What is Decree No. 502 / 2002 Coll.?

Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance companies — Decree implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance companies.

When it became Decree No. 502 / 2002 Coll. effectiveness?

Decree No. 502 / 2002 Coll. became effective 01.01.2003.

Is Decree No. 502 / 2002 Coll. still valid?

Yes, Decree No. 502 / 2002 Coll. is still valid and effective.

How many times was it Decree No. 502 / 2002 Coll. amended?

Decree No. 502 / 2002 Coll. has 14 time versions of the text.

Decree No. 502 / 2002 Coll. - Decree implementing certain provisions o...

502

DECLARATION

of 6 November 2002

implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance undertakings

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 provisions of the European Union1), following the directly applicable European Union56) and provides for:

(a) the layout and labelling of financial statements and consolidated financial statements and the content of the items of those accounts, the layout and content of the explanatory and supplementary information in the Annex in the financial statements and consolidated financial statements, the methods of consolidation of financial statements and the procedure for the inclusion of entities in the consolidation unit;

(b) accounting methods and their application;

(c) the indicative chart of accounts;

for the entities referred to in Section 2.

§ 2

(1) The Decree applies to entities under § 1 (2) (a) and (b) of the Act which are insurance or reinsurance undertakings under special legislation (1a), including export insurance companies (2) and to the Czech Insurance Office (3) (hereinafter the Office).

(2) Of the entities referred to in paragraph 1, this Decree shall not apply, except in Article 22 (6) of the Act, to entities under Paragraph 23a of the Act and to entities under Paragraph 19a of the Act, unless special legislative provisions (3a) provide otherwise.

ČÁST DRUHÁ

FINANCIAL CONCLUSION

HLAVA I

SCOPE AND METHOD OF ACCOUNTING

§ 3

(1) The accounts of the entities referred to in Article 2 include balance sheet (balance sheet), profit and loss account, an annex and an overview of changes in equity, unless otherwise specified.

(2) The balance sheet shall include items of assets and other assets, liabilities and other liabilities. The layout and labelling of the balance sheet items are set out in Annex 1 to this Decree.

(3) The profit and loss account shall include cost and income items and profit or loss. The profit and loss account shall be broken down into the Non-Life Insurance Technical Account, the Life Insurance Technical Account and the Non-Technical Account. The layout and labelling of the items of the profit and loss account are set out in Annex 2 to this Decree.

(4) The Annex explains and complements the information contained in the balance sheet and the profit and loss account. The information in the Annex shall be presented in the same order as the items in the balance sheet and the profit and loss account.

(5) An overview of changes in equity shall include, in particular, increases or reductions in equity during the financial year in accordance with the valuation principles used in the financial statements, differences in accounting methods, accounting cases related to such relations with members of the commercial corporation, where they act as owners, the payment of profit shares.

(6) For the purposes of reporting, valuation and disclosure of the information in the Annex in the financial statements on securities, shares and derivatives and on transactions with them, an entity shall apply the provisions of Decree No 501 / 2002 Coll., implementing certain provisions of Act No 563 / 1991 Coll., on Accounting, as amended, to entities that are banks and other financial institutions, as amended on 31 December 2017, unless otherwise specified.

§ 4

(1) In the balance sheet and in the profit and loss account, the items listed in Annexes 1 and 2 to this Order are shown separately and in the order laid down. Further detailed breakdowns of these items may be made provided that the specified arrangement is maintained. New items may be inserted if their content is not part of any other items required in the specified arrangement and the specified more detailed breakdown.

(2) The balance sheet items and profit and loss accounts are identified by a combination of large and small letters of the Latin alphabet, Roman numerals and Arab numerals and by the name of the entry; items can be broken down into subheadings. The calculation items are marked with "+" and "-."

(3) Balance sheet items and items in the profit and loss account which are preceded by an Arabic figure may be merged,

(a) in the absence of a significant amount in relation to the obligation of a faithful and fair view of the entity's subject matter and financial position; or

(b) where their merger contributes to greater clarity of the information, provided that the merged items are listed individually in the Annex.

(4) The aggregation of items under the conditions laid down in paragraph 3 is limited for insurance undertakings

(a) in the balance sheet, to the items in the arrangement referred to in paragraph 1 under the Arabic figure, with the exception of technical provisions items; and

(b) in the profit and loss account for items listed under one or more small letters, with the exception of items "I.1. Reinsurance premiums earned, net of reinsurance," "I.4. Cost of reinsurance claims, net of reinsurance," "II.1. Reinsurance premiums earned, net of reinsurance," "II.5. Cost of claims, net of reinsurance 'and" II.6. The amount to be reported in column 060 of this row: Original deduction according to Article 36 (1) (a) of CRR

(5) Each of the balance sheet items and items of the profit and loss account shall also include information on the amount of that item for the immediately preceding financial year (hereinafter referred to as the "previous financial year '). The information for the previous financial years shall be net. Where 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 their significance and the Annex shall justify such adjustment.

