- The document defines terms related to accounting for tangible fixed assets such as historical cost, depreciation, useful life, and liquidation value.
- To be recognized as a tangible fixed asset, an asset must meet four criteria: provide future economic benefits, have a reliably determined historical cost, have an estimated useful life of over one year, and meet value criteria under current regulations.
- Tangible fixed assets are classified into groups like buildings, machinery, vehicles, and more based on their nature and use. Their recognition as assets or expenses affects financial reporting.
This document provides guidance on accounting for inventories in 3 paragraphs:
Paragraph 1 outlines the purpose of the document which is to prescribe principles and methods for determining the value of inventories, accounting for inventories as an expense, marking down inventories to net realizable value, and calculating inventory values for financial statements.
Paragraph 2 states that the document applies to accounting for inventories using the original price principle except when other standards allow alternative methods.
Paragraph 3 defines key terms including inventories, net realizable value, and current price to provide context for the principles and methods covered later in the document.
This document provides standards for accounting turnover and other incomes. It defines key terms like turnover, trade discount, and other incomes. It outlines criteria for recognizing different types of turnover, including sale of goods, service provision, and interests/royalties. Turnover from sale of goods is recognized when risks and benefits transfer to the buyer. Service provision turnover is recognized based on percentage of completion. Other incomes include revenues from asset sales, fines, and recovered bad debts. Financial statements must present accounting policies and breakdown of turnover and other incomes.
This document outlines accounting standards for intangible fixed assets in Vietnam. It defines key terms like intangible fixed assets, research, development, historical cost, and useful life. It provides guidance on recognizing and determining the initial value of intangible assets, including those purchased separately, through business mergers, allocated by the state, or created internally. Costs are to be capitalized for intangible assets that meet the definition and recognition criteria, while costs incurred in the research stage of internal projects are expensed. The document provides detailed rules for classifying and recording various types of intangible assets.
This document outlines the general framework and standards for accounting and financial reporting in Vietnam. It establishes the following key principles:
1. The accrual basis, continuous operation assumption, historical cost, matching, consistency, prudence, and materiality principles must be followed.
2. Financial statements should include elements of assets, liabilities, owners' equity, revenues, expenses, and profits that meet recognition criteria of certainty of future benefits and reliable measurement.
3. Assets are resources controlled that provide future benefits, while liabilities are current obligations to be settled. Revenues and expenses must be recognized according to the matching principle.
VAS 06 provides guidance on accounting for leases. It defines key terms like financial lease, operating lease, minimum lease payments, and economic life. Leases are classified as either financial or operating based on the degree of risk and rewards transferred from the lessor to the lessee. A financial lease transfers most risks and rewards of ownership, while an operating lease does not. The standard provides examples of provisions that typically result in a lease being classified as financial.
This document outlines Vietnamese Accounting Standard 21 regarding the presentation of financial statements. It discusses the objectives, requirements, and principles for preparing and presenting financial statements. The standard applies to both individual enterprise statements and consolidated group statements. It specifies that a complete set of financial statements includes a balance sheet, income statement, cash flow statement, and notes. Financial statements should be prepared on an accrual basis and provide a true and fair view of an enterprise's financial position, performance and cash flows.
This document outlines accounting policies and procedures for investment property according to VAS 05. It defines investment property and distinguishes it from owner-occupied property. It provides guidance on recognition of investment property, initial and subsequent measurement, transfers, and examples of investment property versus items that are not considered investment property. Criteria for investment property determination and treatment of property leased between group entities are also addressed.
This document provides guidance on accounting for borrowing costs in Vietnam. It defines borrowing costs and uncompleted assets. Borrowing costs should generally be recognized as expenses, but can be capitalized if they are directly related to construction or production of assets that take over 12 months to complete and generate future economic benefits. Capitalization begins when costs start being incurred, borrowing costs are being incurred, and asset preparation activities have begun. Capitalization ends when major preparation activities are complete. Financial statements must disclose the borrowing cost accounting policy, amount capitalized, and capitalization rate used.
This document provides guidance on accounting for inventories in 3 paragraphs:
Paragraph 1 outlines the purpose of the document which is to prescribe principles and methods for determining the value of inventories, accounting for inventories as an expense, marking down inventories to net realizable value, and calculating inventory values for financial statements.
Paragraph 2 states that the document applies to accounting for inventories using the original price principle except when other standards allow alternative methods.
Paragraph 3 defines key terms including inventories, net realizable value, and current price to provide context for the principles and methods covered later in the document.
This document provides standards for accounting turnover and other incomes. It defines key terms like turnover, trade discount, and other incomes. It outlines criteria for recognizing different types of turnover, including sale of goods, service provision, and interests/royalties. Turnover from sale of goods is recognized when risks and benefits transfer to the buyer. Service provision turnover is recognized based on percentage of completion. Other incomes include revenues from asset sales, fines, and recovered bad debts. Financial statements must present accounting policies and breakdown of turnover and other incomes.
This document outlines accounting standards for intangible fixed assets in Vietnam. It defines key terms like intangible fixed assets, research, development, historical cost, and useful life. It provides guidance on recognizing and determining the initial value of intangible assets, including those purchased separately, through business mergers, allocated by the state, or created internally. Costs are to be capitalized for intangible assets that meet the definition and recognition criteria, while costs incurred in the research stage of internal projects are expensed. The document provides detailed rules for classifying and recording various types of intangible assets.
This document outlines the general framework and standards for accounting and financial reporting in Vietnam. It establishes the following key principles:
1. The accrual basis, continuous operation assumption, historical cost, matching, consistency, prudence, and materiality principles must be followed.
2. Financial statements should include elements of assets, liabilities, owners' equity, revenues, expenses, and profits that meet recognition criteria of certainty of future benefits and reliable measurement.
3. Assets are resources controlled that provide future benefits, while liabilities are current obligations to be settled. Revenues and expenses must be recognized according to the matching principle.
VAS 06 provides guidance on accounting for leases. It defines key terms like financial lease, operating lease, minimum lease payments, and economic life. Leases are classified as either financial or operating based on the degree of risk and rewards transferred from the lessor to the lessee. A financial lease transfers most risks and rewards of ownership, while an operating lease does not. The standard provides examples of provisions that typically result in a lease being classified as financial.
This document outlines Vietnamese Accounting Standard 21 regarding the presentation of financial statements. It discusses the objectives, requirements, and principles for preparing and presenting financial statements. The standard applies to both individual enterprise statements and consolidated group statements. It specifies that a complete set of financial statements includes a balance sheet, income statement, cash flow statement, and notes. Financial statements should be prepared on an accrual basis and provide a true and fair view of an enterprise's financial position, performance and cash flows.
This document outlines accounting policies and procedures for investment property according to VAS 05. It defines investment property and distinguishes it from owner-occupied property. It provides guidance on recognition of investment property, initial and subsequent measurement, transfers, and examples of investment property versus items that are not considered investment property. Criteria for investment property determination and treatment of property leased between group entities are also addressed.
