Prior to the 2015 European Directive 2013/34/EU on financial statements, the default GAAP (Generally Accepted Account Principle) in Malta was EUR-IFRS. This applied regardless of the company size. This has changed as from January 2016.
Now, the applicable GAAP depends on the size of the company. These changes saw, the introduction of three size thresholds which impose different reporting requirements based on firm size. Whereas GAAP still remains EU-IFRS for financial reporting of large companies, for a small or medium sized company, General Accounting Principles for Small- and Medium-sized entities (GAPSME) may now be used.
In this regard, small and medium sized organisations need to be aware that some regulations may require specific financial reporting requirements.
This does not mean anything more onerous than the current requirements. To the contrary, the main objective of the new GAPSME is to simplify the preparation of the financial statements. By having less complex reporting obligations, financial statements will be more coherent for users to understand the company’s financial performance.
Contact our team at Firstbridge for more information on whether your company is eligible to adopt GAPSME.
© Firstbridge 2019 