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

(7) Entities that commence or enter into liquidation in the current accounting year and entities in bankruptcy 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 entry into liquidation or the effective date of the bankruptcy decision. 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 that are redistributed and may be used by entities that are remerged by a merger.

(8) An entity that changes the currency of the accounts shall disclose in its financial statements the data for the previous financial year in the currency of the current period. Paragraph 37b shall apply to the conversion of these data.

(9) The accounts shall be drawn up in cash units of the currency of the accounts and the items shall be shown in thousands. The method of reporting each item and the designation of the currency of the accounts shall be indicated in all parts of the accounts. The items "Total assets" and "Total liabilities" must be equal to. The item "Profit or loss for the financial year 'shown in the profit and loss account shall be equal to the item" Profit or loss of the current financial year' shown in the balance sheet.

§ 5

(1) In the balance sheet, for asset items with the exception of "C. Investments" and "D. Life insurance investments, if the policyholder is the bearer of investment risk," its breakdown is to be applied to long-term and short-term.

(2) The provisions of paragraph 1 shall also apply to the breakdown of liabilities, with the exception of technical provisions under "C." and "D." liabilities and, mutatis mutandis, to the breakdown of other assets or other liabilities.

(3) The balance sheet for the current accounting year shall show the amount of assets by item

(a) not adjusted for adjustments and authorisations;

(b) the amount of the adjustment appropriations and the adjustments thereto, unless otherwise specified,

(c) the amount of the assets, minus the adjustments and entitlements.

In the balance sheet for the previous financial year, those items shall be shown only at a level less adjustments and adjustments.

(4) Where a particular asset or liability refers to more than one item in the layout and breakdown, their relations with other items shall be shown in the notes in the financial statements, where such information is necessary for the preparation of clear and clear financial statements. Own shares and shares of trading companies in a group may be reported only under the items prescribed for that purpose.

§ 6

(1) A non-life insurance technical account is used for the direct insurance sector (7) and for the corresponding types of reinsurance.

(2) The life insurance technical account is used for the direct insurance sector (8) and for the corresponding types of reinsurance.

(3) The non-technical account shall always be used at the same time as the technical accounts referred to in paragraph 1 or 2.

§ 7

Specific provisions for export insurance undertakings

(1) Export insurance companies include funds created under special legislation2) under item "A.IV. Other equity funds" of liabilities. Information on each of these funds shall be provided in the notes to the financial statements.

(2) Export insurance companies include subsidies from the state budget under special legislation2) in the funds referred to in paragraph 1 under item "A.IV. Other equity" liabilities. The information on these subsidies is provided in the notes to the accounts.

(3) Where insurance claims relating to its insurance products are transferred to the Export Insurance Corporation, these transactions shall be carried out either under the provisions applicable to the transfer of the claim (9) or under the provisions on the right to compensation for claims. 10) In the case of the transfer of a claim, that insured claim becomes part of the assets of the Export Insurance Corporation and is entered under "E.III. Other claims" assets. In the case of the transfer of rights to insurers, that insured claim does not become part of the assets of the Export Insurance Corporation. Information on these transactions shall be provided in the notes to the financial statements.

(4) Export insurance undertakings carrying out export credit risk insurance with State aid under special legislation2) carry out accounting records on accounting cases relating to such insurance separately from other accounting cases not subject to State aid.

§ 8

Special provisions for the Office

(1) Office 3) does not give an overview of changes in equity capital.

(2) The Office refers to claims on frontier insurance (11) under the heading "E.I. Claims on direct insurance operations" of assets where there is a time shift between the conclusion of the contract and the payment of premiums; In other cases, under item "I.1. (a), earned premiums, net of reinsurance, gross premiums written 'in the Technical Account for the non-life insurance of the profit and loss account, only those covered by the frontier insurance. There is no distinction between insurance and frontier insurance.

(3) The Office lists claims on the contribution of insurers under the special legislature12) under the heading "E.III. Other claims" of assets.

(4) The Office refers to debts of a recognised level of performance on the reported insurance event, which are the claims on the injured party under "G.I. Liabilities from direct insurance" liabilities.

(5) The Office refers to debts arising from other activities carried out by it under special legislation13) under the heading "G.V. Other liabilities".

(6) The Office lists the Guarantee Fund, which creates and applies according to special legislation, 14) under the heading "G.V. Guarantee Fund of the Office" liabilities.

(7) The Office lists the creation of the Guarantee Fund under item "I.8. Other technical expenses, net of reinsurance, in the Non-Life Account of the profit and loss account.

