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Contributions in Kind and in the Form of Credit

The discipline of contributions is the starting point for the correct operation of the rules that revolve around the concept of capital stock and in particular those aimed at ensuring the effective formation and integrity of the real capital. From here, a specific discipline regarding companies, but excluding partnerships. The contribution regulation serves the dual purpose of:
– ensuring that the contributions pledged by members are actually acquired by the entity, and
– ensuring that the value assigned to contributions does not exceed the actual economic value.
The questions that arise are numerous and their effects also have an impact on the accounts.

The objective is to lay out the criteria for the correct accounting treatment of contributions in kind and loans, and in particular the contributions of business, in stock companies, both from the perspective of the transferee and from the point of view of the company. This applies to contributions from unrelated parties as well as to contributions for groups.

The project aims to analyse the following aspects:
– accounting treatment of contributions in kind subject to “ordinary” discipline (Articles 2342 and 2343 of the Civil Code);
– the issues raised by new alternative systems of valuation of contributions in kind introduced by Legislative Decree No 142 of 4 August 2008, as amended by Legislative Decree No 224 of 29 November 2010.

The project is addressed to entities that prepare their financial statements in accordance with the provisions of the Civil Code. Therefore, the entities which, under the provisions of Legislative Decree 38/2005, are required or permitted to prepare their financial statements using international accounting standards, are excluded. Insurance companies remain scoped out (they are still partly subject to national accounting standards) because for them the contributions are subject to certain limitations provided for by special legislation.

Status of the project
The draft document is being prepared for public consultation.  

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