Effective depreciation model for commercial vehichles in Malaysia / Lim Alan, Krishna Moorthy Manicka and Theresa Wong Lai Har.

Lim, Alan and Manicka, Krishna Moorthy and Wong Lai Har, Theresa Lai Har (2017) Effective depreciation model for commercial vehichles in Malaysia / Lim Alan, Krishna Moorthy Manicka and Theresa Wong Lai Har. Management & Accounting Review (MAR), 16 (1). pp. 119-136. ISSN 2550-1895

Abstract

Malaysian Financial Reporting Standards (MFRS) offers a choice for corporations to select their preferable depreciation methods to allocate the cost of the assets every year. Findings shown that majority of the corporations apply Straight Line method in depreciation calculation nowadays. However, Straight Line method is unable to show the fair value of the assets and received major criticism from past researchers. Hence, current research has applied a newly proposed method to conduct the depreciation calculation with the secondary data collected with the three existing accounting depreciation models. The net book value result was compared against the market value, and the analysis showed that newly proposed method could produce the closest proportion to the market value of the vehicles, and hence it is determined as the most effective depreciation model that can best reflect the current value of the motor vehicles.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Lim, AlanUNSPECIFIED
Manicka, Krishna MoorthyUNSPECIFIED
Wong Lai Har, Theresa Lai HarUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Automobile industry and trade
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Management & Accounting Review (MAR)
Journal: UiTM Journal > Management & Accounting Review
ISSN: 2550-1895
Volume: 16
Number: 1
Page Range: pp. 119-136
Item ID: 30259
Uncontrolled Keywords: MFRS, Depreciation Model, Commercial Vehicles
URI: http://ir.uitm.edu.my/id/eprint/30259

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