Abstract
This study tries to prove empirically the effect of leverage, size, liquidity and operating cash flows on the revaluation of fixed assets. It used a sample of all non-financial companies, which revalued assets in the periode of 2012-2015, at companies listed on Indonesia Stock Exchange with upward revaluation category. The analysis was done using Path analysis (PLS) without requiring classical assumption and normality test. The results show that leverage affects Asset revaluation, it proves that high leverage because the company to do revaluation of fixed assets, large companies tend to want to display earnings reports that are not too large to reduce their political costs, with asset revaluation, the value of depreciation is calculated Repeated and reduce the company's profit. Operating cash flows affect the revaluation of fixed assets on the grounds that the company requires funds to pay its obligations as well as in revaluation assets cost a great deal for the appraisal services, audit fees and final tax payments. Yet, liquidity has no effect on the revaluation of fixed assets, Within the last 4 years, the study found that users of the Asset revaluation model reporting in Other Comprehensive Income continue to grow and are expected to become financial statements that have superiority and good quality by reporting fair value. In the next research to add the number of variables on Asset revaluation, as well as expand the sample by involving the company revaluation and non revaluation. In addition, to examine the development of asset revaluation, especially in ASEAN countries related to the adoption of IFRS in the case of fixed asset revaluation.Keyword: Leverage, Size, Liquidity, Cash Flow from operation, and Revaluations Assets.
Highlights
Fixed assets, under the Statement of Financial Accounting Standards (PSAK) No 16 revised in 2007, can be assessed using revaluation value, as an alternative measurement value
This study aims to empirically examine the effect of leverage, size, liquidity and operating cash flow on fixed assets revaluation, suing all non-financial companies, performing assets revaluation within 2012-2015 as listed on Indonesia Stock Exchange (IDX) with upward revaluation category
Companies are required to improve their leverage in order to reduce risk for investors
Summary
Under the Statement of Financial Accounting Standards (PSAK) No 16 revised in 2007, can be assessed using revaluation value, as an alternative measurement value. The use of fixed asset value does not reflect the current value be-. Indonesia’s IFRS-based Financial Accounting Standards are considered more capable of improving the quality of financial reporting standards and the comparability of financial statements. Fixed asset measurements currently tend to affect corporate management decisions. Fair value is the relevant value as the basis of the asset in the current market price. In this case, an asset revaluation is used for recalculating a company's fixed assets based on its current fair value. The portion which presents the realized gains or losses is referred to as income statement
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