Deductible Expenses DEPRECIATION OF FIXED ASSETS Tangible assets must have 4 criteria: Tangible fixed assets Probable future economic benefits to an enterprise 1. Cost of assets can be measured reliably 2. Estimated useful life greater than 1 year 3. Cost of asset is from VND10 million and above 4. Note: Under VAS 03 (Decision 149/2001), the cost of asset is not specifically regulated Deductible Expenses Intangible DEPRECIATION OF FIXED ASSETS assets Intangible fixed assets must have 4 criteria to name a few: – Land use payment for acquiring land plus other 1. related expenses excluding construction costs note: – – In case of short-term land lease: charged to expense In case of long-term land lease: allocated by years of lease In case of land assignment: no depreciation (amortisation) Copyright, patent: total actual payments 2. mark: total actual payment 3. Computer software: total actual payment 4. 23
Deductible Expenses DEPRECIATION OF FIXED ASSETS Tangible fixed assets must have 4 criteria: Tangible assets 1. Probable future economic benefits to an enterprise 2. Cost of assets can be measured reliably 3. Estimated useful life greater than 1 year 4. Cost of asset is from VND10 million and above Note: Under VAS 03 (Decision 149/2001), the cost of asset is not specifically regulated Deductible Expenses DEPRECIATION OF FIXED ASSETS Intangible assets Intangible fixed assets must have 4 criteria – to name a few: 1. Land use payment for acquiring land plus other related expenses – excluding construction costs – note: In case of short-term land lease: charged to expense In case of long-term land lease: allocated by years of lease In case of land assignment: no depreciation (amortisation) 2. Copyright, patent: total actual payments 3. mark: total actual payment 4. Computer software: total actual payment 23
1012_VS-CIT%20Slides%20(Trainer).docx