Academic literature on the topic 'Component Depreciation method'

Purpose. The aim of the article is generalization of scientists' approaches to the recognition of depreciation as a source of investment resources of agricultural enterprises and development of practical recommendations on the use of depreciation as a component of their own financial resources in order to recreate the material and technical base of farms in the corporate sector of the agrarian economy. Methodology of research. The following general scientific methods are applied in the course of the study: analysis and synthesis of generalized opinions of scientists on the treatment of categories of “depreciation” and “amortization”, concretization and abstraction – in the development of measures to create a unit depreciation and investment fund, systematic and complex approaches to obtaining evidence the roles and locations of depreciation, as sources of investment resources of agricultural enterprises, as well as abstract and logical methods of research – in determining the economic feasibility of indexing fixed assets. Findings. It has been proved that the formation of depreciation charges by agricultural enterprises is an important instrument for stimulating investment activity. It is proposed to exempt from the income tax part of the taxable profit that participates in the formation of the investment financing fund, in the form of indexation of accumulated depreciation, taking into account the level of inflation. It is established that depreciation can be considered in the market economy as a source of financing of capital investments on the basis of its financial component – real funds in the proceeds from the sale of goods (products, works, services), which should be accumulated for the purposeful use. Originality. The feasibility of introducing a production method of depreciation for 4-5 groups of fixed assets in crop production in the formation of costs to determine profit before tax. In order to increase the role of depreciation as a source of updating and modernization of agricultural capital, it is advisable to: develop a new tax strategy, in particular, preferential taxation, introduce an additional tax burden when using depreciation not for the intended purpose; to pursue an active policy of accelerated depreciation and to introduce methods of state control over the targeted use of depreciation; to use the instruments of state support of accumulation of depreciation in the form of real money in deposit or special accounts with banks; to create regional unitary amortization and investment funds with state participation. Practical value. The proposed method of formation of the fund will allow enterprises to store depreciation resources that are directed to reproduction of fixed capital in their indexed value terms that is, taking into account inflation, which will facilitate the conduct of extended reproduction of production by modernization of the technical base. Obviously, such an approach to the formation of a depreciation accumulation fund is possible only with the break-even operation of agricultural enterprises. In the case of an unprofitable operation of the enterprise, depreciation deductions are directed to cover the losses and have no purpose. This means that depreciation for the recovery of property, plant and equipment is absent, which leads to the conclusion about the crisis. Key words: depreciation; investment; agricultural enterprise; reproduction; fixed assets.

SYNOPSIS Traditional depreciation methods used by financial accounting as well as the capacity-based depreciation method recommended by managerial accounting literature assume that assets either lose value due to obsolescence or wear and tear. Recognizing that many assets lose value due to both obsolescence and use, Balakrishnan, Sivaramakrishnan, and Sunder, in the September 2004 issue of Accounting Horizons, propose a granularity framework that creates a nonlinear allocation by simultaneously considering an asset's use-based and time-based losses. However, their approach over-allocates and assigns all resource costs to periods before its usefulness has expired. We introduce several adjustments to the Balakrishnan et al. (2004) methodology with the notion of “flexibility value” and a partitioning of the cost of the acquired resources into a time-based and use-based component that avoids any over-allocation of resource costs. This approach also permits a further partitioning of those expired costs into costs that should be allocated to production or products and costs that should be allocated to periods as cost of unused or idle capacity—that is, to produce more accurate product costs for pricing and planning purposes. Finally, we offer a real-world example for partitioning a resource's acquisition cost into a use-based component and a time-based component.

The article attempts to adapt the BEP analysis methodology to assess the viability of agricultural machinery. It was assumed to treat the machine depreciation cost as a fixed cost, but only to the rational use threshold. Above this threshold, it was considered that depreciation should be calculated using the active method and treated as a variable cost. In this case it’s a technical potential and its wear becomes a bottleneck. In addition, it was considered reasonable to take into account the cost of interest on the capital employed, which would be a fixed cost. So far research on the efficiency of machinery utilization has focused on the quantitative analysis of their use, and the financial aspects are ignored. The proposed use of the BEP methodology allows not only quantitative and qualitative yield thresholds for the analyzed machine, but also the calculation of the limit values of the variable component costs (fuel prices, repairs) and fixed costs (garage, maintenance, interest rates).

I decompose the market value of Colonial New Jersey's paper money into its component parts, namely its real-asset present value and transaction premium. Its market value was predominately determined by its real-asset present value. I also find a small transaction premium that is positively associated with the quantity of paper money in circulation and with the land-bank method of paper money injection. This paper money was not a fiat currency. It traded below face value due to time-discounting not depreciation.

