publication . Article . Other literature type . 2011

MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA

Aljinović Barać, Željana; Šodan, Slavko;
Open Access English
  • Published: 01 Feb 2011 Journal: Croatian Operational Research Review (issn: 1848-0225, eissn: 1848-9931, Copyright policy)
  • Publisher: Croatian Operational Research Society
Abstract
The aim of this paper is to research managers’ motives of accounting policy choice for long-term nonfinancial assets. International Financial Reporting Standards (IFRS) allow managers to choose between cost and revaluation model for measurement after recognition. The assumption is that manager’s decision is opportunistic so they use the revaluation model as a device to improve perceptive borrowing capacity of a company, and consequently, to reduce debt cost. Prior studies were mainly conducted in developed, marketoriented economies, unlike Croatia. The contribution of this paper is the research of motives and determinants of asset revaluation policy choice in ba...
Subjects
free text keywords: revaluation policy choice, fair value accounting, financial leverage, financial reporting, Applied mathematics. Quantitative methods, T57-57.97, revaluation policy choice; fair value accounting; financial leverage; financial reporting
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