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Article
Publication date: 1 July 2005

Kamran Ahmed, A. John Goodwin and Kim R. Sawyer

This study examines the value relevance of recognised and disclosed revaluations of land and buildings for a large sample of Australian firms from 1993 through 1997. In…

Abstract

This study examines the value relevance of recognised and disclosed revaluations of land and buildings for a large sample of Australian firms from 1993 through 1997. In contrast to prior research, we control for risk and cyclical effects and find no difference between recognised and disclosed revaluations, using yearly‐cross‐sectional and pooled regressions and using both market and non‐market dependent variables. We also find only weak evidence that revaluations of recognised and disclosed land and buildings are value relevant.

Details

Pacific Accounting Review, vol. 17 no. 2
Type: Research Article
ISSN: 0114-0582

Keywords

Article
Publication date: 1 September 1997

William McCluskey

On 1 April 1997 the rating revaluation of non‐domestic property in Northern Ireland came into force, representing a period of 19 years since property values were last…

258

Abstract

On 1 April 1997 the rating revaluation of non‐domestic property in Northern Ireland came into force, representing a period of 19 years since property values were last reviewed. During that period commercial property values have changed significantly across property types and locations. The primary purpose of the revaluation is not, as one might expect, to increase the total amount of revenue to be raised, but rather to ensure that value‐based relativities between properties are fairly reflected. Results from the analysis of changes in Net Annual Values indicate substantial changes in retail and office property values and in addition significant increases in rate liability. Measures the shifts in assessed values and rates liability impact across District Council areas and examines the implications of introducing a transitional relief scheme to cushion the impact of the revaluation. Concludes by recommending that as an ad valorem tax, rates should be based on the regular revaluation of the tax base.

Details

Property Management, vol. 15 no. 3
Type: Research Article
ISSN: 0263-7472

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Article
Publication date: 23 October 2009

C.S. Agnes Cheng and Stephen W.J. Lin

The purpose of this paper is to investigate the timing of upward asset revaluations using large UK data.

1326

Abstract

Purpose

The purpose of this paper is to investigate the timing of upward asset revaluations using large UK data.

Design/methodology/approach

A standard logistic model is used to examine the timing of upward asset revaluations. The result is further confirmed by using the ordinary least squares regression.

Findings

UK firms with higher industrial leverage and share performance two years before the revaluation year are inclined to write up their assets, suggesting that firms choose not to recognise good news unless it has been supported by their superior market performance and industry norm. This finding differs from the leverage reduction as well as the signalling objective suggested by previous literature.

Originality/value

This paper provides the first UK evidence on the timing of upward asset revaluation, which further enhance the understanding of the economic determinants of upward asset revaluations.

Details

International Journal of Accounting & Information Management, vol. 17 no. 2
Type: Research Article
ISSN: 1834-7649

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Article
Publication date: 12 September 2008

Nerijus Maciulis

The purpose of this paper is to propose predictive models of speculative revaluation attacks, which would facilitate currency risk hedging in emerging and developed countries.

1603

Abstract

Purpose

The purpose of this paper is to propose predictive models of speculative revaluation attacks, which would facilitate currency risk hedging in emerging and developed countries.

Design/methodology/approach

The purpose of this paper is achieved using the methodology of multiple triangulation. Paper combines different theoretical perspectives (three generations of speculative attack models), two sources of data (emerging countries and developed countries) and three methods (logit regression, probit regression and artificial neural networks, ANN) for identification of leading indicators and forecasting of speculative attacks. Combination of multiple observations (data), underlying theories and methods allowed achieving least biased results.

Findings

A list of leading indicators of speculative revaluation attacks was generated based on previous researches and three generations of speculative attacks' models. Qualitative and quantitative differences of speculative revaluation attacks in emerging and developed countries were identified. The decision matrix of currency risk hedging in the context of speculative devaluation and revaluation attacks was proposed.

Research limitations/implications

Although the sample of this researcher includes a wide range of countries (65 in total), their separation into developed and emerging countries is arbitrary (in the course of 35 years some countries have changed the status from emerging towards developed). The initial list of leading indicators is limited, includes mostly economic variables. It could be improved by encompassing political variables, credit ratings, consumer and business confidence indices.

