Depreciation Expense Research Articles

Hierarchical quantitative prediction of photovoltaic power generation depreciation expense based on matrix task prioritization considering uncertainty risk

In order to provide a reliable basis for the cost management of photovoltaic power generation, it is necessary to accurately predict the depreciation expense of photovoltaic power generation. Therefore, a hierarchical quantitative prediction method of photovoltaic power generation depreciation expense based on matrix task prioritization considering uncertain risks is proposed. Based on the conditional value-at-risk theory, a more comprehensive risk measure than VaR is provided, and the uncertainty risk value of photovoltaic power generation is calculated by considering the average loss exceeding this loss value. According to the calculated risk value, a double-layer photovoltaic power generation cost planning model is constructed, the upper and lower objective functions of the model are determined, and the constraint conditions are designed; Obtain a cost planning objective function solution base on a matrix task prioritization method, and generating a prioritization table; Prediction of photovoltaic power generation depreciation expense based on long-short memory neural network for each solution in the sorting table. In practical application, the test results show that this method can complete the risk quantitative analysis of uncertain factors, and the tracking ability and fitting degree of prediction are good; An ordered list of solutions of each objective function can be generated; The method in this paper is used to predict the depreciation expense of photovoltaic power generation in the first 10 solutions of priority ranking, and the maximum deviation of the prediction result is -0.65 million yuan.

Sustainable Optimization of Mold Heating: A Dual Approach with SWARA and MARCOS Methods

There are many methods and raw materials used in the manufacture of Fiber Reinforced Plastics (FRP) by hot molding, such as Sheet Molding Compound (SMC), Bulk Molding Compound (BMC), and Prepreg fabrics. In most applications, it is common practice to insert the new dough into the mold without cooling it, then re-press and cure. Placing the mold in the dough without cooling causes the surface of the molded product to cure faster than the inner region, resulting in a structurally discontinuous structure in the product. Therefore, in more professional production, the mold is lowered to around 120 oC and the dough is poured into the mold at this stage. However, this increases energy consumption and carbon emissions for the heating and cooling phases. This study investigated the energy efficiency of the production of FRP using the hot-pressing process. At the end of this study, by using alternative energy methods in the manufacturing processes, results such as investment costs, depreciation costs, reductions in bills, and carbon emissions were achieved. To find the best alternative from these results, the criteria weights were determined using SWARA, and the alternatives identified were ranked using the MARCOS method. As a result of this ranking, the best alternative was determined to be a 40 kWh battery and a 25 kW solar panel option among the solar panel power and battery capacity alternatives.

Cost-effectiveness of Dual Hypothermic Oxygenated Machine Perfusion Versus Static Cold Storage in DCD Liver Transplantation.

Ex situ machine perfusion of the donor liver, such as dual hypothermic oxygenated machine perfusion (DHOPE), is increasingly used in liver transplantation. Although DHOPE reduces ischemia/reperfusion-related complications after liver transplantation, data on cost-effectiveness are lacking. Our objective was to evaluate the cost-effectiveness of DHOPE in donation after circulatory death (DCD) liver transplantation. We performed an economic evaluation of DHOPE versus static cold storage (SCS) based on a multicenter randomized controlled trial in DCD liver transplantation (DHOPE-DCD trial; ClinicalTrials.gov number, NCT02584283). All patients enrolled in the 3 participating centers in the Netherlands were included. Costs related to the transplant procedure, hospital stay, readmissions, and outpatients treatments up to 1 y posttransplant were calculated. The cost for machine perfusion was calculated using 3 scenarios: (1) costs for machine perfusion, (2) machine perfusion costs plus costs for personnel, and (3) scenario 2 plus depreciation expenses for a dedicated organ perfusion room. Of 119 patients, 60 received a liver after DHOPE and 59 received a liver after SCS alone. The mean total cost per patient up to 1 y posttransplant was €126 221 for the SCS group and €110 794 for the DHOPE group. The most significant reduction occurred in intensive care costs (28.4%), followed by nonsurgical interventions (24.3%). In cost scenario 1, DHOPE was cost-effective after 1 procedure. In scenarios 2 and 3, cost-effectiveness was achieved after 25 and 30 procedures per year, respectively. Compared with conventional SCS, machine perfusion using DHOPE is cost-effective in DCD liver transplantation, reducing the total medical costs up to 1 y posttransplant.

