Mirza and Zimmer (1999)found that only a small number of companies were undertaking upward asset revaluations.The reasons for their reluctance to undertake this practice included:
A) a desire to remain 'small' in keeping with the political-cost hypothesis.
B) Any revaluations made are not permitted to be recognised as income by the relevant accounting standard.
C) In an attempt not to overstate assets management preferred not to revalue items that are subject to a great deal of uncertainty.
D) all of the given answers.

Question

Quizplus · Accepted Answer

The reasons for companies' reluctance to undertake upward asset revaluations include a desire to remain 'small' in keeping with the political-cost hypothesis, the prohibition by relevant accounting standards to recognize revaluations as income, and management's preference not to overstate assets by revaluing items subject to a great deal of uncertainty.

Mirza and Zimmer (1999)found That Only a Small Number of Companies