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Smolyak S.A. Assessment of machinery and equipment depreciation using the method used in the systems of national accounts
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Smolyak S.A. Assessment of machinery and equipment depreciation using the method used in the systems of national accounts

We offer a model for estimating the value of used machinery and equipment. It takes into account the requirements of valuation standards, information of equipment items durability and is based on the method used in the system of national accounts. The market value of equipment item is determined by the sum of the discounted benefits from their subsequent rational use. In this case, the service life of the equipment items has a Weibull distribution, and the dynamics of the benefits it brings is described by a hyperbolic relationship, as is customary in the system of national accounts of Russia and some other countries. The proposed method allowed us to calculated the dependences of equipment value on age. For practical application, we divided the equipment into classes and presented the indicated dependences for each class in tabular and graphical form.

Key words: 

machinery, equipment, valuation, depreciation, cost approach, income approach, benefits, lifetime, Weibull distribution, national accounts

PP. 44-54.

DOI: 10.14357/20790279210105

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