The objective of this study is to examine the incentives which may drive directors' to revalue their non-current assets. Using a positive accounting theory framework, it is proposed that firms revalue their assets to avoid potential political costs by lowering the reported income of the firm. Whittred and Chan (1991) propose that asset revaluations are unlikely to be motivated by political costs. This proposition is tested in this study by using a various measures of political costs. These measures are size, market concentration, industry labour disputes, effective tax rate and media exposure. All these measures of political costs, except labour disputes, are significantly related to directors' revaluations, indicating that directors' revaluations, at least in part, may be motivated by political cost incentives.