(8) The Office indicates the use of the Guarantee Fund under heading "I.3. Other technical income, net of reinsurance, in the Non-Life Account of the profit and loss account.

(9) The Office shall specify the costs arising from its activities, except for border insurance, performance costs provided by the Guarantee Fund in accordance with Sections 24 (2) and 29 (1) of the Vehicle Liability Insurance Act and investment costs, according to the nature of the transaction and the accounting case under heading "III.8. Other costs" in Non-Technical Account, under "I.7.c) Administrative Director" or under "I.8. Other technical expenses, net of reinsurance, in the Technical Account for non-life insurance of the profit and loss account. The costs of the performance provided by the Guarantee Fund in accordance with Sections 24 (2) and 29 (1) of the Vehicle Liability Insurance Act are listed under" I.4. Cost of insurance benefits, net of reinsurance, in the Non-Life Insurance Technical Account. Investment costs are shown under item "III.5. Investment costs" in Non-Technical Account, under "I.7.c) Administrative Director" or under "I.8. Other technical expenses, net of reinsurance, in the Non-Life Insurance Technical Account. In accordance with the indication of these costs, the same amount shall be indicated for the application of the Guarantee Fund.

(10) The Office shall report the proceeds of its activities, other than investment income, under item "III.7. Other income 'in the Non-Technical Account of the profit and loss account. Investment income is shown under item" III.3. Investment income "in the Non-Technical Account.

(11) (3) The relevant provisions of Title II, Title III and Title IV shall apply mutatis mutandis to the content of the technical provisions created by the Offices under the Specific Legislation (1a), (3). In line with the indication of the creation and use of technical provisions, the same amount shall be reported for the use and creation of the Guarantee Fund, with the exception of the amounts of the creation and use of technical provisions for insurance claims arising from the frontier insurance.

(12) The relevant provisions of Title II and Title III shall apply mutatis mutandis to the presentation of reinsurance contracts by the Office. In accordance with the reporting of such collateral, the creation and use of the Guarantee Fund shall be reported to the same extent, except for the collateral for frontier insurance.

(13) The office which operates border insurance under the law governing insurance of liability for the operation of a vehicle, (11) carries out accounting records of these accounting cases separately from other accounting cases. It also carries out accounting records on statutory insurance under the law governing insurance of liability from the operation of the vehicle.

(14) The remuneration received for the regressions to which the Office is entitled under the scheme of premiums payable 15a) shall be shown in the manner provided for in Article 19 (5) (b). At the same time, the creation of the Guarantee Fund is reported to be the same.

(15) Accepted contributions under Section 24c of the Code governing insurance of liability for the operation of the vehicle are listed in the Office under item "I.3. Other technical income, net of reinsurance, in the Technical Account for non-life insurance of the profit and loss account. At the same time, the creation of the Guarantee Fund is reported to be the same.

§ 8a

Damage Protection Fund

(1) The Office lists the creation of the Damage Guarantee Fund (3) from the contribution of members of the Office as an increase in the balance at the time of receipt of the contribution from the Office member under the heading "G.VII. Damage Protection Fund" liabilities. The same applies in the case of the creation of the Damage Guarantee Fund from the Office's funding to this fund.

(2) The Office shall provide for the use of the Damage Guarantee Fund up to the amount of the contributions referred to in paragraph 1 as a reduction in its balance at the time of the grant of the cost compensation under the liability item "G.VII. Damage Guarantee Fund." The same procedure shall apply in the case of the use of the Damage Guarantee Fund for the grant or loan.

(3) The Office lists the proceeds from the investment of temporarily vacant funds of the Damage Guarantee Fund under the heading of the Non-Technical Account "III.3. Investment income" profit and loss account. At the same time as these revenues are reported, the creation of the Damage Guarantee Fund under the heading "Non-Technical Account" III.8 Other costs'.

(4) The Office lists the costs resulting from the investment of temporary vacant funds of the Damage Guarantee Fund under the heading of the Non-Technical Account "III.5. Investment costs" profit and loss account. At the same time as these costs are indicated, the same amount of application of the Damage Guarantee Fund under the heading "Non-Technical Account" III.7. Other income '.

(5) In case of an obligation on the beneficiary to repay the funds provided to the Damage Guarantee Fund, the Office shall include them in off-balance-sheet accounts until they are paid. At the time of payment, these funds shall be entered as the creation of the Damage Guarantee Fund referred to in paragraph 1, including, where appropriate, interest on late payments.

HLAVA II

DETERMINATION OF CERTAIN BALANCE SHEET ITEMS

§ 9

(1) The heading "A. Claims on subscribed capital" includes claims on subscribers, members of a commercial corporation resulting from the obligation to pay off the capital injection and the shares outstanding under the Commercial Corporation Act and the Insurance Act.

