Decree No. 503 / 2002 Coll.
Decree implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for health insurance companies
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503
DECLARATION
of 6 November 2002
implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for health insurance companies
According to Section 37a (1) of the Finance Ministry, for the implementation of Section 4 (2), Section 14 (1), Section 18 (4) 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 '):
SUBJECT MATTER OF ADJUSTMENT AND SCOPE
The decree provides for the layout and labelling of financial statements' items and the content of the items of that statement, the indicative chart of accounts, the accounting methods and their use for the entities referred to in Section 2.
The decree applies to entities under § 1 (2) (a) of the Act which are health insurance (1) and carry out public health insurance under special legislation.2)
FINANCIAL CONCLUSION
SCOPE AND METHOD OF ACCOUNTING
(1) The accounts of the entities referred to in Article 2 consist of parts
(a) balance sheet (balance sheet);
(b) profit and loss account;
(c) the Annex;
(d) an overview of the cash flows; and
(e) an overview of changes in equity.
(2) The balance sheet items, the profit and loss account, the cash flow overview and the statement of changes in equity are identified by a combination of large letters of the Latin alphabet, Roman numerals, Arab numerals and item names. The items of table items in the Annex in the financial statements shall be identified in accordance with Sections 12 and 12a.
(3) The items in the parts of the accounts referred to in paragraph 1 shall be shown separately and in the order laid down. A further more detailed breakdown of the items on the subheadings 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.
(4) The technical form of the parts of the accounts is laid down in the Technical Decree on accounting records (2a).
(5) The financial statements are drawn up in units of the Czech currency and recorded in thousands of CZK.
(1) Assets and other assets, liabilities and other liabilities are included in the balance sheet. The layout and labelling of the balance sheet items are set out in Annex 1 to this Decree.
(2) The profit and loss account shall include items of cost, income and profit or loss for the tax activity. The layout and labelling of the items of the profit and loss account are set out in Annex 2 to this Decree.
(3) Each of the balance sheet items and the items in the profit and loss account also contain information on the amount of that item reported for the immediately preceding financial year (hereinafter referred to as "the previous financial year"). The information for the previous financial years shall be net. In the event that the information reported for the previous and current financial years is not of a level comparable nature, the information for the previous financial years shall be adjusted in the light of the significance of Article 19 (7) of the Law. Any adjustment of the information for the previous financial year or, where appropriate, the retention of non-comparable information shall be justified in the Annex. Balance sheet items at zero for past and current financial years shall be reported. The items of the profit and loss account at zero for the past and current financial years are reported if otherwise required.
(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 information for the previous financial year, the opening balance sheet on the date of commencement or entry into liquidation or on 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 process may also be used by entities that have been newly merged or merged.
(5) The items "Total assets" and "Total liabilities" on the balance sheet must be equal. The item "Result for the financial year" shown in the profit and loss account shall be equal to the item "Result for the current financial year" shown in the balance sheet.
(6) An overview of cash flows shall provide information on the gains and losses of funds for the financial year. The layout and labelling of the cash flow overview items and its binding template are set out in Annex 4 to this Decree.
(7) An overview of changes in equity is a breakdown of the item "A. Equity" of the balance sheet. It shall provide information on changes in equity and its individual components for the financial year. The organisation and labelling of the items of the inventory of changes in equity and its binding model are set out in Annex 5 to this Decree.
(8) The Annex to the accounts explains and complements the information contained in the other parts of the accounts. The layout and labelling of the items of the Annex in the financial statements and its binding template are set out in Annex 6 to this decree and in Sections 12 and 12a.
(1) In the balance sheet, for asset items (3), with the exception of item "B. Investments" its breakdown is to be applied to long-term and short-term. (4)
(2) Paragraph 1 shall apply mutatis mutandis to the breakdown of other assets (3) or liabilities and other liabilities (3).
(3) The balance sheet for the current accounting year shall include items "A. Long-term intangible assets," "C. Long-term tangible assets" and "D. Long-term financial assets" according to the nature of the assets referred to therein.
