Guidelines for Determining the Original Cost of Irrigation Infrastructure Assets

According to Decree 129/2017/ND-CP, the original cost of irrigation infrastructure assets is determined based on the following principles:

- For irrigation infrastructure assets used before January 01, 2018:- In cases where the irrigation infrastructure assets have information on the initial cost and remaining value of the assets, the existing value shall be used for accounting records;- In cases where the irrigation infrastructure assets do not have information on the initial cost and remaining value of the assets, the value shall be determined according to the conventional price stipulated by the Minister of Agriculture and Rural Development based on the value of a project with equivalent technical level;- For irrigation infrastructure assets completed (newly constructed), put into use from the effective date of this Decree, the value recorded in accounting books is the approved final settlement value;- In cases where irrigation infrastructure assets are upgraded or expanded during management and use according to a project approved by competent authority, the final settlement value of the project shall be accounted for increasing the value of the assets;- In cases where irrigation infrastructure assets are newly constructed, completed, and put into use but have not yet had the final settlement approved by a competent state agency, the provisional original cost shall be used for accounting records. The provisional original cost in this case shall be prioritized in the following order: Proposed final settlement value; value determined based on the A-B Acceptance Minutes; estimated value of the approved Project. When the approved final settlement is available, the accounting agency must adjust the recorded values according to the accounting laws.

The agency assigned to manage the assets is responsible for maintaining the accounting books of the irrigation infrastructure assets as per the accounting laws.

Decree 129/2017/ND-CP is effective from January 01, 2018.

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