The Italian Accounting Body (OIC) releases the new accounting standard OIC 5 – Liquidation Financial Statements.

The update of the standard stems from the need to address the main critical issues that have emerged in practice and from empirical studies.

The OIC has revised the critical aspects of the standard, identifying the lower of cost and realizable value as the general measurement criterion for assets, while also allowing the measurement of assets at realizable value under certain conditions.

The new standard does not require estimating the provision for liquidation costs and charges, and it introduces revised financial statement layouts that are more compatible with the purpose of liquidation.

The standard will enter into force as of 2027, but early application is permitted for the 2026 financial statements.

Attached are the new OIC 5 and the press release.