Factors Influencing Companies to Revalue Non-Current Assets

Running head: ACCOUNTING AND FINANCIAL REPORTING
Accounting and Financial Reporting
Name of the Student:
Name of the University:
Authors Note:

ACCOUNTING AND FINANCIAL REPORTING
Table of Contents
Part 1: Academic Paper Summarize...........................................................................................2
Part 2: Case Analysis.................................................................................................................3
Discussing and explaining the factors that companies would consider when deciding whether
to revalue their non-current assets:............................................................................................3
Example of ASX method: Real Financial data..........................................................................4
Reference and Bibliography:......................................................................................................6
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ACCOUNTING AND FINANCIAL REPORTING
Part 1: Academic Paper Summarize
The academic paper highlights the revaluation system, which is being use by the
Korean companies. In addition, the paper focuses on detecting the factors that influences
Korean firms in using asset revaluation. The strengths of PP&E and property, financial
leverage, signalling future performance, political costs, equity depletion, past revaluation, and
market-to-book ratio are the factors influencing the Korean companies. The journal directly
indicates the favourable factor, which is used by the Korean organisations for supporting the
use of the revaluation method. Therefore, the above factors influence Korean organisations to
anticipate the benefits of revaluation method exceeding the relevant cost. The calculations
conducted the valuation method allows the organisation to detect the benefits, which has been
obtained during the fiscal year (Choi et al. 2013).
Korean companies mainly depict the relevant discussion on the pecking order in a
choice of PP&E classes, which helps in identifying the actual value of PP&E. The results
depicted by the journal relevantly indicate that there is a pecking order when the company
choose PP&E classes to evaluate. Therefore, it can be detected that Korean companies use
selected land for revelation ahead of depreciable classes of PP&E. Hence, Korean companies
favour to evaluate their land and detect the level income, which can generate from the
valuation method. This allowed the organisations to improve their current assets valuation
method. Thus, the organisation needs to be a select adequate depreciable class for improving
the benefits from revaluation method (Choi et al. 2013).
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