Asset Revaluation and Current Cost Accounting: Uk Corporate Disclosure Decisions in 1983
نویسندگان
چکیده
Accountants have long disputed whether financial statements should report current values and the effects of price changes. Indeed, the two kinds of adjustment are often confused. This study examines the asset revaluation and Current Cost Accounting (CCA) disclosure decisions of UK firms in 1983, using a costly contracting framework. We find the two decisions appear to have been taken for very different reasons and to be largely unrelated, even though the resultant measures overlapped to a non-trivial degree. The two common factors were that revaluers and CCA disclosers both tended to be large and to have revalued in the previous two years. Indebtedness was positively related to revaluation and negatively to CCA disclosure. Current Cost Accounting disclosure was also positively correlated with profitability and fixed asset intensity, whereas revaluation was not. 2000 Academic Press
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