This chapter analyses the content and the structure of the Italian banks’ Financial Statements. In the Italian Banking Sector, a bank compiles its Financial Statements according to the International Accounting Standards (IAS/IFRSs) and the Regulatory and legal acts issued by the Bank of Italy. In particular, Italian banks’ Financial Statements are prepared in compliance with Legislative Decree n. 38 of 28th February 2005, which provided the compulsory adoption of the IAS/IFRSs. The Bank of Italy adopted the rules of IAS/IFRSs by issuing the Circular n. 262/05 (amended on 22nd December 2014), according to which the structure and the content of banks’ Financial Statements reflect the requirements of IAS 1 Presentation of Financial Statements. In the mentioned "Circular" it is stated that the banks’ Financial Statements must be composed of six mandatory documents: Balance Sheet, Income Statement, Statement of Comprehensive Income, Cash Flow Statement, Statement of Changes in Shareholders’ Equity and Notes to the Financial Statements. In this way, the Financial Statements strengthen their role as essential information tools for stakeholders and for the supervisory activity made by the Bank of Italy. This chapter also outlines the main topics of the IAS/IFRSs that are used by banks in preparing Financial Statements, i.e. IAS 32, IAS 39, IFRS 7, IFRS 9 and IFRS 13. These Standards are, of course, the most controversial and difficult to interpret and apply. In the banking context, the Accounting Standards concerning financial instruments are absolutely relevant and involve several considerations. Regarding the financial instruments, the most significant issues are those introduced by IFRS 9 that brings many relevant challenges to banks, whose activity is characterized by complicated transactions in financial instruments, is related to various types of compound financial instruments and generates loans to various portfolios of clients with different credit risk.

The Financial Statements in the Italian Banking System / Paolucci, Guido. - STAMPA. - (2016), pp. 197-228.

The Financial Statements in the Italian Banking System

PAOLUCCI, Guido
2016-01-01

Abstract

This chapter analyses the content and the structure of the Italian banks’ Financial Statements. In the Italian Banking Sector, a bank compiles its Financial Statements according to the International Accounting Standards (IAS/IFRSs) and the Regulatory and legal acts issued by the Bank of Italy. In particular, Italian banks’ Financial Statements are prepared in compliance with Legislative Decree n. 38 of 28th February 2005, which provided the compulsory adoption of the IAS/IFRSs. The Bank of Italy adopted the rules of IAS/IFRSs by issuing the Circular n. 262/05 (amended on 22nd December 2014), according to which the structure and the content of banks’ Financial Statements reflect the requirements of IAS 1 Presentation of Financial Statements. In the mentioned "Circular" it is stated that the banks’ Financial Statements must be composed of six mandatory documents: Balance Sheet, Income Statement, Statement of Comprehensive Income, Cash Flow Statement, Statement of Changes in Shareholders’ Equity and Notes to the Financial Statements. In this way, the Financial Statements strengthen their role as essential information tools for stakeholders and for the supervisory activity made by the Bank of Italy. This chapter also outlines the main topics of the IAS/IFRSs that are used by banks in preparing Financial Statements, i.e. IAS 32, IAS 39, IFRS 7, IFRS 9 and IFRS 13. These Standards are, of course, the most controversial and difficult to interpret and apply. In the banking context, the Accounting Standards concerning financial instruments are absolutely relevant and involve several considerations. Regarding the financial instruments, the most significant issues are those introduced by IFRS 9 that brings many relevant challenges to banks, whose activity is characterized by complicated transactions in financial instruments, is related to various types of compound financial instruments and generates loans to various portfolios of clients with different credit risk.
2016
Doing Banking in Italy: Governance, Risk, Accounting and Auditing issues
978-00-771-7999-1
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11566/241762
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