This document provides guidance on accounting for borrowing costs in Vietnam. It defines borrowing costs and uncompleted assets. Borrowing costs should generally be recognized as expenses, but can be capitalized if they are directly related to construction or production of assets that take over 12 months to complete and generate future economic benefits. Capitalization begins when costs start being incurred, borrowing costs are being incurred, and asset preparation activities have begun. Capitalization ends when major preparation activities are complete. Financial statements must disclose the borrowing cost accounting policy, amount capitalized, and capitalization rate used.
This standard provides guidance on accounting for and disclosing events that occur after the balance sheet date. It distinguishes between adjusting events and non-adjusting events. Adjusting events provide evidence of conditions that existed at the balance sheet date and require adjustment to amounts recognized in the financial statements. Non-adjusting events are indicative of conditions that arose after the balance sheet date and do not result in adjustment, but may require disclosure. The standard also specifies required disclosures regarding the date the financial statements were authorized for issue and material non-adjusting events.
This document outlines standards for accounting of construction contract revenues and costs. It defines key terms like construction contracts, fixed price contracts, and cost plus contracts. It specifies that revenues include the initial contract price as well as potential increases or decreases from changes, bonuses, or other payments if they can be reliably determined. Costs include those directly related to the contract as well as general costs that can be reasonably allocated. The standard provides guidance on combining or dividing contracts and determining what revenues and costs should be included in the accounting.
Để xem full tài liệu Xin vui long liên hệ page để được hỗ trợ
:
https://www.facebook.com/garmentspace/
https://www.facebook.com/thuvienluanvan01
HOẶC
https://www.facebook.com/thuvienluanvan01
https://www.facebook.com/thuvienluanvan01
tai lieu tong hop, thu vien luan van, luan van tong hop, do an chuyen nganh
This document outlines accounting principles for income taxes, including:
1) It defines key terms like current tax, deferred tax liabilities, deductible temporary differences, and prescribes how to account for income tax consequences of transactions and events.
2) A deferred tax liability should be recognized for all taxable temporary differences, unless arising from initial asset recognition not affecting profit. A deferred tax asset can be recognized for deductible temporary differences if future taxable profit is probable.
3) Deductible temporary differences result in deferred tax assets when economic benefits in the form of tax deductions will flow to the entity in future periods against taxable profits. Deferred tax assets are only recognized when future taxable profits are probable
Nhận viết luận văn đại học, thạc sĩ trọn gói, chất lượng, LH ZALO=>0909232620
Tham khảo dịch vụ, bảng giá tại: https://vietbaitotnghiep.com/dich-vu-viet-thue-luan-van
Download luận văn đồ án tốt nghiệp ngành kế toán với đề tài: Hoàn thiện công tác kiểm toán vốn bằng tiền trong kiểm toán Báo cáo tài chính do công ty TNHH Kiểm toán và định giá Thăng Long thực hiện
Báo cáo thực tập kế toán mua bán hàng hóa và thanh toánChâu Sa Mạn
LỜI MỞ ĐẦU
Trong nền kinh tế mở cửa hội nhập với nền kinh tế thế giới, ở nước ta hiện nay, thành phần các doanh nghiệp ngày càng đa dạng hơn, phong phú hơn. Đặc biệt, trong một vài năm trở lại đây, số lượng các doanh nghiệp hoạt động trong lĩnh vực thương mại hàng hóa tăng với mức độ đáng kể. Các doanh nghiệp này muốn khẳng định vị thế của mình, muốn hoạt động có hiệu quả, đem lại lợi nhuận cao, một điều tất yếu là các doanh nghiệp đó phải nắm bắt và quản lý tốt quá trình lưu thông hàng hóa của chính doanh nghiệp mình từ khâu mua tới khâu bán.
Hàng hóa là khâu chủ chốt đối với các đơn vị sản xuất kinh doanh, cũng như các đơn vị thương mại, đặc biệt là trong nền kinh tế mở cửa hiện nay thì việc đẩy mạnh tốc độ mua bán hàng hóa là việc sống còn của tất cả các đơn vị. Bên cạnh đó, mối quan hệ thanh toán giưa doanh nghiệp với các đơn vị, cá nhân trong và ngoài doanh nghiệp về các khoản phải thu, phải trả cho khách hàng, người bán (trong quá trình mua bán hàng hóa) cũng được chú trọng. Có thể nói, kế toán mua bán hàng hóa và thanh toán đóng vai trò quan trọng trong quá trình hoạt động kinh doanh của doanh nghiệp.
Nhận thức được tầm quan trọng của hạch toán kế toán nói chung và hạch toán kế toán mua, bán hàng hóa và thanh toán nói riêng trong doanh nghiệp, cùng với những kiến thức đã được học trên ghế nhà trường qua quá trình tìm hiểu thực trạng kế toán mua, bán hàng hóa và thanh toán đã giúp em có nhiều điều kiện tiếp cận thực tế, vận dụng được những kiến thức đã học để hiểu rõ thêm kiến thức thực tiễn công tác kế toán mua, bán hàng hóa và thanh toán nói riêng và kế toán nói chung tại Công ty. Do đó, em đã chọn đề tài “Kế toán mua, bán hàng hóa và các khoản thanh toán tại công ty TNHH Sao Mai Anh” làm đề tài thực tập tốt nghiệp. Công ty TNHH Sao Mai Anh là công ty hoạt động trong lĩnh vực kinh doanh dịch vụ và hàng hóa liên quan đến xe ô tô và xe động cơ khác. Hiện nay công ty đang hoạt động ở 72 đường 23/10, Phường Phương Sơn, Thành phố Nha Trang, Tỉnh Khánh Hòa. Do trình độ và thời gian có hạn nên trong báo cáo thực tập này không thể tránh những thiếu sót và hạn chế vì vậy em mong được sự chỉ bảo và giúp đỡ của giáo viên hướng dẫn và tập thể cán bộ công ty để em có thể hoàn thiện bài báo cáo và bổ sung thêm kiến thức thực tế cho mình.
Ngoài phần mở đầu và kết luận, chuyên đề của em bao gồm 3 chương:
Chương 1: Cơ sở lý luận chung về kế toán mua, bán hàng hóa và các khoản thanh toán trong doanh nghiệp.
Chương 2: Tình hình thực tế về kế toán mua, bán hàng hóa và các khoản thanh toán tại công ty TNHH Sao Mai Anh.
Chương 3: Nhận xét và một số ý kiến đề xuất nhằm hoàn thiện kế toán mua, bán hàng hóa và các khoản thanh toán tại công ty TNHH Sao Mai Anh.
Nhận viết luận văn đại học, thạc sĩ trọn gói, chất lượng, LH ZALO=>0909232620
Tham khảo dịch vụ, bảng giá tại: https://vietbaitotnghiep.com/dich-vu-viet-thue-luan-van
Các bạn sinh viên vào tải mẫu chuyên đề tốt nghiệp chuyên ngành Tài chính ngân hàng Chuyên đề Kế toán tài sản cố định và đầu tư dài hạn
Cơ Sở Lý Luận Về Kế Toán Tài Sản Cố Định Trong Doanh Nghiệp
Các nhà nghiên cứu, xây dựng chế độ kế toán cho rằng: tài sản cố định là biểu hiện của một nguồn lực do DN kiểm soát, được phát sinh từ các sự kiện trong quá khứ và DN chắc chắn sẽ thu được lợi ích kinh tế trong tương lai từ việc sử dụng tài sản trong DN. Theo quan diểm này, tài sản cố định bao gồm những nguồn lực hữu hình và vô hình mà DN đã đầu tư nhằm tạo ra lợi ích kinh tế trong tương lai cho DN, đồng thời tài sản cố định đã đầu tư sẽ hình thành nên cơ sở vật chất kỹ thuật cho DN và tài sản cố định hoàn toàn khác biệt với hàng hóa.
