The Case Against Asset Revaluations |
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| Authors: | SCOTT HENDERSON JENNY GOODWIN |
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| Institution: | Scott;Henderson is Professor of Accounting, University of Adelaide Jenny;Goodwin is a Senior Lecturer in the Department of Accounting and Valuation, Lincoln University, New Zealand |
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| Abstract: | The upward revaluation of non-current assets is a common feature of contemporary accounting in Australia. This paper presents a case against the practice. The effects of revaluations are examined and possible reasons why firms revalue are considered. It is argued that asset revaluation is theoretically unsound, being inconsistent with the accounting structure within which it occurs. It is concluded that there are significant costs but few obvious benefits associated with revaluation. |
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| Keywords: | Fixed assets Revaluation Valuation |
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