How to determine the cost of a fixed asset, which is provided or transferred in Vietnam?
How to determine the cost of a fixed asset, which is provided or transferred in Vietnam?
Hello Lawnet. I'm Hoang Phuong. I want to ask about the regime for managing fixed assets of agencies, organizations or units. How to determine the cost of a fixed asset, which is provided or transferred in Vietnam? Which document stipulates this issue? Thank you!
How to determine the cost of a fixed asset, which is provided or transferred in Vietnam? - image from internet
Pursuant to Clause 3 Article 7 of the Circular 45/2018/TT-BTC on 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 issued by the Minister of Finance, 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) |
Where:
a. Value in the record on transfer and receipt of assets is the cost of a fixed asset. Such value is recorded in the accounting book or is the residual value of the fixed asset which is provided and transferred according to the re-evaluation report submitted to a competent agency or a competent person who approves such provision and transfer (for the assets which are not recorded in the accounting book).
Agencies, organizations, units or enterprises that own the transferred assets or are assigned with the task for making plans to handle them shall revaluate such assets (for the assets which are not recorded in the accounting book) before reporting their values to a competent agency or a competent person who can make the decision to provide and transfer such assets. The revaluation of the assets shall be carried out based on the remaining useful life of such assets and the actual unit price of such assets being newly purchased at the time of transfer.
|
Remaining useful life of the fixed asset which is provided or transferred |
= |
Ratio % of the remaining useful life of such asset |
x |
The purchase price or the new construction price of such asset (for buildings, constructions and architectural structures) at the time of transfer |
Where:
- The ratio % of the remaining useful life of the asset is determined according to the current state of such asset, the depreciation time of the similar asset and the actual period during which the asset is used.
- The purchase price of the asset is the price of the similar and brand-new asset which is sold in the market at the time of transfer.
- The new construction price of the asset is determined according to the following formula:
|
The new construction price of the asset |
= |
Unit price of the newly constructed asset of 1m2 which has the similar standard as promulgated by the Administrative Ministry (or as specified in the regulations of the locality where the asset is located) at the time of transfer |
x |
The area of the asset |
b. Other costs (if any) are the reasonable costs related to the receipt of fixed assets which is provided or transferred. They are paid by the receiving agencies, organizations, units or enterprises before the fixed assets are put into use. If a general cost involves multiple fixed assets, it must be distributed among the assets according to appropriate criteria (quantity and value on their invoices)
(Example 1 in Appendix 03 hereto).
Above are method to determine the cost of a fixed asset, which is provided or transferred in Vietnam. Please refer to the Circular 45/2018/TT-BTC for more details.
Best regards!
