Change The Decrees For The Implementation Of The Accounting Act For Banks

Original Language Title: změna vyhlášky k provedení zákona o účetnictví pro banky

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=58447&nr=545~2F2004~20Sb.&ft=txt

545/2004 Sb.



DECREE



of 18 May. October 2004,



amending Decree No 501/2002 Coll., which implements certain

the provisions of Act No. 563/1991 Coll., on accounting, as amended

regulations for business units, which are banks and other financial

institutions, as amended by Decree No. 473/2003 Coll.



The Ministry of Finance shall determine under section 37b of the Act No. 563/1991 Coll., on the

accounting, as amended, (hereinafter referred to as the "Act") to

the implementation of § 4 para. 8, § 24 para. 4 and 5 and § 28 para. 1:



Article. (I)



Decree No 501/2002 Coll., which implements certain provisions of the Act

No. 563/1991 Coll., on accounting, as amended, for the accounting

units which are banks and other financial institutions, as amended by

Decree No. 469/2003 Coll., is amended as follows:



1. Footnote 3 is added:



"3) Act No. 256/2004 Coll., on the capital market."



2. Footnote 4 is added:



"4) Law No. 189/2004 Coll., on collective investment.".



3. footnote # 7:



"7) section 16 of Act No. 189/2004 Coll.".



4. in § 9 para. 1 the second sentence, the words ' intended for trading,

the sale, so i "shall be replaced by" at fair value through profit

costs or revenues, available for sale, ".



5. § 9 para. 1 the second sentence, the words "debt-backed securities

the assets "are deleted.



6. In section 10, paragraph 1. 1 the first sentence, the words ' intended for trading or

the sale "shall be replaced by the words" at fair value through profit

costs or revenues available for sale ".



7. in section 10, paragraph 1. 1 third sentence, the words "under the heading" 8. The capital "

"shall be replaced by" in the subheading "8b) own shares."



8. In footnote # 9, the words "No 87/1997 ' is replaced by

"No 87/1995 Coll.".



9. in section 18 para. 1 the second sentence, after the words "repo" is added to the comma.



10. In § 24 para. 2, the word "basic" is deleted.



11. In § 25 para. 1, the words "at the time of negotiation of the sale" shall be replaced by

the words "in the sale".



12. In § 25 para. 2, the words "at the time of the negotiation of purchase" shall be deleted.



13. in section 29 para. 1, after the words "in appreciation" the words

"securities available for sale, and".



14. in section 29 para. 1, after the words "exchange-rate differences, in particular" the words

"from available for sale available for sale of shares, investment certificates and".



15. in section 29, paragraph 2 reads as follows:



"(2) the capital investment company for the mutual funds they managed,

investment funds and pension funds in the "13. Valuation differences "

further differences from the non-valuation of tangible fixed

assets at fair value under special legislation. ".



16. At the end of section 33, the following sentence "property and other assets that the accounting

the unit provided as security for its own liabilities or for the third

the parties continue to be reported in the relevant balance sheet items. ".



17. section 34 is repealed.



18. in the second sentence of paragraph 40, the words "securities borrowed" shall be replaced by

"securities loaned, the entity's".



19. in section 44 para. 1 the first sentence, the words "with interest from repo transaction"

replaced by the words "with interest on loans under repurchase transactions".



20. In article 44 paragraph 1. 2 the first sentence, after the words "current accounts," the

the words "under".



21. in section 44 para. 2 the first sentence, after the words "of the loans, including"

the words "under".



22. in paragraph 44, paragraph 4 reads:



"(4) an entity has accrued accessories related to

assets and liabilities in revenue or cost from the time of settlement

trade, usually using the interest rate that you will be discounted

the expected future cash flows until maturity or the nearest data

changes in interest rates (hereinafter referred to as "effective interest rate"). Effective

the interest rate does not have an entity to use for items valued

fair value through profit or loss with residual

maturity of less than one year at the time of purchase,

available for sale securities with a residual maturity of less than

one year at the time of purchase, for securities held-to-

residual maturity of less than one year at the time of

settlement of purchase for securities acquired in primary emissions

not intended for trading with a residual maturity of less than one year in

the time of purchase and for short-term securities.

