Measure of
the Ministry of Finance of the Slovak Republic of
3 December 2009
No MF/26312/ 2009-74,
Amending Measure of the Ministry of Finance of the Slovak Republic No 23054/2002-92 of 16 December 2002 laying down the details of accounting procedures and a framework chart of account for businesses using the accrual accounting system as amended

Pursuant to Section 4 paragraph 2 of Act 431/2002 Coll. on accounting as amended, the Ministry of Finance of the Slovak Republic rules as follows:
Article I

Measure of the Ministry of Finance of the Slovak Republic No 23054/2002-92 of 16 December 2002 laying down the details of accounting procedures and a framework chart of accounts for businesses using the accrual accounting system (Communication 740/2002 Coll.) as amended by Measure No 25167/2003-92 of 11 December 2003 (Communication No 560/2003 Coll.), Measure No MF/10069/2004-74 of 24 November 2004 (Communication No 689/2004 Coll.), Measure No MF/26670/2005-74 of 14 December 2005 (Communication No 616/2005 Coll.), Measure No MF/25814/2006-74 of 12 December 2006 (Communication No 671/2006 Coll.), Measure No MF/16317/2007-74 of 5 December 2007 (Communication No 602/2007 Coll.), Measure No MF/23535/2008-74 of 27 November 2008 (Communication No 509/2008 Coll.) and Measure No MF/10531/2009-74 of 12 March 2009 (Communication No 104/2009 Coll.) shall be amended as follows:

1. In Section 25 paragraph 1, the comma and the text “set-up costs” following the word “contributions” shall be deleted.

2. Section 26 including the heading shall read as follows:
“Section 26
Accounting for takeovers, mergers, and demergers

(1) When dissolved without liquidation, on the day preceding the reference date the dissolved accounting entity shall account for differences between the fair value of assets and liabilities pursuant to Section 27 paragraph 1(d) of the Act and the carrying amount of assets and liabilities in the
a)	value adjustments account pursuant to Section 18 if the fair value of an asset is less than the carrying amount of that asset while accounting for their estimated economic benefits of the asset to the entity which becomes the legal successor (the "successor accounting entity");
b)	provisions account, with allocations to, and reversals of, the reserves accounted for pursuant to Section 19 and reflecting allocations to reserves in the successor entity;
c)	the result being recorded in Account 414 – Assets and Liabilities Revaluation Differences in respect of assets and liabilities pursuant to Sections 14 and 16, where changes in fair value due to the preparation of financial statements are reflected; 
d)	in other cases not listed in subparagraphs a) to c), in Account 416 – Revaluation Differences on Takeovers, Mergers and Demergers; prior to recording the revaluation difference, provisions shall be accounted for in accordance with Section 18 paragraph 14.
(2) In accounting, the carrying amount under paragraph 1 shall mean the value of assets allowing for depreciation of the assets up to the balance sheet date, the value of securities and shares held on the date on which the financial statements are prepared derived by the equity method or the value of assets taking into consideration the provisions established up to the date on which financial statements are prepared for the immediately preceding accounting period and the reserves established up to the date on which the financial statements are prepared for the immediately preceding accounting period. 
(3) In the opening balance sheet of the successor accounting entity, assets and liabilities shall be valued pursuant to Section 25 paragraph 1(f) in the dissolved legal person or pursuant to Section 25 paragraph 2 of the Act.  In a merger situation, the final account balances of the successor entity shall be assumed pursuant to Section 17 paragraph 6 of the Act. 
(4) The balance in Account 416 – Revaluation Differences on Takeovers, Mergers and Demergers - arising pursuant to paragraph 1(d) shall be reported in the opening balance sheet of the successor accounting entity in the accounts of Accounting Group 41 – Registered Capital and Capital Funds – and Accounting Group 42 - Funds Made from Profit and Profit/loss Carried Forward – in accordance with the takeover, merger or demerger contract. 
(5) In the opening balance sheet of the successor accounting entity, any differences resulting from the exclusion of mutual claims and liabilities, including reserves, accruals and deferrals of the accounting entities participating in the merger and demerger shall be reported in Account 428 – Retained Earnings – or in Account 429 – Accumulated Losses.  In a merger situation, mutual claims and liabilities, including reserves, accruals and deferrals of the accounting entities participating in the merger shall be eliminated after the merger, and the differences resulting from the exclusion of mutual claims and liabilities, including accruals, deferrals and reserves, shall be recorded to the relevant income or expense accounts of the successor accounting entity.
(6) In the opening balance sheet of the successor accounting entity, the assets, liabilities and equity of the accounting entities involved in the takeover, merger and demerger shall be reported if the participating accounting entity has no ownership interest18) in another participating accounting entity.  If a participating entity has an ownership interest in another accounting entity involved, entries shall be recorded in the opening balance sheet value of the successor entity following the exclusion of ownership interests recorded in the accounts of Accounting Group 06 – Non-current Financial Assets and Equity apportioned to such ownership interests.  The value of goodwill or negative goodwill shall be recognised pursuant to Section 37 paragraphs 8 to 11.
(7) If, as provided for elsewhere19), the merger results in own shares or ownership interests, the opening balance sheet shall report
a)	the assets, liabilities and equity of the successor accounting entity;
b)	the assets, liabilities and equity of the dissolved legal entity, including their own shares or ownership interests;
c)	goodwill or negative goodwill, whose amount shall be calculated as the difference between the value of financial investments constituting the ownership interest18) in the successor accounting entity and the equity value of the successor accounting entity attributable to the ownership interest;
d)	in the value of goodwill or negative goodwill in Account 428 – Retained Earnings  – or in Account 429 - Accumulated Losses. 
(8) In the opening balance sheet of the successor accounting entity, the assets and liabilities taken over from a foreign legal entity and valued as provided for in Section 25 paragraph 2 of the Act shall be reported after being recalculated pursuant to Section 24 paragraph 2(c) of the Act. 
(9) In the successor accounting entity which, in the opening balance sheet, recognised own shares or ownership interests and recognised the demise of own shares or ownership interests resulting from a reduction of the registered capital, any difference between the carrying amount of own shares or ownership interests and the nominal value of the registered capital being reduced shall be recorded, depending on the nature of the difference, in Account 428 – Retained Earnings – or Account 429 – Accumulated Losses.“

