The enterprises often make investment in order to acquire intangible resources such as the right to

The enterprises often make investment in order to acquire intangible resources such as the right to

Set-up-company-in-vietnam-Vinasc1use land for a definite term, computer software, patent, copyright, aquatic resource exploitation permit, export quota, import quota, right concession permit, business relations with customers or suppliers, customers’ loyalty, market shares, the marketing right…

08. In order to determine whether or not intangible resources specified in paragraph 07 meet the definition of an intangible fixed asset, the following factors shall be considered:

Identifiability, resource controllability and certainty of future economic benefits. If an intangible resource fails to satisfy the intangible fixed asset definition, the costs incurred in the formation of such intangible resource must be recognized as production and business expenses in the period or as pre-paid expenses. Particularly for those intangible resources the enterprises have acquired through enterprise merger of re-purchase character, they shall be recognized as goodwill on the date of arising of the purchase operation (under the regulations in paragraph 46).


09. Intangible fixed assets must be separately identifiable so that they can be clearly distinguished from goodwill. Goodwill arising from the enterprise merger of re-purchase character is shown with a payment made by the asset purchaser in order so as to possibly obtain future economic benefits.

10. An intangible fixed asset is considered identifiable when the enterprises may lease, sell or exchange it or acquire concrete future economic benefits therefrom. Those assets which can only generate future economic benefits when combined with other assets shall be still seen as separately identifiable if the enterprises can determine with certainty future economic benefits to be brought about by such assets.


Transfer-pricing-services211. An enterprise is in control of an asset if it has the right to acquire future economic benefits yielded by such asset and, at the same time, is able to limit other subjects’ access to these benefits. The enterprise’s controllability of future economic benefits from intangible fixed assets, often derives from legal rights.

12. Market knowledge and expertise may bring about future economic benefits. The enterprise may control these benefits if they have legal right, for example: Copyright, aquatic resource exploitation permit.

13. If an enterprise has a contingent of skilled employees and through training, it may ascertain that improvement of their employees’ knowledge would bring about future economic benefits, but it is unable to control these economic benefits, therefore the enterprise cannot recognize such as an intangible fixed asset. Leadership talent and professional techniques shall not be recognized as intangible fixed assets except where these assets are secured with legal rights to use them and acquire future economic benefits and, at the same time, meet all the requirements of the intangible fixed asset definition and recognition criteria.

14. For enterprises which have customers’ name lists or market shares, if they have neither legal rights nor other measures to protect or control economic benefits from the relations with customers and their loyalty, they must not recognize these as intangible fixed assets.

Future economic benefits

15. Future economic benefits yielded by intangible fixed assets for the enterprises may include: Turnover increase, saved costs, or other benefits originating from the use of intangible fixed assets.