Original Cost of Road Transportation Infrastructure Assets in Vietnam from July 30, 2022: Principles of Determination and Cases for Changing the Original Cost?
From July 30, 2022, how to determine the original cost of road traffic infrastructure assets?
Based on Clause 1, Article 5 of Circular 35/2022/TT-BTC stipulates as follows:
“Article 5. Determination of original cost of road traffic infrastructure assets
1. The original cost of road traffic infrastructure assets is determined as follows:
a) For road traffic infrastructure assets formed from procurement, investment construction put into use from the effective date of Decree No. 33/2019/ND-CP, the original cost of the asset is the procurement value, the project finalization approved by the competent authority as per the law;
b) In case the road traffic infrastructure assets have been newly invested in construction, completed, and put into use but have not yet been approved by the competent authority for finalization, the provisional original cost is used to record into accounting books. The provisional original cost in this case is selected in the following priority order: proposed finalization value; value determined according to the A-B acceptance minutes; the estimated value of the project already approved. When the project is approved for finalization by the competent authority, the agency assigned to manage the assets shall adjust the value recorded as per accounting law;
c) For road traffic infrastructure assets received through transfer or assignment, the original cost of the assets is determined based on the value recorded in the handover minutes;
d) For road traffic infrastructure assets existing before the effective date of Decree No. 33/2019/ND-CP but not yet valued for recording into the accounting books as per Clause 2, Article 29 of Decree No. 33/2019/ND-CP, the determination of original cost for recording into accounting books is carried out as follows:
dd) For road traffic infrastructure assets found during inventory (not yet tracked in physical form or value on accounting books), the origin of the asset is the basis to determine its original cost according to the corresponding regulations at points a, b, c, and d of this clause.”
As such, the determination of the original cost of road traffic infrastructure assets is carried out according to the above regulations.
The original cost of road traffic infrastructure assets in Vietnamfrom July 30, 2022: Principles for determination and cases of change in original cost? (Image source: Internet)
When will the original cost of road traffic infrastructure assets in Vietnam change from July 30, 2022?
Based on Clause 2, Article 5 of Circular 35/2022/TT-BTC stipulates as follows:
“Article 5. Determination of original cost of road traffic infrastructure assets
…
2. The original cost of road traffic infrastructure assets changes in the following cases:
a) Revaluation of asset value as decided by the competent authority;
b) Execution of upgrades or expansions of assets as per the approved project by the competent authority;
c) Addition or removal of one or several parts of the asset;
d) Loss or significant damage due to natural disasters, unavoidable incidents, or other unexpected impacts except for cases where assets have been repaired as per the law on road maintenance and cases of asset handling as stipulated in Article 23 of Decree No. 33/2014/ND-CP.”
Thus, the original cost of road traffic infrastructure assets will change in the 04 cases specified in the aforementioned regulations.
What are the procedures for handling the case of changing the original cost of road traffic infrastructure assets in Vietnam from July 30, 2022?
Based on Clause 3, Article 5 of Circular 35/2022/TT-BTC stipulates as follows:
“Article 5. Determination of original cost of road traffic infrastructure assets
…
3. When there is a change in the original cost of road traffic infrastructure assets, the agency assigned to manage the assets shall prepare a minutes clearly stating the basis for the change in original cost and determine the new original cost criteria of the assets. The determination of remaining value indicators, accumulated depreciation, and remaining usage time shall be carried out as per Clause 2, Article 8 of this Circular to calculate the asset depreciation (if any) as the basis for adjusting the accounting books and performing asset accounting by December 31 of that year as per Clause 3, Article 6 of this Circular.”
Thus, when there is a change in the original cost of road traffic infrastructure assets, the managing agency shall handle it as specified above.
Circular 35/2022/TT-BTC will take effect from July 30, 2022.
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