Explanation the Determinants of the Fixed Asset Revaluation

One of the most controversial topics that is always in the focus of standards developers, investors, the scientific community and professional members is fixed assets revaluation. Such a tool is considered challenging for companies because it is an official process for updating the book value of fixed assets in order to provide relevant information, and on the other hand, it may be affected by the opportunistic motives of managers to cover and hide poor performance. For this reason, the purpose of this research is to identify its determining factors in the Iranian market, which has expanded in recent years. In this study, the determining factors of revaluation of fixed assets have been classified into six economic, legal, market, industry, corporate, and managerial motivations, and they have been analyzed by PLS method during the period of 2010-2019. The statistical population of this research includes all the companies admitted to the Tehran Stock Exchange in the period of 10 years and taking into account the conditions of active stock symbol and non-membership in financial, brokerage, banking and insurance groups.The findings showed that economic, market, industry and corporate factors play a role in revaluation of assets, and legal factors and motivations of managers have no involvement in such. The findings of this research can bring significant achievements for audit professionals and supervisory institutions through the assessment of audit risk.