Abstract
This paper documents the revaluation practice over a ten-year period from 1981 of a large sample of Australian firms and examines the association between these revaluations and stock market prices and returns. The analysis uses several different approaches in order to obtain a thorough understanding of the revaluation process in Australia. We include a description of hand-collected data from published financial statements, follow-up interviews with chief financial officers of the sample firms, and association tests between hand-collected accounting data and stock market measures. The possibility of revaluing long-lived assets to reflect market prices has been, and continues to be, controversial. Historically, part of the debate revolved around the issue of accounting for changing prices. For example, in the United States (U.S.), Statement of Financial Accounting Standards (SFAS) No. 33 (FASB [1979]) required supplementary information based on current cost (constant dollar) inventory and property, plant, and equipment. In the United Kingdom (U.K.), Statement of
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