Final Dissertation: Accounting for the cost of pensions: use and misuse of accounting data in industrial relations

CURRIC ULUM VITA E O F F R A N C E S C O C A P A L B O, P H.D P E R S O N A L D A T A Current Academic position: Senior Associate Professor of Accounting, Faculty of Economics, Second University of Naples Date of Birth: 25th June 1971 Honorary Adjunct Professor, Macquarie Graduate School of Management, Sydney, New South Wales, Australia Recapiti: francesco.capalbo@unina2.it E D U C A T I O N 1999, Ph.D International Accounting, University of Naples Federico II, Italy. Dissertation: Impairment of Assets: an example of current valuation in an historical cost model 1997, Doctoral Colloquium held by the European Accounting Association, Edegem 1995, Qualification as CPA, National Accountant s Association, Italy 1994, Honour cum laude in Financial Accounting, at the University of Naples Federico II, Italy. Final Dissertation: Accounting for the cost of pensions: use and misuse of accounting data in industrial relations 1993, Proficiency in American English, American Study Center, The US Consulate Italy 1992, Erasmus Students at the University of Gent, The Vlerick Business School 1989, High School Diploma M A I N C U R R E N T A P P O I N T M E N T S 2015 present, Honorary Adjunct Professor, Macquarie Graduate School of Management Sydney, New South Wales, Australia 2014 present, Representative for Italy on the IFAC Board 2014 present Member of the Performance Evaluation Committee of the local Health Agency 2014 present, Member of the Board of Professors, Ph. D. Course Accounting, Management and Finance, University of Chieti-Pescara (Italy) 1

2013 present, Member of the Board of Directors of the Italian Aerospace Research Center (CIRA) 2013 present, Member of the Executive Committee of the Department of Economics of the Second University of Naples (Italy) 2012 present, Member of the Performance Evaluation Committee of Cardarelli Hospital, the largest hospital of Southern Italy 2011 present, Member of the Board of Professors, Ph. D. Course Management and Business Administration, University of Chieti-Pescara (Italy) 2004 - present, Senior Associate professor of Accounting, Faculty of Economics, Second University of Naples (Italy) M A I N E X P I R E D A P P O I N T M E N T S 2014 2015 Head of Department of Accounting, Administration and Personnel of Regional Council of Campania 2003 2014, Scientific Committee of the Training Body of the National Supreme Audit Court Rome (Italy) 1998 2014, Faculty Delegate for International Programs 2007 2013, Chairman of the Internal Compliance Body of EMA S.p.A., a Rolls Royce Company 2010 2013, Member of the Board of Directors, Second University of Naples (Italy) 2008-2010, Member of the Executive Committee of the Department of Economics of the Second University of Naples (Italy) 2001 2010, Member of the Board of Professors of the Ph. D. Course, The economics and the accounting of non-profit entities - Second University of Naples (Italy) 2007 2008, Expert on the National Review Panel on accounting and finance of Local Government, appointed for the review of accounting standards 2003 2005; Head of the Master of Finance for SME, Faculty of Politic Sciences, Second University of Naples (Italy) 2001 2004, Associate Professor of Accounting, Faculty of Economics, Second University of Naples (Italy) 1999 2001, Lecturer of Accounting, Faculty of Economics, Second University of Naples (Italy) 1994 1999, Research Assistant Faculty of Economics, Second University of Naples (Italy) 1994 1998, Research Assistant Faculty of Economics, University of Naples Federico II (Italy) V ALUATIO N CO MMITTEES ( MAIN PARTEC IPATIO N ) External Examiner in the Doctoral Exams team at: o the University of Almeria, Spain (2014) o the University of Chieti-Pescara, Italy (2012) o the University of Naples Parthenope, Italy (2011 and 2012) o the University of Calabria, Italy (2006) Member of the Exam team for the CPA Qualification, Second University of Naples, Italy (2012-2013) 2

