EFFECT OF DEBT CONTRACTS NEGOTIATION TOWARD COMPANY TO PERFORM REVALUATION OF FIXED ASSETS AND ITS IMPLICATIONS TOWARD INCOME TAX EXPENSE

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EFFECT OF DEBT CONTRACTS NEGOTIATION TOWARD COMPANY TO PERFORM REVALUATION OF FIXED ASSETS AND ITS IMPLICATIONS TOWARD INCOME TAX EXPENSE

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Title: EFFECT OF DEBT CONTRACTS NEGOTIATION TOWARD COMPANY TO PERFORM REVALUATION OF FIXED ASSETS AND ITS IMPLICATIONS TOWARD INCOME TAX EXPENSE
Author: Sherlita, Erly; Sari, Diana; Permana, Yudhistian Rosavelly Putra
Abstract: The purpose of this study was to empirically test the effect of negotiating debt contracts (through the level of leverage, the level of secured borrowings and decrease in cash flow from operating activities) as well as the company size against the company on administering the revaluation of fixed asset and the implication on income tax expense. The population of this study focused on the companies that were listed in Indonesian Stock Exchange in 2010. Based on this list, there were 5 companies that administered the revaluation on fixed assets in 2010. As for the companies that did not administer the revaluation of fixed assets, the researcher processed all samples with purposive sampling method. Furthermore, this research also used the secondary data obtained from the Indonesian Stock Exchange. Statistical tests performed used the logistic regression analysis and simple linear regression analysis.The result of the study showed that the level of leverage and the company size had a positive and significant effect on the rate of 10% of the company to administer the revaluation of fixed assets. On the contrary, the level of secured borrowings had a negative and insignificant effect for the company to administer the revaluation of fixed assets although it was originally predicted to be positive. The study also discovered that the decrease in cash flow from operating activities had a positive and insignificant effect for the company to administer the revaluation of fixed assets which overlooked the original prediction to be negative. Revaluation of fixed assets resulted in increased amount of depreciation expense over the useful life of assets, which in turn will reduce taxable income and income tax expense.
URI: http://repository.widyatama.ac.id/xmlui/handle/123456789/3544
Date: 2013-06-28


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CONFERENCE ORGANIZATION.pdf 298.1Kb PDF View/Open
CONFERENCE SCHEDULE.pdf 323.5Kb PDF View/Open
COVER.pdf 563.3Kb PDF View/Open
ERLY SHERLITA.pdf 581.5Kb PDF View/Open
GENERAL INFORMATION.pdf 222.2Kb PDF View/Open
INNER COVER.pdf 220.8Kb PDF View/Open
ISBN - ISSN.pdf 216.0Kb PDF View/Open
ORAL SESSIONS.pdf 287.8Kb PDF View/Open
SPECIAL THANKS.pdf 219.7Kb PDF View/Open
TABLE OF CONTENTS.pdf 301.0Kb PDF View/Open

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