Accounting for SGARAs : has comparability and consistency been achieved?

The accounting standard, AASB 1037 'Accounting for self-generating and regenerating assets' (SGARAs) was introduced into the Australian financial reporting arena for the financial year ending 30 June 2001. Prior to the introduction of this standard, there was no regulatory guidance provided by the standard setters. With the adoption of international standards into Australia from 01 January 2005, AASB 1037 has effectively been replaced by its international equivalent, AASB 141 'Agriculture'. This study examines whether the objectives of consistency and comparability have been achieved through the implementation of AASB 103 7 and the subsequent adoption of AASB 141. A triangulated approach is adopted utilising mail survey and interview techniques to collect data. The results indicate that consistency in measurement methods has not been achieved by the introduction of a prescribed accounting method under AASB 1037 with firms utilising a variety of measurement methods. By not applying the same accounting methods, this has also impaired comparability between firms and across industries. Consistency was found to have been achieved through measurement methods having been applied consistently over time and the type of measurement methods being applied to three SGARAs, being grapes, native forests and plantation timber. In the case of AASB 141, conflicting results were received from the mail survey and interviews respectively. In terms of the application of AASB 141, it is too early to tell if consistency has been achieved.