IES Management College And Research Centre

Motives for Reporting Fixed Assets at Revalued Amount: Evidence from a Developing Economy (Record no. 50973)

MARC details
000 -LEADER
fixed length control field 02803nam a22002297a 4500
003 - CONTROL NUMBER IDENTIFIER
control field OSt
005 - DATE AND TIME OF LATEST TRANSACTION
control field 20190123155521.0
008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION
fixed length control field 190123b ||||| |||| 00| 0 eng d
100 ## - MAIN ENTRY--PERSONAL NAME
Personal name Nijam, Habeeb Mohamed
9 (RLIN) 32955
245 ## - TITLE STATEMENT
Title Motives for Reporting Fixed Assets at Revalued Amount: Evidence from a Developing Economy
300 ## - PHYSICAL DESCRIPTION
Extent 604–622 p.
520 ## - SUMMARY, ETC.
Summary, etc The purpose of this study is to examine firms’ motives for reporting fixed assets at revalued amount. The study analysed 30 manufacturing firms listed in Colombo Stock Exchange (CSE) for a period of two years from 2012 to 2013, employing Mann–Whitney U test and bivariate and multivariate logistic regression. It is found that manufacturing firms tend to report their property, plant and equipment (PP&E) at revalued amount, when land and building dominates their fixed assets, and firms whose PP&E is dominated by plant and machinery are inclined towards reporting fixed assets at historical cost. However, all such other factors investigated as firm size, carrying amount of PP&E (ppe), intensity of PP&E (ippe), returns on total assets (roa) and return on equity (roe) fail to explain the accounting choice between cost and revaluation models. The probability for a revaluation to occur, on the other hand, is found to be significantly and positively associated to financial leverage, indicating that highly levered manufacturing firms tend to revalue their assets, may be with the expectation of creating possibilities for additional borrowing. Further, no other variables investigated associate with the probability for a revaluation to occur, though prior researches support such association. Findings reveal that fixed assets revaluation motives may be characterized by the nature of fixed assets and their market dynamics characterized by the nature of economy in which firms operate. Findings also suggest that fair value accounting is relevant to manufacturers with high levels of land and building within their asset structure. Fixed assets revaluation motives may differ across countries which should accordingly be valued by financial analyst and investors. Future research should focus on value relevance of revaluation decision of firms in developing countries. Revaluation decisions should be analysed as first-time revaluation and frequency of subsequent revaluations. This is the first study in Sri Lanka reporting the evidence for fixed asset revaluation motives.
653 ## - INDEX TERM--UNCONTROLLED
Uncontrolled term Revaluation,
Uncontrolled term fixed assets,
Uncontrolled term motives,
Uncontrolled term fair value,
Uncontrolled term property,
Uncontrolled term plant and equipment,
Uncontrolled term Sri Lanka
773 0# - HOST ITEM ENTRY
Host Biblionumber 29349
Host Itemnumber 70966
Main entry heading BANIK, ARINDAM
Place, publisher, and date of publication NEW DELHI SAGE PUBLISHING PVT. LTD.
Other item identifier 5558944
Title GLOBAL BUSINESS REVIEW
International Standard Serial Number 0972-1509
942 ## - ADDED ENTRY ELEMENTS (KOHA)
Source of classification or shelving scheme Dewey Decimal Classification
Koha item type Journal Article
Holdings
Withdrawn status Lost status Source of classification or shelving scheme Damaged status Not for loan Home library Current library Date acquired Total Checkouts Full call number Barcode Date last seen Price effective from
    Dewey Decimal Classification     Main Library Main Library 23/01/2019   Vol 19, No 3/ 5558944JA6 5558944JA6 23/01/2019 23/01/2019

Circulation Timings: Monday to Saturday: 8:30 AM to 9:30 PM | Sundays/Bank Holiday during Examination Period: 10:00 AM to 6:00 PM