ORDER OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF TAJIKISTAN

of January 11, 2002 No. 6

About approval of the Accounting regulation "Fixed asset accounting" PBU 4/2002

1. Approve the enclosed Accounting regulation "Fixed asset accounting" PBU 4/2002.

2. Declare invalid the order of the Ministry of Finance of the Republic of Tajikistan of April 10, 2001 No. 64 about approval of the Accounting regulation "Fixed asset accounting" PBU 4/2001 (the order is registered in the Ministry of Justice of the Republic of Tajikistan of August 9, 2001 No. 32).

3. This Provision becomes effective since January 1, 2002.

Approved by the order of the Ministry of Finance of the Republic of Tajikistan of January 11, 2002 No. 6

Accounting regulation "Fixed asset accounting" PBU 4/2002

I. GENERAL PROVISIONS

1. This Provision establishes rules of forming in financial accounting of information on fixed assets of the companies. The company is understood further as the legal entity by the legislation of the Republic of Tajikistan (except for bank and budgetary institutions).

2. This Provision is applied also to profitable investments in material values.

3. This Provision is not applied in the relation:

the machines, the equipment and other similar objects which are registered as finished products in warehouses manufacturers as goods in the warehouses of the company performing trading activity;

the objects which are handed over in installation or subject to installation, being en route;

capital and financial investments.

4. For the purposes of this provision in case of acceptance to financial accounting of assets as fixed assets simultaneous accomplishment of the following conditions is necessary:

a) use in production, in case of performance of works or rendering services or for managerial needs;

b) use for a long time, i.e. useful life, lasting over 12 months or normal operating cycle if it exceeds 12 months;

c) the company does not suppose the subsequent resale of these assets;

d) bring capability to the company economic benefits (income) in the future.

Useful life is the period during which use of fixed asset object brings in the income to the company. For separate groups of fixed assets the useful life is determined proceeding from the product quantity (amount of works in kind) expected to obtaining as a result of use of this object.

5. Treat fixed assets: buildings, constructions, working and power machines and the equipment, the measuring and regulating devices and devices, computer facilities, vehicles, the tool, production and economic stock and accessories, the working, productive and breeding cattle, long-term plantings, intraeconomic roads and other corresponding objects.

As a part of fixed assets are considered also: capital investments on radical improvement of lands (drying, irrigating and other meliorative works); capital investments in leased fixed asset objects; parcels of land, objects of environmental management (water, subsoil and other natural resources).

6. Unit of financial accounting of fixed assets is inventory object. Inventory fixed asset object object with all devices and accessories or the separate structurally isolated subject intended for accomplishment of certain independent functions, or the isolated complex of structurally jointed objects representing whole and intended for accomplishment of certain work is recognized. The complex of structurally jointed objects are one or several objects of one or of different function, the having general devices and accessories, general management. mounted on one base therefore each subject entering complex can perform the functions only as a part of complex, but not independently.

In case of availability at one object it is several parts having different useful life, each such part is considered as independent inventory object.

The fixed asset object which is in property of two or several companies is reflected each company as a part of fixed assets in proportion to its share in common property.

II. ASSESSMENT OF FIXED ASSETS

7. Fixed assets are accepted to financial accounting on original cost.

8. In original cost of the fixed assets acquired for a fee the amount of actual costs of the company on acquisition, construction and production except for of the value added tax and other recoverable taxes is recognized (except cases, stipulated by the legislation the Republic of Tajikistan).

Actual costs on acquisition, construction and production of fixed assets are:

the amounts paid according to the agreement to the supplier (seller);

the amounts paid to the companies for implementation of works on the construction contract and other agreements;

the amounts paid to the companies for the information and consulting services connected with acquisition of fixed assets;

the registration fees, the state fees and other similar payments made in connection with acquisition of rights (obtaining) of the rights to fixed asset object; customs duties;

the non-refundable taxes paid in connection with acquisition of fixed asset object; the remunerations paid to the intermediary companies, and the organizations through whom the fixed asset object is acquired;

other costs which are directly connected with acquisition, construction and production of fixed asset object. In particular, the percent on borrowed funds added before acceptance of fixed asset object to financial accounting if they are attracted to acquisition, construction or production of this object.

General running and other similar costs do not join in actual costs on acquisition, construction or production of fixed assets, except cases when they are directly connected with acquisition, construction or production of fixed assets.

Actual costs on acquisition and construction of fixed assets are determined (decrease or increase) taking into account the amount-based differences arising in cases when payment is made in somoni in the amount equivalent to foreign currency amount (conventional monetary units). The amount-based difference is understood as difference between somoni, expressed in foreign currency (conventional monetary units) of accounts payable on the payment of fixed asset object estimated on the official or other approved rate on its acceptance date to financial accounting and estimates in somoni of this accounts payable estimated on the official or other, approved rate for date of its repayment.

9. In original cost of the fixed assets deposited on account of contribution to the authorized (share) capital of the companies their money value approved by founders (participants) of the companies is recognized if other is not stipulated by the legislation the Republic of Tajikistan.

10. In original cost of the fixed assets received by the company for the gift agreement (gratuitously) their current market value on acceptance date to financial accounting is recognized.

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