Uni 02-05-2013 – Guidance on management, usage and depreciation provision of fixed assets

MOF issued Circular 45/2013/TT-BTC to replace Circualr 203/2009/TT-BTC guiding management, usage and depreciation provisions of fixed assets. There are a number of new points:

• Historical value must be determined reliably and worth from 30 million VND upwards.

• For fixed assets which enterprises monitor, manage and provide depreciation according to Circular 203/2009/TT-BTC. If these fixed assets do not meet conditions to be fixed assets according to Article 2 (Circular 45/2013/TT-BTC) then the remaining value of these assets will be allocated into enterprises’ costs with depreciation and amortization period no more than 3 years until the valid date of this Circular.

• Intangible fixed assets are land rights including use the leased land before the effective date of the 2003 Land Act which paid rent for the entire term of the lease or rent paid in advance for years of lease term remaining land has been paid for at least five years and is the competent authority for granting land use right certificates.

• The maximum period of depreciation of fixed assets groups increased, especially machinery, power equipment, machinery work. Rules about depreciation period for harbor, dock rocks ... and other intangible assets.

• This Circular takes effect from the date of 10.06.2013 and applied for financial years 2013