Mohd Halim Kadri, Jeni Wardi, Zarina Abu Bakar, Juyati Mohd Amin, Nor Balkish Zakaria
In order to upsurge financial report’s reliability and curb the misinterpretation which could severely lead to misjudgements among financial reporting users, this current study aims to investigate the value relevance of property, plant and equipment and asset revaluation reserves using a sample of top 100 listed companies from a neighbourhood between Malaysia and Indonesia for the period of 2018-2019. This study provides evidence that property, plant and equipment and asset revaluation reserves of Malaysian and Indonesian companies are value relevant. The result implicates that the adoption of Malaysian Financial Reporting Standard 116 (MFRS116-Property, plant and equipment in Malaysia and Financial Accounting Standard 16 (PSAK 16) in Indonesia are value relevant. Hence, any financial misjudgements among users could be evaded.