Accountants are responsible for strictly managing the fixed assets of the enterprise. So how to determine the historical cost of intangible fixed assets in an enterprise? Let’s find out with LawFirm.Vn through the article below.
1. What is the historical cost of intangible fixed assets?
The original price of intangible fixed assets is all the expenses that businesses have to pay to have intangible fixed assets. This asset is counted at the time it is brought into the company for use.
All costs related to intangible fixed assets are incurred immediately after they are initially recorded. Fixed assets will be evaluated to ensure certainty and then it must increase the economic benefits of intangible fixed assets. Compared to the initial level of activity, intangible fixed assets will certainly be reflected in an increase in original price. For costs directly related to intangible fixed assets arising after recognition. These amounts will all be accounted for in production costs.
2. Determine the original price of some intangible fixed assets in the enterprise
2.1. Intangible fixed assets purchased
The original price of purchased intangible fixed assets is determined to be the actual purchase price paid by the buyer. Taxes are added but do not include refunded taxes. Plus directly related expenses that must be paid until the time the fixed asset is put into use.
In the case of fixed assets purchased based on deferred payment, installment payments or the original price of the fixed assets. All fixed assets are purchased based on payment method at the time of purchase.
2.2. Intangible fixed assets are purchased based on exchange
The original price of an intangible fixed asset purchased based on the form of exchange with a dissimilar type of intangible fixed asset is the fair value of the intangible fixed assets received.
Original price of an intangible fixed asset purchased in the form of exchange with a similar fixed asset sold in exchange for ownership of another asset. These are called intangible fixed assets that can be exchanged.
2.3. Determine the original price of intangible fixed assets that are granted, donated, donated, or transferred
The original price of an intangible fixed asset granted, given or presented is considered its initial fair value. Then add related costs to consider whether the fixed assets will be put in and used.
The original price of the intangible fixed asset transferred to: Is the original price recorded in the enterprise’s accounting books. When an enterprise receives transferred assets, it is responsible for accounting for the original price. Besides, consider the factors of depreciation value and remaining value of fixed assets according to regulations.
2.4. Intangible fixed assets are created internally within the enterprise
Determine the original price of fixed assets created within the enterprise. Specifically, the costs are closely related to the construction and production stages. But it is necessary to consider the time when this fixed asset will be put to use as planned.
Particularly for expenses that arise internally as follows. Applicable to businesses that already have a trademark or publishing rights. If the enterprise cannot meet the standards for identifying fixed assets, they will be accounted for as operating expenses during the period.
2.5. Determine the original price of fixed assets as land use rights
Fixed assets are land use rights including the following:
Land use rights assigned by the state are determined as follows. Determine when fees have been collected or legally transferred.
Right to use leased land before the effective date of the Land Law.
The original price of a fixed asset is the land use right determined with all the money spent. The ultimate goal is to use the land legally. Plus some compensation costs for site clearance or leveling. Or it can be determined based on the value of land use rights received as capital.
