Promulgating New Standards for Asset Recognition of the State Bank from March 01, 2020

Illustrative image (source: internet)

According to the provisions of Circular 35/2019/TT-NHNN, the tangible fixed assets of the State Bank of Vietnam are physical assets used for the operations of the SBV. These assets, with an independent structure, or a system consisting of many interlinked individual parts to perform one or several specific functions, where the absence of any part would render the entire system inoperative, qualify as fixed assets if they simultaneously meet the following two criteria:

- Have a usage duration of 01 (one) year or more;- The original cost of the asset is VND 30,000,000 (Thirty million dong) or more.

For intangible fixed assets, these are assets without physical form for which the SBV has invested creation costs, or which have been formed through its operations, satisfying both of the above criteria without forming tangible fixed assets. Costs that do not simultaneously meet both criteria stated in Clause 1 of this Article will be accounted directly or allocated gradually into the SBV's expenses.

Additionally, this Circular also stipulates that tools and equipment are labor means that do not meet the criteria for recognition as fixed assets but participate multiple times in the unit’s operations and are classified according to the SBV’s Asset Management Regulation. Materials are labor subjects used for the SBV’s operations, not classified as tools or equipment, and are categorized according to the SBV’s Asset Management Regulation.

Refer to other regulations at Circular 35/2019/TT-NHNN effective from March 1, 2020.

Thu Ba

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