Journal of Economics, Finance and Management Studies ISSN (print): 2644-0490, ISSN (online): 2644-0504 Volume 5 Issue 01 January 2022 Article DOI: 10.47191/jefms/v5-i1-29, Impact Factor: 6.228 Page No. 240-245 JEFMS, Volume 5 Issue 01 January 2022 www.ijefm.co.in Page 240 Revaluation Asset Determinants toward Company’s Value Irma Sari Permata 1 , Kurnia Heriansyah 2 1,2 Faculty of Economics and Business, Universitas Pancasila. Jalan Raya Lenteng Agung, South Jakarta, Indonesia ABSTRACT: This study’s objective is twofold. The first is to determine the effect of the investment opportunity set, leverage, and liquidity on fixed asset revaluation decisions. The second objective is to examine the effect of fixed asset revaluation decisions on firm value listed on the Indonesia Stock Exchange. The research method used is a quantitative method with statistical hypothesis testing through multiple linear regression (simultaneous and partial significance tests). The number of samples studied was 110, using panel data from 2016–2019. The results of the first stage of the study show that at the 5% significance level, the investment opportunity set and partial leverage have no effect on the revaluation of fixed assets, but liquidity has a significant negative effect on the revaluation of fixed assets. Meanwhile, the results of the second stage of the study show that the investment opportunity set has no significant effect on firm value, but leverage, liquidity, and fixed asset revaluation partially affect firm value. KEYWORDS: Revaluation, Fixed Asset, Company Value, Investment Opportunity Set, Leverage, Liquidity. I. INTRODUCTION Fixed assets in the company's development from year to year have a growing influence on the company's value. The business world uses the same recording standards to determine the fair value of a fixed asset. By making company financial reporting standards comparable, understandable, reliable, and relevant, which was initiated by the International Accounting Standards Board (IASB), an institution that provides a common understanding for business people all over the world, Indonesia's role as a part of the world's business has also adapted, with the convergence of IFRS into the Statement of Financial Accounting Standards (PSAK) commencing in 2012. As two internationally recognized standards, GAAP and IFRS have distinct approaches to assessing and recognizing firm assets. In GAAP, property, plant, and equipment are measured using historical cost or the cost of property, plant, and equipment, but in IFRS, property, plant, and equipment are assessed using fair value or fair value. PSAK was adapted from IFRS in Indonesia on January 1, 2012, so that firms in Indonesia analyze and record assets from historical cost to fair value. This amendment affects the regulation of the financial statements' recognition, recording, reporting, and disclosure of property, plant, and equipment. One of the topics that has attracted attention in the convergence process is fixed assets. According to the principal base adopted by IFRS, fixed assets can be revalued. Thus, historical cost is not the only method of recording. Fixed assets play an essential role in the day-to-day operations of a business. According to PSAK No. 16, the entity selects either the cost model or the revaluation model as its accounting policy and applies it to all fixed assets in the same group (IAI, 2012). Property, plant, and equipment are carried at cost after being registered as an asset, less any accrued depreciation and any accumulated impairment losses on the asset. The revaluation model should be recorded at the revaluation amount, which is the fair value at the revaluation date less accumulated depreciation and accumulated impairment losses after the revaluation date, after recognition as an asset, property, plant, or equipment whose fair value can be measured reliably. Revaluations are performed on a regular basis to verify that the carrying amount at the end of the reporting period does not change considerably from the amount estimated using fair value. Fixed assets play an essential role in the day-to-day operations of a business. II. LITERATURE REVIEW Revaluation Fixed Assets: Theory and Concept A fixed asset revaluation is a reassessment of the company's fixed assets due to a rise in market value. This policy represents the real status of assets as a result of fixed asset revaluation; assets are reported using market values. The revaluation of fixed