The Impact of Capital Lease Implementation on Corporate Financial Statements: Theoretical Analysis and Case Studies

This article explores the concept of capital lease in accounting and its implications for a company's financial statements. A capital lease, also known as a finance lease, is recognized as both an asset and a liability on a company's balance sheet. This research discusses the differences between capital lease and operating lease, as well as their impacts on a company's financials. Through literature review and case study analysis, this article provides insights into the advantages and challenges companies face when implementing capital leases. The findings suggest that while capital leases strengthen balance sheets by recognizing assets and liabilities, they also affect profitability through higher interest and depreciation expenses. Proper understanding and management of these implications can help companies make more informed financing decisions.

Taxable Business Income in Palestine: Tax Treatment in Palestine for Depreciation Expense for Assets vs. Accounting Treatment According to International Accounting Standards

Accounting is the source of information that any facility's relevant body requires in order to make economic judgments because it arranges the facility's financial reports regularly. The administration, for example, benefits from financial accounting findings because it uses them to plan, direct, and supervise financial operations. Additionally, it oversees and decides on the affairs of lenders, investors, governmental organizations, and scientific research institutions [3] There is a need for unified accounting standards to govern measuring and releasing information whenever financial reports are made in the age of globalization, the expansion of global marketplaces, and the beginning of the industrial revolution. Beneficiaries will be able to quickly compare them to assess and evaluate financial reports and make the most accurate decisions. In 1973, the International Accounting Standards Committee (IASC) issued the first international standards, the International Accounting Standards (IAS). They also wanted to make global business comparisons easier, increase transparency, and restore faith in financial reports. Later, the International Financial Reporting Standards (IFRS) replaced the International Accounting Standards (IAS) [9]. Moreover, the primary goals of commercial accounting and taxation are not the same. The former requires a straightforward representation of the actual data because it involves gathering information to monitor and make decisions; the latter—even though its primary goal is to increase revenue is frequently employed as a tool for the state's economic and social objectives [16]. The taxation reconciliation process often begins with the financial report's 'net income before taxation', unless there are special purpose financial reports that directly result in 'net [taxable] income'. Subsequently, this value is modified by a range of factors to provide 'net income' [6]. Net profit prepared according to international accounting standards, amending reports based on the approved income tax act to account for any liabilities in Palestine. The purpose of the research is to identify issues in the computation of taxable income in Palestine about which assessors and taxpayers have different opinions in Calculating the issue of depreciation assets and what is tax-recognized and what is not tax-accepted.

Does Capital Intensity Moderate The Effect Of Financial Distress And Operational Performance Tax Avoidance In Regional-Owned Enterprises In Water Supply?

Tax avoidance is a legal practice by companies as an effort to reduce the tax burden distributed to the state. This is commonly done by companies, both private and government-owned. Regional-Owned Enterprises in Water Supply as a company owned by the Regional Government has a dual role, namely providing public goods and generating profits. This research aims to analyze the influence of financial difficulties, service effectiveness, and operational efficiency on tax avoidance with capital intensity as a moderating variable in Regional-Owned Enterprises in Water Supply. This research uses quantitative methods with secondary data obtained using documentation data collection methods. The sample in this study was selected based on purposive sampling and resulted in 117 companies spanning the period 2019-2022. The data analysis technique in this research uses multiple linear regression analysis using the Eviews version 12 program with a significance level of 5%. The results of this study show that financial difficulties and service effectiveness have a significant negative effect on tax avoidance, but operational efficiency has an insignificant positive effect on tax avoidance. The aggressiveness of Regional-Owned Enterprises in Water Supply towards tax avoidance is not as high as other organizations that are completely profit-oriented. This is possible because human resources do not understand taxation. In addition, direct supervision by the Regional Government makes management more alert to violations of statutory regulations. Capital intensity can weaken the influence of financial difficulties on tax avoidance and strengthen the influence of operational efficiency on tax avoidance. The greater the number of company fixed assets, the greater the depreciation expense, management can choose the depreciation method that is most profitable for the company.

