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What are the general accounting treatments on fixed assets in Vietnam?
Q&AAll fixed assets of an Foreign Invested Enterprise (FIE) should be recorded.
- There are specific regulations that must be followed regarding what will be capitalized.
- Any items currently under construction should be transferred into fixed assets once they are put into use.
- Intangible assets can be amortized on a straight-line basis, declining balance basis or productivity basis over the beneficiary or investment period within the registered given useful life range (as listed below).
- Intangible assets should be recognized and recorded at an objective value, i.e. for purchased assets at the purchase price, for self-built assets at cost except for research expenses.
- Annex under Circular No. 203/2009/TTBTC allows FIEs to decide the length of useful life within stipulated ranges.
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