Principles of calculation of depreciation of transport and water infrastructure assets in Vietnam

According to Circular No. 75/2018/TT-BTC of the Ministry of Finance of Vietnam, all transport and water infrastructure assets eligible for being entered in accounting records as prescribed in Article 3 hereof shall be subject to calculation of asset depreciation, except the following assets:

- Assets which have not been fully depreciated but are totally damaged;

- Assets which have been fully depreciated but remain useful;

- Assets that other entities or units are hiring for use;

- Assets that are in the custody of other entities or units.

It should be noted that the calculation of depreciation of transport or water infrastructure assets shall be based on the list of assets, depreciation rate and accounting periods.

Asset depreciation shall be calculated once a year in December prior to closing of accounting records. If the depreciation period of an asset is greater than or equal to 06 (six) months, such period shall be rounded to 01 (one) year; if the depreciation period of an asset is less than 06 (six) months, the depreciation shall not be calculated.

In case of the handover, splitting, merger and dissolution of an organization or entity, the calculation of depreciation of a transport or water infrastructure asset shall be carried out at the organization, entity or enterprise receiving such asset.

In case of inventory checking and revaluation of transport or water infrastructure assets under the decision of a competent entity or person, the depreciation of an asset shall be calculated on the basis of value which has been redetermined after that inventory checking process from the financial year in which the competent entity or person determines re-evaluated value.

View more details at Circular No. 75/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from October 03, 2018.

-Thao Uyen-

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