Comparison Of Depreciation According To Sak And Tax Law At Pt. Nurindo Pratama Logistik And Its Impact On Taxable Income (PKP)

This study aims to determine the comparison of depreciation according to SAK and Tax Law at Pt. Nurindo Pratama Logistik and its effect on Taxable Income (PKP). The author wants to find out and understand how the Depreciation Calculation according to SAK with taxation and how it affects or impacts PKP. The method used is a qualitative method with secondary data, namely data in the form of income financial statements and a list of depreciation of fixed assets at Pt. Nurindo Pratama Logistik. The results showed that the calculation of depreciation expense from the two methods, namely the depreciation method according to SAK and taxation (fiscal) in 2019, caused a difference of IDR 17,084,950.00, causing a negative fiscal correction, due to Pt. Nurindo Pratama Logistik determines a useful life of 5 years while the tax law provides a useful life of 4 years. The calculation of depreciation expense from the two methods, namely the depreciation method according to SAK and taxation (fiscal) in 2020, caused a difference of IDR 15,623,842.50, causing a negative fiscal correction, due to Pt. Nurindo Pratama Logistik determines a useful life of 5 years while the tax law provides a useful life of 4 years. The calculation of depreciation expense from the two methods, namely the depreciation method according to SAK and taxation (fiscal) in 2021, caused a difference of IDR 16,724,650.00, causing a negative fiscal correction, due to Pt. Nurindo Pratama Logistik determines a useful life of 5 years while the tax law provides a useful life of 4 years.

The Effect of Liquidity and Capital Intensity on Tax Aggressiveness

Aims: This research aims to determine and analyze the effect of liquidity and capital intensity on tax aggressiveness.
 Study Design: The population in this study are Basic Industry and Chemical sub-sector manufacturing companies listed on the Indonesia Stock Exchange in the 2020-2022 period, namely 66 companies. The sampling method was purposive sampling. The final sample in this research was 22 companies and the total final sample was 66 samples. The data used is secondary data taken from the financial statements obtained from the Indonesian Stock Exchange.
 Methodology: The data collection method is document analysis. The data analysis method used is quantitative analysis. The analysis techniques in this research are the classical assumption test, determinant coefficient test and Multiple Linear Regression.
 Results: The results of this research show that liquidity influences tax aggressiveness, capital intensity influences tax aggressiveness.
 Conclusion: The research results show that liquidity, capital intensity simultaneously affect tax aggressiveness. liquidity has a positive and significant effect on tax aggressiveness. Meaning that Companies with high liquidity are healthy companies with large tax liabilities so they have a higher potential for aggressive tax action. so does Capital Intensity has a positive and significant effect on Tax Aggressiveness. Meaning that higher fixed asset investment is carried out as a form of reducing profits and increasing depreciation expenses, thereby reducing the tax burden

Peranan Pendapatan Usahatani Wortel Desa Kanreapia Kecamatan Tombolo Pao Kabupaten Gowa Sulawesi Selatan

The objective of this study is to determine the magnitude of money generated from carrot farming in the research area, as well as the impact of carrot farming income on the local economy. Based on the completed analysis, carrot cultivation in Kanreapia Village, Tombolo Pao District, Gowa Regency yields an average income of IDR 80,000,000 per hectare. The respondents incurred an average of IDR 6,810,000/ha in fixed expenditures. The respondents experienced an average variable cost of IDR 7,950,000 per hectare for cultivating carrots. The primary expenses are variable costs, encompassing the expenditures on seeds, pesticides, fertilizers, and labor (including land preparation, planting, and harvesting). Among these variable costs, the biggest expense is attributed to inorganic fertilizer, amounting to IDR 2,900,000. Conversely, the most economical expenses are known as fixed costs, including the mean devaluation amount of the equipment utilized by the participants. Tractors incur the highest equipment depreciation expenses, totaling IDR 2,000,000, while sprayers and scythes have the lowest costs, totaling IDR 80,000. The respondents experienced an average production cost of IDR 14,760,000 per acre. The farmers have an average income of IDR 65,240,000 per hectare by cultivating carrots. Based on the findings of this study, the mean income per hectare earned by carrot farmers in Kanreapia Village, Tombolo Pao District, Gowa Regency is reported.