(a) the amount not adjusted for adjustments and adjustments;
(b) the amount of the adjustment appropriations and the adjustments thereto, unless otherwise specified,
(c) above, minus the adjustments and entitlements.
The movement of assets under these items shall be reported in the valuation in which they were shown in the balance sheet at the beginning of the financial year.
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 arrangement and breakdown item, their relations with other items shall be shown in the notes in the financial statements, provided that such information is necessary for the preparation of clear and clear financial statements.
Specific provisions for taxed activity
For the content of the items of the balance sheet and profit and loss account relating to the taxed activity, the entity shall apply the provisions of Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, to entities that are insurance undertakings, as amended.
DETERMINATION OF CERTAIN BALANCE SHEET ITEMS
(1) The heading "A. Long-term intangible assets" includes, in particular, intangible research and development results, the rights to inventions, designs, improvements, trade marks, designations of origin of products and utility models, computer programmes and other subject matter of protection under copyright law, or other matters of intangible 22). Unless otherwise specified, the details of the entity's content definition of the components of this item shall apply mutatis mutandis to the provisions of Section 6 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.
(2) The heading "C. Long-term tangible assets" includes:
(a) land and buildings or other immovable property, where appropriate (23);
(b) movable goods, (8a) excluding stocks; the assets are divided into depreciation and non-depreciation,
(c) costs relating to the acquisition of fixed assets and advances and debts granted for the acquisition of such assets;
(d) the right of construction, unless reported under "F.I. Stocks,"
(e) material burdens other than land and construction rights, unless they are recognised as part of a valuation under "C.I.2. Construction" or as part of a valuation under "F.I. Stocks."
The term can be broken down into subheadings. Unless otherwise specified, the provisions of Section 7 of Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, apply mutatis mutandis to entities accounting in the double accounting system.
(3) Summary item "D.I. Shares in business groupings" contains shares in business groupings, 9) Bonds issued by persons in business groupings and loans or loans granted to persons in business groupings.
(4) Item "D.I.1. The shares in the controlled entities" contains shares, 10) which represent the participating interests. This item also includes other cases where an entity is a controlling entity. 11)
(5) Item "D.I.3. The shares with a significant influence" contains shares, 10) representing a significant influence.
(6) Summary item "D.II. Other long-term financial assets" includes assets listed under D.II.1. to D.II.4. of assets.
(7) The item "D.II.1. Shares and other variable-yield securities, other shares" includes in particular shares, interim certificates, units and, where appropriate, other variable-yield securities, as well as shares and influence that are not included in items D.I.1. and D.I.3. of assets.
(8) The item "D.II.2. Debt securities" contains:
(a) bonds and other fixed-yield securities issued by bond issuers under special legislation, (12) unless those securities fall under the heading "D.I.2. Bonds issued by controlled entities and loans or loans granted to them 'or" D.I.4. Bonds issued by persons in which an entity has significant influence and loans or loans granted to such persons',
(b) securities with a fixed interest rate or a variable interest rate shall be treated as fixed income securities if its variability is determined in advance in relation to the rates used on the market for specified dates or periods.
Other securities are classified as variable income securities and are included under asset item D.II.1.. In the case of debt securities purchased from public health insurance funds, accrued interest income shall be reported under the relevant fund of item "A.III. Other equity funds" or "A.V. Public health insurance funds." Unless otherwise specified, the provisions of Section 44 of 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 shall apply mutatis mutandis to the details of the reporting of the entity's interest income, interest expense and accrued accessories.
(9) Item "D.II.3. Deposits with financial institutions" includes deposits and deposits confirmed by a deposit certificate, a deposit note or other similar document in accordance with a specific legal provision, 13) or other money-worthy values that entities have placed with financial institutions and can be collected 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 '.
(10) Item "D.II.4. Other long-term financial assets" includes long-term financial assets not listed under D.II.1. to D.II.3. This item also includes articles and works of artistic cultural value under special legislation. 14)
(1) The heading "E.I. Public health insurance claims" includes claims on public health insurance under special legislation.
