IAS 41 - A step closer to accounting harmony?

Abstract: When IAS 41 was implemented the companies affected now had several measurement methods to choose from when valuing their biological assets. This paper examines to what extent these different measurement methods are used by forest owning companies. The Herfindahl Index and the I-index are used to quantify the degree of harmony of measurement methods within countries, irrespective of countries, and between countries. Data was collected from companies in Europe, South Africa, and Australia. Our findings conclude that the degree of national harmony is very high in Sweden, Finland, South Africa, and Australia. We also find that the degree of harmony of the forest industry as a group, irrespective of country of origin, is high. However, the I-index indicates that the degree of international harmony is very low for the countries investigated.