The basis for calculating the cost price of any product, including laboratory tests, is based on an estimate of direct costs of the production. At present, there are no systematic ideas about the structure of such costs, and approaches to their analysis have not been defined, in the management practice of medical laboratories. The purpose of this work was developing and testing a method for analyzing the structure of direct costs and their allocation bases when calculating the cost of a laboratory test. We analyzed data on the volume of laboratory tests performed in the clinical diagnostic laboratory of the National Medical Research Center of Cardiology, prices for purchased reagents and consumables, depreciation and maintenance costs of equipment, staff salaries. As a result, we proposed a typical component structure of direct costs, established the allocation bases of fixed costs, and determined the ratio of some variable cost components to onе product unit cost. On the basis of these concepts, an algorithm for calculating the total direct laboratory (technological) cost per test has been developed, which makes it possible to simulate the cost structure under conditions of arbitrarily specified variables. During the testing of the algorithm, the values of direct costs and the technological cost per test were calculated for billable (ordered) laboratory tests. Comparison of the economic efficiency of various methods, as well as modeling of changes in the cost depending on the volume of testing and the turn-around time (TAT) has been performed. It can be concluded that the approach to creating the tables of the technological cost per test based on dividing direct costs into variable and fixed costs and structuring them by components and allocation bases is an effective tool for medical laboratory management.

The valuation of assets is a relatively challenging activity as well as a scientific discipline having an impact on the amount of the reported assets and economic result process. The report deals with the issue of valuation of the tangible fixed assets in the accounting entities compiling the financial statements pursuant to the Czech national legislation and in conformity with the requirements of the International Accounting Standards IAS/IFRS and US GAAP. The substantial differences in the definitions and valuation of the tangible fixed assets in these systems have been determined, indicating the impact on the economy of the accounting entity, both at the primary acquisition and as at the day of the closing of books. Attention has also been paid to the possibilities of recording the value decreases and to subsequent expenses. The analysis of legal regulations was completed with the analysis of the financial statements from selected economic entities. As per the international standards, the main difference consists in the possibility of component depreciation of tangible assets or, on the other hand, the possibility of group depreciation, in the differences in valuation in the event of acquisition paid for and of acquisition by one’s own production and in the possibility to consider the costs of disposal of assets. The subsequent expenses are also construed in a different manner: as per the Czech regulation, they are construed as repairs and maintenance. The substantial difference in comparison with the Czech regulation consists in the possibility of re-valuation of assets upwards as well as the method of actual value determination.

The valuation of assets is a relatively challenging activity as well as a scientific discipline having an impact on the amount of the reported assets and economic result process. The report deals with the issue of valuation of the tangible fixed assets in the accounting entities compiling the financial statements pursuant to the Czech national legislation and in conformity with the requirements of the International Accounting Standards IAS/IFRS and US GAAP. The substantial differences in the definitions and valuation of the tangible fixed assets in these systems have been determined, indicating the impact on the economy of the accounting entity, both at the primary acquisition and as at the day of the closing of books. Attention has also been paid to the possibilities of recording the value decreases and to subsequent expenses. The analysis of legal regulations was completed with the analysis of the financial statements from selected economic entities. As per the international standards, the main difference consists in the possibility of component depreciation of tangible assets or, on the other hand, the possibility of group depreciation, in the differences in valuation in the event of acquisition paid for and of acquisition by one’s own production, and in the possibility to consider the costs of disposal of assets. The subsequent expenses are also construed in a different manner: as per the Czech regulation, they are construed as repairs and maintenance. The substantial difference in comparison with the Czech regulation consists in the possibility of re-valuation of assets upwards as well as the method of actual value determination.

