i Accounting for Biological Assets This book explores accounting for biological assets under International Accounting Standard (IAS) 41 Agriculture, and explains the recent adjustments introduced by the International Accounting Standards Board (IASB) which allow firms to choose between cost or revaluation models concerning mature bearer plants Identifying the firm and country-​level drivers that inform the disclosure and measurement practices of biological assets, this concise guide examines the value relevance of measuring those assets at fair value It also analyses how firm and country-​level drivers explain the differences in the disclosure level and practices used to measure biological assets under IAS 41 Finally, it evaluates whether there is a difference in the relevance of biological assets among the listed firms with high and low disclosure levels on biological assets Based on a major international study of a wide selection of firms and country-​level drivers, this book is vital for standard setters, stakeholders, students, accountants and auditors who need to understand disclosure and measurement practices of biological assets under IAS41 Rute Gonỗalves is Accounting Supervisor at Centrar, S.A RAR Group, Portugal She has previously taught at the University of Porto, Portugal Patrícia Teixeira Lopes is Associate Dean at Porto Business School, University of Porto, Portugal She was a research member of INTACCT, a European project on the application of the IAS/​IFRS in Member States of the European Union ii Routledge Focus on Business and Management The fields of business and management have grown exponentially as areas of research and education This growth presents challenges for readers trying to keep up with the latest important insights Routledge Focus on Business and Management presents small books on big topics and how they intersect with the world of business Individually, each title in the series provides coverage of a key academic topic, whilst collectively, the series forms a comprehensive collection across the business disciplines ISSN: 2475–​6369 For a complete list of titles in this series, please visit www.routledge.com/​ business/​series/​FBM Auditing Teams: Dynamics and Efficiency Mara Cameran, Angelo Ditillo and Angela Pettinicchio The Reflective Entrepreneur Dimo Dimov The Spartan W@rker Konstantinos Perrotis and Cary L. Cooper Writing a Business Plan: A Practical Guide Ignatius Ekanem Manager vs Leader: Untying the Gordian Knot Robert M. Murphy and Kathleen M.Murphy Accounting for BiologicalAssets Rute Gonỗalves and Patrớcia TeixeiraLopes iii Accounting for BiologicalAssets Rute Gonỗalves and Patrớcia TeixeiraLopes iv First published 2018 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business â 2018 Rute Gonỗalves and Patrớcia TeixeiraLopes The right of Rute Gonỗalves and Patrớcia Teixeira Lopes to be identified as authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing-​in-​Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-​in-​Publication Data A catalog record for this book has been requested ISBN: 978-​0-​815-3​7141-​0 (hbk) ISBN: 978-​1-​351-​24682-​8 (ebk) Typeset in Times New Roman by Out of House Publishing v Contents List of List of List of List of tables appendices annexes abbreviations vi vii viii ix Overview International Accounting Standard 41 Agriculture 3 Accounting for biological assets: Current debate 12 Fair value relevance of biological assets 33 Empirical evidence 42 Main findings and future avenues of research 67 References Appendices Annexes Index 69 79 102 105 vi List of tables 2.1 Examples of biological assets, agricultural produce and products that are the result of processing after harvest 2.2 Historical development of IAS 41 3.1 Measurement –​ firm-​level drivers 