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Crisis Effects On Tangible Assets Revaluations A Study Over Romanian Buildings

Author

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  • Muresan Diana

    (Universitatea Babes-Bolyai, Facultatea De Stiinte Economice si Gestiunea Afacerilor)

Abstract

In this paper we have tried to measure the impact that crisis it had over the revaluation process of buildings from Romania. This study includes a sample of 239 buildings from a district from Romania. Buildings belong to 67 shares companys. The period we have analyzes is between 2008 to 2011 but we have also used data about the past years of revaluation in order to establish the differences. The study involves observing the values fluctuations of buildings during financial crisis. To measure buildings fluctuations we have used fair value obtained during revaluation and inventory value recorded before revaluation, also used as imposable value. Having this two important values, we have compared them in order to observe if exists an increase or a decrease during the years of financial crisis. We have followed the evolution of revaluation differences whithin years and values observing both apreciations and depreciations. Also, we have analysed the periodicity with which buildings are revaluated and its importance over the taxation. Results show that the majority of the buildings have experienced a decrease from initial value in the period when our country passed through the famous crisis. In the years following the crisis buildings values have increased slightly, most registering increases up to 25%. Also, it shows that most companies which make reassessments of buildings, usually are done at 3 years to pay a minimum tax.

Suggested Citation

  • Muresan Diana, 2013. "Crisis Effects On Tangible Assets Revaluations A Study Over Romanian Buildings," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 197-203, April.
    • Handle: RePEc:cbu:jrnlec:y:2013:v:2:p:197-203
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    References listed on IDEAS

    as
    1. Y.C. Lin & Ken V. Peasnell, 2000. "Fixed Asset Revaluation and Equity Depletion in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(3-4), pages 359-394.
    2. Y.C. Lin & Ken V. Peasnell, 2000. "Fixed Asset Revaluation and Equity Depletion in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(3&4), pages 359-394.
    3. Benzion Barlev & Dov Fried & Joshua Rene Haddad & Joshua Livnat, 2007. "Reevaluation of Revaluations: A Cross-Country Examination of the Motives and Effects on Future Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(7-8), pages 1025-1050.
    4. Y.C. Lin & Ken V. Peasnell, 2000. "Fixed Asset Revaluation and Equity Depletion in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(3‐4), pages 359-394, April.
    5. Benzion Barlev & Dov Fried & Joshua Rene Haddad & Joshua Livnat, 2007. "Reevaluation of Revaluations: A Cross‐Country Examination of the Motives and Effects on Future Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(7‐8), pages 1025-1050, September.
    6. Ann Gaeremynck & Reinhilde Veugelers, 1999. "The revaluation of assets as a signalling device: a theoretical and an empirical analysis," Accounting and Business Research, Taylor & Francis Journals, vol. 29(2), pages 123-138.
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