When determining the useful life of an intangible fixed asset
When determining the useful life of an intangible fixed asset as basis for calculating depreciation, the following factors must be taken into account:
a/ The estimated usage of the asset;
b/ The life circle of products and general information on the estimates related to the useful life of identical types of fixed assets which are used under similar conditions.
c/ Technical or technological obsoleteness;
d/ Stability of the sector using this asset and the change in the market demand for products or the provision of services brought about by such asset;
e/ Projected activities of existing or potential competitors;
f/ Necessary maintenance cost;
g/ The asset control period, legal constraints and other constraints in the process of using the asset;
h/ The dependence of the useful life of the intangible fixed asset on other assets in the enterprise.
56. For computer software and other intangible fixed assets which may become technically obsolete rapidly, their useful life is often shorter.
57. In some cases, the useful life of intangible fixed assets may exceed 20 years upon reliable evidences but must be specified. In this case, the enterprises must:
a/ Depreciate the intangible fixed assets according to their most accurately-estimated useful life;
b/ Justify the reasons for the estimation of the assets’ useful life in the financial statements.
Tin liên quan
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GIẤY PHÉP THÀNH LẬP VĂN PHÒNG ĐẠI DIỆN (TT)
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The duration of authorization of each representative, including the beginning date;
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Responsibilities of the enterprise’s legal representative
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Reporting changes to information about the enterprise’s manager
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Criteria, rights and obligations of social enterprises
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Do accounting, make and submit truthful financial statements in a timely manner according to regulations of law on accounting and statistics.
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State assurance about enterprises and owners of enterprises
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Subsidiaries are related person of the parent company in the same group
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Application of the Law on Enterprises and specialized laws
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Acceptance of leased goods