4.1 Fair value relevance –​literature review 5.1 Ten firms with higher and lower disclosure levels by country and sector 5.2 Ranking of the more representative countries by the number of firms and their average disclosure level 5.3 Disclosure drivers’ behaviour 5.4 Number of firms by country with the related measurement practice 5.5 Measurement drivers’ behaviour 5.6 Selection distribution 5.7 Ranking of the more representative countries by the number of firms and their average disclosure level 5.8 Value relevance drivers’ behaviour 10 22 37 47 48 49 53 55 58 62 63 vii List of appendices Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Appendix I Appendix J Appendix K Appendix L Appendix M Appendix N Appendix O Appendix P Appendix Q Disclosure index 79 Proxies, description and expected signals 83 Descriptive statistics 85 Ranking of countries by the number of firms and their average disclosure level 87 Pearson’s correlation 89 OLS regression model 90 Chi-​squared test between biological assets and measurement practice 91 Number of firms by country with the related measurement practice 92 Logit regression model 93 Expectation-​prediction evaluation for binary specification 94 Goodness-​of-​fit evaluation for binary specification 94 Robustness test –​sectors: agriculture versus manufacturing 95 Robustness test –​sectors: agriculture versus manufacturing (details) 96 Panel fixed effects regression model 98 Bearer and consumable biological assets classification 99 Robustness test –​market value six months after fiscal year-​end 100 Robustness test –​firms above first quartile of biological assets per share selection’s distribution 101 viii List of annexes Annex A Leuz’s (2010) cluster classification Annex B Brown et al (2014) classification 102 103 newgenprepdf ix List of abbreviations AASB CFO CPC FASB GAAP IAS IASB IASC IFRS OLS PwC R&D SBF Australian Accounting Standards Board Chief Financial Officer Comitê de Pronunciamentos Contábeis Financial Accounting Standards Board Generally Accepted Accounting Principles International Accounting Standard International Accounting Standards Board International Accounting Standards Committee International Financial Reporting Standards Ordinary Least Squares PricewaterhouseCoopers Research and Development Société des Bourses Franỗaises 94 Appendix J. Expectation-prediction evaluation for binary specification Estimated equation Dep = Dep = Total P(Dep=1)C Total Correct % Correct % Incorrect 75 29 104 75 72.12 27.88 22 193 215 193 89.77 10.23 97 222 319 268 84.01 15.99 Appendix K.  Goodness-​of-​fit evaluation for binary specification Statistic (7) (8) Hosmer–​Lemeshow Prob.Chi-​Sq (8) Andrews Prob.Chi-​Sq (10) 13.943 0.083 35.464 0.000 16.066 0.041 37.008 0.000 95 newgenrtpdf Appendix L.  Robustness test –​sectors: agriculture versus manufacturing Equation: (7) Variable odds ratio Constant BIO SIZE STOCK IFRS GROWTH LEV SECTOR1=1 SECTOR2=1 IFRS*SECTOR1=1 IFRS*SECTOR2=1 QUALITY McFadden R-​squared Log likelihood Restr log likelihood LR statistic Obs with Dep=0 Obs with Dep=1 Total obs (8) 0.003 1.082*** 1.699*** 15.364*** 19.727*** 0.805* 1.091 1.914* *** 3.912*** 0.374 –​126.081 –​201.392 150.622*** 104 215 319 Statistical significance at: *** 1% level; ** 5% level; * 10% level odds ratio 0.005 1.085*** 1.644** 15.211*** 22.669*** 0.811* 1.100 *** 0.480** 3.827*** 0.379 –​124.976 –​201.392 152.832*** 104 215 319 odds ratio 0.003 1.083*** 1.739*** 15.792*** 15.577*** 0.801** 1.087 *** 3.226** 3.924*** 0.378 –​125.277 –​201.392 152.230*** 104 215 319 odds ratio 0.003*** 1.087*** 1.668** 15.532*** 40.476*** 0.812* 1.090 0.363** 3.868*** 0.379 –​125.142 –​201.392 152.500*** 104 215 319 96 newgenrtpdf Appendix M.  