Supplement of 05 accounting methods for Account 214 - Depreciation of fixed assets in Vietnam

Supplement of 05 accounting methods for Account 214 - Depreciation of fixed assets in Vietnam​ (illustrative image)

Article 12 Circular 177/2015/TT-BTC stipulates the supplementation of 05 accounting methods for certain primary economic transactions related to Account 214 - Depreciation of fixed assets:

1. Periodically calculate, and allocate depreciation of fixed assets into corporate management costs, record:

- Debit Account 642 - Corporate management costs (for fixed assets used in the operations of deposit insurance, unit management)

- Debit Account 811 - Other costs (for fixed assets related to the operations of deposit insurance, unit management but not yet in use, not needed, pending liquidation)

- Credit Account 214 - Depreciation of fixed assets (appropriate sub-account).

2. Fixed assets already in use, received due to internal transfer within the unit, record:

- Debit Account 211 - Tangible fixed assets (initial cost)

- Credit Account 336 - Payable to superiors about operational capital (3361) (remaining value)

- Credit Account 214 - Depreciation of fixed assets (2141) (cumulative depreciation value).

3. For fixed assets used in project activities, when calculating depreciation at the end of the reporting period, record:

- Debit Account 466 - Formed fixed asset funding source

- Credit Account 214 - Depreciation of fixed assets.

4. For fixed assets used in cultural and welfare activities, when calculating depreciation at the end of the reporting period, record:

- Debit Account 3533 - Welfare fund formed fixed assets

- Credit Account 214 - Depreciation of fixed assets.

5. In cases where, at the end of the fiscal year, the unit reassesses the depreciation duration and depreciation method of fixed assets, if there is a change in the depreciation rate, the depreciation amount recorded in the accounting books needs to be adjusted as follows:

- If due to changes in the depreciation method and depreciation duration of fixed assets, and the depreciation rate of fixed assets increases compared to the depreciation amount allocated in the year, the difference in increased depreciation, record:

• Debit Account 642 - Corporate management costs (difference in increased depreciation)
• Credit Account 214 - Depreciation of fixed assets (appropriate sub-account).

- If due to changes in the depreciation method and depreciation duration of fixed assets, and the depreciation rate of fixed assets decreases compared to the depreciation amount allocated in the year, the difference in decreased depreciation, record:

• Debit Account 214 - Depreciation of fixed assets (appropriate sub-account)
• Credit Account 642 - Corporate management costs (difference in decreased depreciation).

For details, see Circular 177/2015/TT-BTC effective from January 1, 2016.

Ty Na

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