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Malta adopts special standard for small companies

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23 Mar 2009

Malta has amended its Companies Act to adopt General Accounting Principles for Smaller Entities (GAPSE), a special standard that can be used by entities that meet several criteria, such as fewer than 250 employees, assets below €17.5 million, revenue below €35 million, not publicly traded, and not financial institutions.

Since 1995, all limited liability companies in Malta, irrespective of size, have been required to prepare annual financial statements in accordance with IFRSs (IFRS as adopted by the EU for accounting periods commencing on or after 1 January 2008). Over the years this requirement was considered as becoming increasingly onerous for local smaller entities, and hence the initiative of the Malta Institute of Accountants to draw up GAPSE. GAPSE allows a historical cost option for all assets and liabilities but allows alternative measurement bases in particular circumstances. It contains significantly reduced disclosure requirements compared to IFRSs.


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