External Examiner in the Valuation Committee for the assignment of a research position in accounting at: o the University of Cassino, Italy (2007 and 2008) o the University of Siena, Italy (2006) Member of the Valuation Committee for the National Public Tender for the School of Public managers (2008) Internal Examiner in the Doctoral Exams team at the Second University of Naples, Italy (2006) RESEAR CH AREAS Earnings management Asset Valuation Public owned limited companies: reporting models and performance indicators Impairment of Assets International Accounting RESEAR CH AWAR DS 2005, First National Central Government Valuation of Research, performed by the Secretary of Research. Time lag evaluated 2003-2005. Work evaluated F. Capalbo. -Domestic Practice, Comparative International Analyses and Accounting Discretion Italian Savings Banks Pension Cost Accounting. Result: Excellent 1995, Award as Best dissertation of the year in the field of Accounting, University of Naples P R O F E S S O R S H I P S A N D S C H O L A R S H I P S A B R O A D As of March 2015, Honorary Adjunct Professor, Macquarie Graduate Management School, Sydney, New South Wales, Australia December 2013 February 2014, Visiting Professor, Macquarie Graduate Management School, Sydney, New South Wales, Australia July 2010 Oct 2010, Visiting Scholar School of Business, Discipline of Accounting and Business Law, University of Sydney, New South Wales, Australia July 2001 January 2002, Visiting Scholar School of Business, Discipline of Accounting and Business Law, University of Sydney, Sydney, New South Wales, Australia October 2001, Guest Scholar, University of New England, Armidale, New South Wales, Australia May 2000, Guest Scholar, School of Business, University of Gothenburg (Sweden) March 2000 April 2000, Guest Scholar, School of Business, University of Birmingham (UK) Dec 1999, Guest Scholar, Faculty of Economics, University of Gent (Belgium) 3

C U R R E N T T E A C H I N G A C T I V I T Y U N D E R G R A G U A T E Financial Accounting B (IAS/IFRS; Statement of cash flows and Ratio analysis) Second University of Naples, Italy POSTGR ADUATE Corporate governance, Second University of Naples, Italy M A I N P A S T T E A C H I N G A C T I V I T Y U N D E R G R A G U A T E Financial Accounting B (IAS/IFRS; Statement of cash flows and Ratio analysis) Link University of Malta, Rome Public Sector Accounting, Second University of Naples, Italy POSTGR ADUATE International Accounting, Second University of Naples, Italy International Accounting, University of Naples Federico II, Italy Financial Statements consolidation, Second University of Naples, Italy P U B L I C A T I O N S B O O K S: 1) 2014, F. Capalbo, L. D amico, A. Della porta, E. Monaco E, R. Palumbo, L economicità delle imprese di trasporto pubblico locale (TPL). (Efficiency and Effectiveness in public sector transportation industry), Franco Angeli, Milano 2) 2012, F. Capalbo, Il sistema dei controlli nelle società partecipate pubbliche. Controlli interni e modello ex D.Lgs 231 del 2001 (Control systems in the public owned companies. Internal control and legal compliance), De Frede Editore, Naples 3) 2012, F. Capalbo, La accountability delle società partecipate dalle pubbliche amministrazioni. Peculiarità ed esigenze di adeguamento del modello di financial reporting (The Accountability of Italian State Owned Enterprises), De Frede Editore, Naples 4) 2012, F. Capalbo, L auditing finanziario-contabile nelle amministrazioni regionali. Una impostazione operativa (Guidelines for the Audit of Local Government Financial Statements), De Frede Editore, Naples 5) 2012, F. Capalbo (edited by), L applicazione della contabilità economica nel settore pubblico: aspettative, risultati e criticità (Accrual accounting in public sector: expectations, results and limits), Giappichelli Editore, Torino 4