(2) The heading "B. Long-term intangible assets" includes, in particular, goodwill, intangible research and development results, rights to inventions, designs, improvements, trade marks, designations of origin of products and utility models, computer programmes and other subject matter of protection under the copyright law, or other matters of intangible 53). Subheading (b) includes goodwill. Unless otherwise specified, the details of the entity's definition of this item shall apply mutatis mutandis to the relevant provisions of Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are entities accounting in the dual accounting system, as amended ("Decree No. 500 / 2002 Coll. '). For the purposes of this decree, a goodwill shall be considered as a long-term intangible asset which contains a positive or negative difference between the cost of purchase and the fair value of the assets acquired and liabilities at the time of acquisition. Goodwill may also result from the transfer of the insurance tribe under a special legislation. (1a)

§ 10

(1) The heading "C.I. Land and buildings" includes land and buildings or other immovable property. 54) (a) this property is recognised as an operating investment if an entity uses it for insurance and reinsurance activities or for activities related to insurance or reinsurance activities. This item also includes the right of construction and material burdens, excluding the right to use land and construction, unless they are recognised as part of a valuation under item "C.I." or item "F.I."

(2) Heading "C.II.1. Shares in controlled persons" contains shares, 21) representing participating interests with decisive influence. This item also includes other cases where an entity is a controlling entity. 22)

(3) Item "C.II.3. The shares with a significant influence" contains shares, 21) representing a significant influence.

(4) The entry "C.III.1. Shares and other variable-yield securities, other shares" includes in particular shares, provisional certificates, units and, where appropriate, other variable-yield securities, as well as shares which do not have the character of a holding having decisive or significant influence. This is the amount of basic own funds that meet the criteria for Tier 2.

(5) The item "C.III.2. Debt securities" contains fixed-income securities, including accrued accessories, namely fixed-interest securities and variable-rate securities, if its variability is determined in advance in relation to the rates used on the market for specified dates or periods. The item contains the redeemable debt securities of the reinsurer that are an active security deposit, debt securities provided as collateral in repurchase transactions and debt securities provided by loan. This item does not include own debt securities that are reported under "G.V. Other liabilities" of liabilities and debt securities that are reported under "C.II.2." and "C.II.4." of assets.

(6) Heading "C.III.3. Investment in investment associations" includes holdings held by an entity in which an entity has jointly invested with several entities and whose management is entrusted to one of them.

(7) Heading "C.III.5. Other loans or loans' include amounts granted to insured persons for whom the insurance contract is the principal guarantee. This item also includes amounts granted to insured persons not guaranteed by an insurance contract.

(8) Item "C.III.6. Deposits with financial institutions" include deposits and deposits confirmed by a deposit certificate, a deposit note or other similar document according to a specific legal provision, or other money-worthy values that entities have placed with financial institutions and can be collected only after a certain period of time. Values debited without such a selection limit, including deposits that can be drawn up within 24 hours after notification, are shown under "F.II. Cash on accounts with financial institutions and cash in the cash register '.

(9) "C.III.7. Other investment" includes investments not included in items C.III.1. to C.III.6 of assets. This item also includes articles and works of artistic cultural value or claims on reinsurance undertakings under special legislation. This includes both positive and negative fair value of derivatives, including the fair value of embedded derivatives separated from the host instrument. The value of underlying instruments shall not be reported; This figure is shown in the notes to the financial statements.

(10) The item "C.IV. Deposits with active collateral" contains:

(a) the claims of the reinsurer on the insurance undertaking progressing part of the risk and the corresponding collateral, at the level of the guarantee deposits lodged by the reinsurer with that insurance undertaking or with a third party, or at the level specified by those persons;

(b) the amounts referred to in (a) may not be settled with each other with other claims by the reinsurer on the insurance undertaking, nor may they be settled with the insurer's debts towards the insurance undertaking;

(c) securities deposited with an insurance undertaking or with a third party remaining in the property of the reinsurer shall be entered under "C.III.1. Shares and other variable-yield securities, other shares" or "C.III.2. Debt securities" of the assets.

(11) The heading "D. Life insurance investments where the policyholder is the holder of the investment risk" includes investments the value of which is used to determine the value or return of the insurance relating to a particular investment fund and investments intended to cover liabilities that are determined using an index. This item also includes investments that are held on behalf of and will be later distributed between members of the tontine.

§ 11

(1) The item "E.II. Claims arising from reinsurance operations" includes claims on reinsurers, including insurance intermediaries, where their activity relates to reinsurance.

(2) In the case of co-insurance under the relevant contract, each of the entities shall state the claims only at the level in which it is involved in the co-insurance.

