Determination of the Service Life and Depreciation Rate of Road Infrastructure Assets in Vietnam

18:28, 10/07/2024

Below is the notable content issued by the Ministry of Finance of Vietnam in Circular 178/2013/TT-BTC, on the implementation of certain provisions of Decree 10/2013/ND-CP on the management, use, and exploitation of road infrastructure assets.

Currently, regulations on the service life and depreciation rate of road infrastructure assets in Vietnam are applied for expense accounting purposes.

Usage Period, Depreciation Rates of Road Infrastructure, Circular 178/2013/TT-BTC

Source: Internet

The service life and depreciation rate of road infrastructure assets in Vietnam are determined as follows according to Circular 178/2013/TT-BTC:

Category	service life (years)	Depreciation Rate (%/year)
Roads and auxiliary structures attached to roads (including road bridges under 25m, culverts)	30	3
Road bridges 25m and over, and auxiliary structures attached to road bridges	30	3
Road tunnels and auxiliary structures attached to road tunnels	30	3
Road ferry terminals and auxiliary structures attached to road ferry terminals	20	5
Vehicle weight inspection stations	15	6.5
Road toll stations	15	6.5
Bus stations	25	4
Parking lots	25	4
Road management office buildings	25	4
Rest stops	25	4
Other structures serving road traffic	10	10

Additionally, Circular 178 also provides guidance on the method for calculating the depreciation of road infrastructure assets in Vietnam. To be specific:

- The annual depreciation rate of each road infrastructure asset is calculated using the following formula:

Annual depreciation rate of each road infrastructure asset	=	Original cost of the road infrastructure asset	x	Depreciation rate (%/year)

- Annually, based on the determination of increased and decreased depreciation during the year, agencies and units calculate the total depreciation of all road infrastructure assets at the agency or unit for that year using the following formula:

Depreciation of road infrastructure assets calculated up to year (n)	=	Depreciation of road infrastructure assets calculated up to year (n-1)	+		Depreciation of road infrastructure assets increased in year (n)	-		Depreciation of road infrastructure assets decreased in year (n)

- However, if the service life or the original cost of road infrastructure assets changes as stipulated in Clause 2, Article 21 of Decree 10/2013/ND-CP, the agency or unit recalculates the average annual depreciation of road infrastructure assets by dividing (:) the remaining value on the accounting books by the recalculated service life or the remaining service life (determined as the difference between the prescribed service life minus the used period) of the road infrastructure asset.

- The depreciation rate for the final year of the road infrastructure asset's service life is determined as the difference between the original cost of the road infrastructure asset and the cumulative depreciation previously accounted for that asset.

View other regulations in Circular 178/2013/TT-BTC, effective from February 1, 2014.

Thu Ba

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