On April 12, 2017, the Ministry of Finance issued Circular No. 28/2017/TT-BTC amending and supplementing a number of articles of the Circular No. 45/2013/TT-BTC dated April 25, 2013 and the Circular No. 147/2016/TT-BTC dated October 13, 2016 guiding the management, use and depreciation of fixed assets.
According to this Circular, for assets being houses used for both doing businesses for enterprises and selling or leasing as stipulated by the law, enterprises shall determine and make a specific account for each part of the house by purposes of using.
Specifically, for value of the asset (area) of the house used for doing businesses of the enterprise and used for leasing, the enterprise shall write down the value of the asset as the fixed asset, management, use and depreciation of fixed assets shall be processed as stipulated. For value of the asset (area) in the complex house that is used for selling, the enterprise shall not write down as the fixed asset and shall not depreciate and supervise it as an asset for sale.
In case enterprises have complex houses but they can’t determine value of the asset (area) to serve for doing business, used for sale and leasing, the enterprise shall not make an account for the entire value of the asset (area) being fix assets and shall not depreciate it as stipulated.
For assets used related to work of the complex house such as playground, roads, parking areas, the determination of each kind of assets and depreciation value shall be allocated according to procedures to determine value of each kind of assets and allocation of depreciation of the complex house.
This Circular takes effect on May 26, 2017 and applies from the financial year 2016.
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