Footnotes 18 and 19 shall read as follows:
"18) Section 61 of the Commercial Code. 
19) Section 120 paragraph 3 of the Commercial Code.

3. Section 27a shall be inserted after Section 27, reading as follows:
 “Section 27a
Accounting for Contributions in Kind
(1) A contribution in kind in the form of a business or part of a business (hereinafter “business contribution“),shall be accounted for by the beneficiary of the contribution by recording in the relevant accounts the items that constitute the received assets and liabilities as valued pursuant to Section 27 paragraph 2 of the Act. Identified and reliably measurable non-current intangible assets created by the own activities of the contributing entity shall be recognised by the beneficiary in the relevant non-current intangible assets account. 
(2) The beneficiary of a business contribution shall recognise the difference between the fair value of the various components of assets and liabilities comprising the business contribution and the value of the contribution in kind recorded in the member’s account19aa) (hereinafter "recognised contribution value “) in Account 015 – Goodwill – as goodwill or negative goodwill depending on the nature of those components. 
(3) The entity making a business contribution shall derecognise their books the carrying amount of the components comprising the contributed assets and liabilities and shall post a relevant entry to Account 367 – Liabilities under Subscribed and Not Paid-up Securities and Contributions. The difference between the recognised value and carrying amount of the contributed components of assets and liabilities shall be accounted for with a view to their nature by debiting Account 568 – Other Financial Expenses – or crediting Account 668 - Other Financial Income.  The recognised value of the contributed amount shall be recorded in the relevant account of Accounting Group 06 – Non-current Financial Assets – with a corresponding entry made in Account 367 - Liabilities under Subscribed and Not Paid-up Securities and Contributions. 
(4) The entity making a contribution in kind shall strike off their books the carrying amount of the components comprising the contributed assets and shall post a relevant entry to Account 367 – Liabilities under Subscribed and Not Paid-up Securities and Contributions. The difference between the recognised value and carrying amount of the contributed assets shall be accounted for with a view to their nature by debiting Account 568 – Other Financial Expenses – or crediting Account 668 - Other Financial Income.  The recognised value of the contribution shall be recorded in the relevant account of Accounting Group 06 – Non-current Financial Assets – with a corresponding entry made in Account 367 - Liabilities under Subscribed and Not Paid-up Securities and Contributions. 
(5) The beneficiary of the contribution in kind shall account for the components comprising the assets in the relevant assets accounts by recording the recognised value of the contribution.”