(3) The heading "E.III. Other claims" includes, in particular, claims arising from foreign exchange notes and foreign exchange notes on their own account, claims on the balance of the notes, claims on those claims, claims on social security and health insurance. No claims arising from direct insurance and claims arising from reinsurance or brokerage operations are reported here.

§ 12

(1) The heading "F.I. Long-term tangible assets, other than those referred to under" C.I. Land and buildings, "and stocks" includes:

(a) movable goods, 32) except for stocks; the assets are divided into depreciation and non-depreciation,

(b) stocks, unless indicated under the heading "G.III. Other transitional asset accounts';

(c) costs related to the acquisition of fixed assets, including land, buildings and, where appropriate, other immovable property, and advances and debts granted for the acquisition of such assets.

The term can be broken down into subheadings. Unless otherwise specified, entities shall apply the relevant provisions of Decree No 500 / 2002 Coll.

(2) The item "F.II. Cash on accounts with financial institutions and cash in the cash register" includes, in addition to those cash, the following:

(a) prices, in particular postage stamps, stamps,

(b) cheques, 33)

(c) other values in the treasury, in particular credit and credit cards, if they have the value from which they will be drawn upon their issue.

(3) The item "F.IV. Other assets" contains those assets that are not included in the items F.I. to F.III.

§ 13

(1) The summary item "G. Transitional accounts of assets" contains accrual items which are accrued income or accrued costs, and speculative items that are active. The revenue of future periods represents revenue of the current accounting year relating to revenue of future financial years. The costs of future periods shall be those of the current accounting year relating to the costs of the following financial years. The criterion for listing accounting cases as accruals is the fact that their actual definition, the amount and period to which they relate are known at the same time. No amounts of accrued accessories are shown here.

(2) The heading "G.I. Accrued interest and rent" includes interest on income and rent on a balance sheet date which has not yet become due unless otherwise specified.

(3) Heading "G.II. Deferred cost of insurance contracts" includes cost of insurance contracts that are differentiated in time. The amount of these costs shall be calculated using the methods set out in Section 30.

(4) Heading "G.III. Other transitional accounts for assets" includes amounts not included under "G.I. Accrued interest and rent" or "G.II. Deferred cost of insurance contracts." These are mainly stocks if they are reported as accruals. This item shows the notional items that are active, which are amounts that cannot be reported as claims on account of their notional amount; for example, the insurance cover for the insurance undertaking, an estimate of the amounts for the lease of property rights. No amounts relating to technical provisions under a specific legislation may be indicated as conclusive items.

§ 14

(1) The heading "A.I. Capital" includes capital under the Commercial Corporations and Insurance Act. In the case of commercial companies, the capital is entered in the business register or not mandatory. In the case of cooperatives, the capital is registered or not registered in the business register. Subheading (a) lists changes in the core capital of companies prior to such changes being entered in the Commercial Register.

(2) The item "A.II. Emission account" contains the difference between the emission rate and the nominal value of the shares under the Commercial Corporation Act. 36)

(3) Item "A.III. The reserve fund for the new valuation" shall be reported only if its application results from a specific legal provision.

(4) The heading "A.IV. Other equity funds" includes funds that are created from a source other than the entity's profit unless a separate legal provision provides otherwise, except for the New Valuation Reserve, which is shown under "A.III." Revaluations reserve fund '. These funds shall be shown separately in the sub-headings of this item. This item also includes subsidies to own resources, acquisition of assets free of charge or valuation differences from fair value measurements.

(5) The heading "A.V. Reserve fund and other profit funds" includes the reserve fund or other funds created under the Commercial Corporations Act and other funds that are generated from profits in the entity's accounts.

(6) The item "A.V. Undistributed profit or loss of past financial years" includes profit or loss 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 previous financial years. 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.

§ 15

The item "B. Subordinated liabilities" includes all liabilities, whether documented or not, which have been contractually agreed to be reimbursed in the last order in the event of liquidation or bankruptcy, up to the satisfaction of other creditors' rights.

§ 16

(1) Technical provisions items are reported broken down by gross amount and value of reinsurance. The value of the collateral shall include actual or estimated amounts by which the gross amount of technical provisions is reduced in accordance with the contractual terms of the collateral.

(2) The item "C.1. Provisions for outstanding premiums" includes the amount representing the share of gross premiums written to be assigned to the following accounting year or to subsequent financial years. The provisions shall apply mutatis mutandis to unearned premiums.

(3) The item "C.2. Life insurance provision" includes the value of insurance liabilities, including premiums already declared, determined by an actuarial estimate after deduction of the actuarial value of future premiums.

