Net income captures the effect of accounting differences during the fiscal year. Firms reporting net
income adjustments in separate financial statements represent 99% of the sample; positive adjustments
are at 45%, while negative adjustments are at 55%. Five firms have changed their net income from
negative to positive and five from positive to negative. Net income adjustments are included between
1,054% and +2,567% of net income under Italian GAAP. Overall, after IFRS adoption, net income
decreased by 8.62% on average and by 1.34% in median. Standard deviation also decreases by 3.37%,
indicating that IFRS adoption has reduced net income cross-sectional variation.