Aligning taxation and international financial reporting standards: Evidence from Italian listed companies

We estimate the effect of adopting International Financial Reporting Standards results (IFRS) as the base for the regional business tax (IRAP). Analysing the unconsolidated financial statements of non-financial Italian listed companies, we simulate the change in the IRAP base where companies move from Italian Generally Accepted Accounting Principles (GAAP) to IFRS. The results show that the impact of the use of IFRS for the computation of tax figures is relatively important and that the sector in which companies operate has a decisive influence on the amount by which the taxable base differs. The empirical analysis suggests that the transition increases, on average, the IRAP base of around 15% and that companies in the constructions and utilities sectors suffer an additional burden of around 29% and 31%, respectively. Similarly to Italy, many European Member States are characterized by creditor protection oriented domestic GAAP and by a close link between tax and financial reporting and could therefore experience similar effects due to the use of a IFRS-based tax accounting.We estimate the effect of adopting International Financial Reporting Standards results (IFRS) as the base for the regional business tax (IRAP). Analysing the unconsolidated financial statements of non-financial Italian listed companies, we simulate the change in the IRAP base where companies move from Italian Generally Accepted Accounting Principles (GAAP) to IFRS. The results show that the impact of the use of IFRS for the computation of tax figures is relatively important and that the sector in which companies operate has a decisive influence on the amount by which the taxable base differs. The empirical analysis suggests that the transition increases, on average, the IRAP base of around 15% and that companies in the constructions and utilities sectors suffer an additional burden of around 29% and 31%, respectively. Similarly to Italy, many European Member States are characterized by creditor protection oriented domestic GAAP and by a close link between tax and financial reporting and could therefore experience similar effects due to the use of a IFRS-based tax accounting

Theories for influencer identification in complex networks

In social and biological systems, the structural heterogeneity of interaction networks gives rise to the emergence of a small set of influential nodes, or influencers, in a series of dynamical processes. Although much smaller than the entire network, these influencers were observed to be able to shape the collective dynamics of large populations in different contexts. As such, the successful identification of influencers should have profound implications in various real-world spreading dynamics such as viral marketing, epidemic outbreaks and cascading failure. In this chapter, we first summarize the centrality-based approach in finding single influencers in complex networks, and then discuss the more complicated problem of locating multiple influencers from a collective point of view. Progress rooted in collective influence theory, belief-propagation and computer science will be presented. Finally, we present some applications of influencer identification in diverse real-world systems, including online social platforms, scientific publication, brain networks and socioeconomic systems.Comment: 24 pages, 6 figure

Oblivious tight compaction in O(n) time with smaller constant

Oblivious compaction is a crucial building block for hash-based oblivious RAM. Asharov et al. recently gave a O(n) algorithm for oblivious tight compaction. Their algorithm is deterministic and asymptotically optimal, but it is not practical to implement because the implied constant is $\gg 2^{38}$. We give a new algorithm for oblivious tight compaction that runs in time $< 16014.54n$. As part of our construction, we give a new result in the bootstrap percolation of random regular graphs

Evolving Connections between Tax and Financial Reporting in Italy

We analyze the evolution of the relationship between tax and financial reporting in Italy after the mandatory introduction of IFRS for listed companies in 2005. In order to assess this link we will use the methodology developed by Lamb et al. (1998). Among European countries, Italy represents an interesting case study because IFRS have become mandatory, for listed companies, also as concerns individual, and fiscally relevant, accounts. Therefore, two accounting systems, one based on IFRS and one based on Italian Gaap coexist, originating the emergence of two rather different linkages between tax and financial reporting. IFRS and tax reporting exhibit a high degree of disconnection, while Italian Gaap, in line with a continental European accounting tradition, are closely related to tax rules. The analysis will point out a rapidly evolving situation, with links between both accounting systems (IFRS and Italian Gaap) and taxation getting tighter as a consequence of the tax reforms of the last few years

Evolving Connections between Tax and Financial Reporting in Italy, Quaderni di Ricerca 2010/1, Dipartimento di Economia, Universit\ue0 degli Studi dell\u2019Insubria

We analyze the evolution of the relationship between tax and financial reporting in Italy after the mandatory introduction of IFRS for listed companies in 2005. In order to assess this link we will use the methodology developed by Lamb et al. (1998). Among European countries, Italy represents an interesting case study because IFRS have become mandatory, for listed companies, also as concerns individual, and fiscally relevant, accounts. Therefore, two accounting systems, one based on IFRS and one based on Italian Gaap coexist, originating the emergence of two rather different linkages between tax and financial reporting. IFRS and tax reporting exhibit a high degree of disconnection, while Italian Gaap, in line with a continental European accounting tradition, are closely related to tax rules. The analysis will point out a rapidly evolving situation, with links between both accounting systems (IFRS and Italian Gaap) and taxation getting tighter as a consequence of the tax reforms of the last few years

Evolving Connections between Tax and Financial Reporting in Italy, Quaderni di ricerca 2010/01, Dipartimento di Economia, Universit\ue0 degli studi dell'Insubria

We analyze the evolution of the relationship between tax and financial reporting in Italy after the mandatory introduction of IFRS for listed companies in 2005. In order to assess this link we will use the methodology developed by Lamb et al. (1998). Among European countries, Italy represents an interesting case study because IFRS have become mandatory, for listed companies, also as concerns individual, and fiscally relevant, accounts. Therefore, two accounting systems, one based on IFRS and one based on Italian Gaap coexist, originating the emergence of two rather different linkages between tax and financial reporting. IFRS and tax reporting exhibit a high degree of disconnection, while Italian Gaap, in line with a continental European accounting tradition, are closely related to tax rules. The analysis will point out a rapidly evolving situation, with links between both accounting systems (IFRS and Italian Gaap) and taxation getting tighter as a consequence of the tax reforms of the last few years

Evolving Connections between Tax and Financial Reporting in Italy, Quaderni di Ricerca 2010/1, Dipartimento di Economia, Università degli Studi dell’Insubria

We analyze the evolution of the relationship between tax and financial reporting in Italy after the mandatory introduction of IFRS for listed companies in 2005. In order to assess this link we will use the methodology developed by Lamb et al. (1998). Among European countries, Italy represents an interesting case study because IFRS have become mandatory, for listed companies, also as concerns individual, and fiscally relevant, accounts. Therefore, two accounting systems, one based on IFRS and one based on Italian Gaap coexist, originating the emergence of two rather different linkages between tax and financial reporting. IFRS and tax reporting exhibit a high degree of disconnection, while Italian Gaap, in line with a continental European accounting tradition, are closely related to tax rules. The analysis will point out a rapidly evolving situation, with links between both accounting systems (IFRS and Italian Gaap) and taxation getting tighter as a consequence of the tax reforms of the last few years