In these cases, an entity may use the straight line method.

The linear method, an entity may also be used for recognition of interest

the proceeds of the receivables and Payables, interest costs and in the periods between

individual payments, if this period is less than one year,

to report interest income from securities purchased with a premium or

discount and in other justified cases. ".



23. § 47 including title:



"§ 47



The gain or loss from financial operations



(1) the entry "6. The gain or loss from financial operations "includes in particular

profit or loss on transactions in securities with award-winning fair

value through profit or loss, with realisable securities

papers that are presented in the item "2. The State's zero coupon

bonds and other securities accepted by the Central Bank to

refinancing "," 5. Debt securities "and" 6. Shares, units and

other interests ", from short sales of securities, valuation differences.

It also contains the profit or loss on hedging derivatives with

the exception of the interest rate derivatives, profit or loss from debt-claims which

the entity acquired and designated for trading, a gain or loss from

the sale of other shares to sell in other than stock

companies that are not significant or controlling holdings

the influence, along with the goodwill created for these other

shares, profit or loss from securities held to maturity together

with the goodwill created these securities, profit or

the loss of foreign exchange operations, profits and losses from other operations of purchase and

sales related to trading in financial instruments, including

precious metals and gains or losses from non-hedging derivatives.

Valuation differences from the valuation of securities available for sale at fair

value are reported in this item until the loss of these

Securities and also in cases where it is proven that there was an

permanent reduction in value (devaluation) an available for sale securities

the paper.



(2) the capital investment company for the mutual funds they managed,

investment funds and pension funds shown under "6. Profit or

loss from financial operations "non-revaluation

tangible fixed assets are valued at fair value in

the time of his disappearance. ".



24. In paragraph 48, the first sentence, the words "proceeds from the transfer of participation" are replaced by

the words "gains from the transfer of participation".



25. In paragraph 48, the first sentence, the words "proceeds from the transfer of receivables" are replaced by

the words "gains from the transfer of receivables".



26. in paragraph 48 of the second sentence, the words "the cost of the transfer of participation" are replaced by

the words "loss from the transfer of participation".



27. in § 50 para. 4, the word "neoceňovaných" shall be replaced by

"neoceňovaným".



28. in § 50 para. 5, the word "neoceňovaných" shall be replaced by

"neoceňovaným".



29. in paragraph 56 (b). (b)), paragraph 4, after the words "the breakdown of assets" the words

"and obligations".



30. In paragraph 57 (a). and (2) the words of) ", in particular, the use of market creation,

speculation, hedging, "shall be deleted.



31. in paragraph 57 (a). (b)), item 1 the words "on the derivatives negotiated in order to

market-making or hedging, speculation, "shall be replaced by" according to purpose

their use ".



32. In paragraph 57 (a). (b)) (2) the words "on the derivatives negotiated in order to

market-making or hedging, speculation "shall be replaced by" according to purpose

their use ".



33. In § 60 para. 1 (b). e), the words ' intended for trading, sale "

replaced by the words "at fair value through profit or

revenue available for sale ".



34. In § 60 para. 1 (b). e), the words "the second sentence for trading or

the sale "shall be replaced by" award-winning fair value accounts

costs or revenues or securities available for sale ".



35. In § 60 para. 1 (b). f), the words "and for trading and

sale and issued debt securities with a maturity of up to

one year "is replaced by" award-winning fair value

through profit or loss and available for sale ".



36. In § 60 para. 1 (b). about), after the words "hedging derivatives,"

the words "securities available for sale".



37. In § 60 para. 1 (b). about) the words "assets and liabilities" are replaced by

the words "non-operating tangible fixed assets".



38. the footnote # 12:



"12) section 129 of the Act No. 256/2004 Coll.".



39. the footnote # 13:



"13) Law No. 189/2004 Coll.".