Robustness test –​sectors: agriculture versus manufacturing (details) Equation: (6) Agriculture Crops Livestock and Animal Specialties Paper and Allied Products Food and Kindred Products Beverages Variable odds ratio odds ratio odds ratio odds ratio odds ratio Constant BIO SIZE STOCK IFRS GROWTH LEV subSECTOR1.01=1 subSECTOR1.02=1 subSECTOR1.01oth=1 subSECTOR1.02oth=1 subSECTOR2.26=1 subSECTOR2.20=1 subSECTOR2.208=1 subSECTOR2.26oth=1 subSECTOR2.20oth=1 subSECTOR2.208oth=1 QUALITY 0.003*** 1.083*** 1.693*** 15.292*** 19.792*** 0.803** 1.091 1.702 2.003** Manufacturing 0.003*** 1.084*** 1.676** 15.808*** 20.039*** 0.805** 1.093 0.007*** 1.082*** 1.575** 15.684*** 23.314*** 0.823* 1.088 0.006*** 1.084*** 1.580** 15.172*** 24.909*** 0.822* 1.101 0.006*** 1.089*** 1.569** 16.496*** 25.647*** 0.829* 1.078 1.239 2.311* 0.912 0.441 0.367*** 0.139*** ** 3.911*** 3.854*** 3.853*** 0.704 3.904*** 0.654 4.510*** 97 McFadden R-​squared Log likelihood Restr log likelihood LR statistic Obs with Dep=0 Obs with Dep=1 Total obs 0.374 –​126.057 –​201.392 150.670*** 104 215 319 0.376 –​125.709 –​201.392 151.366*** 104 215 319 SubSECTOR1.01 Agricultural Production –​ Crops SubSECTOR1.02 Agricultural Production –​Livestock and Animal Specialties SubSECTOR2.26 Paper and Allied Products SubSECTOR2.20 Food and Kindred Products SubSECTOR2.208 Beverages Statistical significance at: *** 1% level; ** 5% level; * 10% level 0.382 –​124.335 –​201.392 154.115*** 104 215 319 0.385 –​123.788 –​201.392 155.208*** 104 215 319 0.400 –​120.817 –​201.392 161.150*** 104 215 319 98 newgenrtpdf Appendix N.  Panel fixed effects regression model Equation: (9) (10) (11) Selection: Included panel observ: Dependent variable: 2011 2013 389 MV 2011 2013 389 MV 2011 2013 389 MV Variable coef t-​stat coef t-​stat coef t-​stat Constant BV BV-​BA BA E Dindex1 Dindex3 Dindex1 x BA Dindex3 x BA Controls SIZE SECTOR1+SECTOR2=1 Adjusted R-​squared F-​statistic –​10.499 0.668 –​3.567*** 5.597*** –​11.774 –​4.792*** –​10.271 –​3.952*** 2.608 2.415** 0.596 0.881 2.406 4.894*** 3.221*** 2.266** 0.668 0.507 2.432 1.212 –​0.622 1.402 0.797 4.234*** 1.700* 2.567** 1.418 –​1.232 0.912 3.088*** 1.963 1.136 0.835 327.428*** 3.752*** 1.281 2.258 0.711 0.838 287.464*** 5.734*** 0.849 1.863 0.881 0.858 213.358*** 4.636*** 1.031 Statistical significance at: *** 1% level; ** 5% level; * 10% level 99 Appendix O.  Bearer and consumable biological assets classification Panel A: Panel fixed effects regression results Variables Constant BV-​BA BA E Dindex1 Dindex3 Dindex1 x BA Dindex3 x BA Controls SIZE SECTOR1+SECTOR2=1 N Adjusted R-​squared F-​statistic Bearer Consumable coef t-​stat –​20.759 0.549 0.649 2.497 3.667 –​0.912 4.180 1.029 –​3.957*** 3.345*** 1.943* 2.405** 1.779* –​1.035 1.327 3.673*** 3.745 1.295 167 0.866 98.907*** 4.470*** 0.893 coef –​3.394 0.821 1.148 1.781 –​0.410 –​0.312 –​1.239 0.040 Sum squared residuals All Bearer Consumable Number of parameters Number of observations F-​statistic(10,369) 14077.14 10 389 5.798 9880.421 2285.219 Statistical significance at: *** 1% level; ** 5% level; * 10% level –​1.737* 8.612*** 3.247*** 1.752* –​1.101 –​0.549 –​1.376 0.117 0.689 2.001** –​0.012 –​0.023 222 0.878 145.717*** Panel B: Chow test for equation (4.4) –​all, bearer and consumable 167 t-​stat 222 100 newgenrtpdf Appendix P.  Robustness test –​market value six months after fiscal year-​end Equation: (9) (10) (11) Selection: Included panel observ: Dependent variable: 2011 2013 386 MV6m 2011 2013 386 MV6m 2011 2013 386 MV6m Variable coef t-​stat coef t-​stat coef t-​stat Constant BV BV-​BA BA E Dindex1 Dindex3 Dindex1 x BA Dindex3 x BA Controls SIZE SECTOR1+SECTOR2=1 Adjusted R-​squared F-​statistic –​11.251 0.640 –​3.664*** 6.099*** –​12.263 –​4.806*** –​11.848 –​4.467*** 2.453 2.714*** 0.584 0.809 2.293 4.962*** 3.410*** 2.565** 0.616 0.623 2.294 1.401 -​0.341 0.385 0.429 4.125*** 1.947* 2.725*** 1.632 –​0.687 0.271 1.558 2.069 1.153 0.837 329.571*** 3.815*** 1.299 2.303 0.821 0.839 286.921*** 5.570*** 0.946 2.127 0.960 0.845 191.682*** 5.226*** 1.067 MV6m –​market value per share that equals the market price month close (6 months after the fiscal year-​end) Statistical significance at: *** 1% level; ** 5% level; * 10% level 101 Appendix Q.  