Large companies and entities of public interest are required to apply IASB, which includes IAS, while preparing financial statements. IAS 16 mandates companies, when valuing property, plants and equipment, initially value them at cost and subsequently may apply either the revaluation method or the cost method. Therefore, the aim of this study was to examine the implementation of the standard in a sample of 20 companies listed on the Zagreb Stock Exchange and the impact of the methods on the financial performance of the companies. The research was primarily conducted using the „case study “ method. All observed companies clearly indicate the application of the respective standards in their notes. The first conclusion of this research is that only 20% of the companies apply the revaluation method to their properties, and none of them apply this method to the entire group of property, plant and equipment. The main conclusion is that the revaluation method affects the total assets, equity, liabilities and profits of the companies. Profitability and returns on investment are improved when revaluation results in a decrease in value, while the opposite is true for an increase in value. Therefore, comparing the two methods depends on whether revaluation results in a decrease or increase in value. Despite the fact that the picture of profitability financial stability and indebtedness of the companies depends on whether there is an increase or decrease, the net profit value for investors, i.e., the P/E ratio, is hither when using the revaluation method. Additionally, it is important to consider that the revaluation method always presents the fair value of the company's assets and its financial stability. For further research, it is recommended to explore indicators over multiple years for the same company to identify fluctuations in the financial performance and analyse the cost implications and benefits brought by the revaluation method.