Footnote 19aa shall read as follows:
“19aa) Section 59 paragraph 3 of the Commercial Code.”

4. Footnote 26 read as follows:
”26) Act 656/2004 Coll. on the energy sector and amendments to some laws as amended.“ 

5. In Section 37 paragraph 4, the number "3" shall be replaced with "1". 

6. In Section 37, paragraphs 12 to 14 shall read as follows: 
(12) The successor accounting entity shall recognise the adjusted value of goodwill or negative goodwill reported in the opening balance sheet pursuant to Section 26 in the amount of 
a)	identifiable and reliably measurable intangible assets generated by the dissolved legal person before the successor entity acquired an ownership interest in the dissolved entity other than in a merger situation pursuant to Section 26 paragraph 7, which amount shall be recognised by the successor accounting entity in non-current intangible assets accounts; 
b)	retained earnings or accumulated losses recorded in equity accounts and attributable to the participating accounting entity on acquiring the relevant ownership interest in the participating accounting entity;
c)	Posted to account 414 – Assets and Liabilities Revaluation Differences – in respect of the demised ownership interest in the participating entity;
d)	amortisation of goodwill or negative goodwill on the basis of the ascertained increase in economic benefits due to goodwill and a reduction of economic benefits due to negative goodwill pursuant to paragraph 11.
(13) The value of the negative goodwill adjustment pursuant to paragraph 12 shall be debited to Account 075 – Goodwill Amortisation – with a corresponding entry crediting Account 551 - Amortisation of Non-current Intangible Assets and Depreciation of Non-current Tangible Assets.  Goodwill shall be amortised by debiting Account 551 – Amortisation of Non-current Intangible Assets and Depreciation of Non-current Tangible Assets – with a corresponding entry crediting Account 075 - Goodwill Value Adjustments on the basis of reasonable increases in the economic benefits of goodwill. 
(14) Goodwill generated by the accounting entity shall not be capitalised.“

7. Footnote 30aa shall read as follows:
"30aa) For example, Act 595/2003 Coll. as amended." 

8. Footnote 30h shall read as follows:
"30h) For example, Act 595/2003 Coll. as amended.”

9. In Section 52 paragraph 8, the following sentences shall be added at the end: 
"In connection with a change in the uses of assets as provided elsewhere 30i), value-added tax shall, depending on the nature of the change, be accounted for by crediting or debiting Account 343 – Value-added Tax – with a corresponding entry debiting Account 548 –  Other Operating Expenses – or crediting Account 648 - Other Operating Income.  Upon cancellation of registration for VAT as provided for elsewhere30j), value-added tax shall be accounted for by debiting Account 548 – Other Operating Expenses.” 

Footnotes 30i and 30j shall read as follows:
"30i) Section 54 of Act 222/2004 Coll. as amended.
30j) Section 81 of Act 222/2004 Coll. as amended.”

10. In Section 59, paragraph 8 shall be deleted. The existing paragraphs, 9 to 16, shall be renumbered 8 to 15.

11. In Section 59 paragraph 8, the following sentence shall be added at the end: 
"The difference between the fair value and carrying amount pursuant to 26 paragraph 1(d) shall be posted to the relevant assets or liabilities account with a corresponding entry made in Account 416 – Revaluation Differences on Takeovers, Mergers and Demergers.“

12. Section 86g shall be inserted after Section 86f, reading as follows:
 “Section 86g
Transitional provisions applicable to the amended legislation effective as of 1 January 2010
(1) Account 415 – Equity Participation Revaluation Differences – shall be used to account for the reversal of revaluation differences pursuant to Section 59 paragraph 8 effective till 31 December 2009.
(2) Goodwill or negative goodwill established before 31 December 2009 shall be accounted for and amortised using the provisions of this Measure effective till 31 December 2009.”

Article II

This Measure shall enter into force on 31 December 2009, with the exception of Article I points 1, 2 (Section 26 paragraphs 3 to 9), points 3 to 10 and point 12, which shall become effective on 1 January 2010. 

Signed by Ján Počiatek
minister of finance