Vietnam Accounting Standards - VAS 25 Consolidated financial statements and a...AC&C Consulting Co., Ltd.
This document outlines disclosure requirements for related party transactions. It defines related parties as those able to exercise control or significant influence over a reporting entity. It requires the reporting of material transactions between related parties, even if similar terms to an unrelated party are used. Disclosures must include the nature and amount of transactions, along with any unpaid balances and commitments. The objective is to provide transparency about potential effects on the financial statements from related party relationships or transactions.
This document outlines accounting standards for insurance contracts. Some key points:
1. It provides guidance on accounting for elements of insurance contracts and presenting data in financial statements of insurance companies.
2. It applies to insurance and reinsurance contracts issued by an entity, as well as financial instruments with discretionary participation features.
3. It does not address accounting for other financial assets/liabilities not related to insurance contracts.
4. Recognition and measurement of insurance contracts is addressed, including liability adequacy tests.
This standard provides guidance on accounting for and disclosing events that occur after the balance sheet date. It distinguishes between adjusting events and non-adjusting events. Adjusting events provide evidence of conditions that existed at the balance sheet date and require adjustment to amounts recognized in the financial statements. Non-adjusting events are indicative of conditions that arose after the balance sheet date and do not result in adjustment, but may require disclosure. The standard also specifies required disclosures regarding the date the financial statements were authorized for issue and material non-adjusting events.
This document outlines standards for accounting of construction contract revenues and costs. It defines key terms like construction contracts, fixed price contracts, and cost plus contracts. It specifies that revenues include the initial contract price as well as potential increases or decreases from changes, bonuses, or other payments if they can be reliably determined. Costs include those directly related to the contract as well as general costs that can be reasonably allocated. The standard provides guidance on combining or dividing contracts and determining what revenues and costs should be included in the accounting.
Để xem full tài liệu Xin vui long liên hệ page để được hỗ trợ
:
https://www.facebook.com/garmentspace/
https://www.facebook.com/thuvienluanvan01
HOẶC
https://www.facebook.com/thuvienluanvan01
https://www.facebook.com/thuvienluanvan01
tai lieu tong hop, thu vien luan van, luan van tong hop, do an chuyen nganh
This document outlines accounting principles for income taxes, including:
1) It defines key terms like current tax, deferred tax liabilities, deductible temporary differences, and prescribes how to account for income tax consequences of transactions and events.
2) A deferred tax liability should be recognized for all taxable temporary differences, unless arising from initial asset recognition not affecting profit. A deferred tax asset can be recognized for deductible temporary differences if future taxable profit is probable.
3) Deductible temporary differences result in deferred tax assets when economic benefits in the form of tax deductions will flow to the entity in future periods against taxable profits. Deferred tax assets are only recognized when future taxable profits are probable
Nhận viết luận văn đại học, thạc sĩ trọn gói, chất lượng, LH ZALO=>0909232620
Tham khảo dịch vụ, bảng giá tại: https://vietbaitotnghiep.com/dich-vu-viet-thue-luan-van
Download luận văn đồ án tốt nghiệp ngành kế toán với đề tài: Hoàn thiện công tác kiểm toán vốn bằng tiền trong kiểm toán Báo cáo tài chính do công ty TNHH Kiểm toán và định giá Thăng Long thực hiện
Báo cáo thực tập kế toán mua bán hàng hóa và thanh toánChâu Sa Mạn
LỜI MỞ ĐẦU
Trong nền kinh tế mở cửa hội nhập với nền kinh tế thế giới, ở nước ta hiện nay, thành phần các doanh nghiệp ngày càng đa dạng hơn, phong phú hơn. Đặc biệt, trong một vài năm trở lại đây, số lượng các doanh nghiệp hoạt động trong lĩnh vực thương mại hàng hóa tăng với mức độ đáng kể. Các doanh nghiệp này muốn khẳng định vị thế của mình, muốn hoạt động có hiệu quả, đem lại lợi nhuận cao, một điều tất yếu là các doanh nghiệp đó phải nắm bắt và quản lý tốt quá trình lưu thông hàng hóa của chính doanh nghiệp mình từ khâu mua tới khâu bán.
Hàng hóa là khâu chủ chốt đối với các đơn vị sản xuất kinh doanh, cũng như các đơn vị thương mại, đặc biệt là trong nền kinh tế mở cửa hiện nay thì việc đẩy mạnh tốc độ mua bán hàng hóa là việc sống còn của tất cả các đơn vị. Bên cạnh đó, mối quan hệ thanh toán giưa doanh nghiệp với các đơn vị, cá nhân trong và ngoài doanh nghiệp về các khoản phải thu, phải trả cho khách hàng, người bán (trong quá trình mua bán hàng hóa) cũng được chú trọng. Có thể nói, kế toán mua bán hàng hóa và thanh toán đóng vai trò quan trọng trong quá trình hoạt động kinh doanh của doanh nghiệp.
Nhận thức được tầm quan trọng của hạch toán kế toán nói chung và hạch toán kế toán mua, bán hàng hóa và thanh toán nói riêng trong doanh nghiệp, cùng với những kiến thức đã được học trên ghế nhà trường qua quá trình tìm hiểu thực trạng kế toán mua, bán hàng hóa và thanh toán đã giúp em có nhiều điều kiện tiếp cận thực tế, vận dụng được những kiến thức đã học để hiểu rõ thêm kiến thức thực tiễn công tác kế toán mua, bán hàng hóa và thanh toán nói riêng và kế toán nói chung tại Công ty. Do đó, em đã chọn đề tài “Kế toán mua, bán hàng hóa và các khoản thanh toán tại công ty TNHH Sao Mai Anh” làm đề tài thực tập tốt nghiệp. Công ty TNHH Sao Mai Anh là công ty hoạt động trong lĩnh vực kinh doanh dịch vụ và hàng hóa liên quan đến xe ô tô và xe động cơ khác. Hiện nay công ty đang hoạt động ở 72 đường 23/10, Phường Phương Sơn, Thành phố Nha Trang, Tỉnh Khánh Hòa. Do trình độ và thời gian có hạn nên trong báo cáo thực tập này không thể tránh những thiếu sót và hạn chế vì vậy em mong được sự chỉ bảo và giúp đỡ của giáo viên hướng dẫn và tập thể cán bộ công ty để em có thể hoàn thiện bài báo cáo và bổ sung thêm kiến thức thực tế cho mình.