(4) Item "C.3. The provision for claims on outstanding claims" represents the sum of the expected final costs incurred by the insurance undertaking for the settlement of all claims arising from claims incurred by the end of the financial year, whether reported or not, reduced by the amounts already paid in relation to those claims. C0180 / R0290

(5) The item "C.4. Bonus and Discount Provisions" represents amounts in the form of bonuses and discounts to policyholders or persons with a contractual right of performance as defined in Section 19 (6), unless such amounts have already been charged to the policyholder or the person with a contractual right of performance or have been included in item C.2. In the course of the reinsurance business, that provision shall be made only if there is a reason for it under the reinsurance contract.

(6) Heading "C.6. Other technical provisions" includes, in particular, a provision for impending losses on insurance, which is the sum added in addition to the provision for unearned premiums in respect of risks assumed by the insurance undertaking, in order to cover all claims and expenses associated with valid insurance contracts exceeding the amount of provisions for unearned premiums and premiums due under those contracts. Item C.6. also includes the "Office's commitment provision," "Provisions to meet the liabilities of the applied technical interest rate and other numerical parameters" or other technical provisions, if the entity is created.

(7) The item "D. Technical provisions for life insurance where policyholders are the bearer of investment risk" includes technical provisions designed to cover liabilities relating to investments under life insurance contracts whose value or return is determined on the basis of financial investments for which the policyholder bears a risk or an indicator. Additional technical provisions that may be created to cover risks related to death, operating expenses or other risks, such as guaranteed benefits of insurance benefits due at the end of the contract or guaranteed value upon withdrawal of the insurance contract, are listed under item C.2. Item D. also includes technical provisions representing the tontine organizer's liabilities towards its participants.

(8) Under the heading "F. Deposits in the case of passive hedges," an entity specifies the debts arising from the guarantee deposits composed of or taken from the reinsurers under the reinsurance contract. These debts cannot be settled with each other against the reinsurers. If an entity has accepted a security in the form of securities that have been transferred to its property, this item shall include the amount that the entity owes to the reinsurer by virtue of that guarantee, including accrued accessories.

§ 16a

(1) The "Code of Obligations of the Office" is a provision for fulfilling the liability obligations of the Office under the law governing the insurance of liability from the operation of the vehicle. The provision is intended to cover those liabilities which the Office does not have the corresponding assets to fulfil. This reserve shall be made up of the insurance undertaking to the extent that it participates in the Office's overall commitments, its amount being determined by mathematical and statistical methods.

(2) The "provision for the fulfilment of the liabilities of the technical interest rate used and of the other numerical parameters" is a reserve intended to meet the liabilities arising from the technical interest rate used and other numerical parameters at a level where the life insurance provision is not sufficient to cover those liabilities. The provisions shall apply mutatis mutandis to other numerical parameters.

§ 18

(1) Item "G.III. Debt securities liabilities" includes in particular debt securities issued, debt debt due, outstanding debt securities issued, as well as debt securities held and liabilities arising from short sale of debt securities. Liabilities arising from short sales of shares and units shall be reported under "G.V. Other liabilities'; subheading (a) shall include convertible bonds.

(2) The heading "G.V. Other liabilities" includes, in particular, debts owed to employees on income from dependent activities, social security and health insurance debts, income tax and other direct taxes, deferred income tax debts, value added tax debts and other indirect taxes. This item also includes debts arising from the obligation to pay contributions to the Office under special legislation12) and debts arising from the obligation of the members of the Office to pay contributions to the Damage Guarantee Fund. This item does not include any debts that are shown under items G.I. to G.III.

(3) The summary item "H. Transitional accounts of liabilities" contains accrual cases of future expenditure and revenue and arbitrary items. Subsequent-term expenditure means costs relating to the current accounting year but not yet incurred. Ancillary revenue shall mean amounts received in the current accounting year which relate in time and in substance to the proceeds of the following financial year. The criterion for reporting accruals is that their actual definition, the amount and period to which they relate are also known. No amounts of accrued accessories are shown here. If they do not include specific liabilities of accrued accessories, this is stated under the heading "H.I. Waiver expenses and accrued earnings'.

(4) Heading "H.II. Other transitional liability accounts' shall contain amounts which are not included under the heading" H.I. Waiver expenses and accrued earnings'. This item also includes notional items passive, which are amounts that cannot be reported as debts due to their notional amount; For example, interest income on variable-yield securities, amounts subject to litigation. No amounts relating to technical provisions under a specific legislation may be indicated as conclusive items.

