The Institute has recently finalised its position on the EU’s micro-entity regime and on those European Commission’s legislative proposals on accounting that have been assessed to have the largest material impact on Maltese business undertakings and on the Maltese economy in general.

 

The MIA has commented on the following aspects:

 

1) Micro-entity regime - The Institute believes that Malta should not introduce the micro-entity regime and exempt micro-entities but that such entities should be subsumed within the category for small entities as set out in the single directive proposal.
 

2) Clarify the audit requirement for small companies - The MIA strongly believes that Member States should retain the discretion to decide whether they want to exempt small companies from audit requirements, as they are best placed to determine the actual need of small entities to be exempted from audit.
 

3) Cash flow statements - The MIA believes that the inclusion of the cash flow statement in the annual financial statements should be mandated for large and medium companies. For small companies the benefits of providing such a statement may not outweigh the costs of preparation, therefore the Institute supports the EC proposal not to require such a statement for small companies.

 

This position paper has been presented to interested stakeholders in Malta and Europe, amongst whom the Ministry of Finance, the Economy and Investment, local Members of the European Parliament, the Federation of European Accountants (FEE), Political Parties and the Accountancy Board.