Australian GAAP requires firms to either disclose or recognize the current values of real estate in their financial statements. Given recognition criteria related to reliable measurement, the propensity to recognize an upward revaluation is subject to the inherent uncertainty of the assessed...

Australian GAAP requires firms to either disclose or recognize the current values of property in their financial statements. We investigate why managers of some firms choose to recognize revaluation increments in their financial statements while others choose simply to disclose. We propose that...