HLAVA III

DETERMINATION OF CERTAIN PROFIT AND LOSS ITEMS

§ 19

(1) The heading "Gross premiums written" (hereinafter referred to as "gross premiums written") in the Non-Life Insurance Technical Account marked "I.1.a" and in the Life Insurance Technical Account marked "II.1.a)" includes all amounts due during the financial year under insurance contracts, regardless of the fact that those amounts may relate in whole or in part to a subsequent accounting year; Such amounts shall include in particular:

(a) premiums which have not yet been prescribed as the calculation of premiums may not be made until the end of the accounting year;

(b) 1. one-off premiums, including premiums paid in instalments;

2. in life insurance, one-off premiums arising from the provision for bonuses and discounts, where they are taken into account as contracts premiums and where specific legislation (1a) requires or allows them to be placed under insurance premiums;

(c) increases in premiums in the case of half-yearly, quarterly or monthly payments, as well as additional payments by policy holders, intended to cover the insurance undertaking's establishment expenses;

(d) the share of the insurance undertaking in total premiums in the case of co-insurance;

(e) reinsurance premiums, derived from the active reinsurance during which the premiums are transferred (hereinafter referred to as "the cession") or from reinsurance agreed between the reinsurers (hereinafter referred to as "the retrocession"), including the benefits of the premium strain,

after deduction

(f) the losses of the insurance tribe in favour of cesias and retrocessions; and

(g) nullification which is a cancellation or correction.

These amounts may not include taxes or charges levied with insurance premiums.

(2) The heading "Reinsurers' insurance premiums" in the Non-Life Insurance Technical Account marked "I.1.b" and in the Life Insurance Technical Account marked "II.1.b)" includes all premiums under insurance contracts concluded by the insurance undertaking. The amount to be reported in column 060 of this row: the losses of premiums on contracts cancelled shall be deducted.

(3) The item "Change in the status of the provision to unearned premiums, net of reinsurance" in the Non-Life Insurance Technical Account marked "I.1.c)" and "I.1.d)" and in the Life Insurance Technical Account marked "II.1.c)" contains the change in the status of that provision.

(4) The items in the non-life insurance technical account marked "I.4.b" and "I.5." and in the life insurance technical account marked "II.5.b" and "II.6." contain changes in the state of the relevant technical provisions. Changes in status shall be reported in such a way as to enable this to be determined separately by the gross amount of these provisions and the share of reinsurers. The change in the stock of the reserve shall be calculated as the difference between the final and the initial stocks of the relevant reserve.

(5) The item "Cost of claims, net of reinsurance" in the Non-Life Insurance Technical Account marked "I.4" and in the Life Insurance Technical Account marked "II.5." contains:

(a) gross premiums costs from which the reinsurers' shares are deducted. These costs include all the amounts of the claims made for the financial year, plus the change in the provision for the claims for the current financial year. Those amounts include, in particular, annuities, cancellation costs or new contracts, and losses from the insurance provision contracts with first insurers or reinsurers, external and intra-corporate costs and the management of insurance claims, as well as incurred but not reported claims,

(b) the costs referred to in (a) shall be deducted, in particular, from the sums recovered from the acquisition of the legal ownership of the insured property or from the acquisition of the creditor's rights by paying the claim to the creditor for the debtor who is subrogation and the compensation for the damage to the debtor of the claims affected by the execution of the decision which is a regression, the payment of the premium due to the insured under the insurance contract.

(6) The item "Bonuses and discounts, net of reinsurance" in the Non-Life Insurance Technical Account marked "I.6." and in the Life Insurance Technical Account marked "II.7." contains:

(a) bonuses which cover all amounts cleared for the financial year which have been or will be paid to policy holders or other persons who have a contractual right to claims credited to them, including the amounts used to increase technical provisions or to reduce future premiums, to the extent that such amounts represent the distribution of surplus or profits resulting from all or only some of the operations after deduction of the amounts granted in the previous financial years and which are no longer required;

(b) discounts covering amounts which constitute partial reimbursement of premiums on the basis of experience in the performance of individual contracts.

Bonuses and discounts shall be presented in such a way as to enable this to be determined separately by their gross amount and by the share of reinsurers.

(7) The item "Cost of insurance contracts" in the Non-Life Insurance Technical Account marked "I.7.a" and in the Life Insurance Technical Account marked "II.8.a)" and contains the costs resulting from the conclusion of insurance contracts. The item marked "I.7.b) 'in the Non-Life Insurance Technical Account and the item marked" II.8.b)' in the Life Insurance Technical Account shall contain a change in the status of deferred acquisition costs. Cost of acquisition means costs resulting from the conclusion of contracts. Cost of purchase includes both direct costs, in particular purchase commissions or costs of drawing up insurance documents or including insurance contracts in the insurance portfolio, as well as indirect costs, in particular advertising costs or overheads of insurance and insurance contracts.

(8) The heading "Administrative Director" in the Non-Life Insurance Technical Account marked "I.7.c)" and in the Life Insurance Technical Account marked "II.8.c)" includes, in particular, commissions for the renewal of insurance contracts, the costs associated with the collection of insurance premiums, the management of the insurance tribe, the management of bonuses and discounts and the costs of both received and transferred reinsurance. The administrative director in detail includes in particular personnel costs, depreciation of fixed assets, which is not an investment under Paragraph 10, energy consumption.