The Effect of Earnings, Operating Cash Flows and Accruals in Predicting Future Operating Cash Flows

The purpose of this study was to analyse the effect of gross profit, operating profit, net profit, operating cash flow, changes in accounts receivable, changes in accounts payable, changes in inventory and depreciation expense simultaneously on the prediction of future operating cash flow. This research was conducted at food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) and registered from 2017 to 2019, totalling 32 companies. The sample in this study amounted to 17 companies using purposive sampling method. Data analysis using panel data regression with the help of Eviews. The results of the study explain that gross profit, operating profit, net income, changes and trade receivables have a significant effect, while operating cash flow, changes in debt, changes in inventory and depreciation expense do not have a significant effect on the prediction of future operating cash flow in food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2019 period. Simultaneously gross profit, operating profit, net profit, operating cash flow, changes in accounts receivable, changes in accounts payable, changes in inventory and depreciation expense have an influence on the prediction of future operating cash flows in food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2019 period.

Extrinsic shocks and corporate accounting behaviour: The case of the Great Kanto Earthquake in 1923

This study examines how the Great Kanto Earthquake of 1923 influenced the depreciation disclosure practice adopted by Japanese companies in the years that followed. Prior to World War II, corporate accounting behaviour varied widely in Japan, as there were few substantive rules regulating the contents of financial statements. Assessing how a large-scale extrinsic shock such as a major earthquake affects and shapes corporate accounting practices in an unregulated disclosure environment such as this would seem important to understand the intrinsic impact of exogenous shocks. By statistically analysing the contents of 547 financial statements issued by 51 machinery, electrical and transportation equipment manufacturers during the six years from 1921 to 1926, this study shows that the substantial damage inflicted by the Great Kanto Earthquake discouraged companies from disclosing depreciation expenses by reducing or failing to recognise them at all and rendering them less important in their financial statements.

Analisis Perencanaan Pajak Melalui Penyusutan Aktiva Tetap untuk Menghitung Pajak Penghasilan (PPh) Badan

The aim of this research is to find out the difference between straight-line and double-declining depreciation methods in determining profit that will affect the tax burden, so that good and efficient tax planning can be carried out by CV. Yan's Jaya. This study uses a descriptive quantitative method with data collection techniques using secondary data derived from the financial reports of CV. Yan's Jaya. The results of this study are the calculation of depreciation using the straight-line method used for depreciation of buildings while vehicles and office inventory use the declining balance depreciation method. There are differences in the calculation of depreciation of fixed assets, the use of depreciation rates and costs incurred when acquiring fixed assets, where the depreciation expense according to the company shows a smaller value than the depreciation expense according to the applicable tax regulations. There are differences in profit margins that do not reflect actual income. The implication of this research is that CV. Yan's Jaya can carry out tax planning, especially in the depreciation of fixed assets in accordance with the applicable tax laws.

United States' Nursing Home Finances: Spending, Profitability, and Capital Structure.

Little is known about nursing home (NH) financial status in the United States even though most NH care is publicly funded. To address this gap, this descriptive study used 2019 Medicare cost reports to examine NH revenues, expenditures, net income, related-party expenses, expense categories, and capital structure. After a cleaning process for all free-standing NHs, a study population of 11,752 NHs was examined. NHs had total net revenues of US$126 billion and a profit of US$730 million (0.58%) in 2019. When US$6.4 billion in disallowed costs and US$3.9 billion in non-cash depreciation expenses were excluded, the profit margin was 8.84 percent. About 77 percent of NHs reported US$11 billion in payments to related-party organizations (9.54% of net revenues). Overall spending for direct care was 66 percent of net revenues, including 27 percent on nursing, in contrast to 34 percent spent on administration, capital, other, and profits. Finally, NHs had long-term debts that outweighed their total available financing. The study shows the value of analyzing cost reports. It indicates the need to ensure greater accuracy and completeness of cost reports, financial transparency, and accountability for government funding, with implications for policy changes to improve rate setting and spending limits.

