Vietnam: What are the guidelines for the classification of fixed assets at agencies and organizations assigned by the State to enterprises to manage from June 10, 2023?
What is the classification of fixed assets in Vietnam according to their properties and characteristics?
According to the provisions of Clause 1, Article 4 of Circular 23/2023/TT-BTC, guiding the classification of fixed assets according to their properties and characteristics as follows:
(1) For tangible fixed assets
Tangible fixed assets are those that have a physical form, have an independent structure or are a system of many separate parts linked together to perform one or a number of certain functions; including:
- Category 1: Houses, construction works, including:
Working house; storehouse; president's house; clubhouse; cultural house; sports practice and competition house; conservatories, museums, kindergartens, kindergartens; factory; classroom; lecture hall home dormitory; clinics and treatment; nursing home; guest house; official residences and other houses and construction works.
- Category 2: Architectural objects; including: Warehouses, tanks, parking lots, drying yards, playgrounds, sports fields, swimming pools, bore wells, dug wells, fences and other structures.
- Category 3: Cars; including: Cars for working with titles, cars for general business, special-use cars, cars for state reception and other cars.
- Category 4: Other means of transport (other than cars); including: means of road transport, means of rail transport, means of water transport, means of air transport and other means of transport.
- Category 5: Machinery and equipment; include: Popular office machinery and equipment; machinery and equipment serving the general operations of agencies, organizations and units; machinery, specialized equipment and other machinery and equipment.
- Category 6: Perennial plants, working animals and/or for produce.
- Category 7: Other tangible fixed assets.
(2) For intangible fixed assets:
Intangible fixed assets are assets that have no physical form, which agencies, organizations, units and enterprises have invested in the cost of creating assets or formed through the process of operation; including:
- Category 1: Land use right.
- Category 2: Copyright and rights related to copyright.
- Category 3: Industrial property rights.
- Category 4: Rights to plant varieties.
- Category 5: Application software.
- Category 6: Trademarks of public non-business units.
(3) For specific fixed assets:
Typical fixed assets are those whose formation costs cannot be determined or their real value cannot be assessed but require strict management of artifacts (such as antiques, artifacts displayed in museums). , mausoleums, ranked historical relics, ancient documents, rare documents...), fixed assets are trademarks of public non-business units.
Based on the actual situation and management requirements for the properties specified at this point, ministers, heads of ministerial-level agencies, government-attached agencies, other central agencies, People's Committees The provincial level promulgates a list of specific fixed assets under the management of ministries, central agencies and localities (according to Form No. 02 specified in Appendix 02 issued together with Circular 23/2023/TT-BTC) for unified management.
Form No. 02 specified in Appendix 02 issued together with Circular 23/2023/TT-BTC: download
Vietnam: What are the guidelines for the classification of fixed assets at agencies and organizations assigned by the State to enterprises to manage from June 10, 2023?
What are the guidelines for the classification of fixed assets in Vietnam by origin of asset formation?
Pursuant to Clause 2, Article 4 of Circular 23/2023/TT-BTC guiding the classification by origin of asset formation as follows:
- Fixed assets formed by procurement.
- Fixed assets formed by construction investment.
- Fixed assets are assigned or transferred.
- Fixed assets given as gifts, promotions (including the case where the supplier changes the old property with a new one after a period of use according to the manufacturer's/supplier's policy).
- Fixed assets when inventory is found to be redundant (not yet recorded in the accounting books).
- Fixed assets of public non-business units shall be received after the expiry of the joint venture or association as prescribed in Clause 6, Article 47 of Decree 151/2017/ND-CP.
- Fixed assets are formed from other sources.
What are the principles of calculating depreciation of fixed assets in Vietnam?
Pursuant to Article 12 of Circular 23/2023/TT-BTC stipulating the principles of calculating depreciation and amortization of fixed assets as follows:
- The calculation of depreciation of fixed assets is done once a year in December, before closing the accounting books.
- Fixed assets specified at point c, clause 2, Article 11 of Circular 23/2023/TT-BTC shall calculate depreciation and amortization of fixed assets as prescribed in Article 15 of Circular 23/2023/TT-BTC.
- For fixed assets that agencies, organizations, units or enterprises receive from other agencies, organizations, units or enterprises under decisions of competent agencies or persons in the year, the calculation Depreciation in that year shall be carried out at the agency, organization, unit or enterprise receiving the property.
Regarding the principle of depreciation of fixed assets:
- The principles of depreciation of fixed assets for fixed assets specified at Points a and b, Clause 2, Article 11 of Circular 23/2023/TT-BTC comply with regulations applicable to enterprises.
- For fixed assets specified at Point c, Clause 2, Article 11 of Circular 23/2023/TT-BTC, the depreciation of fixed assets shall be made from the date the fixed assets are used for business purposes. business, lease, joint venture, association and stop depreciating fixed assets from the date of ending the use of fixed assets for business, leasing, joint venture or association purposes.
- Depreciation expenses of fixed assets must be allocated to each non-business activity, each business activity, lease, joint venture, association to account for the expenses of each respective activity.
Circular 23/2023/TT-BTC takes effect from June 10, 2023 and will be applied from fiscal year 2023.
Thư Viện Pháp Luật