The Ministry of National Defense of Vietnam's guidance on calculation of depreciation of fixed assets that are single-purpose property in Vietnam January 1, 2025

The Ministry of National Defense of Vietnam's guidance on calculation of depreciation of fixed assets that are single-purpose property in Vietnam January 1, 2025 (Internet image) 

On October 18, 2024, the Minister of National Defense of Vietnam issued Circular 72/2024/TT-BQP stipulating and guiding the implementation of policies on the management, calculation of depreciation of fixed assets that are single-purpose property; policies for reporting fixed assets that are single-purpose property, and assets serving management activities at units under the Ministry of National Defense of Vietnam and fixed assets assigned by the State to enterprises without accounting for state capital in enterprises under the Ministry of National Defense of Vietnam.

The Ministry of National Defense of Vietnam's guidance on calculation of depreciation of fixed assets that are single-purpose property in Vietnam January 1, 2025

According to Article 8 of Circular 72/2024/TT-BQP, the calculation of depreciation of fixed assets that are single-purpose property are stipulated as follows:

- Fixed assets that are single-purpose property currently held by the unit and fixed assets that are single-purpose property assigned by the State to enterprises without accounting for state capital in enterprises must all be depreciated, except for the following cases:

+ Fixed assets are land use rights in cases where the value of land use rights must be determined to be included in the asset value stipulated in Article 100 of Decree 151/2017/ND-CP and Clause 61, 62 Article 1 of Decree 114/2024/ND-CP;

+ Fixed assets that have been fully depreciated or amortized but are still usable;

+ Fixed assets that have not yet been fully depreciated or amortized but are damaged beyond repair and can no longer be used.

- The principle for depreciation and amortization of fixed assets that are single-purpose property is implemented according to the regulations in Article 12 of Circular 23/2023/TT-BTC. In cases where fixed assets are used in conjunction with production labor activities, amortization must be calculated.

- The list, period of depreciation, and depreciation rate for fixed assets that are single-purpose property are implemented under the provisions of Appendix III attached to this Circular, except for the cases stipulated in Clause 1, Article 13 of Circular 23/2023/TT-BTC.

- The method for calculating depreciation of fixed assets that are single-purpose property is implemented according to the regulations in Article 14 of Circular 23/2023/TT-BTC, wherein the depreciation rate is determined according to the provisions of Appendix III attached to Circular 72/2024/TT-BQP.

Remaining value of fixed assets that are single-purpose property at units under the Ministry of National Defense of Vietnam from January 1, 2025

According to Article 9 of Circular 72/2024/TT-BQP, the remaining value of fixed assets that are single-purpose property is implemented under the regulations in Article 16 of Circular 23/2023/TT-BTC, specifically:

- The remaining value of fixed assets for recording in accounting books is determined by the formula:

- For fixed assets that are revalued as per the provisions at point a.4 clause 3, point a.3 clause 5, point a, point b clause 6, point b.1 clause 7 of Article 6, point a.3 clause 3, point a.2 clause 5 of Article 7, and clause 5 of Article 10 of Circular 23/2023/TT-BTC, the remaining value of fixed assets upon revaluation is the remaining value of revaluated fixed assets.

More details can be found in Circular 72/2024/TT-BQP, which comes into force in Vietnam from January 1, 2025.

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