On 3 March 2010, Banca d'Italia (the Italian central bank), CONSOB (the financial market supervisory authority) and ISVAP (the insurance market supervisory authority) issued a paper on the application of IAS/IFRS. Although the paper does not introduce any further disclosure obligations other than those provided by IAS/IFRS, it identifies areas where companies must comply with higher transparency standards.

In particular, the areas identified by the paper are:

  • the evaluation of goodwill (the so called "impairment test") and other intangible assets with indefinite life and financial interests;
  • the evaluation of available-for-sale equity instruments and securities; and
  • the classification of financial liabilities, when contractual arrangements providing for a grace period in favour of the borrower are not complied with.

The paper is not a binding recommendation which is consistent with the fact that it was published as financial statements were about to be produced and approved by companies. Furthermore, the paper cannot be considered a binding regulation as no required consultation has taken place.