Before revision:  By applying the concept to depreciation, Depreciable Asset Value Models can be formulated , that allow depreciation to be calculated in a manner consistent with financial theory. While the Basic Depreciable Asset Value Model formulated withinhas its limitations, more complex models , which factor in a greater number of variables, can be formulated using its logic .
After revision:  By applying the concept to depreciation, Depreciable Asset Value Models can be formulated to approximate the intrinsic valuation of a depreciable asset, which improves the capacity for buyers and sellers of assets to make rational decisions. A deprecation method is formulated within, which aims to better match book value with intrinsic value. While this method makes many assumptions and thus has limitations, more complex models , which factor in a greater number of variables, can be formulated using its logic .