(2) Heading "E.I.7. In the field of public health insurance, it contains claims on account of which claims have been incurred but the actual amount of performance at the time of the accounting case is not known and this cannot be accounted for in off-balance-sheet books. It shall also include claims on budgets where performance claims have been incurred but the actual amount of performance is not known, or the amount of performance is otherwise questionable, and at the same time this cannot be accounted for in off-balance-sheet books.
(3) The heading "E.II. Other claims" includes, in particular, claims on or guaranteed by foreign exchange notes and foreign exchange notes, debt from the balance of the notes, claims on social security institutions, public health insurance and speculative items for the tax activity. Claims under this item are broken down into long-term and short-term. There are no claims on public health insurance operations.
(4) Aggregate item "F. Other assets" contains assets listed under F.I. to F.III.
(5) Unless otherwise specified, the details of the content definition of the components of the item "F.I. Stocks" of the entity shall apply mutatis mutandis to the provisions of Section 9 of Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are entrepreneurs accounting in the dual accounting system, as amended.
(6) The item "F.II. Cash on accounts in financial institutions and cash in the treasury" includes, in addition to those cash, the following:
(a) prices, in particular postage stamps, stamps,
(b) cheques, 17) to be shown under the subheading,
(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.
(7) The heading F.II. also includes special bank accounts for public health insurance funds under special legislation1) and bank accounts for other funds under special regulations. 18)
(8) Item "F.III. Other assets" includes those assets that are not included under F.I. and F.II. This item also shows positive fair values from the valuation of derivatives under Section 27 (1) of the Act under Section 19.
(1) The liability item "A.I. Capital" includes capital other than public health insurance.
(2) The item "A.II. Valuation differences" includes valuation differences when applying fair value to assets for sale under Paragraph 18a. This item also applies where other legislation so requires.
(3) Item "A.III. Other equity funds' includes funds that are created from a source other than profit in the accounts of a health insurance undertaking, unless specific legislation provides otherwise. This item also includes public health insurance funds with the exception of the basic fund. The resources of these public health insurance funds and the ways in which they are used are laid down in specific legislation .18) Changes in the status of public health insurance funds shall be recognised using balance sheet accounts, without using cost and income accounts. Those funds shall be shown separately in the sub-headings. This item also includes subsidies or sources from free of charge transactions or valuation differences from fair value measurements and interest on debt securities held.
(4) The entry "A.IV. Other profit funds" contains other funds that are generated from profit in the accounts of a health insurance company.
(5) The heading "A.V. Public health insurance funds" includes the basic fund. The resources of the basic fund and its use are laid down in specific legislation. A change in the status of this fund shall be recognised using balance sheet accounts, without using cost and revenue accounts.
(6) The summary item "B. Reserves" contains provisions under Section 26 (3) of the Act.
(7) The heading "C.I. Public health insurance liabilities" contains public health insurance obligations under the special legislature.2)
(8) Item "C.I.6. Outstanding items passive 'contain, in the field of public health insurance, debts for which the actual amount of performance at the time of the accounting case is not known and cannot be accounted for in off-balance-sheet books. It also contains debt for budgets where performance claims have been incurred, but the actual amount of performance is not known or the amount of performance is otherwise questionable and this cannot be accounted for in off-balance-sheet books.
(9) The heading "C.II. Debt securities liabilities" includes amounts intended to bridge the lack of funds due to the default of debt claims on debt issued; Subheading (a) refers to convertible bonds.
(10) The heading "C.IV. Other liabilities" includes, in particular, debts from notes and balances, debt from issued bonds, debts from dependent workers, including social security and public health insurance, debts from social security institutions and public health insurance, income tax and other direct taxes, debt from value added tax and other indirect taxes, debts from subsidies and speculative items for the tax activity. Debt under this item is broken down into long-term and short-term. This item does not include any debts arising from public health insurance operations.
(11) Under "D. Other liabilities," in particular, the negative fair value of the valuation of derivatives under Section 19 of the Act is reported.
EXPOSURE DETERMINATION OF PROFIT AND LOSS ITEMS, EXTENSION OF THE MONEY FLOWER AND DETERMINATION OF THE EXCHANGE OF OWN CAPITAL
The provisions of Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for entities that are insurance undertakings, as amended, shall apply mutatis mutandis to the content of the items of the profit and loss account.
