Vietnam: Formula for determination of costs of tangible fixed assets

15:11, 02/10/2018

Recently, the Ministry of Finance of Vietnam issued Circular No. 45/2018/TT-BTC on guiding the regime for managing and calculating the depreciation of fixed assets of agencies, organizations or units and fixed assets handed to enterprises by the State without calculation of the state capital portion of such enterprises.

Circular No. 45/2018/TT-BTC of the Ministry of Finance of Vietnam amends, supplements and further specifies the formula for determination of costs of tangible fixed assets, specifically as follows:

- The cost of a fixed asset formed from procurement is determined according to the following formula:

Cost of a fixed asset formed from procurement

Price on invoice

Discounts or reductions or charges imposed on sellers (if any)

Costs of transport, loading, repair, upgrade, installation, test run

Revenue from products and refuses during test run

Taxes (exclusive of tax refunds), other fees and charges according to the regulations on fees and charges

Other costs (if any)

- The cost of a fixed asset formed from the investment in construction is the recorded value approved by a competent authority or a competent person in accordance with the regulation on investment and construction.

- The cost of a fixed asset, which is provided or transferred, shall be determined as follows:

Cost of the provided or transferred fixed asset.

Value in the record on transfer and receipt of assets

Costs of transport, loading, repair, upgrade, installation, test run

Revenue from products and refuses during test run

Taxes (exclusive of tax refunds); other fees and charges according to the regulations on fees and charges

Other costs (if any)

- The cost of a fixed asset, which is given or promoted, is determined as follows:

Cost of the fixed asset which is given or promoted

Value of such asset

Costs of transport, loading, repair, upgrade, installation, test run

Revenue from products and refuses during test run

Taxes (exclusive of tax refunds); other fees and charges according to the regulations on fees and charges

Other costs (if any)

- The cost of a fixed asset, which is detected as an extra asset and is not listed in the accounting book, shall be determined as follows:

Cost of an extra fixed asset after stocktaking

Value specified in the stocktaking record

Costs of transport, loading, repair, upgrade, installation, test run

Revenue from products and refuses during test run

Taxes (exclusive of tax refunds); other fees and charges according to the regulations on fees and charges

Other costs (if any)

View detailed guidance for these formulas Circular No. 45/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from July 02, 2018.

- Thanh Lam -

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