About Laura Bini

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So far Laura Bini has created 52 blog entries.

Potential of IFRS 8: Managerial “customization”, relevance of subsidiaries and separate financial statements

By | 2018-05-28T18:32:40+02:00 May 28th, 2018|

Cuccia Andrea / Financial Reporting / 1-2018


Nowadays companies are engaged in an increasingly competitive and global arena, where informational imbalances between companies and investors might be seen as a constraint to the correct functioning of markets. Breakdown of infor-mation by segments might be seen as an attempt to intercept different information needs about each circumscribed area of economic activities individually identified within entity-group. This paper is first intended to figure out, by resorting to practical examples, the effects of full management approach on IFRS 8 segment reporting structure. Then, in the light of the state of art arising from IFRS 8 Post-Implementation Review and the latest criticisms, in order to guarantee its useful-ness, it calls for a more awareness of the multi-faceted nature of segment reporting as a planning and control tool. Besides, merit of segment reporting is to recovery subsidiaries data elided within the consolidated financial statements. Following this perspective, separate financial statements, depicting subsidiaries in terms of in-vestments and profits and losses flowing respectively into balance sheet and in-come statements, is bound to provide a synthetic overview of all the business areas occupied by entity-group.

Customization, Breakdown, Subsidiaries, Operating segments


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Global financial crisis and relevance of GRI disclosure in Italy. Insights from the stakeholder theory and the legitimacy theory

By | 2018-05-28T18:29:38+02:00 May 28th, 2018|

Fornaciari Luca, Pesci Caterina / Financial Reporting / 1-2018


In this study, we examine the effects of voluntary disclosure on the market value of Italian-listed companies adopting GRI guidelines, interpreting our results in the light of both stakeholder theory and legitimacy theory. From a methodological viewpoint, an index is used to measure the level of disclosure of human resources and environmental information. We consider a sample of firms listed on the Milan Stock Exchange for an eleven-year period (2004-2014). The period chosen gave us the opportunity to assess the value-relevance of environmental and social information before and during the Global Financial Crisis. We supplement the previous literature on the topic of the relationship between social and environmental disclosure and value-relevance by arguing that sustainability tools have to be evaluated, remembering that they express a notion of value in the long term and provide information to a large number of stakeholders. Our findings show that environmental information is only value-relevant during the crisis period, when the shareholder perspective comes more into line with other stakeholder perspectives because they are seeking a middle-to-long run notion of value. Finally, we find that a high level of GRI information disclosure is positively evaluated by investors; this result is important also because it was obtained in the Italian market which is largely considered inefficient, and thus it supports the urgent need to provide high-quality information in each type of market.

Social and environmental reports, Global financial crisis, Global reporting initiative guidelines, Stakeholder theory, Value relevance


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A theoretical contribution to 21st Century problems in financial reporting

By | 2018-05-29T10:08:22+02:00 May 28th, 2018|

Alexander David, Fasiello Roberta / Financial Reporting / 1-2018


The Italian tradition known as ‘Economia Aziendale’ is longstanding and well known in Italy. It broadly spans the 20th Century, with its apotheosis appearing in the 1920s with Gino Zappa. It is not very well-known elsewhere. Its logical conclusions for financial reporting are not applied in practice in Italy, and indeed never have been. They are not applied in the (very different) field of IFRS and European Directive requirements either. Our research question is to investigate the proposition that they significantly should be so applied. Our key area of study, therefore, is the complex and multi-faceted problem of income measurement and asset valuation, valuation issues in short. In order to properly investigate these considerations, we present a thorough survey of the theoretical development and arguments of the EA tradition, showing its logicality and usefulness, and contrasting these effects with the present-day regulatory systems. This forms the major theoretical element of the paper. In summary, therefore, the paper could be characterised as an analytical presentation of major theoretical arguments, with significant application to the real world of today and tomorrow. The EA tradition is not new. But we demonstrate its current relevance, and expose it to an international audience.


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Related parties disclosure: Is a risk based approach more effective?

By | 2018-05-28T18:22:36+02:00 May 28th, 2018|

Bava Fabrizio, Gromis di Trana Melchior, Busso Donatella, Pisoni Piero  / Financial Reporting / 1-2018


Following recent corporate scandals increased attention has been paid to Related Party Transactions (RPTs), since they have often played a central role in abuses and frauds. Regulators have consequently been obliged to strengthen current regulations, introducing new bans and requirements aimed at guaranteeing the substantial and economic fairness of RPTs and a proper level of transparency. This reaction is due to the high inherent risk of these transactions and because companies in crisis tend to resort to this type of operation. In Italy, the regulations on RPTs were completely revamped in 2010. The material RPTs that have to be disclosed through an ad hoc communication were defined by former regulations through qualitative criteria, whereas now a quantitative approach is used in order to reduce subjectivity. The initial results of the new regulations show that a higher number of RPTs has been disclosed to the market, thus improving transparency, but the effects of RPTs remain unreported in Income Statements. Through an online questionnaire this paper, starting from previous research, investigates potential improvements supported by independent directors involved in the RPT evaluation process. These independent Directors are uniquely placed to shed light on the experience of the initial years of application of the new Regulation, which may help lawmakers, after the lengthy initial consultation process, inevitably influenced by divergent (and non-independent) interests without the bene-fit of the hindsight that is now available. It is to be hoped that lawmakers will take note of these results and fine-tune the regulations accordingly, without necessarily abandoning the quantitative approach, in order to increase the transparency of the information made available on RPTs.