An overview of the cash flows shows the entity's cash flow at the beginning of the financial year, income, expenditure, change in cash (income minus expenditure) and the balance of cash at the time of drawing up the interim financial statements or at the balance sheet date of the financial year, in total and broken down into total funds and funds for the tax activity. Items at zero shall be reported.
An overview of changes in equity shall provide information on changes in its individual components. It shall reflect the situation of the equity components at the balance sheet date of the last financial year, their increases and reductions during the financial year and the situation of the components at the time of drawing up the interim accounts or the balance sheet date of the financial year. Items at zero for the previous and current financial years shall be reported.
ARRANGEMENTS AND DETERMINATION OF EXPLANATORY AND ADDITIONAL INFORMATION IN THE ANNEX TO THE ACCOUNT
(1) The Annex to the accounts is divided into items in the following order:
(a) items "A. under the statutory provisions"; the items contain information in accordance with the provisions of the Act, as set out in Annex 6 to this Decree,
(b) "E. Other additional information to other parts of the accounts."
(2) The information set out in the Annex to the financial statements is identified by the number of the item in the Annex to the financial statements, if it relates to the specific item in the part of the financial statements also to that item. For items for which there is no content, the figure 0 shall be completed.
(3) Unless otherwise specified, the entries in the financial statements for each item in the Annex shall be based on the names of the items listed in Annex 6 to this Order.
(4) For the disclosure of information on securities and derivatives in each item of the Annex in the financial statements, entities 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.
(5) Heading "E.1. Additional information to balance sheet items' contains in particular additional and explanatory information to individual balance sheet items other than those referred to in paragraph 1 (a) not reported under items E.3 and E.4 and other elements which provide additional information which is relevant under Section 19 (7) of the Act.
(6) Heading "E.2. Additional information to the items in the profit and loss account 'shall include in particular additional and explanatory information to the items in the profit and loss account not mentioned in paragraph 1 (a), not reported under items E.3 and E.4, and other facts that provide additional information that is relevant under Section 19 (7) of the Act.
Content definition of off-balance sheet accounts information
(1) In the case of facts that are the subject of accounting, but not all the conditions for carrying out accounting records in the main book are met, an entity shall disclose those facts in off-balance-sheet accounts in accordance with the definition in paragraphs 3 to 5, while respecting the principle of materiality.
(2) When assessing the facts under Paragraph 25 (2) and (3) of the Act, an entity first assesses whether the conditions for accounting in the off-balance sheet book are met. If so, it shall account for the facts referred to in Article 25 (2) of the Act in the book of off-balance-sheet accounts until the conditions for accounting in the book of off-balance-sheet accounts are no longer fulfilled.
(3) Paragraph 49 to 54 of Decree No. 410 / 2009 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for certain selected entities, shall apply mutatis mutandis to the content of information on off-balance-sheet accounts, unless otherwise provided for in other legislation14a, and in paragraphs 4 and 5.
(4) The item "P.I. Property of an entity" includes:
(a) subheading "P.I.1. Small intangible assets' which contain information on small intangible assets that an entity has not shown in the balance sheet, while respecting the principle of materiality,
(b) subheading "P.I.2. Small tangible assets" that contain information about small tangible assets that an entity has not shown in the balance sheet, while respecting the principle of materiality.
(5) Heading "P.II.1. The written claims" shall include the rights to cash performance in the event that the entity's entitlement to recovery has already ceased, but there is a presumption that the debtor will fully or partly fulfil his obligation, or that it will be met by another person, and other written claims that the entity no longer reports on the balance sheet but that there is a need for monitoring from other legislation or the entity's needs. Those claims shall be monitored until their legal termination, broken down by information into insurance premiums due, public health insurance penalties (periodic penalty payments, fines and premiums) and other written claims. The rest of the claims written off are in particular damages and claims for medical devices 14b).
DIRECT ACCOUNTING PERSONS
(1) The indicative schedule of accounts is the organisation of the classes and groups of accounts for health insurance undertakings and is set out in Annex 3 to this Decree.
