Phương pháp khấu hao và ứng dụng tại Việt Nam

Depreciation, or the allocation of the cost of an asset over its useful life, is a crucial concept in accounting. It reflects the decrease in value of an asset due to wear and tear, obsolescence, or other factors. Different countries may use various methods to calculate depreciation, and in Vietnam, the most common method employed is the straight-line depreciation method. The straight-line depreciation method is straightforward and widely used because of its simplicity. It involves dividing the cost of the asset by its useful life to determine the annual depreciation expense. This method assumes that the asset depreciates evenly over time, resulting in a constant depreciation amount each year. In Vietnam, businesses typically apply the straight-line depreciation method to their assets for financial reporting purposes. By spreading the cost of the asset evenly over its useful life, this method helps companies accurately reflect the consumption of the asset's economic benefits each year. It also simplifies financial calculations and ensures consistency in reporting practices. Overall, the straight-line depreciation method is a practical and effective approach to managing asset depreciation in Vietnam. By understanding and applying this method correctly, businesses can maintain accurate financial records and make informed decisions regarding asset management and replacement.