Practical implications

Developed predictive models of speculative revaluation attacks may significantly reduce important element of risk – uncertainty – and, consequently, the cost of financial hedging.

Originality/value

This paper is one of the first public attempts to apply alternative methodology of ANN for forecasting speculative attacks. The results showed that latter method is more accurate than probit and logit regressions. Also, to the author's best knowledge, this is a first public attempt to separately analyse the phenomenon of speculative revaluation attacks.

Details

Baltic Journal of Management, vol. 3 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 25 May 2012

George Emmanuel Iatridis and George Kilirgiotis

The purpose of this paper is to examine the incentives for fixed asset revaluation. The motives that are investigated include firm size, fixed asset intensity, firm…

2529

Abstract

Purpose

The purpose of this paper is to examine the incentives for fixed asset revaluation. The motives that are investigated include firm size, fixed asset intensity, firm foreign operations and acquisitions, firm indebtedness and earnings management inclination.

Design/methodology

The study utilises logistic and linear regressions to test the hypothetical relations set up in the study. The categorisation of sample companies into those that perform asset revaluations and those that do not is based on the examination of firms’ annual reports.

Findings

The findings of the study provide evidence that firm size is positively related to fixed asset revaluation. Firms with foreign operations, with low fixed assets, and with high debt capital needs are more likely to perform fixed asset revaluations. This is also the case for firms that carry out acquisitions. The study also shows that fixed asset revaluation is negatively related to earnings management.

Research limitations/implications

Firms that revalue their fixed assets should examine the signals that are likely to be conveyed to investors about their managerial ability and financial prospects. Firms would tend to revalue their fixed assets when it is likely to result in maximum favourable financial consequences. Future research should investigate the possible opportunism in firms’ behaviour, as well as the stock market reaction to fixed asset revaluations.

Originality/value

The paper is useful for investors and financial analysts, as it sheds light on the motives for fixed asset revaluations. The reporting of asset values based on fair values would assist them in making unbiased predictions about firms’ future performance. The paper gives insight about the financial attributes of firms that perform fixed asset revaluations. For example, firms with capital needs would be inclined to undertake a fixed asset revaluation in order to reinforce their financial position.

Details

Journal of Applied Accounting Research, vol. 13 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 1 March 1995

Elaine Hargreaves

The current business rate system came into force in 1990,introducing a non‐domestic rating multiplier across England and Walesand committing the Government to five‐yearly…

409

Abstract

The current business rate system came into force in 1990, introducing a non‐domestic rating multiplier across England and Wales and committing the Government to five‐yearly revaluations. Rateable values are based on rental levels and, at the 1990 revaluation, office occupiers in London and the South East recorded huge increases in their rate liabilities, while occupiers in the North had their rate bills decreased quite significantly. In the five years since the last revaluation there has been a downturn in both the UK economy and in the property market. Calculates an estimate for the multiplier, examines how rental values have changed between the revaluation dates and what impact this has on the geographical distribution of rate liabilities and the shifting burden between the sectors.

Details

Property Management, vol. 13 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Open Access
Article
Publication date: 29 March 2019

Paul Michael Greenhalgh, Lynn Johnson and Victoria Huntley

Many national retailers have complained about increases in business rates tax bills since the 2017 revaluation. What impact has the 2017 business rates revaluation had on…

3285

Abstract

Purpose

Many national retailers have complained about increases in business rates tax bills since the 2017 revaluation. What impact has the 2017 business rates revaluation had on independent high street retailers in market towns in the north of England? The paper aims to discuss these issues.

Design/methodology/approach

The study uses Valuation Office Agency rating list data to determine rateable value and business rates payable for independent high street retailers in eight northern market towns either side of the 2017 rating revaluation. The data were analysed using business rates matrices to reveal the impact of the new rating list on independent retailers in the eight locations.