6) 2006, F. Capalbo, Latorre M; Tutino M; Vento G; Ortolani M; Trezza M; De Tommasi F; Lucci C. and Rotondi L., Microcredito e obiettivi del Millennio. L'impegno del Comitato Italiano per l'anno internazionale del microcredito (Italian National Committee for the International Year of Microcredit), edited by Mario La Torre, Marsilio editore, Venice 7) 2006, F. Capalbo, Linee Guida per il controllo Finanziario-Contabile nelle Amministrazioni Regionali, ( Guidelines for the financial auditing in Local Governements), Italian Supreme Audit Court, Editorial Series, Rome 8) 2004, F. Capalbo, Il Sistema Contabile Australiano. Attori e Processi (Australian Accounting System, Actors and processes), Cedam 2004, Editorial Series, University of Naples Federico II 9) 2000, F. Capalbo, Le perdite di valore delle immobilizzazioni tecniche (Impairment of fixed assets), Cedam 2000, Editorial Series, University of Naples Federico II 10) 1999, F. Capalbo, L'informazione esterna della previdenza integrativa aziendale" (Accounting for the cost of pensions), Cedam 1999, Editorial Series, University of Naples Federico II C H A P T E R S O F B O O K S 1) 2013, F. Capalbo, Impairment of Asset in Il bilancio secondo i principi contabili internazionali IAS/IFRS. Regole e applicazioni ( IAS/IFRS Financial Statements), AAVV, 2/e Giappichelli Editore 2) 2012, F. Capalbo, Il contrasto tra accountability pubblica e rendicontazione in stile privatistico nelle società partecipate dalle pubbliche amministrazioni ( State-Owned Enterprises: public accountability and private reporting), in F. Capalbo (edited by), La applicazione della contabilità economica nel settore pubblico: aspettative, risultati e criticità Giappichelli Editore 3) 2012, F. Capalbo, Aldo Carosi and Marco Sorrentino, Istruttoria preconcorsuale in funzione cautelare e il ruolo del bilancio dell esercizio (Financial Statement Analysis in insolvency scenarios), in Fimmanò F. (edited by) Diritto delle imprese in crisi e tutela cautelare (Company Law), Giuffrè Editore 4) 2012, F. Capalbo and Marco Sorrentino, La relazione ex comma 2 articolo 160 l.f., in Fimmanò F. (edited by) Diritto delle imprese in crisi e tutela cautelare, Giuffrè Editore 5) 2012, F. Capalbo and Margherita Smarra, Presentazione del lavoro e metodologia utilizzata (Introduction and research methodology), in F. Capalbo ( edited by) La esternalizzazione dei servizi pubblici. Il caso del Comune di Capua, (The outsourcing of public services in Italian Municipalities) De Frede Editore 6) 2011, F. Capalbo, Genesi, Emersione e Gestione della Insolvenza nelle società partecipate dalle amministrazioni pubbliche: profili contabili e finanziari (The Insolvency of State-Owned Corporations: An Accounting Perspective) in Le società Pubbliche (Public o wned companies), Giuffrè Editore 5

7) 2010, F. Capalbo, Impairment of Asset in Il bilancio secondo i principi contabili internazionali IAS/IFRS. Regole e applicazioni ( IAS/IFRS Financial Statements), AAVV, 2/e Giappichelli Editore 8) 2009, F. Capalbo, Il modello di financial reporting delle società di capitali. Brevi considerazioni sui limiti e sulle insidie nella prospettiva delle amministrazioni pubbliche, (The Financial reporting model of public owned limited companies: dangers and options ) in Externalization of public services through the use of public owned limited companies Italian Supreme Audit Court, Editorial Series 9) 2008, F. Capalbo, Impairment of Assets, in Lucio Potito (edited by) Il bilancio secondo i principi contabili internazionali IAS/IFRS ( IAS/IFRS Financial Statements), Giappichelli Editore 10) 2007, F. Capalbo, Il criterio di svalutazione nell impairment of assets (The downward revaluation criterion), in AAVV IAS IFRS in Italia, Franco Angeli 11) 2006, F. Capalbo, Il Sistema di Controllo interno: una framework