Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the management, use and depreciation of fixed assets

FIXED ASSETS OVER VND 30 MILLION MUST HAVE DEPRECIATION

This is one of the important contents prescribed at the Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the management, use and fixed asset depreciation.

Also at this Circular, the Ministry of Finance also regulates the Principles of fixed assets depreciation All of the enterprise’s current fixed assets must be depreciated excluding fixed assets have been fully depreciated but are still used in production and business activities; fixed assets are lost during depreciation; other fixed assets managed but not owned by enterprise; fixed assets are not managed, monitored and recorded in the enterprise’s accounting books; fixed assets are used in welfare activities to serve the enterprise’s employees; fixed assets from the non-refundable aid after the competent agencies have handed them over to enterprises in service of their scientific research; intangible fixed assets are long-term land use right with land use fee or receiving the legal long-term land use right.

Within that, means of labor are the tangible assets with independent structure, or a system of many individual parts of assets linked to perform one or a certain number of functions and without any part, the system cannot work, and they shall be regarded as fixed assets if it is certain to gain economic benefit in the future from the use of such asset; having the utilization time of over 01 year; primary price of assets must be determined reliably, and is valued at 30,000,000 (thirty million) VND or more. The expenses not simultaneously satisfying all three criteria shall be recorded directly or gradually amortized into the business cost of enterprises.

Besides, the Ministry of Finance also defines clearly the determination dining the time of tangible fixed assets depreciation, For new fixed assets (not used), the enterprises must depend on the time frame of fixed asset depreciation specified in Appendix 1 issued together with this Circular to determine the time of fixed asset depreciation.  For intangible fixed assets depreciation, the enterprises shall determine the time of depreciation of intangible fixed assets by themselves but not exceeding 20 years.