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The Case Against Asset Revaluations
Author(s) -
HENDERSON SCOTT,
GOODWIN JENNY
Publication year - 1992
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.1992.tb00270.x
Subject(s) - asset (computer security) , economics , monetary economics , accounting , computer security , computer science
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.