Biological asset disclosure under MFRS 141: Longitudinal evidence from Malaysian publicly listed plantation companies

Background and Purpose: Biological asset disclosure remains a significant reporting issue due to challenges in measurement, judgment, and financial reporting comparability. This study provides longitudinal evidence on the disclosure of biological assets among 41 Malaysian listed plantation companies, comparising over a 13-year period from 2010 to 2022. It investigates whether the adoption and subsequent amendments of IAS 41 have led to improvements in corporate disclosure. Methodology: Data were manually collected using a disclosure index developed from the IAS 41 and Malaysia Financial Reporting Standards (MFRS)141 requirements. The disclosure items include asset types, nature of business activities, measurement and evaluation methods, production cycles and risk-related information associated with biological assets. Each disclosure item was assessed using a binary scoring approach (1 = disclosed; 0 = not disclosed). The study comprised 533 firm-year observations from 41 Malaysian publicly listed plantation companies. Descriptive statistics and One-Way ANOVA were employed to analyse the disclosure level across four regulatory stages: pre-convergence, introduction, amendment, and post-implementation. Findings: The findings indicate a progressive and statistically significant increase in biological asset disclosures over time, although full compliance remains limited due to measurement complexity, cost considerations and valuation challenges. One-way ANOVA results confirmed significant differences in disclosure levels across the four regulatory stages, with the post-implementation period exhibiting the highest level of disclosure. The results highlight persistent gaps in disclosure practices and suggest that regulatory enforcement plays a critical role in enhancing reporting transparency and comparability in emerging market contexts. Contributions: This study provides important implications for regulators, standard setters and practitioners in improving the quality and consistency of biological asset reporting. Keywords: IAS 41, MFRS 141, disclosure, biological asset, fair value measurement, plantation company. Cite as: Mohamed, N. N., Mohamed Adnan, S., Ahmad Mohamed, A. M., & Fitria, Y. (2026). Biological asset disclosure under MFRS 141: Longitudinal evidence from Malaysian publicly listed plantation companies. Journal of Nusantara Studies, 11(2), 437-454. http://dx.doi.org/10.24200/jonus.vol11iss2pp437-454