Revaluation of Property, Plant and Equipment under the criteria of IAS 16: Property, Plant and Equipment

Miluska Odely Rodríguez Saavedra

Management (Montevideo), 2023, vol. 1, 11

Abstract: The paper examines the revaluation of fixed assets under International Accounting Standard 16 (IAS 16), which addresses "Property, Plant and Equipment" in the financial statements. Revaluation involves adjusting the carrying value of assets based on their fair market value at a given point in time. It is highlighted that this process can influence the perception of an entity's financial health and strategic decision making. The research focuses on analyzing the impact of fixed asset revaluation under IAS 16 in a sample of 180 companies in Arequipa, Peru. The results show an increase in the operating profit margin, the value of revalued assets, profitability (ROA), capital structure and investment capacity of these companies after the application of IAS 16. A significant correlation was found between the revaluation of fixed assets and IAS 16, supporting the hypothesis that the application of this standard is associated with improvements in several financial and operational aspects

Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dbk:manage:v:1:y:2023:i::p:11:id:1062486agma202311

DOI: 10.62486/agma202311

Access Statistics for this article

More articles in Management (Montevideo) from AG Editor
Bibliographic data for series maintained by Javier Gonzalez-Argote ().