Related party transactions, Disclosure, IAS 24, Quantitative criteria


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Accounting research production and evaluation: The view of the professionals

By | 2018-02-16T13:12:32+01:00 February 16th, 2018|

Orazio Vagnozzi / Financial Reporting / 2-2017


The existence of a gap between accounting research and accounting practice has been extensively described in literature. In order to be able to publish a research in a high-ranked accounting journal, it seems that methodological issues are more important than those related to the relevance of the topics covered. To improve research and accounting practice and to avoid the risk of accounting research becoming self-referential, every effort should be made to bridge the current gap between research and accounting practice. To this end, the development of mutual knowledge of the agenda of researchers and practitioners on the one hand, and participation in joint projects on the other, could represent possible future solutions to be pursued.

Accounting profession, Accounting research, Research impact, Impact factor


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The usefulness of accounting research: A practitioner’s point of view

By | 2018-02-16T13:09:45+01:00 February 16th, 2018|

Giovanni Andrea Toselli / Financial Reporting / 2-2017


This paper represents a contribution from the point of view of a practitioner who strongly believes that it is essential to continue to invest in accounting research. The cooperation between chief financial officers, auditors and academic institutions is central not only for improving the process of accounting regulations but also for relaunching, at the same time, the industrial system (and not only it), by creating a strong feeling of trust in general economic and financial communication, thus fostering higher level of accountability.

Accounting profession, Accounting research, Research impact, Impact factor, Accountability


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The points of contacts between academics and professionals

By | 2018-02-16T13:07:04+01:00 February 16th, 2018|

Massimiliano Semprini / Financial Reporting / 2-2017


Some argue that the ultimate purpose of accounting research should be to improve accounting practice, rather than simply to describe or understand or critique it. Hence a gap appears to have emerged between practitioners and academics with regards to accounting research. In order to exploit as better as possible the output of the accounting research performed by academic researchers, the accounting profession should create a point of contact; auditing networks might facilitate this link. On the other hand, research performed by academics should become “understandable” by practitioners using a different jargon and simple mathematical formulas.

Accounting profession, Accounting research, Research impact, Impact factor


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Increasing the value of accounting research: An Italian perspective

By | 2018-02-16T13:02:16+01:00 February 16th, 2018|

Isabella Fadda, Aldo Pavan / Financial Reporting / 2/2017


Accounting research has a speculative and normative tradition. Starting at the beginning of the 1970s, empirical methodologies gained prominence and the boundaries of accounting disciplines have become uncertain. Quantitative and qualitative methods tend to overwhelm the accounting and business objects; often they are only suitable to deal with past and narrow phenomena. Empirical methodologies need reference theories, coming from other disciplines and particularly economics and sociology. In this context, it is questioned if accounting research does exist anymore and if it is relevant to the business world. Some scholars have begun to wonder whether it would be appropriate to revalue normative approaches in order to conduct a type of research which is useful to the society and allows the preservation of specific accounting knowledge. A necessity emerges to come back to the prominence of business and accounting issues over methodologies and sociological theories. Research should be directed to tackle wide and current phenomena, not just the narrow and past ones. Speculative thinking has to be reassessed and empirical findings should be used to strengthen it as starting premises. Explaining phenomena is not enough; empirical research has to go beyond its findings; the emphasis should be shifted to the drawing of policy recommendations.

Accounting research, Empirical methods, A priori research, Research relevance


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Some notes about financial accounting research: Research methodology, epistemological approaches and practical implications

By | 2018-02-16T13:01:58+01:00 February 16th, 2018|

Marco Allegrini, Giulio Greco / Financial Reporting / 2/2017


In this paper, we discuss three issues of current debate about financial accounting research. Firstly, we discuss the popularity of quantitative methods in financial accounting and the research limitations related to this dominance. As second issue, we critically discuss the epistemological approach underlying research methodologies. Finally, we discuss the practical implications of current financial accounting research and the need to search for a real impact factor besides the academic contribution.

Quantitative methods, Qualitative methods, Research methodology, Epistemology, Real impact factor


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Past evolution and recent trends in accounting research

By | 2018-02-16T13:01:38+01:00 February 16th, 2018|

Annalisa Prencipe / Financial Reporting / 2-2017


Research in accounting is relatively young compared to other disciplines. Originally, normative research based on a priori reasoning and aimed at improving accounting practice was predominant among accounting scholars. After the 60’s, accounting academics started using an empirical positive approach, aimed to better understand accounting phenomena through empirical tests of hypotheses. As from then, research in accounting has gone through several changes in terms of approaches, research methods and topics. This paper aims at highlighting the main stages of the past evolution and recent trends in accounting research. After describing the main drivers of the shift from normative to positive approach, the dominant traits that have characterized accounting research for the last two decades are briefly analyzed. Particular emphasis is put on methods and topics. In the last section, the main limitations of current accounting research are highlighted, and some directions for future research are outlined.

Accounting research, Past evolution, Future directions, Research methods, Research topics


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