As stated in the Malta Financial Services Authority's (MFSA) Newsletter of November 2015, Directive 2013/34/EU of the European Parliament and of the Council was published in the EU Official Journal on the 29th June 2013, which also repealed the fourth and seventh accounting directives dealing with the preparation of separate and consolidated accounts.

The requirements of this new directive were transposed in Legal Notice 289 of 2015 entitled 'Accountancy Profession' (General Accounting Principles for Small and Medium-Sized Entities) Regulations, 2015, and in the Companies Act (the "Act").

These will be applicable to financial reporting periods beginning on or after 1st January 2016.

The amendments to the Act include:

  • changes in the provisions applicable to small companies (article 185);
  • abridged accounts no longer possible (but simpler accounts required of small companies);
  • small companies need not prepare directors' report;
  • small and private exempt companies need not file profit & loss account;
  • removal of the financial holding company exemption;
  • removal of extension of period allowed for laying accounts before general meeting (Form U);
  • changes to rules regarding the profits available for distribution;
  • Third and Fourth Schedules re-drafted (technical accounting detail removed); the new Fourth Schedule refers to a new report on Payment to Governments required to be prepared by Large companies and Public Interest Entities which are active in the extractive industry or the logging of primary forests;
  • changes to the Sixth Schedule about the directors' report.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.