ABSTRACT This study aims to test and prove the empirical evidence of the Financial Distress Prediction Model of Family Companies in Indonesia with the Beneish Ratio Index. The sample used in this study is a group of family companies in Indonesia which are listed on the Indonesia Stock Exchange with an observation period of 31 December 2014 to 2018. The research method used is a quantitative method with a survey approach for secondary data. The Days Sales in Receivable Index (DSRI), Sales Growth Index (SGI), Sales General and Administrative Index (SGAI), and Leverage Index (LVGI) variables do not differ in the treatment of the Beneish Model components based on the Financial Distress status of the Family Group Company. Variable Gross Margin Index (GMI), Asset Quality Index (AQI), Depreciation Index (DEPI), and Total Accruals to Total Assets Index (TATA) differ in the treatment of the Beneish Model component based on the Financial Distress status of the Family Company Group. This research contributes to the parties concerned with the prediction of financial distress, such as auditors and the government in assessing the potential for financial distress in the company. ABSTRAK Studi ini bertujuan untuk menguji dan membuktikan bukti empiris Model Prediksi Financial Distress Grup Perusahaan Keluarga Di Indonesia Dengan Beneish Ratio Index. Sampel yang digunakan dalam penelitian ini adalah Grup perusahaan keluarga di Indonesia yang terdaftar di Bursa Efek Indonesia dengan periode pengamatan 31 Desember 2014 hingga 2018. Metode penelitian yang digunakan adalah metode kuantitatif dengan pendekatan survey untuk data sekunder. Variabel Days Sales in Receivable Index (DSRI), Sales Growth Index (SGI), Sales General and Administrative Index (SGAI), dan Leverage Index (LVGI) tidak ada perbedaan perlakuan komponen Beneish Model berdasarkan status Financial Distress pada Grup Perusahaan Keluarga. Variabel Gross Margin Index (GMI), Asset Quality Index (AQI), Depreciation Index (DEPI), dan Total Accruals to Total Assets Index (TATA) ada perbedaan perlakuan komponen Beneish Model berdasarkan status financial distress pada Grup Perusahaan Keluarga. Riset ini memberikan panduan kepada pihak-pihak yang berkepentingan terhadap memprediksi financial distress yang akan terjadi dalam perusahaan ataupun industri, pihak yang berkepentingan seperti Auditor dan Pemerintahan. JEL Classification : G32, M41

ABSTRACT This study aims to test and prove the empirical evidence of the Financial Distress Prediction Model of Family Companies in Indonesia with the Beneish Ratio Index. The sample used in this study is a group of family companies in Indonesia which are listed on the Indonesia Stock Exchange with an observation period of 31 December 2014 to 2018. The research method used is a quantitative method with a survey approach for secondary data. The Days Sales in Receivable Index (DSRI), Sales Growth Index (SGI), Sales General and Administrative Index (SGAI), and Leverage Index (LVGI) variables do not differ in the treatment of the Beneish Model components based on the Financial Distress status of the Family Group Company. Variable Gross Margin Index (GMI), Asset Quality Index (AQI), Depreciation Index (DEPI), and Total Accruals to Total Assets Index (TATA) differ in the treatment of the Beneish Model component based on the Financial Distress status of the Family Company Group. This research contributes to the parties concerned with the prediction of financial distress, such as auditors and the government in assessing the potential for financial distress in the company. ABSTRAK Studi ini bertujuan untuk menguji dan membuktikan bukti empiris Model Prediksi Financial Distress Grup Perusahaan Keluarga Di Indonesia Dengan Beneish Ratio Index. Sampel yang digunakan dalam penelitian ini adalah Grup perusahaan keluarga di Indonesia yang terdaftar di Bursa Efek Indonesia dengan periode pengamatan 31 Desember 2014 hingga 2018. Metode penelitian yang digunakan adalah metode kuantitatif dengan pendekatan survey untuk data sekunder. Variabel Days Sales in Receivable Index (DSRI), Sales Growth Index (SGI), Sales General and Administrative Index (SGAI), dan Leverage Index (LVGI) tidak ada perbedaan perlakuan komponen Beneish Model berdasarkan status Financial Distress pada Grup Perusahaan Keluarga. Variabel Gross Margin Index (GMI), Asset Quality Index (AQI), Depreciation Index (DEPI), dan Total Accruals to Total Assets Index (TATA) ada perbedaan perlakuan komponen Beneish Model berdasarkan status financial distress pada Grup Perusahaan Keluarga. Riset ini memberikan panduan kepada pihak-pihak yang berkepentingan terhadap memprediksi financial distress yang akan terjadi dalam perusahaan ataupun industri, pihak yang berkepentingan seperti Auditor dan Pemerintahan. JEL Classification : G32, M41

The high number of Usaha Kecil Menengah (UKM), Low-Middle Business, leads to increase tough competition among them. This competition requires the businessmen to improve efficiency and effectiveness inrunning the business. The purpose of this research is to find out the comparison between production cost structure and unit cost or cost per unit. This research is also aimed at controlling production cost through cost structure analysis, cost control and unit cost control. This is based on production cost accounting which consists of raw material cost, manpower cost, and factory overhead cost. In recording the raw material based on the result of the research. It is necessary to use counting method by applying stock card either FIFO or LIFO. In terms of manpower, cost controlling, which has never been done so far, is in need to do so. This card functions to monitor the arrival and leaving time of the workers. Depreciation cost has not been included in overhead cost, such as supporting material cost, electricity and rental. The utilization time of production equipment will be implemented to calculate the overhead cost of production basic expense (cost). Keywords: Production Cost, Cost Component, Production Basic Expenses (Cost), Unit Cost.