Ngoài phần mở đầu và kết luận, chuyên đề của em bao gồm 3 chương:
Chương 1: Cơ sở lý luận chung về kế toán mua, bán hàng hóa và các khoản thanh toán trong doanh nghiệp.
Chương 2: Tình hình thực tế về kế toán mua, bán hàng hóa và các khoản thanh toán tại công ty TNHH Sao Mai Anh.
Chương 3: Nhận xét và một số ý kiến đề xuất nhằm hoàn thiện kế toán mua, bán hàng hóa và các khoản thanh toán tại công ty TNHH Sao Mai Anh.
Nhận viết luận văn đại học, thạc sĩ trọn gói, chất lượng, LH ZALO=>0909232620
Tham khảo dịch vụ, bảng giá tại: https://vietbaitotnghiep.com/dich-vu-viet-thue-luan-van
Các bạn sinh viên vào tải mẫu chuyên đề tốt nghiệp chuyên ngành Tài chính ngân hàng Chuyên đề Kế toán tài sản cố định và đầu tư dài hạn
Cơ Sở Lý Luận Về Kế Toán Tài Sản Cố Định Trong Doanh Nghiệp
Các nhà nghiên cứu, xây dựng chế độ kế toán cho rằng: tài sản cố định là biểu hiện của một nguồn lực do DN kiểm soát, được phát sinh từ các sự kiện trong quá khứ và DN chắc chắn sẽ thu được lợi ích kinh tế trong tương lai từ việc sử dụng tài sản trong DN. Theo quan diểm này, tài sản cố định bao gồm những nguồn lực hữu hình và vô hình mà DN đã đầu tư nhằm tạo ra lợi ích kinh tế trong tương lai cho DN, đồng thời tài sản cố định đã đầu tư sẽ hình thành nên cơ sở vật chất kỹ thuật cho DN và tài sản cố định hoàn toàn khác biệt với hàng hóa.
Vietnam Accounting Standards - VAS 25 Consolidated financial statements and a...AC&C Consulting Co., Ltd.
This document outlines disclosure requirements for related party transactions. It defines related parties as those able to exercise control or significant influence over a reporting entity. It requires the reporting of material transactions between related parties, even if similar terms to an unrelated party are used. Disclosures must include the nature and amount of transactions, along with any unpaid balances and commitments. The objective is to provide transparency about potential effects on the financial statements from related party relationships or transactions.
This document outlines accounting standards for insurance contracts. Some key points:
1. It provides guidance on accounting for elements of insurance contracts and presenting data in financial statements of insurance companies.
2. It applies to insurance and reinsurance contracts issued by an entity, as well as financial instruments with discretionary participation features.
3. It does not address accounting for other financial assets/liabilities not related to insurance contracts.
4. Recognition and measurement of insurance contracts is addressed, including liability adequacy tests.
This document outlines disclosure requirements for related party transactions. It defines related parties as those able to exercise control or significant influence over a reporting entity. It requires the reporting of material transactions between related parties, even if similar market prices are charged. Disclosures must include the nature and amount of transactions with subsidiaries, associates, key management, and their close family members. The objective is to provide transparency about potential effects of relationships on a company's financial position and performance.
Decree 128/2004/ND-CP guiding the implementation of certain articles of law o...AC&C Consulting Co., Ltd.
This decree details and guides the implementation of certain articles of Vietnam's Accounting Law as it applies to state accounting. It defines the scope and subjects of the decree, including state agencies, political and social organizations, and individuals involved in state accounting. It also outlines accounting objects and principles for state budget revenues/expenditures, administrative activities, and non-budget units. The decree specifies currencies, accounting periods, responsibilities for accounting information, and accounting voucher forms.
Vietnam Accounting Standards - VAS 07 Accounting for Investment in associatesAC&C Consulting Co., Ltd.
This document outlines accounting standards for investments in associates. It defines key terms like associate, significant influence, equity method, and cost method. It provides guidance on using the equity method to account for associates in consolidated financial statements versus the cost method in separate financial statements. It also addresses recognizing the investor's share of profits/losses, impairment testing, income taxes, contingencies, and disclosure requirements related to investments in associates.
This document provides guidance from the Ministry of Finance in Vietnam on applying international accounting standards for the presentation of financial statements and disclosures of financial instruments. It defines key terms related to financial instruments such as financial assets, financial liabilities, derivatives, amortized cost, and fair value. It also provides guidance on classification of financial instruments, recognition and measurement, and disclosure requirements. The purpose is to standardize practices in Vietnam according to international standards.
This document outlines the requirements for interim financial reporting in Vietnam. It defines interim periods and interim financial reports. The minimum content of an interim financial report includes condensed financial statements comprising a condensed balance sheet, condensed income statement, condensed cash flow statement, and selected explanatory notes. The notes should include information about accounting policies, unusual items, changes in owner's equity, subsequent events, and segment information. The interim financial report is intended to provide an update on the latest annual financial statements and focus on significant events and transactions since the last annual report.
This document outlines standards for segment reporting. It defines key terms like business segment, geographical segment, and reportable segment. A business segment provides individual products/services subject to different risks than other segments. A geographical segment operates in different economic environments with differing risks. The standard provides that an enterprise should use its organizational structure and internal financial reporting to identify segments. It also defines terms like segment revenue, expense, result, assets, and liabilities to specify what should be reported for each segment.
This standard provides guidance on calculating and presenting earnings per share (EPS). It defines key terms like dilution, contingent shares, and potential ordinary shares.
The standard outlines how to calculate basic EPS by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding. It also provides guidance on adjusting profit for items like preference dividends.
For diluted EPS, profit is adjusted for the effects of all dilutive potential ordinary shares. The weighted average number of shares is increased by additional shares from converting dilutive potential ordinary shares. Dilutive potential shares are included in the calculation if their conversion would decrease EPS.
This document summarizes IAS 16, which provides guidance on accounting for property, plant, and equipment. It defines property, plant, and equipment and outlines the requirements for initial recognition, measurement, depreciation, and impairment. Key aspects covered include determining the cost of self-constructed or exchanged assets, capitalizing major repairs/replacements, and allowing use of either the cost model or revaluation model for subsequent measurement.
This document summarizes the history and contents of International Accounting Standard 16 (IAS 16) relating to property, plant, and equipment. It notes that IAS 16 was originally issued in 1993 and has since been revised and amended multiple times, with the most recent amendments relating to agriculture and fair value measurement. The document then provides an overview of the objectives, scope, definitions, recognition and measurement principles, and disclosure requirements of IAS 16.
This standard provides guidance on accounting for property, plant, and equipment. It defines property, plant, and equipment as tangible items held for use in production, rental, or administration that are expected to be used for more than one period. An item qualifies as an asset when future benefits are probable and cost can be reliably measured. After initial recognition at cost, items are carried either using the cost model (at cost less depreciation and impairment) or revaluation model (at fair value less depreciation and impairment). Depreciation is allocated systematically over an asset's useful life, and the carrying amount is derecognized when disposed of or no future benefits are expected.
