of settlement of the issue to the time of maturity, the issue price shall be progressively increased by the accrued interest costs associated with the securities issued.

(3) The revaluation of liabilities from debt securities to fair value is part of item "3. Debt securities liabilities."

(4) In the case of an embedded derivative, an entity shall apply paragraphs 3 and 4 of Paragraph 17.

§ 20

Other liabilities

(1) The heading "4. Other liabilities" includes liabilities vis-à-vis third parties, in particular advances received from the authorising officers for the purchase of securities, supplementary pension insurance debts, pension savings or supplementary pension savings, securities trading liabilities and other debts which have the character of debts arising from employment and consumer relations or debts vis-à-vis the state budget, unless they are included in other items. The item also contains the negative fair value of derivatives, including embedded derivatives separated from the host instrument pursuant to Article 17 (3), liabilities arising from short sales of non-debt securities, deferred tax debt, debt from amounts to be debited, other unidentified liabilities vis-à-vis clients, arbitrary passive items and other balances of accounts not included in other items. This item does not include accruals accounts that are shown under item "5. Revenue and expenditure accruing from subsequent periods."

(2) Entities under "4. Other liabilities" also report outstanding securities at redemption.

§ 21

Revenue and accrued expenditure

The heading "5. Revenue and accrued expenses" includes revenue received in the current financial year but relating to the proceeds of subsequent financial years and costs relating to the current accounting year but to be paid in subsequent financial years. The criterion for accounting for accruals is the fact that their actual definition, the amount and the period to which they relate are known. All these criteria must be met simultaneously. This item does not include accrued accessories that are recognised under the relevant liability item to which it relates.

§ 22

Provisions

(1) The item "6. Provisions" includes provisions created by an entity broken down into provisions for pensions and similar debts, taxes and other provisions, in particular for restructuring.

(2) Subheading "6a) The provision for pensions and similar liabilities" includes that provision where the entity's debt to the employees of pensions or similar benefits results from a contract or special legislation. Pension companies for which they are managed by transformed funds under this subheading report a provision for debts arising from supplementary pension contracts.

(3) Subheading "6b) The tax reserve" contains the provision made up by the entity at the balance sheet date or at a different time at which the financial statements are drawn up, if it prevents the moment when the financial statements are drawn up when the tax liability is established.

(4) Subheading "6c Other" contains in particular the restructuring reserve. An entity shall make a provision for restructuring if the commitment to such restructuring is no longer irrevocable. The restructuring reserve may only include costs directly linked to the restructuring. In determining the amount of the reserve, account shall be taken of any profits from the sale of the assets involved in the restructuring. The reserve shall not include the costs of the activities in which it continues, in particular the costs of training and resettlement of personnel remaining and being transferred to other workplaces, commercial costs, investments in new marketing systems and networks.

(5) For the purposes of the restructuring reserve, any debt to which a contract in force for a future contract for the sale of a commercial corporation or part of it is concluded or a detailed restructuring plan which cannot be withdrawn shall be deemed irrevocably; the condition of irrevocability of the plan is not met if the plan is only approved by the statutory authority, while the implementation of the plan should start and inform the persons concerned. The restructuring plan shall at least contain a description of the activities of the commercial corporation or part of it concerned, the place of work, the job placement and the approximate number of employees who will terminate or change their employment classification, the costs associated with the implementation of the plan and the timetable for its implementation in the near future, with the plan being implemented quickly enough to make its change unlikely.

§ 23

Subordinated liabilities

The item "7. Subordinated liabilities" includes loans received, deposits and debt securities issued which have been contractually agreed to be repaid in the event of liquidation, bankruptcy, compulsory settlement or settlement of the debtor after all other claims of the other creditors have been fully satisfied, with the exception of claims which are subject to the same or similar condition of subordination. This item shall be reported by the entities to which the subordinated liabilities have been incurred.

§ 24

Capital

(1) The heading "8. Capital" includes subscribed capital. An entity shall indicate in a separate subheading the paid-up capital. This item also includes own shares without taking into account the purpose of the acquisition which reduces the value of the capital.

(2) Entities that have variable capital under the Act governing the activities of investment firms and investment funds, under the heading "8. Capital" shall report only amounts entered by the subscription of the founding shares that are recorded in the Commercial Register.