Syftet med denna uppsats är att identifiera vilka konsekvenser som uppstått i och med den praktiska implementeringen av komponentavskrivningarna i bostadsrättsföreningar. För att uppnå studiens syfte har vi utgått från en kvalitativ metod med en abduktiv ansats. Insamlingen av empirin har skett genom semistrukturerade individuella intervjuer från sex stycken ekonomer inom förvaltningsbranchen. Detta material har sedan analyserats med hjälp av teori för att slutligen uppfylla syftet. Vår slutsats är att K3-regelverket medför brister i redovisningen i Bostadsrättsföreningar och att ett nytt regelverk anpassat för den branschen är önskvärt.
The purpose of this paper is to identify the consequences of the practical implementation of ”component depreciations komponentavskrivningarna” in housing cooperatives. To acquire this purpose, we have practice a qualitative method with an abductive hypothesis. When collecting the empirical data we have been conducting semi-structured individual interviews with six economists in the investment management industry. This data has been analyzed, tied to the theological data, to satisfy the purpose The conclusion of this research implies that the implement of the regulation of K3 has caused deficiencies in the accounting in housing associations and that a new regulation, more accommodated to the industry, is desirable.

I början av 2014 infördes ett nytt regelverk för hur företag och ekonomiska föreningar ska avsluta sina räkenskapsår. Inte förrän media började rapportera om problemet tidigare i år har diskussionen satts igång och flera organisationer har gjort uttalande och förenklingar. De har visat sig vara svåra att tolka och implementera och för en del bostadsrättsföreningar kan tillämpningen vara ödesdiger. Valet står mellan två regelverk i det så kallade K-projektet.Syftet med studien är att utifrån bostadsrättsföreningarnas perspektiv utforska vilka faktorer som påverkar och hur de påverkas beroende av redovisningsvalet styrelsen gör. Detta kommer utföras genom att studera ekonomiska förvaltare som förser föreningarna med rekommendationer och information. Studiens problemformulering är därför vilka faktorer påverkar föreningarnas val av regelverk.Studien kommer utgå från ett abduktivt resonemang vilket är väsentligt för en explorativ studie. Tillsammans med teorier om rationella beslut, principal-agent förhållande, intressenter och risk, kommer vi att skapa en förståelse för hur föreningar fattar beslut. För att uppnå detta mål och få en bra helhetsbild kommer vi att utgå från kvalitativa undersökningar med semi-strukturerade intervjuer. För att styrka studiens tillförlitlighet utgick vi ifrån tillförlitliga metoder som är en central del för en god forskning. Vi har varit konsekventa och opartiska där vi utgick från samma material vid samtliga intervjuer för att forskningsfrågan ska anses korrekt framförd.Genom att analysera empirin har vi kunnat skapa exempel på möjliga scenario i resultaträkningar för att enklare kunna göra kopplingar till teorin. Resultatet av studien konstaterade att det är flera faktorer som påverkar valet som styrelsen gör. Det visade sig att styrelsen är beroende av information utifrån och att det finns flera intressenter som har ett egenintresse i valet.
In early 2014 introduced a new framework for how companies and economic associations must end their fiscal year. Not until the media began to report on the issue earlier this year, the debate has been launched and several organizations have made statements and simplifications. They have proven to be difficult to interpret and implement, and for some housing associations, the application may be fatal. The choice is between two sets of rules in the K-project. Depending on the choice that the Board make, the consequences of the different choices differ markedly.The purpose of the study is that the basis of condominium associations' perspective, exploring the factors that influence and how they are affected, depends on the accounting elections board does. This will be carried out by studying financial managers that provide boards with information and recommendations. The problem of the study is therefore what factors affect board election of the regulations.The study will be based on an abductive reasoning which is essential for an exploratory study. Along with theories of rational decisions, the principal- agent relationship, stakeholders and risk, we will create an understanding of how associations make decisions. To achieve this goal and get a good overall picture, we will start from qualitative research with semi-structured interviews. In order to prove the reliability of the study, we started from reliable methods that are a central part of good research. We have been consistent and impartial where we started from the same material at all interviews, to research the matter shall be correctly performed.By analyzing empirical data, we have been able to create examples of possible scenarios in the financial statements for easier linkage to theory. Results of the study found that there are several factors affecting the choice that the board does. It turned out that the Board is dependent on information from outside and that there are multiple stakeholders who have a vested interest in the election.

