Reaction To The Mandatory Write‐Down Provisions Of AASB 1010: Accounting For The Revaluation Of Non‐Current Assets

Abstract

Commentators in the financial press claimed that the amendments to AASB 1010, Accounting for the Revaluation of Non‐Current Assets, issued in September 1991, would have “disastrous” implications for the accounts of companies. This paper is concerned with whether the amendments did indeed affect asset write‐down activities. An analysis of write‐down practices of 75 Australian companies before and after the amendments were operative suggests that the commentators' judgment could have been hasty.