What are the standards of assets identified as fixed assets at enterprises in Vietnam according to regulations?
What are the standards of assets identified as fixed assets at enterprises in Vietnam?
Pursuant to Article 3 of Circular No. 45/2013/TT-BTC stipulating this content as follows:
Standards and identification of fixed assets in Vietnam
1. Means of labor are the tangible assets with independent structure, or a system of many individual parts of assets linked to perform one or a certain number of functions and without any part, the system can not work, and if meet the following three criteria they shall be regarded as fixed assets:
a) It is certain to gain economic benefit in the future from the use of such asset;
b) Having the utilization time of over 01 year.
c) Primary price of assets must be determined reliably, and is valued at 30,000,000 (thirty million) dong or more.
In case a system includes many individual components of assets linked together, in which each component has different utilization time and without any component the entire system still perform its main operating function its main activity but due to requirements on management and use of fixed asset requiring separately managed asset division, each asset division if simultaneously satisfying three criteria of fixed assets shall be regarded as independent tangible fixed assets.
For animals working and/or giving products, then each of the animals simultaneously satisfying three criteria of fixed assets is regarded as tangible fixed.
For perennial orchards, each piece of garden, or trees simultaneously satisfying three criteria shall be regarded as a fixed tangible asset.
2. Standards and identification of intangible assets:
All actual costs spent by enterprises simultaneously satisfying all three criteria specified in Clause 1 of this Article, without forming tangible fixed assets are regarded as intangible assets.
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Thus, assets at an enterprise that meet all three of the following standards at the same time are considered as fixed assets:
- It is certain to gain economic benefit in the future from the use of such asset;
- Having the utilization time of over 01 year.
- Primary price of assets must be determined reliably, and is valued at 30,000,000 (thirty million) dong or more.
What are the standards of assets identified as fixed assets at enterprises in Vietnam according to regulations?
What are the standards of assets identified as intangible assets at enterprises in Vietnam?
According to the provisions of Clause 2, Article 3 of Circular No. 45/2013/TT-BTC as follows:
Standards and identification of fixed assets in Vietnam
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2. Standards and identification of intangible assets:
All actual costs spent by enterprises simultaneously satisfying all three criteria specified in Clause 1 of this Article, without forming tangible fixed assets are regarded as intangible assets.
The expenses not simultaneously satisfying all three criteria specified in Clause 1, Article 3 of this Circular shall be recorded directly or gradually amortized into the business cost of enterprises.
As for costs incurred in the implementation phase recognized as intangible assets generated from the inside of enterprise if they simultaneously satisfy the following seven conditions:
a) Technical feasibility ensures the completion and put the intangible assets to the expected use or sale;
b) Enterprises intend to complete the intangible asset for use or sale;
c) Enterprises have the ability to use or sell these intangible assets;
d) These Intangible assets have to generate economic benefits in the future;
e) Having sufficient technical and financial resources and other resources to complete stages of deployment, sale or use of those intangible assets.
g) Being able to identify with certainty the full cost of the deployment phase to create such intangible assets;
h) It is estimated to have adequate standards on utilization time and value defined for intangible fixed assets.
Thus, all actual costs spent by enterprises simultaneously satisfying all three criteria mentioned above, without forming tangible fixed assets are regarded as intangible assets.
What are the principles to manage fixed assets at enterprises in Vietnam?
The principles to manage fixed assets are specified in Article 5 of Circular No. 45/2013/TT-BTC as follows:
- All fixed assets in enterprise must have a separate record (including record of delivery of fixed assets, contracts, invoices of purchase of fixed assets, and other related papers). Each fixed asset must be classified, numbered with its own card, monitored in detail and reflected in the monitoring book of fixed assets.
- Each fixed asset must be managed by its primary price, accumulated depreciation and residual value in accounting books
Residual value in accounting books of fixed assets = Primary price of fixed assets - Accumulated depreciation of fixed assets
- For fixed assets without need of use awaiting disposal, but not fully depreciated, the enterprises have to manage, monitor and preserve under current regulations and depreciation under the provisions of Circular No. 45/2013/TT-BTC.
- The enterprises must manage for fixed assets fully depreciated but still involved in business activities as normal fixed assets.
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