(9) The items "Investment income" and "Investment costs" in the Life Insurance Technical Account marked "II.2." and "II.9." and in the Non-Technical Account marked "III.3." and "III.5." contain:

(a) any income and cost of non-life insurance investments that are shown in the Non-Technical Account;

(b) if the insurance undertaking provides life insurance, the proceeds and costs of the investment are shown in the life insurance technical account;

(c) if the insurance undertaking is also providing both life and non-life insurance, the income and costs of the investment are shown in the life insurance technical account, if they are directly linked to the life insurance activity;

(d) in subheadings II.2.c), II.9.b), III.3.c) and III.5.b) the creation and use of adjustments to debt securities and to participants having the character of a holding having decisive or material influence, unless such participation is valued by equivalence.

This item also includes interest income and expenses.

(10) The item "Transferred investment income" in the Non-Life Insurance Technical Account marked "I.2." and in the Life Insurance Technical Account marked "II.12." and in the Non-Technical Account marked "III.4." and "III.6." contains such income in such a way that

(a) if part of the investment income is transferred to the Non-Life Insurance Technical Account (item I.2), the transfer from the Non-Technical Account under item "III. 6 shall be deducted. Transfer of investment income to the Non-Life Insurance Technical Account (item I.2)" and be added to item "I.2. Transferred income from investment from the Non-Technical Account (item III.6) ',

(b) if part of the investment income shown in the life insurance technical account is transferred to the non-technical account, the amount transferred shall be deducted from item "II.12. Transfer of investment income to Non-Technical Account (item III.4) 'and be added to item" III.4. Transferred earnings of investments from the life insurance technical account (item II.12)'.

(11) The items "Investment value gains" and "Investment value losses" in the Life Insurance Technical Account marked "II.3." and "II.10." contain amounts of valuation differences when applying fair value. In any case, those differences are reported under this item when they relate to investments under "D. Life assurance investments, if the policyholder of the assets is the bearer of the investment risk.

§ 20

(1) The heading "Other technical expenses net of reinsurance" in the Non-Life Insurance Technical Account marked "I.8" and in the Life Insurance Technical Account marked "II.11." contains costs that cannot be shown under other headings of these Technical Accounts. This item includes the formation of technical provisions. This item also includes the formation of adjustments to claims from direct insurance operations, claims from reinsurance operations and other claims under "E.I. Claims from direct insurance operations' and" E.II. Claims from reinsurance operations' of assets and write-off of such claims. This item also includes the rescue costs under Civil Code 41a).

(2) The item "Other technical income, net of reinsurance" in the Non-Life Insurance Technical Account marked "I.3." and in the Life Insurance Technical Account marked "II.4." contains income that cannot be shown under other headings of these Technical Accounts. This item includes the use of technical provisions. This item also includes the use of adjustments to claims from direct insurance operations, claims from reinsurance operations and other claims under "E.I. Claims from direct insurance operations' and" E.II. Claims from reinsurance operations' of assets. This item also includes remuneration corresponding to insurance premiums under Civil Code 55).

(3) The heading "III. 8. Other costs" in the Non-Technical Account includes costs arising from the activities of an insurance undertaking other than an insurance or reinsurance business, or costs not listed under another heading of the Non-Technical Account. This item also includes:

(a) depreciation and adjustments on assets which are not investments under "C. Investments and" D. Life insurance investments, where the policyholder of the investment risk is the policyholder of the assets,

(b) contractual fines and interest on late payments, late payment fees, periodic penalty payments and, where appropriate, other penalties resulting from contractual relations, penalty amounts, penalties from the relevant decision or special legislation, whether or not debts have been paid; none of these penalties can be transferred to the cost of a non-life insurance technical account or a life insurance technical account;

(c) the formation of provisions to be entered under "E. Other provisions" of liabilities;

(d) exchange losses on the conversion of assets and liabilities in foreign currency into the currency of the accounts.

(4) Heading "III.7. Other income" in the Non-Technical Account includes income arising from insurance activities other than insurance or reinsurance activities, in particular income not entered under the Non-Technical Account. This item also includes:

(a) payments received from debts written off, except insurance claims;

(b) contractual fines and interest on late payments, late payment fees, periodic penalty payments and, where applicable, other penalties resulting from contractual relations, penalty amounts, penalties from the relevant decision or special legislation, whether or not payment of the claim has been accepted; none of these penalties can be transferred to the proceeds of the Non-Life Insurance Technical Account or the Life Insurance Technical Account;

Citation	Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance companies
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. 502 / 2002 Coll.

Decree implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance companies

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