Robustness test –​firms above first quartile of biological assets per share selection’s distribution Equation: (10) (11) Selection: Included panel observ: Dependent variable: 2011 2013 289 MV 2011 2013 289 MV Variable coef t-​stat Constant BV-​BA0.25 BA0.25 E Dindex1 Dindex3 Dindex1 x BA0.25 Dindex3 x BA0.25 Controls SIZE SECTOR1+SECTOR2=1 Adjusted R-​squared F-​statistic –​11.689 0.616 0.964 1.909 –​3.565 4.776*** 3.641*** 2.020** –​9.566 0.693 0.590 1.921 0.837 –​0.853 1.875 0.796 –​3.007*** 4.118*** 1.902* 2.388** 0.683 –​1.642 0.970 2.920*** 4.701*** 0.464 1.806 0.561 0.865 168.363*** 3.890*** 0.488 2.268 0.562 0.844 223.699*** coef *** t-​stat BA0.25 –​Biological assets (WS18277, WS18278 or WS18258) divided by common shares outstanding (WS05301) above first quartile of biological assets per share distribution Statistical significance at: *** 1% level; ** 5% level; * 10% level 102 newgenrtpdf Annexes Annex A.  Leuz’s (2010) cluster classification Cluster Australia Canada Hong Kong Ireland Israel Malaysia New Zealand Cluster Singapore South Africa United Kingdom United States Austria Belgium Chile Denmark Finland France Germany Cluster membership using regulatory and reporting practice variables Cluster Japan Korea (South) Netherlands Norway Spain Sweden Switzerland Argentina Brazil Colombia Greece India Italy Mexico Pakistan Philippines Portugal Taiwan Thailand 103 Annex B.  Brown et al (2014) classification Audit Enforce Total 30 19 22 14 11 27 20 29 23 17 30 29 27 24 25 19 17 11 19 20 26 25 27 32 22 22 8 22 12 16 21 22 12 12 19 19 22 12 10 12 16 22 22 52 27 44 22 19 49 32 45 44 26 52 18 41 46 43 47 28 29 15 19 29 32 42 34 49 54 Countries that did not adopt IFRS in 2005 Argentina Brazil 15 Canada 32 Chile China 21 Egypt 10 India 15 Indonesia Israel 24 Japan 26 Jordan Korea (South) 18 Malaysia 21 Mexico 12 Morocco 22 16 6 24 10 19 13 11 23 54 37 14 21 14 48 34 11 28 40 25 11 (continued ) Countries that adopted IFRS in 2005 Australia Austria Belgium Croatia Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary Ireland Italy Netherlands Norway Poland Portugal Romania Slovenia South Africa Singapore Spain Sweden Switzerland Ukraine United Kingdom 104 Annex B. (cont.) New Zealand Pakistan Peru Philippines Russia Taiwan Thailand Turkey United States Audit Enforce Total 24 10 11 11 22 10 11 11 32 19 16 12 24 43 18 16 27 28 18 23 20 56 Comparison of audit and enforcement scores by country for 2008 105 Index Bold page numbers indicate tables accounting choices 25, 26–​7; firm-​ level drivers 16 adoption of IFRS 28 agency theory 16, 18, 19, 26 agricultural activity defined 4 agricultural produce defined 5 Al Jifri, K. 33 amendments to IAS 41 10, 10–​11 Amiraslani, H 31–​2, 50 Argilés, J. M. 15 Argilés Bosh, J M. 35–​6 asymmetric information 14, 16, 18, 21, 26, 27, 39, 61 auditors/​auditing: proxies 30, 50–​1; quality of auditors 29; type of auditors 19, 49, 49–​50, 51 Avallone, F. 21, 23 Baboukardos, D. 37, 41 Ball, R. 34, 35 Barth, M. E. 38 bearer biological assets: amendments to IAS 41 10–​11; defined 6; fair value 65; and measurement 53; research results 64, 65 bearer plants defined 5 Beisland, L.