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Abstract Extant research in evaluation of accounting harmonisation has mainly focused on measurement of harmonisation and evaluation of its impact on share market indicators. Within these themes, however, researchers have been studying the impact of formal harmonisation on material harmonisation, and share prices and returns. Given the important role formal harmonisation plays in accounting harmonisation, this study introduces a methodology for the measurement of formal accounting harmony between countries. The methodology introduced in this paper can be used to identify areas of harmony or disharmony for policy-making purposes. It also provides means of gaining valuable insights into the nature of harmony or disharmony between different countries' accounting rules. Finally, it creates new grounds for examining various other aspects of accounting harmonisation.
Rahman et al. (Sun,) studied this question.