(2) Within accounting groups, health insurance companies create synthetic accounts. By creating analytical accounts, health insurance companies shall ensure that synthetic accounts are broken down according to the needs of the financial statements, legal requirements, requirements of external users, or other needs of the health insurance company.
ACCOUNTING METHODS AND THEIR USE
Valuation differences when applying fair value
(1) The valuation differences from the fair value measurement are considered to be differences between the valuation at the time the accounting case was carried out in accordance with § 24 (2) (a) of the Law against the valuation at the time of the measurement pursuant to § 24 (2) (b) of the Act and changes in fair value found in subsequent financial years (hereinafter the valuation differences).
(2) The valuation differences referred to in paragraph 1 for securities purchased from public health insurance funds shall be shown under the relevant financial asset items and in the relevant funds of item "A.III. Other equity funds" or "A.V. Public health insurance funds."
Definition of costs related to the acquisition of fixed assets, stocks and securities
(1) Unless otherwise specified, the entity shall apply, mutatis mutandis, to the details of the content of the definition of these costs, 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. This also applies to units of shares, the valuation method of the set of assets or the valuation method when acquiring more than one component of the property by transfer or transfer or claims other than public health insurance claims.
(2) All long-term assets of a health insurance undertaking shall be acquired from the funds of the reproductions fund which is part of the public health insurance scheme. If such long-term assets are used for the taxed activities of a health insurance company, the aliquot of the funds from those activities shall be transferred to the property reproduction fund. The acquisition of fixed assets shall be recognised as the use of the property reproduction fund and the increase of the assets.
(3) The purchase price of the security and the share also includes direct costs related to the acquisition, such as fees to brokers, advisers, exchanges. The purchase price does not include, in particular, interest on loans for the acquisition of securities and shares and the cost of holding the security and the share.
Valuation differences when applying fair value to assets for sale
(1) With the exception of securities and derivatives, the change in fair value of assets purchased from public health insurance funds is to be accounted for through the relevant balance sheet account reported under item "A.II. Valuation differences" with a parallel entry in the relevant property analysis account.
(2) The moment when the accounting case referred to in paragraph 1 is carried out, to which fair value is measured, is immediately followed by a decision of the person or authority which decides on that fact under another law.
(3) The assets referred to in paragraph 1 are not amortised and no adjustments are made to them.
Valuation differences when applying fair value to derivatives
(1) Unless the use of derivatives allows for a specific legal provision and unless otherwise specified, the details of the content of the definition of derivatives and the application of the fair value measurement of derivatives of an entity shall apply mutatis mutandis to the provisions of Paragraph 70 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.
(2) For derivatives related to public health insurance funds, valuation differences according to nature are shown under asset item "F. Other assets' or liability item" D. Other liabilities' and in the fund to which the funds used belong under item "A.III. Other equity funds" or "A.V. Public health insurance funds."
Procedure for the creation and use of correction appropriations
(1) Corrections under the provisions of Section 26 (3) of the Act shall be accounted for by means of the relevant account of the adjustment items in the individual account groups of assets with a similar entry in the relevant account of the fund with which the recognised asset to which the adjustment item is created is related in substance.
(2) In the case of claims, a correction of 5% shall be made for each completed 90 days after the maturity of the claim. An entity may determine an adjustment to a claim of more than 5%. The entity shall provide information on that fact and shall give due reasons in the notes in the financial statements.
(3) For the production and use of the adjustment items for taxed activities, health insurance companies shall apply mutatis mutandis the provisions of Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on accounting, as amended, for entities that are insurance undertakings, as amended.
Departure of assets
(1) Long-term intangible assets, which are listed under asset item A., buildings under asset item C., and depreciated tangible assets, are deducted from the valuation provided for in Section 25 of the Act gradually during its application. The depreciation process may be expressed in other ways than time-related, such as performance.
(2) Unless otherwise provided, the provisions of Section 56 of Decree No. 500 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, apply mutatis mutandis to entities accounting in the system of double accounting, as amended.