I början av 2014 infördes ett nytt regelverk för hur företag och ekonomiska föreningar ska avsluta sina räkenskapsår. Inte förrän media började rapportera om problemet tidigare i år har diskussionen satts igång och flera organisationer har gjort uttalande och förenklingar. De har visat sig vara svåra att tolka och implementera och för en del bostadsrättsföreningar kan tillämpningen vara ödesdiger. Valet står mellan två regelverk i det så kallade K-projektet. Syftet med studien är att utifrån bostadsrättsföreningarnas perspektiv utforska vilka faktorer som påverkar och hur de påverkas beroende av redovisningsvalet styrelsen gör. Detta kommer utföras genom att studera ekonomiska förvaltare som förser föreningarna med rekommendationer och information. Studiens problemformulering är därför vilka faktorer påverkar föreningarnas val av regelverk. Studien kommer utgå från ett abduktivt resonemang vilket är väsentligt för en explorativ studie. Tillsammans med teorier om rationella beslut, principal-agent förhållande, intressenter och risk, kommer vi att skapa en förståelse för hur föreningar fattar beslut. För att uppnå detta mål och få en bra helhetsbild kommer vi att utgå från kvalitativa undersökningar med semi-strukturerade intervjuer. För att styrka studiens tillförlitlighet utgick vi ifrån tillförlitliga metoder som är en central del för en god forskning. Vi har varit konsekventa och opartiska där vi utgick från samma material vid samtliga intervjuer för att forskningsfrågan ska anses korrekt framförd. Genom att analysera empirin har vi kunnat skapa exempel på möjliga scenario i resultaträkningar för att enklare kunna göra kopplingar till teorin. Resultatet av studien konstaterade att det är flera faktorer som påverkar valet som styrelsen gör. Det visade sig att styrelsen är beroende av information utifrån och att det finns flera intressenter som har ett egenintresse i valet.
In early 2014 introduced a new framework for how companies and economic associations must end their fiscal year. Not until the media began to report on the issue earlier this year, the debate has been launched and several organizations have made statements and simplifications. They have proven to be difficult to interpret and implement, and for some housing associations, the application may be fatal. The choice is between two sets of rules in the K-project. Depending on the choice that the Board make, the consequences of the different choices differ markedly. The purpose of the study is that the basis of condominium associations' perspective, exploring the factors that influence and how they are affected, depends on the accounting elections board does. This will be carried out by studying financial managers that provide boards with information and recommendations. The problem of the study is therefore what factors affect board election of the regulations. The study will be based on an abductive reasoning which is essential for an exploratory study. Along with theories of rational decisions, the principal- agent relationship, stakeholders and risk, we will create an understanding of how associations make decisions. To achieve this goal and get a good overall picture, we will start from qualitative research with semi-structured interviews. In order to prove the reliability of the study, we started from reliable methods that are a central part of good research. We have been consistent and impartial where we started from the same material at all interviews, to research the matter shall be correctly performed. By analyzing empirical data, we have been able to create examples of possible scenarios in the financial statements for easier linkage to theory. Results of the study found that there are several factors affecting the choice that the board does. It turned out that the Board is dependent on information from outside and that there are multiple stakeholders who have a vested interest in the election.

This work is focused od Tangible Current Assests according to the IFRS with the emphasis on IAS 16 - Property, Plant and Equipment. It involves recognition, measurement, depreciation and also disclosure of this Assests. All the parts are described at great lenght and explained by practical examples. IAS 40 - Investment Property and IFRS 5 - Non-Current Assests Held for Sale and Discontinued Operations are also mentioned. The end of the work is devoted to research of 15 companies with the aim to find out, how the theory determined by Standards is functioned in practice.

Cost estimation techniques for Additive Manufacturing (AM) have limited synchronization with the metadata of 3D CAD models. This paper proposes a method for estimating AM build costs through a commercial 3D solid modeling program. Using an application programming interface (API), part volume and surface data is queried from the CAD model and used to generate internal and external support structures as solid-body features. The queried data along with manipulation of the part’s build orientation allows users to estimate build time, feedstock requirements, and optimize parts for AM production while they are being designed in a CAD program. A case study is presented with a macro programmed using the SolidWorks API with costing for a metal 3D-printed automotive component. Results reveal that an imprecise support angle can under-predict support volume by 34% and build time by 20%. Orientation and insufficient build volume packing can increase powder depreciation costs by nearly twice the material costs.