Developments in financial accounting and reporting

With the continuous developments in International Financial Reporting Standards (IFRSs) as adopted by the EU, the areas of financial accounting and reporting have become a lot more challenging for many entities. We understand that preparing financial information in accordance with the requirements of IFRSs is becoming onerous taking into account measurement issues, but also presentation and disclosure matters. The introduction of General Accounting Principles for Smaller Entities (GAPSE) has been an important step towards simplification in Malta; the extent of adoption of these principles by reporting entities in Malta is expected to increase.

In the current climate of enhanced corporate governance requirements and increasing regulations, we are aware many entities are becoming increasingly cognisant of their obligations to meet financial reporting requirements in an independent manner. Reporting deadlines and timelines are becoming tighter. Simultaneously shareholders and stakeholders are demanding more quality and different financial information. Ensuring that the reporting entity meets these obligations in a timely manner and having the ability to oversee and control the related financial processes, both present a significant challenge in terms of resources and costs.