Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument

Nurfadhlina Abdul Halim, Shar Nizam Bin Sharif, Saiful Hafizah Jaaman @ Sharman

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

An existing robust optimization of profit sharing ratio (PSR) model has been developed and applied into Islamic hire purchase instrument aims to provide fairer situation to all parties involved in Islamic hire purchase contract. Robust optimization of PSR is build based on profit loss sharing approach which highly recommended by Syaria' to avoid riba and gharar transaction. However, an existing robust optimization of PSR does not consider straight line depreciation into consideration. Straight line depreciation is depletion of asset values constantly over its expected useful life. This matter exposed the lessor into void risk situation where the lessee does not fulfill the hire purchase contract. Thus, this research proposed a modified model for existing robust optimization of PSR with straight line depreciation parameter enhancement. This new modified robust optimization of PSR with straight line depreciation model comply Syaria', better and more equitable compare to the existing model.

Original languageEnglish
Title of host publicationAdvances in Industrial and Applied Mathematics
Subtitle of host publicationProceedings of 23rd Malaysian National Symposium of Mathematical Sciences, SKSM 2015
PublisherAmerican Institute of Physics Inc.
Volume1750
ISBN (Electronic)9780735414075
DOIs
Publication statusPublished - 21 Jun 2016
Event23rd Malaysian National Symposium of Mathematical Sciences: Advances in Industrial and Applied Mathematics, SKSM 2015 - Johor Bahru, Malaysia
Duration: 24 Nov 201526 Nov 2015

Other

Other23rd Malaysian National Symposium of Mathematical Sciences: Advances in Industrial and Applied Mathematics, SKSM 2015
CountryMalaysia
CityJohor Bahru
Period24/11/1526/11/15

Fingerprint

depreciation
optimization
voids
depletion
augmentation

Keywords

  • Islamic hire purchase
  • Profit sharing ratio
  • straight line depreciation

ASJC Scopus subject areas

  • Physics and Astronomy(all)

Cite this

Halim, N. A., Sharif, S. N. B., & Jaaman @ Sharman, S. H. (2016). Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument. In Advances in Industrial and Applied Mathematics: Proceedings of 23rd Malaysian National Symposium of Mathematical Sciences, SKSM 2015 (Vol. 1750). [030002] American Institute of Physics Inc.. https://doi.org/10.1063/1.4954538

Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument. / Halim, Nurfadhlina Abdul; Sharif, Shar Nizam Bin; Jaaman @ Sharman, Saiful Hafizah.

Advances in Industrial and Applied Mathematics: Proceedings of 23rd Malaysian National Symposium of Mathematical Sciences, SKSM 2015. Vol. 1750 American Institute of Physics Inc., 2016. 030002.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Halim, NA, Sharif, SNB & Jaaman @ Sharman, SH 2016, Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument. in Advances in Industrial and Applied Mathematics: Proceedings of 23rd Malaysian National Symposium of Mathematical Sciences, SKSM 2015. vol. 1750, 030002, American Institute of Physics Inc., 23rd Malaysian National Symposium of Mathematical Sciences: Advances in Industrial and Applied Mathematics, SKSM 2015, Johor Bahru, Malaysia, 24/11/15. https://doi.org/10.1063/1.4954538
Halim NA, Sharif SNB, Jaaman @ Sharman SH. Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument. In Advances in Industrial and Applied Mathematics: Proceedings of 23rd Malaysian National Symposium of Mathematical Sciences, SKSM 2015. Vol. 1750. American Institute of Physics Inc. 2016. 030002 https://doi.org/10.1063/1.4954538
Halim, Nurfadhlina Abdul ; Sharif, Shar Nizam Bin ; Jaaman @ Sharman, Saiful Hafizah. / Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument. Advances in Industrial and Applied Mathematics: Proceedings of 23rd Malaysian National Symposium of Mathematical Sciences, SKSM 2015. Vol. 1750 American Institute of Physics Inc., 2016.
@inproceedings{0c2cca63a35943d485c604f3a56e91e2,
title = "Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument",
abstract = "An existing robust optimization of profit sharing ratio (PSR) model has been developed and applied into Islamic hire purchase instrument aims to provide fairer situation to all parties involved in Islamic hire purchase contract. Robust optimization of PSR is build based on profit loss sharing approach which highly recommended by Syaria' to avoid riba and gharar transaction. However, an existing robust optimization of PSR does not consider straight line depreciation into consideration. Straight line depreciation is depletion of asset values constantly over its expected useful life. This matter exposed the lessor into void risk situation where the lessee does not fulfill the hire purchase contract. Thus, this research proposed a modified model for existing robust optimization of PSR with straight line depreciation parameter enhancement. This new modified robust optimization of PSR with straight line depreciation model comply Syaria', better and more equitable compare to the existing model.",
keywords = "Islamic hire purchase, Profit sharing ratio, straight line depreciation",
author = "Halim, {Nurfadhlina Abdul} and Sharif, {Shar Nizam Bin} and {Jaaman @ Sharman}, {Saiful Hafizah}",
year = "2016",
month = "6",
day = "21",
doi = "10.1063/1.4954538",
language = "English",
volume = "1750",
booktitle = "Advances in Industrial and Applied Mathematics",
publisher = "American Institute of Physics Inc.",

}

TY - GEN

T1 - Empirical testing of robust optimization profit sharing ratio with straight line depreciation in Aitab instrument

AU - Halim, Nurfadhlina Abdul

AU - Sharif, Shar Nizam Bin

AU - Jaaman @ Sharman, Saiful Hafizah

PY - 2016/6/21

Y1 - 2016/6/21

N2 - An existing robust optimization of profit sharing ratio (PSR) model has been developed and applied into Islamic hire purchase instrument aims to provide fairer situation to all parties involved in Islamic hire purchase contract. Robust optimization of PSR is build based on profit loss sharing approach which highly recommended by Syaria' to avoid riba and gharar transaction. However, an existing robust optimization of PSR does not consider straight line depreciation into consideration. Straight line depreciation is depletion of asset values constantly over its expected useful life. This matter exposed the lessor into void risk situation where the lessee does not fulfill the hire purchase contract. Thus, this research proposed a modified model for existing robust optimization of PSR with straight line depreciation parameter enhancement. This new modified robust optimization of PSR with straight line depreciation model comply Syaria', better and more equitable compare to the existing model.

AB - An existing robust optimization of profit sharing ratio (PSR) model has been developed and applied into Islamic hire purchase instrument aims to provide fairer situation to all parties involved in Islamic hire purchase contract. Robust optimization of PSR is build based on profit loss sharing approach which highly recommended by Syaria' to avoid riba and gharar transaction. However, an existing robust optimization of PSR does not consider straight line depreciation into consideration. Straight line depreciation is depletion of asset values constantly over its expected useful life. This matter exposed the lessor into void risk situation where the lessee does not fulfill the hire purchase contract. Thus, this research proposed a modified model for existing robust optimization of PSR with straight line depreciation parameter enhancement. This new modified robust optimization of PSR with straight line depreciation model comply Syaria', better and more equitable compare to the existing model.

KW - Islamic hire purchase

KW - Profit sharing ratio

KW - straight line depreciation

UR - http://www.scopus.com/inward/record.url?scp=84984538843&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84984538843&partnerID=8YFLogxK

U2 - 10.1063/1.4954538

DO - 10.1063/1.4954538

M3 - Conference contribution

AN - SCOPUS:84984538843

VL - 1750

BT - Advances in Industrial and Applied Mathematics

PB - American Institute of Physics Inc.

ER -