Regulations on Aviation Infrastructure Assets

Decree 44 stipulates detailed regulations on the management records and accounting of aviation infrastructure assets. To be specific:

Management Records of Aviation Infrastructure Assets

The management records of aviation infrastructure assets include:

- Records related to the formation and changes of aviation infrastructure assets;- Declaration reports; reports on the management, use, and exploitation of aviation infrastructure assets;- Database on aviation infrastructure assets.

The agency assigned to manage aviation infrastructure assets is responsible for preparing, managing, and fully storing records on assets and implementing reporting policies to the Ministry of Transport and other competent state agencies as prescribed.

Accounting of Aviation Infrastructure Assets

This Decree stipulates that aviation infrastructure assets with independent structures or a system consisting of many individual connected asset parts to perform one or several specific functions are objects of accounting records.

In case a system is assigned to multiple managing agencies, the accounting object is the part of the asset assigned to each agency.

The agency assigned to manage aviation infrastructure assets is responsible for:

- Opening books and performing accounting of aviation infrastructure assets;- Reporting the annual increase, decrease, and depreciation of aviation infrastructure assets as prescribed by law.

The original cost and residual value of aviation infrastructure assets are determined according to the principles:

- For aviation infrastructure assets in use before the effective date of Decree 44, the existing value is used to record in accounting books;- For aviation infrastructure assets completed and put into use from the effective date of this Decree, the value recorded in accounting books is the purchase value, finalized according to regulations;- For aviation infrastructure assets that are newly invested, completed, and put into use but have not yet been finalized by the competent state authority, the provisional original cost is used to record in accounting books. The provisional original cost in this case is selected in the following priority order: Proposed finalization value; value determined according to the A-B Acceptance Report; Project estimated value as approved. When the finalization is approved, the accountant adjusts the recorded value according to accounting law and the provisions of this Decree;- For aviation infrastructure assets that are upgraded and expanded during management and use according to a project approved by the competent authority, the approved finalization value of the project is recorded as an increase in the asset value.

The Ministry of Finance is the lead in cooperation with the Ministry of Transport to stipulate accounting policies, and the depreciation of aviation infrastructure assets.

Decree 44/2018/ND-CP is effective from March 13, 2018.

- Thao Uyen -

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