The document discusses the key aspects of Ind AS 16 regarding the accounting treatment of property, plant, and equipment. It covers topics such as:
- Timing of recognizing assets and determining carrying amounts
- Components of asset cost and subsequent costs
- Depreciation methods and impairment
- Useful life and residual value definitions
- Recognition, measurement, and derecognition of property, plant, and equipment
The document provides definitions of important terms related to property, plant, and equipment accounting and outlines the objectives, scope, and applicability of Ind AS 16.
Ias 16 property plant and equipment-presentationShadabAhmadFaiq
The document discusses the key aspects of IAS 16 Property, Plant and Equipment including:
- The objective is to prescribe the accounting treatment for property, plant and equipment.
- Scope outlines what is excluded like IFRS 5 and IAS 40.
- Definitions for terms like PPE, carrying amount, depreciation.
- Recognition criteria that future benefits are probable and cost can be reliably measured.
- Measurement includes initial cost and subsequent cost model or revaluation model.
- Depreciation is systematically allocated over useful life.
- Impairment is assessed using IAS 36.
- Derecognition occurs from disposal or no future benefits are expected.
IAS 16 provides the accounting requirements for property, plant, and equipment (PP&E). It requires PP&E to be recognized as an asset if it meets the definition of an asset and the recognition criteria. The standard addresses the initial measurement and subsequent accounting for PP&E, including depreciation, impairment losses, and derecognition. It also provides guidance on the choice between the cost model or revaluation model for subsequent measurement.
The document is an assignment submission on property, plant, and equipment (PPE) accounting according to IAS 16. It includes an overview of IAS 16, definitions, objectives, scope, recognition criteria, initial and subsequent measurement, depreciation, impairment testing, and disclosure requirements for PPE. The assignment was submitted to a lecturer at Green University of Bangladesh by two students for their Advanced Accounting course.
This document outlines accounting standards for inventory valuation. It discusses determining the cost of inventories, including costs of purchase, conversion, and other costs. It also addresses calculating inventory costs using specific identification, FIFO, or weighted average cost formulas. The standard requires inventories to be valued at the lower of cost or net realizable value.
This document provides an overview of IAS 16, which establishes the accounting requirements for property, plant and equipment. It defines key terms, outlines the requirements for recognition, measurement, depreciation, impairment, derecognition and disclosure of property, plant and equipment. The standard aims to prescribe the accounting treatment for PPE, including how to determine the carrying amount and calculate depreciation charges and impairment losses. It applies to tangible items used in operations or for administrative purposes that are expected to be used for more than one period.
IAS 16 establishes the principles for recognizing and measuring property, plant and equipment. It requires assets to be recorded at cost and outlines two models for subsequent measurement - the cost model and revaluation model. It also provides guidance on derecognition and disclosures such as depreciation methods, useful lives, and reconciliations of carrying amounts.
This document outlines accounting standards regarding depreciation accounting. It defines key terms like depreciation, depreciable assets, useful life, and depreciable amount. It explains that depreciation is based on historical cost, useful life, and residual value. It discusses factors that determine useful life and methods for allocating depreciation over useful life, like the straight-line method. It also covers disclosure requirements and treatment when the depreciation method is changed.
This document summarizes the key points of the Accounting Standard (AS) 6 on depreciation accounting issued by the Institute of Chartered Accountants of India. It defines depreciation as the wearing out or loss of value of an asset due to use, time, or obsolescence. It outlines factors to consider in determining depreciation such as historical cost, useful life, and residual value of assets. Common depreciation methods like straight-line and reducing balance are discussed. Disclosure requirements for depreciation policies, calculations, and any changes are also covered.
PPE refers to tangible items held for use in production or supply of goods and services with an expected useful life of more than one year. The standard outlines the accounting treatment for PPE, including initial recognition at cost, subsequent measurement using either the cost or revaluation model, depreciation, and derecognition. It also provides disclosure requirements such as the measurement basis, depreciation methods used, carrying amounts, and details related to revalued assets.
This document outlines accounting standards for depreciation accounting. It defines key terms like depreciation, depreciable assets, useful life, and depreciable amount. It discusses factors that determine depreciation charges like historical cost, useful life, and residual value. Common depreciation methods like straight-line and reducing balance are described. The standard also addresses disclosure requirements and changes to depreciation methods.
This document provides an overview of Accounting Standard 10 (AS 10) regarding accounting for fixed assets in India. AS 10 applies to companies listed on a recognized stock exchange and large commercial enterprises. It defines fixed assets as assets used for producing goods and services, not held for sale. It discusses the components that make up the cost of a fixed asset, treatment of improvements and repairs, and disclosure requirements regarding fixed assets in financial statements.
This document provides guidance on accounting standards for depreciation accounting. It defines key terms like depreciation, depreciable assets, useful life, and depreciable amount. It explains factors to consider in assessing depreciation such as historical cost, useful life, and residual value of assets. It discusses different methods for allocating depreciation over an asset's useful life, and notes that management selects the most appropriate method based on factors like asset type and use. The standard is mandatory for accounting periods beginning on or after April 1, 1995.
This document outlines the accounting standards for inventories as per Indian Accounting Standard (Ind AS) 2. Some key points:
- Inventories are assets held for sale, in production, or in the form of materials used in production. They must be measured at the lower of cost or net realizable value.
- Cost of inventories includes all purchase costs, conversion costs like direct labor, and systematically allocated fixed and variable production overheads.
- Net realizable value is the estimated selling price less costs to sell. Fair value reflects the price in the principal market between participants.
- Techniques like standard costing and retail method can approximate actual cost of inventories.
Fixed assets are long-term assets used by a business over multiple accounting periods. They include property, equipment, furniture, and intangible assets. The cost of a fixed asset includes its purchase price plus any costs to prepare the asset for use. Capital expenditures are added to the asset's value in the accounting records. Acquisition cost is the original historical cost of the asset. Determining cost involves considering various fees, duties, and discounts. Borrowing costs related to asset construction may also be included in the asset's total cost.
The document compares accounting standards Ind AS 16 and AS 10 & 6 regarding property, plant, and equipment. Key differences include:
- Ind AS 16 has specific recognition criteria for assets while AS 10 & 6 do not.
- Ind AS 16 requires separate depreciation of major components and capitalizing subsequent expenditures, while AS 10 & 6 do not.
- Ind AS 16 requires costs of dismantling and restoring sites to be included in asset costs, while AS 10 & 6 do not require this.
As 06 depreciation accounting 1994 20080928Rahul Bandri
- The document provides guidance on accounting for depreciation of assets. It defines key terms like depreciation, depreciable assets, useful life, and depreciable amount.
- It discusses factors to consider in determining depreciation charges like historical cost, useful life, and residual value of assets. It also describes common depreciation methods and disclosure requirements.
- The standard specifies that depreciation should be allocated systematically over an asset's useful life and the method used should be consistent and changed only under certain conditions. It provides guidance on estimating useful lives and accounting for changes in estimates.
Similar to Vietnam Accounting Standards - VAS 03 Tangible Fixed Assets (20)
Several new laws of paramount importance to investors, which were passed in 2014, will take effect in 2015. This briefing highlights the most important changes under one of these laws, the 2014 Law on Enterprises (“the New Law”). 2015 will be another historical milestone following the Doi Moi policy and implementation of Vietnam's WTO commitments. A separate briefing will discuss changes under the new Law on Investment.