per la sua costruzione (The framework for internal control systems. The COSO experience) in Guida Normativa per gli enti locali (Local Government Guide), EdK Editore 12) 2005, F. Capalbo, Il sistema contabile degli enti locali australiani ( Australian Local Governemnts Accounting System), in Principi contabili degli enti locali ( Accounting standards for local governments), edited by Stefano Pozzoli and Giuseppe Farneti, Franco Angeli 13) 2004, F. Capalbo and G. Sannino L energia elettrica in Fare impresa a Napoli. Fattori e costi del gap localizzativi (The Energy cost. in Doing business in Naples. Elements and cost of the location gap), edited by Maggioni V., Biondi G., Mustilli M., Sorrentino M., CCIIAA, Naples 14) 2000, F. Capalbo, Brevi note in merito al concetto di azienda nella letteratura angloamericana di Accounting" (The theory of the firm in Angloasaxon accounting literature. an introduction) in "Azienda: contributi per un rinnovato concetto generale" (The firm: some contribution for a new general concept) edited by E. Viganò, Cedam A R T I C L E S I N P E E R R E V I E W J O U R N A L S: 1) 2014, F. Capalbo, A. Frino, R. Palumbo, V. Mollica, Accrual-Based Earnings Management in State Owned Companies: Implications for Transnational Accounting Regulation, Accounting, Auditing & Accountability Journal, 2014 2) 2013, F. Capalbo and M. Sorrentino, Cash to accrual accounting: does it mean more control for the public sector? The case of revenue from non-exchange transactions, Risk Governance & Control: financial markets & institutions, 3/2013 3) 2013, F. Capalbo, A. Frino, R. Palumbo, D. Gerace and V. Mollica, Information Disclosure and Stock Liquidity: Evidence from Borsa Italiana, Abacus, 4/2013 4) 2013, F. Capalbo, R. Palumbo The imperfect match of public accountability of State-owned enterprises and the private-sector-type financial reporting: the case of Italy, Australasian Accounting Business and Finance Journal, vol. 4/2013 6

5) 2013, F. Capalbo, La valutazione delle attività di bilancio nel settore pubblico: considerazioni sulla esportabilità dei criteri sviluppati nella letteratura del settore privato (The Measurement of Non-financial Assets in Public Sector Financial Statements: Insights from the Literature on Private Sector Current Values), Rivista Italiana di Ragioneria e di Economia Aziendale (Quarterly Journal of Accounting and Economics), vol. 1 6) 2013, F. Capalbo, Le particolari esigenze di accountability delle società pubbliche ), Economia, azienda e sviluppo (Quarterly Journal), vol. 4/2013 7) 2012, F. Capalbo, La accountability delle società partecipate italiane e il modello civilistico di rendicontazione: un improbabile connubio (State-Owned Enterprises accountability and private sector based financial reporting: an imperfect wedding in the Italian accounting regulation), in Management Control, vol 3, pp. 117-138 8) 2012, F. Capalbo, L equilibrio instabile delle società partecipate pubbliche tra insolvenza genetica e ricapitalizzazioni per perdite: le responsabilità dei sistemi contabili ( The Continuity of Public Owned Companies: The Role of Public Shareholders between Cash and Accrual Accounting), Rivista Italiana di Ragioneria e di Economia Aziendale (Quarterly Journal of Accounting and Economics), vol. 7/8, pp. 694-704 9) 2011, F. Capalbo, Accrual Accounting e Valutazione dei Tangible Capital Asset nel settore pubblico. Basi di misurazione e implicazioni sui risultati di bilancio ( Accrual Accounting and measuring Tangible Capital Asset in the public sector), Economia, azienda e sviluppo (Quarterly Journal), vol. 2, p. 3-34 10) 2006, F. Capalbo, F. Clarke, Chambers CoCoA and Economia Aziendale, Abacus, vol 42, Issue 2, March 2006 11) 2003, F. Capalbo, Domestic Practice, Comparative International Analyses and Discretion in Accounting. The Case of the Italian Savings Banks Accounting for the Cost of Pensions, Abacus, Vol. 