-​A. 37 biological assets: bearer 6; consumable 6; defined 5; fair value hierarchy 7; intensity of 17–​18; mature 6 biological transformation defined 5 Brazil 13–​14 Brown, P 29, 30, 50, 51, 103–​4 Chavent, M 12, 20, 50 China 30–​1, 50 Choudhary, P. 33, 40 Christensen, H B 21, 22, 26, 56 Citron, D. 33 classification of countries 27–​31, 50, 102–​4 Clinch, G. 38 common/​code law 29–​30, 50, 54, 56 conditional government grants 8 consumable biological assets 36; defined 6; fair value 65; and measurement 53; research results 64, 65 contingency theory 16–​17 costs: as approximate for fair value 7; to sell, defined 5 country-​level drivers: classification of country 27–​31, 50, 102–​4; common/​code law 29–​30, 50, 54, 56; contingency theory 16–​17; developed countries 59; disclosure 16–​17, 29–​30; measurement 30–​1; research questions 42; research results 45–​6 Curto, J. D. 38 Daniel, S 21, 24, 25, 55, 56 definitions in IAS 41 4–​6 106 106  Index Demaria, S 27, 55, 56–​7 Dionysiou, D. 40 disclosure: agency theory 16, 18, 19; auditor type 19, 49, 49–​50; contingency theory 16–​17; country-​ level drivers 16–​17, 29–​30; extent-​ based analysis 31; fair value 40–​1; firm-​level drivers 16, 17–​20; IAS 41 requirements 8–​10, 13–​14; index 31–​2, 44–​5, 61, 79–​82; intensity of biological assets 17–​18, 49; internationalisation level 19, 49, 49, 50; legal status 29–​30, 49, 50, 54; listing status 19, 49, 49; mandatory 12, 52; ownership concentration 18, 49, 49; profitability 19–​20, 49, 49, 50; quality-​based analysis 32; and recognition, distinction between 33, 40; research 47, 48, 49, 61–​2, 62; research results 45–​52, 83–​6, 89–​90; sector 20, 49, 49; signalling theory 16, 19, 20; size of firm 18, 49, 49; voluntary 12, 52 Doupnik, T S. 16–​17 drivers see country-​level drivers; firm-​level drivers Dufour, D 27, 55, 56–​7 Elad, C 13, 14, 30, 41, 50 enforcement proxies 30, 50–​1 exemptions from scope of IAS 41 4, 5 expertise in regulation 25, 56, 57 fair value: bearer biological assets 65; consumer biological assets 65; cost as approximate for 7; criticisms 34–​5; defined 6; disclosure 40–​1; hierarchy 6–​7; IAS 41 3, 33–​4; IFRS 13 Fair Value Measurement 6–​7; implementation of IAS 41 14–​15; inability to measure reliably 8, 34; international financial reporting 34–​5; investment decision-​making 39; measurement 6–​7, 12–​13; non-​financial assets 35–​6, 37–​8; recognition in profit or loss 7–​8; research issues 39–​41; research model 59–​60; research questions 42; research results 54–​9; theoretical background 39–​41 Fargher, N. 35 Fields, T D 16, 26, 27 financial sector 27 firm-​level drivers: accounting choices 16, 25, 26–​7; agency theory 16, 18, 19; auditor type 19, 51; disclosure 17–​20; expertise in regulation 25, 56, 57; intensity of biological assets 17–​18, 54, 56; intensity of non-​financial assets 21; internationalisation level 19, 25, 55; leverage 26, 54, 56–​7; listing status 19, 25, 54, 55; measurement 20–​7, 22–​4; ownership concentration 18; potential for growth 26, 54–​5, 56; profitability 19–​20; research questions 42; research results 45, 53–​9, 85–​6, 89, 93–​6; sector 20, 26–​7, 54, 55, 57–​8, 58, 59; signalling theory 16, 19, 20; size of firm 18, 21, 25, 55–​6 Fisher, R. 30 forestry sector 14–​15 Gabriel, N. C. 15 Gassen, J. 28 George, E. 15 Germany 28 Glaum, M. 18 government grants 8 growth, potential for 26, 54–​5, 56 Guo, L. 30–​1 Hagerman, R. L. 21 Hamberg, M. 37 harvest defined 6 Herbohn, J. 14–​15 Herbohn, K 13, 14–​15, 30, 41, 50 Hlaing, K P 21, 23, 56 Holthausen, R. W. 40 Hooks, J. 31 Huffman, A. A. 36 IFRS 13 Fair Value Measurement 6–​7, 61 in-​exchange/​in-​use assets 36 information asymmetry 14, 16, 18, 21, 26, 27, 39, 61 intensity: biological assets 17–​18, 49, 54, 56; non-​financial assets 21 107 Index  107 International Accounting Standard (IAS) 41 Agriculture: amendments 10, 10–​11; definitions 4–​6; disclosure requirements 8–​10, 13–​14; exemptions from scope 4, 5; fair value 14–​15, 33–​4; government grants 8; inability to measure fair value reliably 