Key issues
Change of business activities need not be registered to update the ERC as required under current law
Change of founding shareholders need not be registered to update the ERC
Lower quorum and voting thresholds for multi-member LLCs
One member LLC can reduce its charter capital
SOE now defined as being wholly owned by the State
Requirements for public disclosure of information by SOEs.
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
The document provides biographies for three professionals at AC&C:
Vu Tran Vuong has over 16 years of experience including as CFO of Cognita Education in Vietnam and managing finance teams. He has expertise in accounting, auditing, finance, taxes, and M&A.
Phan Hong Son is a lawyer with over 16 years of experience providing legal advisory services and negotiating agreements for companies in various industries in Vietnam and Laos.
Nguyen Phan Duong Nguyen was previously CFO of Nedcoffee Vietnam and has over 10 years of experience in accounting, auditing, finance, taxes, and advising multinational companies.
Vietnam Accounting Standards - VAS 10 Effects of changes in foreign exchange ...AC&C Consulting Co., Ltd.
1) This document outlines accounting standards for foreign currency transactions and the conversion of financial statements for overseas activities. It addresses the initial recognition, reporting, and recognition of exchange rate differences for foreign currency transactions, as well as the conversion of financial statements for overseas subsidiaries and branches.
2) Exchange rate differences arising from an enterprise's net investment in foreign subsidiaries are classified as owners' equity until the investment is liquidated. Monetary items relating to long-term receivables or loans from foreign subsidiaries, which do not have a defined settlement date, are also considered part of the net investment.
3) Exchange rate differences from foreign currency liabilities that hedge risks of a net investment in a foreign subsidiary are also
Vietnam Accounting Standards - VAS 08 Financial Reporting of interest in join...AC&C Consulting Co., Ltd.
This document outlines accounting standards for financial reporting of interests in joint ventures. It defines a joint venture as a contractual arrangement whereby two or more parties undertake an economic activity subject to joint control. There are three forms of joint ventures: jointly controlled operations, jointly controlled assets, and jointly controlled entities. For jointly controlled operations, a venturer recognizes its assets, liabilities, expenses incurred, and share of income earned in its separate financial statements. For jointly controlled assets, a venturer recognizes its share of jointly controlled assets, any liabilities it has incurred, and its share of income and expenses in its separate financial statements. The standard provides guidance on accounting policies and procedures for interests in various forms of joint ventures.
Guide on the use of Artificial Intelligence-based tools by lawyers and law fi...Massimo Talia
This guide aims to provide information on how lawyers will be able to use the opportunities provided by AI tools and how such tools could help the business processes of small firms. Its objective is to provide lawyers with some background to understand what they can and cannot realistically expect from these products. This guide aims to give a reference point for small law practices in the EU
against which they can evaluate those classes of AI applications that are probably the most relevant for them.
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence LawyersHarpreetSaini48
Discover how Mississauga criminal defence lawyers defend clients facing weapon offence charges with expert legal guidance and courtroom representation.
To know more visit: https://www.saini-law.com/
What are the common challenges faced by women lawyers working in the legal pr...lawyersonia
The legal profession, which has historically been male-dominated, has experienced a significant increase in the number of women entering the field over the past few decades. Despite this progress, women lawyers continue to encounter various challenges as they strive for top positions.
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
Matthew Professional CV experienced Government LiaisonMattGardner52
As an experienced Government Liaison, I have demonstrated expertise in Corporate Governance. My skill set includes senior-level management in Contract Management, Legal Support, and Diplomatic Relations. I have also gained proficiency as a Corporate Liaison, utilizing my strong background in accounting, finance, and legal, with a Bachelor's degree (B.A.) from California State University. My Administrative Skills further strengthen my ability to contribute to the growth and success of any organization.
Synopsis On Annual General Meeting/Extra Ordinary General Meeting With Ordinary And Special Businesses And Ordinary And Special Resolutions with Companies (Postal Ballot) Regulations, 2018
Vietnam Accounting Standards - VAS 03 Tangible Fixed Assets
1. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 1
Standard No. 03
TANGIBLE FIXED ASSETS
(Issued and publicized together with Decision No. 149/2001/QD-BTC of December 31, 2001 of the Minister of Finance)
GENERAL PROVISIONS
01. This standard aims to prescribe and guide the accounting principles and methods applicable to tangible fixed assets,
including criteria of tangible fixed assets, the time of recognition and determination of initial value, costs incurred after
initial recognition, determination of value after initial recognition, depreciation, liquidation of tangible fixed assets and
some other regulations serving as basis for recording accounting books and making financial statements.
02. This standard applies to the accounting of tangible fixed assets, except where other accounting standards permit the
application of other accounting principles and methods to tangible fixed assets.
03. Where other accounting standards prescribe methods of determining and recognizing the initial value of tangible
fixed assets other than the methods defined in this standard, other contents of tangible fixed asset accounting shall still
comply with the regulations of this standard.
04. Enterprises must apply this standard even when they are affected by price changes, except otherwise prescribed by
State decisions related to the re-appraisal of tangible fixed assets.
05. For the purpose of this standard, the terms used herein are construed as follows:
Tangible fixed assets means assets in physical forms which are possessed by the enterprises for use in production and
business activities in conformity with the recognition criteria of tangible fixed assets.
Historical cost means all the costs incurred by the enterprises to acquire tangible fixed assets as of the time of putting such
assets into the ready-for-use state.
Depreciation means the systematic allocation of the depreciable value of tangible fixed assets throughout the useful life of
such assets.
Depreciable value means the historical cost of tangible fixed assets recorded on financial statements, minus (-) the estimated
liquidation value of such assets.
Useful life means the duration in which the tangible fixed assets produce their effect on production and business,
calculated by:
a/ The duration the enterprise expects to use the tangible fixed assets, or:
b/ The volume of products, or similar calculating units which the enterprise expects to obtain from the use of assets.
Liquidation value means the value estimated to be obtained at the end of the useful life of the assets, after subtracting the
estimated liquidation cost.
Reasonable value means the value of assets, which may be exchanged among knowledgeable parties in the par value
exchange.
Residual value means the historical cost of tangible fixed assets after subtracting the accumulated depreciation thereof.
Recoverable value means the value estimated to be obtained in future from the use of the assets, including their liquidation
value.
CONTENTS OF THE STANDARD
RECOGNITION OF TANGIBLE FIXED ASSETS
06. Criteria for recognition of tangible fixed assets:
2. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 2
To be recognized as tangible fixed assets, assets must meet simultaneously all the following four (4) recognition criteria:
a/ Future economic benefits will surely be obtained;
b/ Their historical cost has been determined in a reliable way;
c/ Their useful life is estimated at more than one year;
d/ They meet all value criteria according to current regulations.
07. Tangible asset accounting is classified by groups of assets of the same nature and use purposes in the enterprises'
production and business operations, including:
a/ Houses and architectural objects;
b/ Machinery and equipment;
c/ Means of transport, conveyance equipment;
d/ Managerial equipment and instruments;
e/ Perennial tree garden, animals reared to labor for humans and to yield products.
f/ Other tangible fixed assets.