39, Issue 1, February 2003 A R T I C L E S I N N A T I O N A L J OUR N A L 1) 2013, F. Capalbo, Marco Sorrentino I rapporti tra valore di mercato e ricavato in caso di liquidazione nella «relazione giurata» ex art. 160 l.f. comma 2 (The Use of Fair Value in Determining Liquidation Value in Case of Debt Restructuring and Bankruptcy), Rivista dei Dottori Commercialisti, vol. 2, 2013 (Quarterly Journal) 2) 2002, F. Capalbo, M. Pizzo, Il trattamento contabile e fiscale dei lodi passivi (Accounting and Tax Treatment), in Rivista di diritto delle imprese, Quarterly Journal of Business Law M A I N P R E S E N T A T I O N S I N A C A D E M I C C O N F E R E N C E S A N D S E M I N A R S ( L A S T 5 Y E A R S) 1) 2014, Pacioli s Double Entry - Part of an intellectual and social movement: a teaching and research note G. Dean, F. Clarke, J. Gleeson-White, F. Capalbo, presented at the IAAER 2014 conference in Florence 7

2) 2014, Accrual Based Earnings Management in State Owned Companies: Evidence from Italy and Implications for Transnational Accounting Regulation, Seminar presented at the Macquarie Graduate School of Management, 16 January 2014 3) 2013, Earnings Management in Public Sector, Seminar presented at the University of New England, 14 January 2014 4) 2013, Tavola Rotonda Bilanci delle imprese e delle pubbliche amministrazioni: esperienze nazionali ed internazionali a confronto (Round table on Public sector Financial statement harmonization), invited speaker, Second International Symposium of the Research Center for Company and information law, Università degli Studi di Napoli Federico II, 8 e 9 November 2013 5) 2013, Round Table on Harmonization of European Public Sector Accounting Standards: issues and perspectives, invited speaker. The round table is part of the 2013 International Colloquium of the review "Politiques et Management Public" (PMP) (PMP), held at ESCP Paris, 25/26 October 2013 6) 2013, La valutazione degli asset nel settore pubblico (The Measurement of Non-financial Assets in Public Sector), Università degli Studi di Lecce, Seminario di Ricerca nell ambito delle attività del dottorato, June 2013 7) 2013, La accountability delle società partecipate (The Accountability of Italian State Owned Enterprises), F. Capalbo, Corte di Cassazione, Conference on: Italian State Owned Enterprises, Organizzato dalla Associazione Nazionale Magistrati della Corte dei Conti, 8 April 2013 8) 2012, Le società Partecipate Pubbliche tra rendicontazione privata e accountability pubblica (State-Owned Enterprises: Public Accountability and Private Reporting), Convegno Annuale AIDEA, University of Salerno, October 2012 9) 2012, Information Disclosure and Stock Liquidity: Evidence from Borsa Italiana, A. Frino, R. Palumbo, D. Geraci, F. Capalbo, American Accounting Association, Washington DC., August 2012 10) 2011, L analisi di bilancio come sistema di prevenzione ed individuazione delle Frodi (Fraud Detection and Prevention through financial statement analysis), Conference on Fraud Accounting and Control Systems, Naples, Pegaso Telematic University, Naples (Italy), 18 February 2011 11) 2011, Italian State owned corporation: the need of a different financial reporting model, National Supreme Audit Court, 19 April 2011 12) 2011, Il ruolo dell accrual accounting nel settore pubblico (The role of accrual accounting in the public sector), Conference on The role of IPSAS in the reform of public sector accounting, Parthenope University, Naples (Italy), 13 June 2011 13) 2010, Italian State Owned Corporations. Accountability issues, University of Sydney, Faculty of Economics, 25 August 2010 8