8; measurement of biological assets 6, 12–​13; measurement requirements 14–​16; objective 4; overview 3; recognition of biological assets 6, 7–​8; scope 4, 5 international financial reporting 34–​5 internationalisation level 19, 25, 49, 49, 50, 55 investment decision-​making 39 Kaufmann, D. 28, 31 La Porta, R. 27, 50 Lan, Y 20, 49–​50 Lang, M. 20 Laux, C. 34 legal status 29–​30, 49, 50, 54, 56 legitimacy theory 20 Leuz, C 27–​8, 29, 34, 41, 50, 102 leverage 26, 54, 56–​7 Lindahl, F. 31 listing status 19, 25, 49, 49, 54, 55 Littleton, A.C.36 Lourenỗo,I.38 Lundholm,R.20 mandatory disclosure12 market equity values39 Marston, C. L. 31 Martins, A I S. 35, 60 mature biological assets defined 6 measurement: accounting choices 25, 26–​7; agency theory 26; asset use 36; country-​level drivers 30–​1; expertise in regulation 25; fair value 6–​7; firm-​level drivers 16, 20–​7, 22–​4; IAS 41 6–​7, 12–​13; IAS 41 requirements 14–​16; intensity of non-​financial assets 21; internationalisation level 25; leverage 26; listing status 25; potential for growth 26; sector 26–​7; size of firm 21, 25; type of biological asset 52–​3, 91 Missonier-​Piera, F. 26, 56 Muller, K. A. 24 New Zealand 30 Nikolaev, V V 21, 22, 26, 56 Nobes, C. 27 non-​financial assets 17; fair value 37–​8; fair value relevance 35–​6; measurement 20–​7, 22–​4 Northcott, D. 31 objective of IAS 41 4 Oliveira, J D S. 38, 50 ownership concentration 49, 49 performance of firms 19–​20 Pourjalali, H 21, 23, 56 Preiato, J. 30, 51 PricewaterhouseCoopers (PwC) 13, 41, 44 production forecasting 15 profitability 19–​20, 49, 50 Quagli, A. 21, 23 quality-​based analysis 32 Rahman, A. 20, 49 recognition 6; and disclosure, distinction between 33, 40; IAS 41 6; in profit or loss 7–​8 regulatory quality in countries 28, 31 research: bearer biological assets 64, 65; consumer biological assets 64, 65; countries selected 43; country-​ level drivers 45–​6, 54, 56, 59; data collection 43; disclosure 45–​52, 47, 48, 49, 83–​6, 89–​90; disclosure index 44–​5, 79–​82; disclosure levels 61–​2, 62; fair value 54–​9; fair value relevance 59–​65, 79–​84, 89, 98–​101; firm-​level drivers 45, 53–​9, 85–​6, 89, 93–​6; firms selected 43; future 68; measurement 52–​9, 53, 55, 58, 91; model 59–​60; objectives 42; periods covered 43; questions 42; sample 43, 45, 52, 59; summary of findings 67–​8 Rimmel, G. 37, 41 rule of law 28; see also legal status 108 108  Index Salter, S B. 16–​17 sample 43, 45, 52, 53, 59 Samudhram, A. 40 Schadéwitz, H. 31 Scherch, C P. 14, 17 scope of IAS 41 4, 5 sector influences: disclosure 20, 49, 49; measurement 26–​7; research results 54, 55, 57–​8, 58, 59 Shrives, P. J. 31 signalling theory 16, 19, 20 Silva, R M. 13–​14 size of firm 18, 21, 25, 49, 49, 55–​6 Spain 15, 35–​6 stakeholder theory 17 Steenkamp, N. 31 Stefano, C. 28 Stefea, P. 15 Taplin, R 22, 25, 56 terms in IAS 41 4–​6 Theiss, V. 14 timber sector 13, 41, 44 tropical crops 14 Tsalavoutas, I 37, 40, 61–​2 Tsoligkas, F. 37 unconditional government grants 8 value relevance 33–​41, 59–​65, 79–​84, 89, 98–​101 see also fair value Van Staden, C. J. 31 voluntary disclosure 12 Watts, R L 19, 26, 40 Wysocki, P. D. 41 Yang, Y. 30–​1 Zhang, J. Z. 35 Zimmerman, J. L. 19 Zmijewski, M E 21 ...i Accounting for Biological Assets This book explores accounting for biological assets under International Accounting Standard (IAS) 41 Agriculture, and... k Mature biological assets:  the assets that have attained harvestable specifications (for consumable biological assets) or are able to sustain regular harvests (for bearer biological assets) [IAS... activity: the management of the biological transformation and harvest of biological assets for sale, or for conversion into agricultural produce or into additional biological assets [IAS 41.5]; IAS 41