Findings

Analysis reveals that the majority of independent retailers in the northern market towns sampled have experienced reductions in both the rateable value of their premises and business rates payable. Increase in the rates relief threshold has extended relief to almost half of the independent retailers in the study, most of whom receive 100 per cent relief.

Practical implications

Charity shops receive at least 80 per cent rates relief which means they are able to afford to pay higher rents. This “sets the tone” for landlords setting market rents in that location which are then used as comparable evidence by the VOA when determining rateable values at revaluation further polarising the gap between rate payers and those to are exempt.

Originality/value

Focussing on independent retailers on high streets in markets towns in north of England, this study provides an alternative perspective to the orthodox view of business rates revaluations having a negative impact on retailers.

Details

Journal of Property Investment & Finance, vol. 37 no. 3
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 10 April 2017

Samir M. El-Gazzar and Philip M. Finn

This paper aims to examine whether sanctioning adoption of IFRS for US firms would produce accounting information of the same quality as those produced under US Generally…

1942

Abstract

Purpose

This paper aims to examine whether sanctioning adoption of IFRS for US firms would produce accounting information of the same quality as those produced under US Generally Accepted Accounting Principles (GAAP). This is a timely research since the Securities and Exchange Commission (SEC; 2014) has asked for further review.

Design/methodology/approach

This study uses restatements of financial statements made by a sample of foreign firms listed on US stock exchanges using International Financial Reporting Standards (IFRS) in comparison to a control sample of US firms using US GAAP during the period of 2001to 2010. Statistical analysis of the frequency, sources and magnitude of the restatements and market revaluations to the announcement of the restatements are examined. Cross-country differences are also examined.

Findings

The results indicate that IFRS firms have a lower rate of restatements than US GAAP firms but with no significant differences in terms of sources of restatements and the impact on net income or shareholders’ equity. The market revaluations to restatement announcements show no significant differences between the two accounting regimes. Cross-sectional analyses indicate IFRS firms are on average from countries characterized by weak rule of law, ineffective corruption controls and lower efforts to promote private sector advancement.

Research limitations/implications

The sample size in the paper is relatively small. To increase validity of the inferences from the Results, this issue should be readdressed with larger sample.

Practical implications

Results are important to accounting practitioners and policymakers.

Social implications

Results are contributing in clarifying the SEC’s concerns of adopting the IFRS by US-based firms; thus, saving the investors the additional efforts and costs in comparing financial statements prepared under different accounting regimes.

Originality/value

This research is the first to use restatements as accounting quality criteria. The results suggest that adoption of IFRS by US-based firms would not produce accounting information that is significantly different in quality from those generated under US GAAP. This result should be of interest to the SEC in clarifying its concerns.

Details

Journal of Financial Reporting and Accounting, vol. 15 no. 1
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 1 December 1999

Frances Plimmer, W.J. McCluskey and Owen Connellan

The importance of local government within the UK has never been stronger, and this has direct implications as to the most appropriate method of financing this level of…

2256

Abstract

The importance of local government within the UK has never been stronger, and this has direct implications as to the most appropriate method of financing this level of government. The council tax in Great Britain and traditional domestic rates in Northern Ireland represent the two primary sources of local government finance based on domestic property, which currently require significant reform. Weaknesses of the existing systems include the lack of buoyancy due to infrequent revaluations, horizontal and vertical inequities and the need to ensure that domestic property tax systems are seen to be fair. The paper makes a number of important recommendations which would enhance the acceptability and ultimately improve the operation of these forms of ad valorem taxation.

Details

Property Management, vol. 17 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 1 February 1991

Simon Bevan

Explains the ways in which real estate and real estate valuationscan be shown in financial statements. Assists the valuer to betterunderstand the context in which they are…

Abstract

Explains the ways in which real estate and real estate valuations can be shown in financial statements. Assists the valuer to better understand the context in which they are working and the uses to which the valuation may be put. Concludes that valuers should fully understand the context in which their valuation will appear in the accounts and the risk therefore attached to their work before giving their client permission to incorporate a revaluation into financial statements.

Details

Journal of Property Valuation and Investment, vol. 9 no. 2
Type: Research Article
ISSN: 0960-2712

Keywords

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