Accounting Guidance for Fixed Asset Depreciation from Service Revenue Sources Under Circular 24/2024/TT-BTC Transition
RegHub explainer by New MarketerLast updated:
Based on:Thông tư số 107/2017/TT-BTC; Thông tư số 24/2024/TT-BTC - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
The Ministry of Finance clarifies how public service units (category 3, with 10-30% self-financing) should handle the accounting transition for fixed assets purchased from service revenue before 31 December 2024, as they move from Circular 107/2017/TT-BTC to Circular 24/2024/TT-BTC. Under Circular 107/2017, the residual value of fixed assets was tracked on separate accounts by funding source (accounts 3661, 3662, 3663, 43142, 421, etc.). The unit must identify which account currently carries the residual value of fixed assets purchased from service revenue as of 31 December 2024. The absence of a balance on Account 366 does not mean the source is missing - the unit must trace which accounting account reflects that residual value, then transfer the corresponding source balance to Account 421 and continue accounting under Circular 24/2024/TT-BTC from fiscal year 2025.
Background
A category-3 public service unit (10-30% self-financing) purchased fixed assets from service revenue under Circular 107/2017/TT-BTC (recorded as Debit 211/Credit 112, bypassing Account 366; depreciation recorded as Debit 154/Credit 214). When transitioning to Circular 24/2024/TT-BTC, the unit found no balance on Account 421 to transfer depreciation expense to the Business Development Fund.
Ministry of Finance Guidance
1. Under Circular 107/2017/TT-BTC
The residual value of fixed assets acquired from different funding sources was tracked on separate accounts by source:
- Account 3661: State budget
- Account 3662: Foreign aid and loans
- Account 3663: Retained fees
- Account 43142: Development fund
- Account 421: Other sources (potentially including service revenue)
2. Under Circular 24/2024/TT-BTC
The residual value of fixed assets from all sources is now tracked uniformly on Account 421 - Cumulative Surplus (Deficit).
3. Implementation Steps
- The unit must identify which account currently carries the residual value of fixed assets purchased from service revenue as of 31 December 2024 under Circular 107/2017.
- Absence of a balance on Account 366 does not mean the source is missing - it may be recorded in a different account (e.g., Account 421).
- Once identified, transfer the corresponding source balance to Account 421.
- From fiscal year 2025, continue accounting under Circular 24/2024/TT-BTC.
Legal basis: Circular 107/2017/TT-BTC dated 10/10/2017; Circular 24/2024/TT-BTC dated 17/4/2024.