Determinants of upward revaluations of property, plant and equipment while adopting IFRS for the first time. Evidence from Poland
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The objective of the paper is to analyze the determinants of the occurrence and magnitude of upward revaluations of property, plant and equipment while adopting IFRS first time. The determinants have been considered within the following three groups: capacity of upward revaluations, economic and per-formance factors, and managerial and reporting factors as well contracting and political costs. The em-pirical research was based on the simple random sample consisting of 82 reporting entities – companies listed on Warsaw Stock Exchange (WSE) in Poland during the period 2000–2010. Our research included univariate analysis, multivariate analysis, correlation analysis and regression analysis. The results showthat two groups of dependent variables influence upward revaluations of property, plant and equipment while adopting IFRS first time but only capacity of the upward revaluations is correlated positively with occurrence and the magnitude of revaluations of property, plant and equipment. As far as economic and performance factors are concerned, they are correlated positively with occurrence of upward revaluations but are negatively correlated with magnitude of revaluations. We have found no clear evidence that managerial and reporting factors influence the magnitude and occurrence of upward revaluation.
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