08. Tangible fixed assets often constitute a key component in the total assets and play an important role in the reflection
of the financial situation of enterprises. Therefore, the determination of an asset whether or not to be recognized as
tangible fixed asset or a production or business expense in the period shall greatly affect the reporting of the enterprises'
operation and business results.
09. When determining the first criterion (prescribed in Section a, paragraph 06) of each tangible fixed asset, the
enterprises must determine the degree of certainty of the acquisition of future economic benefits, on the basis of
evidences available at the time of initial recognition, and must bear all related risks.
Though being unable to directly yield economic benefits like other tangible fixed assets, those assets used for the
purposes of ensuring production and business safety or protecting the environment are necessary for enterprises to
achieve more economic benefits from other assets. However, only if their historical cost and that of related assets do not
exceed the total value recoverable from them and other related assets shall these assets be recognized as tangible fixed
assets. For example, a chemical plant may have to install equipment and carry out new chemical-storing and-preserving
processes in order to comply with the environmental protection requirements in the production and storage of toxic
chemicals. Any related installed accompanying fixed assets shall only be accounted as tangible fixed assets if without
them the enterprises would not be able to operate and sell their chemical products.
10. The second criterion (prescribed in Section b, paragraph 06) for recognizing tangible fixed assets is often satisfied
since the historical cost of the fixed assets has been already determined through procurement, exchange, or self-
construction.
11. When determining components of tangible fixed assets, the enterprises must apply the criteria of tangible fixed asset
on a case-by-case basis. The enterprises may consolidate secondary, separate parts, such as molds, tools, swages, and
apply the criteria of tangible fixed asset to such aggregate value. Accessories and auxiliary equipment are often seen as
movables and thereby accounted into use costs. Major accessories and maintenance equipment shall be determined as
tangible fixed assets when the enterprises estimate that their useful life would last for over one year. If they are only used
in association with tangible fixed assets irregularly, they shall be accounted as separate tangible fixed assets and
depreciated over a period shorter than the useful life of related tangible fixed assets.
12. In each specific case, the total cost of assets may be allocated to their components and separately accounted for each
component. This case shall apply when each component of an asset has a different useful life, or contributes to creating
for the enterprise economic benefits which are assessed according to different prescribed criteria so it may use different
3. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 3
depreciation rates and methods. For example, an aircraft body and engine should be accounted as two separate tangible
fixed assets with different depreciation rates if they have different useful lives.
DETERMINATION OF INITIAL VALUE
13. Tangible fixed assets must have their initial value determined according to their historical cost determination of
historical cost of tangible fixed assets on a case-by-case basis
Procured tangible fixed assets
14. The historical cost of a procured tangible fixed asset consists of the buying price (minus (-) trade discounts and price
reductions), taxes (excluding reimbursed tax amounts) and expenses directly related to the putting of the assets into the
ready-for-use state, such as ground preparation expense; initial transportation, loading and unloading expense; installation
and trial operation expense (minus (-) amounts recovered from products and wastes turned out from trial operation);
expert cost and other directly-related expenses.
For tangible fixed assets formed from construction investment by contractual mode, their historical costs are the settled
costs of the invested construction projects, other directly-related expenses and registration fee (if any).
15. Where procured tangible fixed assets are houses, architectural objects associated with the land use right, the land use
right value must be separately determined and recognized as intangible fixed asset.
16. Where procured tangible fixed assets are paid by deferred payment mode, their historical cost shall be shown at the
buying price promptly paid at the purchase time. The difference between the payable total amount and the promptly-paid
buying price shall be accounted as expense in the payment period, except where such difference is included into the
historical cost of tangible fixed assets (capitalization) according to the regulations of the accounting standard “Borrowing
expenses.”
17. Incurred costs, such as administrative management cost, general production costs, trial operation cost and other
costs…, if not directly related to the procurement and the putting of fixed assets into the ready-for-use state, shall not be
included into the historical cost of tangible fixed assets. Initial losses caused by the machinery's failure to operate as
planned shall be accounted into production and business expenses in the period.
Self-constructed or self-made tangible fixed assets
18. The historical cost of a self-constructed or self-made tangible fixed asset is its actual cost plus (+) the installation and
trial operation cost. Where the enterprises turn the products made by themselves into fixed assets, the historical costs
shall be the production costs of such products plus (+) the expenses directly related to the putting of the fixed assets into
the ready-for-use state. In these cases, all internal profits must not be included in the historical cost of these assets.
Unreasonable expenses, such as wasted materials and supplies, labor or other costs in excess of the normal levels arising
in the self-construction or self-generating process must not be included in the historical cost of tangible fixed assets.
Financial-leasing tangible fixed assets
19. Where tangible fixed assets are leased in the form of financial lease, their historical cost shall be determined according
to the regulations of the accounting standard “Asset lease.”
Tangible fixed assets purchased in the exchange form
20. The historical cost of a tangible fixed asset purchased in the form of exchange for a dissimilar tangible fixed asset or
other assets shall be determined according to the reasonable value of the received tangible fixed assets, or that of the
exchanged ones, after adjusting the cash amounts or cash equivalents which are additionally paid or received.
4. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 4
21. The historical cost of a tangible fixed asset purchased in the form of exchange for similar one, or possibly formed
through its sale in exchange for the right to own similar ones (similar assets are those with similar utilities, in the same
business field and of equivalent value). In both cases no profit or loss is recognized in the exchange process. The
historical cost of the received fixed asset shall be the residual value of the exchanged one. For example, the exchange of
tangible fixed assets is similar to exchange of machinery, equipment, means of transport, service establishments or other
tangible fixed assets.
Tangible fixed assets augmented from other sources
22. The historical cost of a tangible fixed asset which is donated or presented shall be initially recognized according to the
initial reasonable value. Where it is not recognized according to the initial reasonable value, the enterprises may recognize
it according to the nominal value plus (+) the expenses directly related to the putting of the assets into the ready-for-use
state.
COSTS INCURRED AFTER INITIAL RECOGNITION
23. The costs incurred after the initial recognition of tangible fixed assets shall be recorded as increase in their historical
cost if these costs are certain to augment future economic benefits obtained from the use of these assets. Those incurred
costs which fail to meet this requirement must be recognized as production and business expenses in the period.
24. The costs incurred after the initial recognition of tangible fixed assets shall be recorded as increase in their historical
cost if these costs have practically improved the current conditions of the assets as compared to their original standard
conditions, such as:
a/ Replacing parts of the tangible fixed assets, thereby prolonging their useful life or increasing their use capacity;
b/ Renovating parts of the tangible fixed assets, thereby considerably improving the quality of manufactured products;
c/ Applying new technological production processes, thereby reducing the operational costs of the assets.
25. The repair and maintenance costs of tangible fixed assets for the purpose of restoring or sustaining their capability to
bring about economic benefits as in their original operating conditions shall be included into production and business
expenses in the period.
