IDEAS home Printed from
   My bibliography  Save this article

The Reconciliation Between Net Income And Equity Of The Parent Company And Corresponding Values In Consolidated Financial Statements


  • Stefano AZZALI

    () (Università degli Studi di Parma, Italy)


    () (Università degli Studi di Parma, Italy)


In group accounting, the reconciliation between net income and equity of the parent company and their corresponding value in consolidated financial statements is becoming increasingly relevant. In Italy, the Reconciliation Statement (RS) has been required for all listed companies by the “Commissione Nazionale per le Società e la Borsa” (CONSOB) since 2006. This paper illustrates the results of a study of the consolidated financial statements of 100 companies listed on the Milan Stock Exchange from 2003 to 2009, and represents around 72.40% of the capitalization of the entire stock market. The study is based on a verification of the presence and location of the RS in the financial statements of our sample companies. The study also consists of an analysis of the RS models studied and their content (consolidation adjustments) that show the differences between Net Income and Equity of the parent company and those of the consolidated financial statement. The study concludes with a proposal for a RS that may provide a solution to the issues emerging from the study.

Suggested Citation

  • Stefano AZZALI & Luca FORNACIARI, 2010. "The Reconciliation Between Net Income And Equity Of The Parent Company And Corresponding Values In Consolidated Financial Statements," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 10(Special), pages 268-282, December.
  • Handle: RePEc:scm:ausvfe:v:10:y:2010:i:special:p:268-282

    Download full text from publisher

    File URL:,nr.special,2010%20fulltext.pdf
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:scm:ausvfe:v:10:y:2010:i:special:p:268-282. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liviu Scutariu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.