Consolidated financial statements: from the theory of Italian GAAP and IAS/IFRS to the Arpa Industriale S.p.A. case.

As businesses are acting more and more at a global level, this project has the objective of analysing the process of accounting harmonisation, particularly focusing on the concepts which underlie the consolidated financial statements reporting and to provide an example on a group which provides a consolidated financial statement, Arpa Industriale S.p.A., a multinational company operating in the interior design materials market. The study begins with a theoretical framework: the first part is dedicated to a literature analysis aimed at the understanding and the application of the concept of group and of the notions of control and consolidation area and how they can impact the business of companies. This is needed as in the following chapters: the analysis is performed at Italian level and at international level. Some principles and laws from OIC (Organismo Italiano di Contabilità – Italian Accounting Organism) and Italian Civil Code and IAS/IFRS respectively, are provided and analysed. This is followed by the practical case of Arpa Industriale S.p.A.: after the general presentation of the company and its group, the consolidation principles are explained, and the consolidated financial statements are reported. Particular attention is given to the preparation of IFRS 16 – Leases, about a subsidiary which is going to have a new contract and how it will be accounted for at group level. In conclusion, a summary of the facts about harmonisation about consolidated financial statements and generally, about national, and international accounting principles is provided.