26. The accounting of the costs incurred after the initial recognition of tangible fixed assets must be based on each
particular case and the recoverability of these costs. When the residual value of the tangible fixed assets has already been
composed of reductions in economic benefits, those costs incurred afterwards to restore economic benefits from these
fixed assets shall be included in the historical cost of the fixed assets if their residual value does not exceed their
recoverable value. Where the buying price of a tangible fixed asset has already covered the enterprises' obligation to incur
those costs for putting the assets into the ready-for-use state, the capitalization of the costs incurred afterwards must be
also based on the recoverability of these costs. For example, an enterprise buys a house which needs some repair before
it can be used. The house repair cost shall be included in the historical cost of the asset if such cost is recoverable from
the future use of the house.
27. Where some parts of tangible fixed assets need to be replaced on a regular basis, they shall be accounted as
independent fixed assets if they satisfy all the four (4) criteria of a tangible fixed asset. For example, air-conditioners in a
house may be replaced many times throughout the useful life of the house. The costs incurred in the replacement or
restoration of these air-conditioners shall be accounted as an independent asset and the value of the replaced air-
conditioners shall be recorded as a decrease.
DETERMINATION OF VALUE AFTER INITIAL RECOGNITION
28. After initial recognition, during their use process, tangible fixed assets shall be determined according to their historical
costs, accumulated depreciation and residual values. Where they are re-appraised according to the State's regulations, their
5. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 5
historical cost, accumulated depreciation and residual value must be adjusted according to the re-appraisal results. The
difference resulting from the re-valuation of tangible fixed assets shall be handled and accounted according to the State's
regulations
DEPRECIATION
29. The depreciable value of tangible fixed assets shall be allocated systematically during their useful life. The depreciation
method must be suited to the economic benefits yielded by the assets to the enterprises. The depreciated amount of each
period shall be accounted into the production and business expenses in the period, unless they are included in the value
of other assets, such as depreciation of tangible fixed assets used for activities in the development stage is a cost
component of the historical cost of intangible fixed assets (according to the regulations of the standard intangible fixed
assets), or the depreciation cost of tangible fixed assets used in the process of self-constructing or self-making other
assets.
30. Economic benefits yielded by tangible fixed assets shall be gradually exploited by the enterprises through the use of
these assets. Nevertheless, other factors, like technical backwardness, wear-and-tear of these fixed assets due to their non-
use, often cause reductions in the economic benefits which the enterprises expect these assets would bring about.
Therefore, when determining the useful life of tangible fixed assets, the following factors must be taken into account:
a/ The extent of use of such asset, estimated by the enterprise. The extent of use is assessed according to the estimated
capacity or output;
b/ The extent of wear-and-tear, depending on the related elements in the asset's use process, such as the number of
working shifts, the enterprise's repair and maintenance of the asset as well as its upkeep when not in operation;
c/ Invisible wear-and-tear arising from the replacement or renovation of the technological chain or changes in the market
demand for the products or service turned out by the asset;
d/ Legal constraints in the asset use, such as the date of expiry of the contract of financial-leasing fixed assets.
31. The useful life of tangible fixed assets shall be determined by the enterprises mainly on the expected use extent of the
assets. However, due to the asset management policy of the enterprises, the estimated useful life of fixed assets may be
shorter than their actual useful life. Therefore, the estimation of the useful life of a tangible fixed asset must be also based
on the enterprise's experiences on assets of the same type.
32. Three methods of depreciation of tangible fixed assets are:
Straight-line depreciation method;
Declining-balance depreciation method; and
Units-of-output depreciation method.
By the straight-line depreciation method, the annual depreciation amount is kept unchanged throughout the useful life of
assets. By the declining-balance depreciation method, the annual depreciation amount gradually declines throughout the
useful life of assets. The units-of-output depreciation method is based on the estimated total quantity of product units
the assets may turn out. The depreciation method applied by the enterprises to each tangible fixed asset must be
implemented consistently, except where appear changes in the mode of its use.
The enterprises must not continue depreciating tangible fixed assets which have been entirely depreciated but still used
for production and business operations.
RECONSIDERATION OF USEFUL LIFE
33. The useful life of tangible fixed assets must be reconsidered periodically, usually at the end of the fiscal year. If there
is any considerable change in the estimation of the useful life of assets, the depreciation rate must be adjusted.
6. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 6
34. In the process of using fixed assets, once it has been determined with certainty that the useful life is no longer
suitable, it must be adjusted together with the depreciation rate for the current year and subsequent years, which shall be
expounded in the financial statements. For example: The useful life may be extended as a result of the improvement of
the asset's conditions as compared with their initial standard conditions; technical modifications or changes in the
demands for products produced by a machine may also shorten the useful life of the assets.
35. The tangible fixed asset repair and maintenance regime may help prolong the actual useful life or increase the
estimated liquidation value of assets but the enterprises must not change the depreciation rate of these assets.
RECONSIDERATION OF THE DEPRECIATION METHOD
36. The method of depreciation of tangible fixed assets must be reconsidered periodically, usually at the end of the fiscal
year; if there is any change in the way of using the assets, which brings about benefits for the enterprises, the depreciation
method and rate may be changed for the current year and subsequent years.
SALE AND LIQUIDATION OF TANGIBLE FIXED ASSETS
37. Tangible fixed assets which are liquidated or sold shall be recorded as a decrease.
38. Profits or losses arising from liquidation or sale of tangible fixed assets shall be determined as differences between
incomes and liquidation or sale costs plus (+) the residual value of the tangible fixed assets. These profits or losses shall
be recognized as an income or an expense on the reports on the business results in the period.
PRESENTATION OF FINANCIAL STATEMENTS
39. In their financial statements, the enterprises must present the following information on each type of tangible fixed
asset:
a/ Method of determination of the historical cost of the tangible fixed asset;
b/ Method of depreciation, the useful life or depreciation rate;
c/ The historical cost, accumulated depreciation and residual value at the beginning of the year and at the end of the
period;
d/ A written explanation of the financial statement (the section Tangible Fixed Assets) must cover the following
information:
The historical cost of the tangible fixed asset, any increase and/or decrease in the period;
The depreciated amount in the period, any increase, decrease and the accumulated amount by the end of the
period;
The residual value of the tangible fixed assets mortgaged or pledged for loans;
Investment costs of unfinished capital constructions;
Commitments to the future purchase or sale of tangible fixed assets of big value;
The residual value of tangible fixed assets temporarily not in use;
The historical cost of fully-depreciated tangible fixed assets which are still in use;
The residual value of tangible fixed assets awaiting liquidation;
Other changes in tangible fixed assets.
40. The determination of the depreciation method and the estimation of the useful life of tangible fixed assets bear a
purely presumptive nature. Therefore, the presentation of the applied depreciation methods and the estimated useful life
of tangible fixed assets permits the users of financial statements to examine the correctness of the policies set out by the
enterprise management and have basis for comparison with other enterprises.
7. VAS 03 – TANGIBLE FIXED ASSETS
I Save your time, do for your money I 7
41. The enterprises must present the nature and impact of the changes in accounting estimation which bear a crucial
influence in the current accounting period or subsequent periods. The information must be presented when there arise
changes in the accounting estimates related to the already liquidated or to be-liquidated tangible fixed assets, their useful
life and depreciation methods.