Abstract

This study focuses on IAS 16, IAS 36, and IAS 38. IAS 16 outlines the recording of the book value of tangible fixed assets (plant, property, and equipment). The purpose of this paper is to determine whether a company’s ability to revalue its tangible (land, plant and equipment) or intangible (goodwill) assets in accordance with IAS 16 and IAS 38, in order to reflect their book value as closely as possible to their market value, is influenced by a variety of economic factors, such as the size, the intensity of use of these assets, leverage, liquidity, profitability, and current market value of a company. To achieve this, a sample of 125 Greek firms from 2014 to 2017 was used to examine the relationship between the decision to revalue fixed tangible or intangible assets and a number of financial variables, including size, fixed assets intensity, leverage, profitability and market value. As no sample company revalued intangible assets, this question is unanswerable. Additionally, few businesses reassessed their tangible assets. Logistic, Probit and OLS models were used to compare and evaluate the evidence provided. The outcomes demonstrated that there is no financial variable that influences the decision to revalue tangible assets. This result contradicts the majority of previous research in this field, but it is hardly surprising. This result is primarily attributable to the economic crisis that Greek firms are experiencing, as they have few incentives to reevaluate their tangible or intangible fixed assets in relation to their financial situation because the benefits are not so substantial.

Keywords:Fixed assets; Asset revaluation; Financial crisis