ISSN : 1229-6783(Print)
ISSN : 2288-1484(Online)
ISSN : 2288-1484(Online)
Journal of the Korea Safety Management & Science Vol.16 No.2 pp.217-230
DOI : https://doi.org/10.12812/ksms.2014.16.2.217
DOI : https://doi.org/10.12812/ksms.2014.16.2.217
감가상각모형의 유형화에 기초한 적용방안
Implementation Strategy Based on the Classification of Depreciation Models
Received April 20, 2014; Revision Received June 19, 2014; Accepted June 19, 2014.
Abstract
The purpose of this study is to develop the Generalized Depreciation Function (GDF) and WinfreyDepreciation Function (WDF) by reviewing methods for the depreciation accountings. The DepreciationAccounting Models (DAM), including straight-line model, declining-balance model, sum-of-the-year-digit modeland sinking fund model presented in this paper, are reclassified into the charging pattern of increasing type,decreasing type and constant type. This paper also discusses the development of the GDFs based on convextype, concave type and constant type according to the demand pattern of product, frequency of plant usage,deterioration of time, relative inadequacy, Capital Expenditure (CAPEX) and Operating Expenditure (OPEX) ofthe Total Productive Maintenance (TPM). The WDFs presented in this paper depict a sudden degradation ofplant performance by measuring the change of TPM activity at the midpoint of useful life of asset. The WDFsare classified into left-modal type, symmetrical type and right-modal type by varying the value of skewnessand kurtosis. Moreover, three increasing patterns, such as convex, concave and linear types, are used in thispaper to present the distinct identification of WFDs by using Instantaneous Depreciation Rate (IDR) in terms ofPerformance Depreciation Function (PDF) and Depreciation Density Function (DDF). In order to have betterunderstanding of depreciation models, the numerical examples are used for evaluating the Net Operating LessAdjusted Tax (NOPLAT) and Economic Value Added (EVA). It is concluded that the depreciation modelsshowing a large dispersion of EVA require the adjustment of NOPLAT and Invested Capital (IC) based on theobjective cash basis and net operating activity for reducing the variation of EVA.
Reference
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32. www.fnnews.com
33.www.bok.or.kr
2.Choi S. (2005), "Implementation of Reliability Measure and Distribution", Journal of Korea Safety Management and Science, 7(5):175-184.
3.Choi S. (2013), "The Linkage Strategies Between Productivity Metrics and Financial Accounting Metrics in TPM and PAC Activities", Journal of Korea Safety Management and Science, 15(3):151-161.
4.Choi S. (2014), "Development and Implementation of Extension Models for Activity-Based Costing", Journal of Korea Safety Management and Science, 16(1):239-250.
5.Choi S. (2014), "Review of Retirement Function Measures for Estimating Capital Stocks", Proceeding of Spring Conference, Korea Safety Management and Science.
6.Cross T., Perry G.M., "Depreciation Patterns for Agricultural Machinery", American Journal of Agricultural Economics, 77(1):194-204.
7.Dhaliwal D.S., Salamon G.L., Smith E.D.(1982), "The Effect of Owner Versus Management Control on the Choice of Accounting Methods", Journal of Accounting and Economics, 4(1):41-53.
8.Hagerman R.L., Zmijewski M.E.(1979), "Some Economic Determinants of Accounting Policy Choice", Journal of Accounting and Economics, 1(2):141-161.
9.Han D. Suh S.(1996), "Evaluation of Farm Machinery Stock Based on Depreciation Patte rns", Korean Journal of Agricultural Policy, 23(1) :115-135.
10.Healy P.M.(1985), "The Effect of Bonus Schemes on Accounting Decisions", Journal of Accounting and Economics, 7(1-3):85-107.
11.Holthausen R.W., Leftwich R.W.(1983), " The Economic Consequences of Accounting Choice Implications of Costly Contracting and Monitoring", Journal of Accounting and Econom ics, 5(1):77-117.
12.Hulten C.R. (1981), Depreciation Inflation & the Taxation of Income from Capital, Urban Institute Press.
13.Hulten C.R., Wykoff F.C. (1981), "The Estimation of Economic Depreciation Using Vin tage Asset Prices", Journal of Econometrics, 15(3):367-396.
14.Hwang J., Lee C.(2002),"A Predictive Model for the Service Life of Building Based on It's Performance", Journal of the Architectural Institute of Korea, 18(10):93-100.
15.Jensen M.C., Meckling W.H. (1976), "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure", Journal of Financial Economics, 3(4) : 305-360.
16.Kim E., Kim M., Lee J. (2004), Value Based Management & EVA, Hyunhaksa.
17.Marton A., Winfrey R., Hempstead J.C. (1975), Engineering Valuation and Depreciation, 2 Edition, Iowa State Press.
18.Morek R., Shleifer A., Vishny R.W. (1988), "Management Ownership and Market Caluation : An Empirical Analysis", 20(1-2):293-315.
19.Niehaus G.R. (1989), "Ownership Structure and Inventory Method Choice", The Accounting Review, 64(2):269-284.
20.Nelson R.A., Gaputo M.R. (1997), "Price Chang es, Maintenance, and the Rate of Depreciation", The Review of Economics and Statistics, 79(3):422-430.
21.Osteryoung J.S., McCarty D.E., Forin K. (1980), "A Note on the Optimal Tax Lives for Assets Qualifying for the Investment Tax Credit", The Accounting Review, 55(2) : 301-306.
22.Park Y. (2003), "An Empirical Study on the Relationship Between Ownership Structure and Depreciation Method Choice", Journal of Taxation and Accounting, 4(1) : 219-263.
23.Penson J.B., Hughes Jr.W., Nelson G.L. (1977), "Measurement of Capacity Depreciation Based on Engineering Data", American Journal of Agricultural Economics, 59(2) : 321-329.
24.Penson J.B., Romain Jr.R.F., Hughes Jr.W. (1981), "Net Investment in Farm Tractors : An Economic Analysis", American Journal of Agricultural Economics, 63(4) : 629-635.
25.Perry G.M., David G.J. (1990), "Durable Asset Depreciation : A Reconciliation Between Hypoth eses", The Review of Economics and Statistics", 72(3) : 524-529.
26.Skinner D.J. (1993), "The Investment Opport unity Set and Accounting Procedure Choice : Preliminary Evidence", Journal of Accounting and Economics, 16(4) : 407-445.
27.Sohn J. (2009), "Consideration to the Deprecia tion Method Using Accumulated Depreciation Rate Function", Journal of the Korea Contents Society, 9(1) : 302-311.
28.Stewart B. (2013), Best Practice EVA : The Definite Guide to Measuring and Maximizing Shareholder Value, John Wiley & Sons, Inc.
29.Watts R.L., Zimmerman J.L. (1978), "Towar ds a Positive Theory of the Determina tion of Accounting Standards", The Accounting Review, 53(1) : 112-134.
30.Winfrey R. (1935), Statistical Analyses of Industrial Property Retirements, Bulletin 125, Iowa Engineering Experiment Station, Iowa State College of Agriculture and Mechanics Arts Official Publication.
31.Yi H., Park S. (2012), "The Relation Between Stakeholder's Claims and Firm's Depreciation Method Choices", Journal of Taxation and Accounting, 13(3) :141-170.
32. www.fnnews.com
33.www.bok.or.kr
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