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Issues arising for accounting harmonization: The case of stock options in Italy

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  • Corbella, Silvano
  • Florio, Cristina

Abstract

In Italy, national generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) regulations coexist, despite differences that lead to their antagonist forms of accounting relativism. In this context, the two accounting systems provide for different representations of stock options plans, with significant effects on year-end income measures. This study therefore considers the emblematic case of stock options with the goal of demonstrating, on the basis of the dominant accounting principles and conventional wisdom in Italy, that the aforementioned difference cannot be explained by reasons connected with the accounting conceptual framework of reference in each system. Rather, inquiries should focus on weaknesses in national GAAP.

Suggested Citation

  • Corbella, Silvano & Florio, Cristina, 2010. "Issues arising for accounting harmonization: The case of stock options in Italy," Accounting forum, Elsevier, vol. 34(3), pages 184-195.
  • Handle: RePEc:eee:accfor:v:34:y:2010:i:3:p:184-195
    DOI: 10.1016/j.accfor.2010.08.001
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    References listed on IDEAS

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    7. Wayne Guay & Richard Sloan, 2003. "Accounting for Employee Stock Options," American Economic Review, American Economic Association, vol. 93(2), pages 405-409, May.
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