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Depreciation Methods for Firm’s Assets

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Computational Science and Its Applications -- ICCSA 2016 (ICCSA 2016)

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 9788))

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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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Author information

Authors and Affiliations

  1. University of Naples “Federico II”, Piazzale Vincenzo Tecchio, 80125, Naples, Italy

    Vincenzo Del Giudice & Pierfrancesco De Paola

  2. University of Basilicata, Viale dell’Ateneo Lucano, 85100, Potenza, Italy

    Benedetto Manganelli

Authors
  1. Vincenzo Del Giudice
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  2. Benedetto Manganelli
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  3. Pierfrancesco De Paola
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Corresponding author

Correspondence to Benedetto Manganelli .

Editor information

Editors and Affiliations

  1. University of Perugia, Perugia, Italy

    Osvaldo Gervasi

  2. University of Basilicata, Potenza, Italy

    Beniamino Murgante

  3. Covenant University, Ota, Nigeria

    Sanjay Misra

  4. University of Minho, Braga, Portugal

    Ana Maria A.C. Rocha

  5. Polytechnic University, Bari, Italy

    Carmelo M. Torre

  6. Monash University, Clayton, Victoria, Australia

    David Taniar

  7. Kyushu Sangyo University, Fukuoka, Japan

    Bernady O. Apduhan

  8. Saint Petersburg State University, Saint Petersburg, Russia

    Elena Stankova

  9. Beijing University of Posts and Telecommunications, Beijing, China

    Shangguang Wang

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© 2016 Springer International Publishing Switzerland

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Del Giudice, V., Manganelli, B., De Paola, P. (2016). Depreciation Methods for Firm’s Assets. In: Gervasi, O., et al. Computational Science and Its Applications -- ICCSA 2016. ICCSA 2016. Lecture Notes in Computer Science(), vol 9788. Springer, Cham. https://doi.org/10.1007/978-3-319-42111-7_17

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  • DOI: https://doi.org/10.1007/978-3-319-42111-7_17

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-42110-0

  • Online ISBN: 978-3-319-42111-7

  • eBook Packages: Computer ScienceComputer Science (R0)

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