Choosing the best method of depreciating assets and after-tax economic analysis under uncertainty using fuzzy approach

Khalili, Saeed; Mehrjerdi, Yahia Zare; Zare, Hassan Khademi

doi:10.5267/j.dsl.2014.8.001

Cited by 6 publications

(5 citation statements)

References 23 publications

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“…Akan and Kiraci (2023) developed a novel interval type-2 fuzzy depreciation approach and applied in maritime industry. Khalili et al (2014) rewritten some classic methods for calculating depreciation in fuzzy form by using extension principle and α-cut technique. Kahraman and Kaya (2008) presented fuzzy depreciation, fuzzy tax rate, and fuzzy minimum attractive rate of return methods with numerical examples.…”

Section: Literature Reviewmentioning

confidence: 99%

Book depreciation methods under intuitionistic fuzzy environment

Haktanır

2023

Journal of Turkish Operations Management

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In general, depreciation is the monetary value of wear and tear on capital goods inherited from previous years while creating goods and services as a result of production activities. The subject of depreciation is the addition of the loss of value that will occur in the economic values that are thought to be used in a company for more than one year. The most common depreciations methods, straight-line method, declining balance method, and unit-of-production method, are almost always handled with crisp numbers in the literature. However, the uncertainty in the parameters such as initial invest cost, salvage value, and useful life, requires the usage of fuzzy sets to represent the vagueness in these values more realistically. For this purpose, in this study, the depreciation methods are developed under intuitionistic fuzzy environment. The main contribution of this paper to the literature is that it presents the depreciation methods under intuitionistic environment with new equations for the first time. The proposed models are applied to an autonomous trolley problem to illustrate the given approach.

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Section: Literature Reviewmentioning

confidence: 99%

Book depreciation methods under intuitionistic fuzzy environment

Haktanır

2023

Journal of Turkish Operations Management

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“…(1), (2) and (3): D k is the annual depreciation for k th year (k = 1, 2,…., n); P is the purchase price of firm's asset; S is the final salvage value in n th year; n is the asset's useful life expressed in years; D Ã k is the cumulative depreciation for k th year (k = 1, 2,…., n); BV k is the book value for k th year (k = 1, 2,…., n). Due to the uncertainty of parameters n and S, the literature [12] suggests a fuzzy approach for definition of these parameters. At first, on base of Delphi fuzzy method can consider triangular fuzzy numbers for final salvage value and n term [4]:…”

Section: Straight-line Methodsmentioning

confidence: 99%

Depreciation Methods for Firm’s Assets

Giudice

Manganelli

Paola

2016

Lecture Notes in Computer Science

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Abstract. This study focuses on the analytical description of depreciation methods applied to firm's equipments for corporate accounting and balance sheet. Depreciation is a systematic allocation of fixed asset cost over its useful life. Several methods are applied to estimate depreciation cost: Straight-Line Method, Sum of Years Digits Method, Declining Balance Method, Declining Balance Method switched to Straight-Line Method, Interest Methods (Sinking Fund Method and Annuity Method), Usage Methods (Machine Hours Method and Production Units Method), Depletion Method. Each of these depreciation methods have been examined in detail, concluding this work with an analytical and critical comparison between them.

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“…More specifically, it proposes a model for evaluating investments not only in times when cash flows are uncertain, but also in times when depreciation is uncertain. As mentioned above, several studies used fuzzy numbers for cash flow (Berg et al 2001 ; Berg and Moore 1989 ; Khalili et al 2014 ; Samaniego and Sun 2019 ) but in these studies, the depreciation amount was fixed or predictable. However, this is unrealistic for periods when cash flow is completely interrupted such as during the Covid-19 pandemic.…”

Section: Introductionmentioning

confidence: 99%

“…In this study, we developed a novel model for making investment decisions in times when the depreciation amount is uncertain. In a previous study, depreciating assets were included in the fuzzy system (Khalili et al 2014 ), but the IT2FSs approach was not applied in depreciation. As a result, our study varies from others as we integrated the IT2FSs approach into depreciation.…”

Section: Introductionmentioning

confidence: 99%

A novel depreciation approach in an uncertain environment: interval type-2 fuzzy sets in the maritime industry

Akan

Kiracı

2022

Soft Comput

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This study aims to propose a novel model for the determination of depreciation in an environment of uncertainty. In the study, amortization methods were modified through interval type-2 fuzzy, and a new approach was proposed to help investors make decisions in an environment of cash flow uncertainty. We provide options among different depreciation alternatives for the future investment decisions of maritime companies through the revision of the straight-line depreciation method and the double-declining balance depreciation method. The fuzzy depreciation alternatives we suggest in our study are not only suitable for maritime companies, but also companies in different industries.

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Choosing the best method of depreciating assets and after-tax economic analysis under uncertainty using fuzzy approach

Cited by 6 publications

References 23 publications

Book depreciation methods under intuitionistic fuzzy environment

Book depreciation methods under intuitionistic fuzzy environment

Depreciation Methods for Firm’s Assets

A novel depreciation approach in an uncertain environment: interval type-2 fuzzy sets in the maritime industry

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