Implementation of PSAK 73: Study of Financial Ratios of PT Aneka Tambang, Tbk

This research aims to analyze changes in PSAK regarding rent, which affects financial performance at PT Aneka Tambang Tbk. Implementing PSAK 73 requires lessees to classify operating leases into finance leases except for short-term leases and assets with a low basis. Lessees with future operating lease commitments must capitalize the lease assets and liabilities. Lease capitalization causes assets and liabilities to increase and equity to decrease in the statement of financial position while net profit in the comprehensive income statement increases. This is because the expenses that arise from the capitalization of rent, namely depreciation and interest expenses, are smaller than the rent expenses written off. The quantitative descriptive research uses secondary data sources in the form of PT Aneka Tambang Tbk's financial reports in 2019 before changes to the PSAK Lease and in 2020 after changes to PSAK. The research results show that changes to PSAK impact the company's financial performance as assessed by financial ratios.

The Impact of IFRS 16 on the financials of the Greek listed companies

Research Question: What was the impact of the adoption of the new international accounting standards for leases IFRS 16 on the financial statements of the Greek companies that are listed on Athens Exchange? Motivation: The majority of the relevant literature worldwide has examined the effect of IFRS 16 ex-ante, that is, before the actual implementation of the new standard. In addition, a relevant study for Greece, which stands as a developing regional economy, is missing. Our study seeks to fill this gap in the literature, as it is one of the few that have been conducted with actual data and, to the best of our knowledge, it is the first to focus on Greece. Idea: The impact of IFRS 16 was expected to be significant at several levels. This study examines the magnitude of the impact on the Greek companies of public interest. Data: Fist, we gather the financial statements of a sample of 79 Greek companies. Then, we compare several items of the financial statements for years 2018 and 2019, i.e., the year before the application of IFRS 16 and the year that the new standard was initiated. Tools: Based on the data found in the published financial statements for years 2018 and 2019, we measure the impact on key figures such as assets, liabilities, depreciation and interest expenses. Then, we assess the impact of IFRS 16 on several profitability, liquidity and leverage ratios. The significance of the impact on the financial ratios is also assessed with a single-factor cross-sectional regression analysis. Findings: Our findings indicate that key balance sheet figures, such as assets and total leasing liabilities, and significant profit and loss items, such as depreciation and interest expenses, are increased in 2019 compared to the previous year. The impact of the new standard on primary financial ratios was also substantial. Several ratios, such as EBITDA, ROE, ROA, ROCE, current ratio, leverage ratio and interest coverage ratio seem to have been affected by the new international accounting standard, to a less or a higher degree. A significant degree of consistency in financial ratios between 2018 and 2019 is also revealed. Contribution: Most of the studies on the subject conducted to date are mainly ex-ante evaluations of how the new standard would affect the financial position of the companies applying the IFRS accounting framework. Our paper stands as one of the few ex-post studies on the subject using data from financial statements that have been prepared following the requirements of IFRS 16. Therefore, in our study, the impact of IFRS 16 is no longer gauzed but it is actually measured with real data. In addition, our study is the first one for Greece, whose stock exchange is considered to be an advanced emerging market.

Financial Statements Fraud of Banks and other Financial Institutions in Nigeria

Purpose: There is evidence that managers engage in opportunistic practice to manipulate reported performance to attract unsuspecting investors. This paper seeks to detect the likelihood of manipulations on the financial reports of financial service firms (banks and other financial institutions) as well as to identify the financial indicators that are the likely predictors of the probability of manipulations in Nigeria. Theoretical framework: The M-score models, from Beneish (1999), are employed as theoretical basis for the paper. The model use financial ratios computed using accounting data to confirm the probability that firms’ reported earnings are manipulated. Design/Methodology/Approach: The study uses data from the Nigerian Exchange Group, from 2010 to 2019 to compute M8/M5-scores and classify firms into likely manipulators and unlikely manipulators. In addition, a probit regression model was applied to establish financial ratios that significantly predict the likelihood of FSF amongst the financial firms. Findings: The results based on M8 (M5)-score indicate that 26.67% (23.33%) of firms likely manipulate financial books and exhibit the possibility of FSF. In addition, only sales in receivable, sales growth, depreciation expenses, leverage and accruals to assets ratios are found to be (positive) significant predictors of the probability of manipulations. Research, Practical & Social implications: The implication of the outcome is that subjecting financial statements to empirical and statistical scrutiny should not be ignored because it would detect and reduce associated risks to manipulations. Therefore, more regulatory interventions and empirical auditing of reports are needed to ensure their readability and reliability to the investors. Originality/Value: The study offers a novel and first evidence, based on Beneish M-score, to scrutinise reports of financial firms in Nigeria. The evidence ensures quality reporting of the financial statements in order to credibility as well as protect the integrity of the capital markets.