14) 2010, The Cooperative enterprises experience in Italy, University of Sydney, 26 August 2010 15) 2010, I riflessi patrimoniali e finanziari dell insolvenza nel bilancio e nella contabilità delle società controllate (The reflections of insolvency on public owned company) Conference on Le società pubbliche tra crisi ed insolvenza (The insolvency of public owned company), Corte dei Conti - Rome (Italy),Molise University Molise (Italy), Second University of Naples (Italy), 27 April 2010 16) 2010, Il controllo dei costi e del cash flow ( Cost and cash flow control), CNR, Emerging Companies, Rome (Italy), 26 March 2010 17) 2009, Il controllo sulle participate pubbliche: limiti e prospettive, ( Controlling public owned limited companies: current difficulties and future options), Parthenope University, Naples (Italy) 18) 2008, Il sistema dei controlli interni nella prospettiva del D.Lgs 231/01 ( Internal control Systems for legal compliance), Molise University, Campobasso, Italy 19) 2008, La valutazione dello stato di salute delle Partecipate Pubbliche: perdite e ricapitalizzazioni, allocazione in bilancio. Contabilità creativa e compliance creative, (Assessing the wealth of public owned companies. Creative accounting and creative compliance), Supreme Audit Court, Rome (Italy) 20) 2008, Adozione incauta di Project financing (Project financing: the danger of its misuse) Supreme Audit Court, Rome (Italy) 21) 2008, La quantificazione dei costi d implementazione degli IAS/IFRS ed in particolare la valutazione dell impairment of assets, ( Compliance costs: the case of IAS 38), Calabria University, Rende (Italy) 22) 2008, How may we measure the value of local governments infrastructure in an accrual accounting context, The European Local and Regional Government Finance Conference, Rome, (Italy) ACADE MIC ASSOCIATION S 2013 present International Association for Accounting Education & Research (IAAER) 2012 - present American Accounting Association 2011 - present Società Italiana di Storia della Ragioneria 2009 - present Accademia Italiana di Economia Aziendale 2001 - present Luca Pacioli Society 2006 - present Società Italiana dei Docenti di Ragioneria ed Economia Aziendale 1996 - present European Accounting Association 9

EDITOR IAL BOAR DS 2014 - present Editorial Series Accounting and Finance, Edizioni Il Mulino 2013 - present Rivista della Corte dei Conti (Italian Supreme Audit Court Journal), Maggioli Editore 2012 - present Australasian Accounting Business & Finance Journal, Associate Editor 2012 - present Journal of applied research in accounting and finance, Emerald 2010 - present Editorial series on Law and Economics, Università Telematica Pegaso, Giuffrè Editore 2010 - present Rivista Economia Azienda e Sviluppo, Università degli studi di Lecce, Cacucci Editore P E E R R E W I E V E R A C T I V I T Y 2012 - present Rivista Italiana di Ragioneria e di Economia Aziendale 2010 - present Australasian Accounting Business & Finance Journal, University of Wollongong 2010 - present Journal of Applied Research in Accounting and Finance, Emerald 2010 - present Economia, Azienda e Sviluppo, Cacucci Editore 2007 - present Financial Reporting, Franco Angeli Editore 2003-2008 Abacus, Blackwell Publisher P R O F E S S I O N A L E X P E R I E N CE Independent professional CPA since 1995, he has gained experience in assisting public and private clients in the field of finance, management accounting and financial accounting, with special focus on the IAS/IFRS implementation issues in listed companies and in the firm valuation business. He has mainly worked in the utilities sector assisting public owned companies in setting their reporting models. From 2003 throughout 2014, he has been sitting in the Scientific Committee of the Internal Training Board of the Italian Auditor General (Corte dei Conti), where he has been in charge of the training programs on the use of accrual accounting in public sector and on the effective fraud prevention and detection techniques. As a consultant, he advises private companies and local governments and he is member of independent audit and compliance bodies in several entities. Naples, 2 April 2015 Prof. Francesco Capalbo 10