Less reporting burden on smaller enterprises

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Ministry of Finance
The Government will be launching General Accounting Principles for Smaller Entities (GAPSE) during the coming weeks in what will constitute a reduction of the audit and financial statement reporting requirements for SMEs, freeing their time and effort to make the service more affordable whilst maintaining the standards required to support the users of the audited financial statements.

For small businesses, this means less bureaucracy, less costs and therefore further opportunities to grow and generate employment. This was announced by Minister of Finance, the Economy and Investment, Tonio Fenech during the inauguration speech of Ecovis Malta, another high quality financial services company that has trusted Malta in its decision to expand its worldwide business.

Minister Fenech explained that adequate financial statements are required by creditors, providers of finance, fiscal revenue authorities and many others. However for small companies the obligations imposed by the current International Financial Reporting Standards go beyond these understandable needs and impose compliance costs which in today’s realities outweigh the benefits or disclosure needs of the financial statement users. In addressing these burdens, Government is implementing the advice of smaller businesses that have been stressing the need of better regulation during regular consultation meetings.

With regards to Ecovis, the Minister of Finance, the Economy and Investment noted with satisfaction that it has chosen Malta, highlighting the strong growth in the financial services sector in Malta during the past few years. Ecovis is a group of tax advisors, lawyers, auditors and management accountants.

The company has 170 offices worldwide, spread over 27 countries, employing over 2,300 partners, associate and other staff. A few months ago, this company received an important recognition in being defined, by the International Accounting Bulletin as the third fastest expanding accountancy firm in the world. It will be represented in Malta by Ecovis Malta.

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