The Influence of Operating Cash Flow, Net Income, Depreciation Expenses, and Amortization Expenses on Cash Flow Forecasting at PT. Bank XYZ

The cash flow statement is part of a company's financial statements produced in an accounting period that shows the company's cash inflows and outflows. This study aims to analyze the effect of operating cash flow variables, net income, depreciation expense, and amortization expense on forecasting future cash flows. This research uses quantitative research using secondary data with a descriptive approach, which is analyzed using the Multiple Linear Regression method with SPSS assistance. The object used is PT. Bank XYZ for the period January 2019 to February 2023. The results show that operating cash flow affects forecasting future cash flows, net profit does not affect forecasting future cash flows, depreciation expense does not affect forecasting future cash flows, and amortization expense does not affect forecasting future cash flows. However, operating cash flow, net profit, depreciation expense, and amortization expense simultaneously affect the cash flow forecasting results. Based on the forecasting results, which have a MAPE value of 17.43%, it can be concluded that the forecasting results have good forecasting abilities.

Analisis Perbandingan Perhitungan Penyusutan Aset Tetap Berdasarkan Standar Akuntansi Keuangan Dengan Peraturan Perpajakan Pada PDAM Wair Pu’an Kabupaten Sikka

The purpose of this study is to analyze the comparison of depreciation expense between Financial Accounting Standards of Entities Without Public Accountability (SAK ETAP) and the Tax Law in PDAM Wair Puan Sikka Regency. The research method used is quantitative descriptive with data sources derived from secondary data. Analysis is carried out on depreciation expense using the straight-line method. The results of the analysis show a significant difference in the calculation of depreciation expense of fixed assets between SAK ETAP and the Tax Law. This research reveals that the depreciation expense calculation method applied by the Tax Law results in a greater depreciation expense than ETAP SAK, which has an impact on the accumulation of depreciation and the book value of fixed assets.

Impact of the Covid-19 Pandemic on Micro Finance Income

The purpose of this study was to examine the impact of the COVID-19 pandemic on the income of microfinance institutions (MFIs) in Indonesia. Using a sample of 181 microfinance institutions using financial report data for 2017–2019 (before the pandemic) and 2020–2021 (during the pandemic). Data were analyzed using a non-parametric test (Wilcoxon signed ranks test). The results show that all elements of income (interest income, fee, and commission income, operating income, and non-operational income) decreased significantly. On the other side of the impact of the COVID-19 pandemic on expenses, several elements of expenses have decreased significantly (interest expense, depreciation, and amortization expense, marketing expense, administration, and general expense, operational expense, and non-operational expense). As for fee and commission expenses, research and development expenses, and an impairment charge on loans, they decrease insignificantly.

ANALISIS RASIO KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PERUSAHAAN DAERAH AIR MINUM KABUPATEN KUPANG

The purpose of this study was to find out and analyze the Financial Performance of Regional Drinking Water Companies in Kupang Regency in terms of financial ratios (liquidity ratios, solvency ratios, activity ratios, profitability ratios) for 2018 – 2020. The data needed in this study are financial reports. The data collection techniques used are documentation and interviews. The data analysis technique used is financial ratio analysis based on the Decree of the Minister of Home Affairs Number 47 of 1999. Financial performance is assessed on a rating ratio scale of 1 (not good) to 5 (very good). The results of this study indicate that the Liquidity Ratio used, namely the current ratio, is included in the classification of very good. Depreciation expense on principal and interest installments is classified as very good. The activity ratio consists of the time period for collection of accounts receivable which is included in the poor classification, the ratio of earning assets to sales is included in the very good classification, the effectiveness ratio for collecting receivables is included in the very good classification. Finally, the Profitability Ratio from 2018 to 2020 has fluctuated. Overall, the financial performance of PDAM Kabupaten Kupang is classified as unfavorable. Implication: To improve financial performance, companies need to increase working capital which has an impact on operating profit. Furthermore, the Company can use productive assets to generate sales