The impacts of reassessment of assets of companies on the disclosure of their real assets and their actual income taxes

The existence of widespread inflation in different societies and the complexity of financial analysis methods as well as the variety of the needs of internal/external users of such analyses in combination with sensitivities of decision making authorities all together have necessitated the presentation of realistic information to be used in financial reporting processes. Reassessment of fixed assets, in its turn, is a result of such changes. The present research aims at exploring the impacts of reassessment of assets of companies on the disclosure of their real assets and their actual income taxes. This research makes use of both descriptive (correlation) and survey study methods. In addition to the data gathered from the administration of a researcher-made questionnaire, some information needed (data of 2001-2007) has been extracted from financial statements of companies running under the supervision of Industrial Development and Renovation Organization of Iran (IDRO) and Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO). Research findings indicate that there is a strong effective relationship between reassessment of assets and the disclosure of companies’ real assets. On the other hand, reassessment of assets has affected the income taxes of the companies in question though in a one-way manner.