Memo Accounts Repealed 7 Years Ago are Still Relevant in Italy

International Journal of Economics and Management Studies

© 2022 by SSRG - IJEMS Journal

Volume 9 Issue 11

Year of Publication : 2022

Authors : Maria Silvia Avi

10.14445/23939125/IJEMS-V9I11P105

How to Cite?

Maria Silvia Avi, "Memo Accounts Repealed 7 Years Ago are Still Relevant in Italy," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 11, pp. 36-46, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I11P105

Abstract:

Corporate economic and financial communication intended for the outside world appears to be an increasingly central topic in the judiciary’s rulings of merit, i.e. the courts of appeal, and legitimacy, i.e. the Court of Cassation. In this article, we will analyse legislation by the Supreme Court and Manhattan in September 2022 that declares the existence of false corporate communications, i.e. penal invalidity of financial statements, due to omission and curiosity. Memo accounts, i.e. those memo accounts that some legislations still provided to enter into the balance sheet but outside the assets, liabilities and equity. Memo accounts are simply memory accounts, but their essential function is to provide information to those outside the company to understand the overall situation of the company. Although they do not affect the company’s assets or income, the Supreme Court has held that the omission of these accounts constitutes a cause of an offence and has therefore declared the financial reporting at issue to be penally false.

Keywords:

Memo accounts, Financial statement invalidity, False corporate communications of a penal nature.

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