What is value of assets formed by investments of public investments in completed projects in Vietnam?
What is value of assets formed by investments of public investments in completed projects in Vietnam? What are expenses for independent audit, review and approval of final accounting or settlement in Vietnam?
Please advise. Thankyou.
1. What is value of assets formed by investments of public investments in completed projects in Vietnam?
In Article 42 of Decree 99/2021/ND-CP stipulating value of assets formed by investments, according to which:
1. Determining the quantity and value of post-investment assets of the project, work or standalone item of work, including long-term assets (fixed assets) and short-term assets.
2. Sharing project management, consulting and other expenses of all projects between fixed assets shall conform to the following principles: If any cost is directly related to a fixed asset, it shall be charged into the value of that asset; if the general cost is related to multiple fixed assets, it shall be distributed on a pro rata basis between the direct costs of each fixed asset and total amount of direct costs of all fixed assets.
3. The list and value of assets transferred to the transferees must be fully determined.
2. What are expenses for independent audit, review and approval of final accounting or settlement in Vietnam?
According to Clause 1, Article 46 of Decree 99/2021/ND-CP stipulates as follows:
Expenses for independent audit, review and approval of final accounting or settlement refer to costs included in the approved (or adjusted) total investment in projects; amounts eligible for final settlement of public investment funds for completed projects.
1. Expenses for independent audit, review and approval of final accounting or settlement:
a) Where the project, component project, sub-project, work or standalone item of work has its value falling within the value range specified in point b and c of clause 1 of this Article, the percent limit on independent consultancy expenses and expenses for review and approval of final accounting or settlement shall be calculated according to the following formula:
Ki = Kb -
(Kb - Ka) x (Gi - Gb)
Ga - Gb
Where:
- Ki: The percent limit of expenses in proportion to value of the project, component project, sub-project, work or standalone item of work under discussion.
- Ka: The upper limit in percent of expenses in proportion to value of the project, component project, sub-project, work or standalone item of work.
- Kb: The lower limit in percent of expenses in proportion to value of the project, component project, sub-project, work or standalone item of work.
- Gi: Value of the project, component project, sub-project, work or standalone item of work under discussion (in billion dong).
- Ga: The upper-limit value of the project, component project, sub-project, work or standalone item of work (in billion dong).
- Gb: The lower-limit value of the project, component project, sub-project, work or standalone item of work (in billion dong).
b) Independent audit expenses:
Value of the project, component project, sub-project, work or standalone item of work to be audited by hired auditors (in billion dong).
≤ 5
10
50
100
500
1,000
≥ 10,000
Limit of independent audit expenses (%)
0.96
0.645
0.45
0.345
0.195
0.129
0.069
Expenses (estimated costs or costs of the bid) for independent audit of the project, component project, sub-project, work or standalone item of work are the maximum expenses calculated by multiplying the value of the project, component project, sub-project, work or standalone item of work to be audited by hired auditors by (x) the limit in percent which is determined according to point a of clause 1 of this Article to find the product, plus value-added tax. Minimum amount of independent audit expenses is one million dong, plus VAT.
c) Final accounts review and approval expenses:
Value to be finally accounted for upon the investor's approval request of the project, component project, sub-project, work or standalone item of work (in billion dong)
≤ 5
10
50
100
500
1,000
≥ 10,000
Limit in percent of Final accounts review and approval expenses
0.57
0.39
0.285
0.225
0.135
0.09
0.048
Expenses for review and approval of the final accounting or settlement of the project, component project, sub-project, work or standalone item of work are the maximum expenses calculated by multiplying the value to be finally accounted for upon the investor's approval request of the project, component project, sub-project, work or standalone item of work upon completion by (x) the limit in percent which is determined according to point a of clause 1 of this Article. Amount of final accounts review and approval expenses is five hundred thousand Vietnamese dong.
d) If equipment expenses account for more than or equal to 50% of total value to be audited by hired auditors or value eligible for final settlement upon the investor's request, expenses for independent audit, review and approval of final accounts account for 70% of the amount calculated according to point a, b or c of clause 1 of this Article.
dd) With respect to the independent audit, review and approval of the final settlement of compensation, support and residential resettlement expenses, the limit on expenses for independent audit, review and approval of the final settlement of such compensation, support and residential resettlement expenses is equal to 50% of the amount calculated according to point a, b or c of clause 1 of this Article.
e) With respect to the project, component project, sub-project, work or standalone item of work which is subject to the independent audit contractor’s audit of its final accounts; the audit or inspection of the State Audit or the inspectorate that fully meets the regulations laid down in Article 37 herein, expenses for review and approval of the final settlement are equal to 50% of the amount calculated according to clause 1 of this Article.
Best Regards!