(3) The volume of all depreciation of fixed assets and the remaining price of the disposal of fixed assets settled under the operational fund shall be broken down into the activities in which the long-term assets were used. The share of depreciation and the method of breakdown shall be determined by the health insurance undertaking by internal rules. Funds with a value of depreciation applied to activities subject to taxation shall be transferred to an operational fund, even if the result of the management of the activity is negative in the current accounting year.
(4) The volume of all depreciation of fixed assets and the residual price of the disposal of fixed assets should also be indicated as the drawing-up of the asset fund and the increase in the reproduction fund.
Procedure for the creation and use of reserves
(1) Reserves are intended to cover liabilities or costs under Paragraph 26 of the Act, with the exception of contingent liabilities and other contingent liabilities, unless otherwise provided by other legislation14a.
(2) In the area of public health insurance, provision is made for final legal disputes. Other reserves are also created when provided for in public health insurance legislation 14a).
(3) For the creation and use of reserves for the taxed activities of the entity, the provisions of Decree No. 502 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., as amended, apply mutatis mutandis to entities that are insurance undertakings, as amended.
Mutual settlement
(1) An entity's accounting and financial statements shall not be regarded as a breach of a mutual settlement ban:
(a) credits or refunds relating to a particular item of cost and, where applicable, a return and relating to the accounting year in which the cargo and, where applicable, the proceeds were settled;
(b) periods and refunds of income taxes, indirect taxes and charges.
(2) In addition, claims and debts may be settled against each other in the financial statements, except for advances and debts received or advances granted, against the same natural or legal person with a maturity of up to one year and held in the same currencies, and bonds issued and own bonds or other debt securities.
(3) Mutual settlement shall not be regarded as a reciprocal calculation of claims and liabilities made under the provisions of the Civil Code.
(4) If significant information is involved, the entity shall enter the amounts mutually cleared in accordance with paragraphs 1 and 2 and explain them individually in the notes in the financial statements.
Course Differences Method
(1) The exchange rate differences arising from the valuation of the assets and liabilities referred to in Article 4 (12) of the Act at the time the accounting case is carried out, at the end of the balance sheet day or at any other time at which the financial statements are drawn up shall be shown in the relevant sub-headings "A.III. Other equity funds" or "A.V. Public health insurance funds."
(2) Exchange rate differences in securities and shares are not accounted for separately at the end of the balance sheet day or at another time at which the financial statements are drawn up, but are part of a fair value measurement.
(3) In the case of a foreign currency for which the foreign exchange market rate is not declared daily, an entity shall use the exchange rate of the interbank market for the US dollar or EUR and the foreign exchange market rate declared by the Czech National Bank for the US dollar or EUR on the same date, or the entity may use the last known rate declared or published by the Czech National Bank.
Some specifications for the valuation of contingent assets and contingent liabilities
(1) Short-term contingent claims and other short-term contingent assets are valued at the expected amount of claims and assets that may arise under the specified conditions until the end of the accounting year.
(2) Long-term contingent claims and other long-term contingent assets are valued at the expected amount of claims and assets that may arise under the specified conditions after the end of the accounting year. The amount of the valuation shall be determined in aggregate over the following three financial years.
(3) Short-term contingent debts and other short-term contingent liabilities are valued at the expected amount of liabilities and liabilities that may arise under the specified conditions by the end of the accounting year.
(4) Long-term contingent debts and other long-term contingent liabilities are valued at the expected amount of liabilities and liabilities that may arise under the specified conditions after the end of the accounting year. The amount of the valuation shall be determined in aggregate over the following three financial years.
(5) Where a specific amount of contingent assets or contingent liabilities is determined, for example on the basis of an insurance contract, the amount of the valuation under this contract shall be determined.
(6) Long-term contingent liabilities, other long-term contingent assets, long-term contingent liabilities and other long-term contingent liabilities are valued at the end of the balance sheet day.
TRANSITIONAL AND FINAL PROVISIONS
The provisions of this Order do not apply to the financial statements drawn up for the financial years which began before the Decree was effective.
Efficacy
This Decree shall take effect on 1 January 2003.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Decree No. 503 / 2002 Coll., implementing certain provisions of Act No. 563 / 1991 Coll., on Accounting, as amended, for health 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 |
The regulation text is for informational purposes only.
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