40. section 68 including title:



"§ 68



Valuation differences in the application of the fair value of the securities



(Section 27 (6) of the Act)



(1) the valuation differences from the valuation of securities valued at fair

value through profit or loss is recognised in the

item in the profit and loss account.



(2) valuation differences securities available for sale are recognised in

the appropriate entry in liabilities. At the time of implementation, in particular in sales,


the aggregate value of valuation differences reports under the relevant heading of the statement

profit and loss account. If it is established that there has been a permanent reduction in value

(depreciation) an available for sale securities, it must be this loss

without undue delay, the account in the respective item in the profit and

losses. ".



41. section 68a including title:



"§ 68a



Valuation differences in the application of the fair value of the non-

tangible fixed assets



(1) the capital investment company for the mutual funds they managed,

investment funds and pension funds valued non-operating tangible fixed

assets at fair value under special legislation. Changes

the award of this asset will be shown in the appropriate entry in liabilities. When the loss of

This asset, the resulting change of reports under the relevant heading of the statement

profit and loss account.



(2) in the case that will permanently reduce the value of the non-

tangible fixed assets, this reduction in value

the appropriate item in the profit and loss account. ".



42. In paragraph 70, at the end of paragraph 3 the following sentence "If as a result of

secured the expected transaction occurs subsequently to report non-financial

assets, non-financial obligation or hard commitment that is

ensure the fair value, may be related to gains or losses

shown together with the non-financial asset or liability. ".



43. In article 70, paragraph 5 shall be deleted.



Paragraphs 6 to 8 shall be renumbered as paragraphs 5 to 7.



44. in the § 70 para. 5 (c)):



"(c) ensure the effective); ensure it is effective, if at the beginning

and in the course of the hedging relationship, the changes in the fair value, or

cash flow hedge instruments corresponding to the provided

risk, or changes in the fair values or cash flows

hedging instruments in the range of 80 percent up to one hundred twenty

five percent of the changes in the fair value or cash flows of hedged

items matching provided at risk. An entity determines

whether the hedge is effective at the beginning of the collateral and at least to the

build time ordinary, extraordinary and interim financial statements and the

build time statements under special legislation. ".



45. In section 70 para. 6, the last sentence shall be deleted.



46. In § 79 paragraph 2. 5, the words "intended for trade or sale"

shall be replaced by "award-winning fair value through profit or

revenues and viable ".



47. In article 79, paragraph 7 shall be deleted.



48. In part five, title IV shall be deleted.



49. in annex No. 4 chart of class 3 chart of the group, 36, the words "Valuable

papers for sale "shall be replaced by the words" securities ".



50. in annex No. 4 chart of class 3 chart of the group, 38, the words "to

trading "shall be replaced by the words" at fair value through profit

costs or revenues. "



Article II



Transitional provisions



1. From 1 January 2005. in January 2005, the current securities available for sale are considered

Securities and securities held for trading

considered to be securities measured at fair value through profit

or revenue. The entity is entitled to 1. January 2005 do

the movement of a group of securities available for sale securities to a group

securities valued at fair value through profit or loss.

An entity is authorized to classify to the 1. January 2005 to these groups

Securities and debt securities acquired in primary emissions

not intended for trading, traded on a regulated market.



2. Investment Fund, pension fund or mutual fund management

investment company reports under the heading "14. Retained earnings or

accumulated losses from previous years "in the first day of the accounting period

started 1. January 2005 and later changes in the fair value of the securities,

changes in fair value of derivatives, changes in the fair value of the hedged items

assets and liabilities and foreign exchange differences which have been reported by

balance sheet items and will be under section 68 and 70 of the Decree No 501/2002 Coll.,

implementing certain provisions of Act No. 563/1991 Coll., on the

accounting, as amended, for the accounting unit that

are banks and other financial institutions, as amended by Decree No.

473/2003 Coll., in the version in force from the date of entry into force of this order

reported through the items of the profit and loss account.



Article. (III)



The effectiveness of the



This Decree shall enter into force on 1 January 2000. January 1, 2005.



Minister:



Mgr. Sobotka in r.