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Classification of enterprise’s fixed assets
Classification of enterprise’s fixed assets
- Legal Basis
- Circular No. 45/2013/TT-BTC of the Ministry of Finance dated April 25 2013 guilding regulation on management, use and depreciation of fix assets (Amended by Circular No. 147/2016/TT-BTC dated October 23 2016).
- Classification of enterprise’s fixed assets
2.1. What is enterprise’s fixed assets
Tài sản cố định là tài sản có thời gian sử dụng cố định và khấu hao theo thời gian, phù hợp với các quy định của pháp luật, bao gồm:
Intangible fixed assets
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
Tangible fixed assets
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
Fixed assets of financial leasing
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.
2.2. Classification of enterprise’s fixed assets
Tangible fixed assets shall be classified as follows:
Type 1: Housing and structures: are the enterprise’s fixed assets formed after the construction process, such as office, warehousing, fences, water towers, open storages, house-decorating works, roads, bridges, railways, airfields, piers, wharves, docks and slipways.
Type 2: Machinery and equipment: are all types of machinery and equipment used in the business activities of the enterprise such as specialized machinery, working equipment, drilling rigs in the oil and gas sector, cranes, technological lines, single machines.
Type 3: Means of transport, transmission equipment are types of means of transportation including railways, water ways, roads, airways, pipeline and transmission equipment like information systems, electricity systems, plumbing, conveyors, airducts.
Type 4: Management equipment and tools: are equipment and tools used in the management of the operation of the enterprise such as computers serving the management, electronic equipment, equipment and tools for measurement and quality inspection, dehumidifiers, vacuum cleaners, anti-termite machines.
Type 5: Perennial orchards, animals performing tasks and/or giving products includes perennial orchards like coffee plantations, tea plantations, rubber plantations, orchards, lawns, greencarpets, etc.; animals performing tasks and/or giving products like eleplant, horse, buffalo, bovine animals, etc.
Type 6: Fixed assets being infrastructural works with high value which are invested by the State budget and allocated to economic organizations for management, development and use, including:
- Fixed assets being machinery and equipment, production lines, properties made of concrete and land of constructions directy serving the irrigation (like lake, dam, channel or canal); water pumps with a capacity of 8,000 m3 per hour and structures used for operating constructions which are allocated to wholly state-owned single-member limited liability companies for management and development to carry out business operation to serve public services;
- Fixed assets being industrial zones’ infrastructual constructions invested by the State, including internal roads, lawns, verdures, lighting systems, sewage systems, etc.; and
- Fixed assets being railway infrastructure, urban railways (including tunnels, overhead roads, railway, etc.).
Type 7: Other fixed assets, which are all of other fixed assets which have not been classified into the abovementioned types.
Intangible fixed assets shall be classified as follows:
- Land use rights as stipulated in Clause 2, Article 4 of Circular No. 45/2013/TT-BTC.
- Issuance right
- Patent, inventions
- Literature, works of art, science
- Products, results of art performance
- Video and audio recordings
- Broadcasting programs
- Satellite signals carrying coded programs
- Industrial designs
- Designs of semiconductor integrated circuits
- Business secrets
- Trademarks, trade names and geographical indications
Plant varieties and breeding material.