Italy
- Italy is included in the IFAD GAAP Convergence Studies
- National Professional Organisation Website: Consiglio Nazionale Dottori Commercialisti e Esperti Contabili
- Response to IFAC Member Body Survey on Standard Setting and Regulation
Financial Reporting Framework in Italy
Adoption of IFRSs in Europe effective in 2005
In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:
- Require or permit IFRSs for unlisted companies.
- Require or permit IFRSs in parent company (unconsolidated) financial statements.
- Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
- Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.
The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) - Iceland, Liechtenstein, and Norway.
Italy is an EU Member State. Consequently, Italian companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:
The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):
- "in accordance with International Financial Reporting Standards as adopted by the EU" or
- "in accordance with IFRSs as adopted by the EU".
Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.
In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report (PDF 816k, link to EC website).
Consistent with the Directives, Italy has adopted the following requirements:
| Consolidated financial statements | Individual (separate) financial statements | |
|---|---|---|
| Listed companies, issuers of financial instruments widely distributed among the public, banks, stock broking companies, fund management companies, regulated financial institutions | IFRSs required | IFRSs required |
| Insurance companies | IFRSs required | IFRSs not permitted, except that IFRSs are required for listed insurance companies that do not prepare consolidated financial statements |
| Subsidiary and associated companies of the above companies, and other companies that prepare consolidated financial statements | IFRSs permitted but not required | IFRSs permitted but not required |
| Companies other than the above except small businesses | Not applicable | IFRSs optional from a year to be determined by the Ministry for the Economy and Justice |
| Small Companies preparing financial statements in abbreviated form (Article 2435-bis Civil Code) | Not applicable | IFRSs not permitted |
