Until September 2022, the supplier fixed the errors to sign and handover. Mr. Tuan asked, from what time will your business start depreciating assets?

The Corporate Finance Department, Ministry of Finance responded to this issue as follows:

According to the provisions of Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the regime of management, use and depreciation of fixed assets (fixed assets) as follows:

Point a, Clause 1, Article 4 on determining the historical cost of fixed assets:

"a) Purchased tangible fixed assets:

Historical cost of tangible fixed assets purchased (including new and used purchases): the actual purchase price paid plus (+) taxes (excluding refundable taxes), directly related costs to be paid up to the time when the fixed asset is ready for use, such as: loan interest arising in the process of investment and purchase of fixed assets; costs of transportation, loading and unloading; upgrade costs; cost of installation, test run; registration fees and other directly related costs".

Clause 1, Article 5 on principles of fixed asset management: "1. Every fixed asset in an enterprise must have its own set of documents (including minutes of fixed asset delivery and receipt, contract, fixed asset purchase invoice and other relevant documents and papers). Each fixed asset must be classified, numbered and has its own card, tracked in detail according to each fixed asset recording object and reflected in the fixed asset monitoring record.

Clause 9 Article 9 on the method of depreciation of fixed assets: " 9. Depreciation or withdrawal of depreciation of fixed assets shall be effected starting from the date (according to the number of days of the month) on which the fixed asset increases or decreases. Enterprises shall record the increase and decrease of fixed assets according to current regulations on enterprise accounting regime”.

Clause 3, Article 13 of the method of depreciation of fixed assets: "3. The enterprise shall decide on its own the method of depreciation and the time of depreciation of fixed assets according to the provisions of this Circular and notify the tax authority directly managing it before commencing the implementation".

Accordingly, the depreciation of fixed assets is carried out starting from the date (according to the number of days of the month) that the fixed asset increases, the enterprise shall record the increase in fixed assets according to current regulations on enterprise accounting regime. Enterprises are entitled to decide on their own the time to depreciate fixed assets according to the provisions of Circular 45/2013/TT-BTC and notify the tax authority directly managing them before commencing the implementation.