Differential regulation in the accounting treatment of stock options under IFRS 2 and Italian accounting rules: A matter of accounting framework?

This paper analyses the issue of the representation in financial statements of the stock options granted to personnel under both Italian accounting provisions and IAS/IFRSs, which co-exist in the same jurisdiction even though they are totally different and lead to an antagonist form of accounting relativism. In particular, we demonstrate, following a two-step reasoning method based on some key Italian accounting principles, that the different accounting treatment of stock options cannot be explained by reasons of a technical-accounting nature, but that inquiries should be made into reasons of a different kind (if existent).