Abstract— The objective of this paper is to investigate
the effects of the IFRS adoption on the comparability of
accounting information for reporting interests in joint controlled
entities (JCEs) and to explore the relation between the
accounting choices and the related price earning ratio (P/E). It is
intended to capture to what extent the level of comparability in
financial reporting practice has increased after the mandatory
introduction of IFRS, since differences could still exist in the
application. To provide some evidence, the case study of Italy has
been used. We test whether comparability within country (as
measured by van der Tas H index) in policy choices has changed
in relation to the application of IFRS. The data source is the
Italian listed companies consolidated financial statements for the
period 2006-2010. The question is: Do de jure harmonized
accounting standards lead to the comparability in accounting
practices? First results seem to limit the hoped comparability for
the specific topic of joint venture. Hence, assuming that different
accounting choices bring to different performance indicators, we
explore the relation between the application of Proportionate
consolidation or Equity method JCEs and the related price
earning ratio, as a measure of the firm’s reputation. First
remarks show that the market seems not affected by the lack of
convergence.