Chương I Thông tư 45/2013/TT-BTC: Quy định chung

Chapter I:

GENERAL REGULATION

Article 1. Subject and scope of application:

1. This Circular applies to enterprises established and operating in Vietnam under regulations of law.

2. The calculation of depreciation according to this Circular are made ​​for each fixed asset (hereinafter referred to as assets) of enterprises.

Article 2. The terms used in this Circular shall be construed as follows:

1. Tangible fixed assets: are means of labor primarily in the physical forms and satisfy the criteria of tangible fixed assets, involved in many business cycle but remain original physical forms as buildings, structures, machinery, equipment, means of transportation ...

2. Intangible fixed assets: these assets are not physical forms, represents a value of the investment has to satisfy the criteria of an intangible asset, involved in many business cycles such as some costs directly related to land use; issuance right, patent, copyright ...

3. Fixed assets of financial leasing are the assets which enterprises lease from financial leasing companies. At the end of the lease term, the lessee has the right to purchase the leased property or continues the lease under the terms agreed in the lease contract. The total rent of an asset type specified in the financial leasing contract must be at least equal to the value of that asset at the time of contract signing.

All leased assets if not meeting the above-mentioned regulations are considered as the operating leased fixed assets

4. Similar fixed assets: are the ones with their similar utility in the same business area with equivalent value.

5. Primary price of fixed assets:

- Primary price of tangible fixed assets includes all expenses that enterprises have to spend to have the tangible fixed assets by the time the assets are put into a state of ready for use.

- Primary price of intangible assets includes all costs that enterprises have to spend to have the intangible assets as of the time the assets are put into use as intended.

6. Fair value of fixed assets: is the value of the assets which can be exchanged between knowledgeable parties in the parity exchange.

7. Depreciation of fixed assets: the diminishing usable value and value of fixed assets due to engaged in production activities, natural erosion, technical advances ... during the operation of the fixed assets.

8. Accumulated depreciation of fixed assets: is the total depreciation of fixed assets as of the reporting date.

9. Depreciation of fixed assets: the calculation and allocation of primary price of fixed assets in production and business costs systematically during the time depreciation of fixed assets.

10. Time of depreciation of fixed assets: is the time required for performing the depreciation of fixed assets by enterprises to recover investment capital of fixed assets.

11. Accumulated depreciation of fixed assets: the total depreciation deducted in the production and business costs through the business cycles of fixed assets as of the reporting date.

12. Residual value of fixed assets: the difference between the primary price of the fixed assets and accumulated depreciation (or the value of accumulated depreciation) of the fixed assets as of the reporting date.

13. Repair of fixed assets means the maintenance, replacement and repair of damages generated during the operation to restore operational capacity under the original standard operating state of the fixed assets.

14. Upgrade of fixed assets: the activities of renovation, construction and installation, addition of fixed assets to improve productivity, product quality, utility of fixed assets compared with the initial stage or prolong the utilization time of fixed assets; introduction of new production technology process that reduces the operating costs of fixed assets than before.