§ 25

Emission premium

(1) The item "9. Emission premium" contains the difference between the issue rate and the capital injection. This item also includes the difference between the value of the equity and the cost of the equity reduction and the difference between the selling price and the cost of the sale.

(2) This item also includes the share premium account in the case of the issue of units or investment shares and, where applicable, the haircut by which the current value of the share sheet or investment shares is reduced in the case of repurchase.

§ 26

Reserve and other profit funds

The item "10. Reserves and other profit funds" includes reserves and other profit funds, in particular voluntary bank risk reserves.

§ 27

New valuation reserve

Item "11. The reserve fund for revaluations" includes changes in the valuation of assets on the basis of decisions of the State authorities when declaring a general valuation of assets. This item shall be reported by all entities.

§ 28

Capital

The item "12. Capital funds" includes funds which are made up of a source other than accounting profit, in particular by acquiring assets free of charge, issuing units or investment shares, subsidies into own resources. This item also includes the current value of the repurchased units or investment shares, the value of the credited pension and pension units. This item does not include the item "9.

§ 29

Valuation differences

(1) The heading "13. Valuation differences" includes, in particular, differences found 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 relevant or material influence of foreign exchange interests, and foreign 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 also contains an adjustment to debt securities valued at fair value against equity accounts.

(2) The entities under item "13. Valuation differences" also show differences in the valuation of non-operational fixed assets and holdings with significant or decisive effects on fair value.

§ 30

Undistributed gains or losses from previous periods

(1) Item "14. Undistributed profit or loss from previous periods' includes profit for previous financial years that has not been distributed and loss for previous financial years that has not been paid. The item also includes changes in accounting methods and corrections to major errors in the costs and revenues of past financial years (" major errors 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.

(2) Entities under the heading "14. In addition, the 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, recorded until they are realised under item "13. Valuation differences."

§ 31

Profit or loss for the financial year

Item "15. Profit or loss for the financial year" includes profit or loss for the current financial year.

Off-balance sheet item definition

§ 32

Profit or (-) loss on non-trading non-derivative financial assets

The item "1. Grants and guarantees provided" includes all future potential performance commitments that result in the entity in particular from:

(a) loan commitments and loans granted;

(b) guarantees and guarantees provided, including commitments on guarantees provided;

(c) the acceptance of notes, which are acceptance of notes, the transfer of notes, which are insubstitutes of notes, the provision of exchange handles, which are aval notes and debts of the exhibitors of notes,

(d) opening or confirming letters of credit.

§ 33

Deposits provided

The item "2. Guarantees provided" includes, in particular, real estate collateral granted, cash collateral granted, collateral granted in the form of securities or other form of collateral granted. Property and other assets that an entity has provided as collateral for its own debts or for third parties shall continue to be recognised in the relevant balance sheet items.

§ 35

Claims on spot transactions, fixed-term transactions and options

(1) Items "3. Receipts from spot transactions," "4. Claims from fixed-term transactions" and "5. Claims from options" contain claims from transactions with interest rate, currency, equity, commodity and credit instruments at the value of underlying instruments.

(2) An entity may recognise spot transactions under the relevant asset or liability item either from the time of the transaction or from the time of settlement of the transaction. The method used must be applied consistently for each group of financial assets. The spot transactions reported under the relevant asset or liability item from the time of settlement of the transaction shall be reported in the relevant off-balance-sheet item from the time of settlement of the transaction to the time of settlement of the transaction.

§ 36

Outstanding amounts

The item "6. Claims written off" includes claims that have been written off by an entity but are subject to further monitoring, reminder and recovery.

§ 37

Values transferred to safekeeping, administration and storage

Item "7. The value transferred to custody, administration and storage" includes financial instruments that the entity has transferred to custody, administration, deposit to other persons, in the same valuation as those recognised in assets.

§ 38

Values transmitted for management

The item "8. Values transmitted for management" includes financial instruments that an entity has transmitted for management to other persons in the same valuation as those instruments are recognised in assets.

§ 39

Accepted commitments and guarantees

Item "9. The commitments and guarantees received" shall include all future possible benefits to the entity that result from:

(a) the loan commitments and loans received;

(b) guarantees accepted and guarantees accepted, including commitments accepted;

(c) notes;

Citation	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	05.12.2002
Effective from	01.01.2003
Effective until	-
Status	Valid

Decree No. 501 / 2002 Coll.

Decree implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are banks and other financial institutions

Contents