How to determine the value of public assets?

Assets being tracked in accounting books shall be valued based on the original price and remaining value of the assets in the accounting books at the time of inventory. Source: Internet.

Determining the value of assets based on related records

According to the Ministry of Finance, for assets being tracked in accounting books, the value of assets shall be determined based on the original price and remaining value of the assets in the accounting books at the time of inventory. The head of the entity conducting the inventory shall be responsible for the accuracy of the original price and remaining value of the assets in the accounting books at the time of inventory.

However, for assets not yet tracked in accounting books, the entity conducting the inventory shall be responsible for determining the original price and remaining value of the assets based on the records related to the assets. Accordingly, for fixed assets at agencies, organizations, units, tangible fixed assets formed from purchase with records determining the purchase price and the time the asset is put into use, the original price is determined according to the provisions in Clause 1, Article 6 of Circular No. 23/2023/TT-BTC of the Ministry of Finance; for tangible fixed assets formed from construction investment with records determining the construction price and the time the asset is put into use, the original price is determined according to the provisions in Clause 2, Article 6 of Circular No. 23/2023/TT-BTC of the Ministry of Finance. As for tangible fixed assets without records determining the purchase price or construction price of that asset but there is a basis for determining the time of putting the asset into use and the new purchase price of the same type of asset or the new construction price of the asset with equivalent technical standards at the time of putting the asset into use (documents related to acceptance, putting the asset into use; minutes of handover and receipt of assets; original price of equivalent assets already accounted for;...), the original price is determined according to the provisions in Point a2, Clause 5, Article 6 of Circular No. 23/2023/TT-BTC of the Ministry of Finance.

Also according to the Ministry of Finance, for specific fixed assets, the original price and residual value are determined according to the conventional price of VND 10 million/unit of asset. For intangible fixed assets being land use rights, the original price is determined according to the provisions in Clause 1, Article 7 of Circular No. 23/2023/TT-BTC; the remaining value is determined by the original price. Meanwhile, for intangible fixed assets other than land use rights, in case there is a basis (invoices, documents, approved estimates, settlement, etc.) to determine the cost of forming the intangible fixed asset, the original price is determined as the total cost of forming that intangible fixed asset.

Assets are valued at 1 VND when there is no basis for determining the value

For assets that have not been tracked in the accounting books and there is no basis for determining the original price and remaining value of the assets according to the above instructions, the Ministry of Finance stipulates that the original price and remaining value of the assets are determined at 1 VND. In case these assets are infrastructure assets with investment in upgrading, repairing, expanding, and renovating according to a project approved by a competent agency or person and the project is completed and accepted from January 1, 2018 to December 31, 2024, information on "Investment value in upgrading, expanding, and renovating" shall be supplemented in the Inventory Minutes and Inventory Results Report.

The investment value in upgrading, expanding, and renovating is recorded as the value according to the settlement approved by a competent agency or person; In case of completion and acceptance but no settlement, the following order of priority shall be determined: settlement verification value; proposed settlement value; value determined according to the A-B acceptance report; value according to the most recently signed contract or adjusted contract; total investment value or approved project estimate or most recently adjusted project estimate (in case the project estimate is adjusted).

Original price and remaining value determined according to the instructions shall be used to serve the general inventory and as a basis for agencies, organizations and units to perform asset accounting according to regulations. For assets that have not been monitored in accounting books and there is no basis to determine the original price and remaining value, the determination of the original price and remaining value of the asset after completing the inventory to perform accounting shall be carried out according to the provisions of law corresponding to each type of asset (if any).

According to the Ministry of Finance, the entities conducting the inventory are responsible for reporting the inventory results to the superior agency, organization, unit or the agency responsible for synthesizing the inventory results. The superior management agency is responsible for synthesizing the inventory results of assets under its management and the inventory results of subordinate agencies, organizations, units and enterprises to report to the agency responsible for synthesizing the inventory results.