|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||All domestic companies whose securities trade in a regulated market are required to use IFRS Standards as adopted by the EU in their consolidated financial statements.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||IFRS Standards as adopted by the EU are required in their consolidated financial statements except that a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to IFRS Standards may use its home standards.|
|The IFRS for SMEs Standard is required or permitted||No. Some large companies that meet the definition of SMEs are required to use full IFRS Standards as adopted by the EU. All other SMEs may use full IFRS Standards as adopted by the EU or they may use a national standard for SMEs.|
|The IFRS for SMEs Standard is under consideration||No.|
Refer to EU/1606/2002 Regulation on the application of international accounting standards (IAS).
Refer to the IAS Regulation adopted by the European Union in 2002.
Malta joined the European Union as of 1 May 2004. Even before that, in 1995 Malta had adopted IFRS Standards (then known as IAS Standards) for all companies.
As a member state of the European Union, Malta is subject to EU/1606/2002 Regulation on the application of international accounting standards (IAS).
The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market starting in 2005. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) and/or in the financial statements of companies whose securities do not trade on a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation.
In Malta, the regulated markets are the following:
Malta has used the option under the IAS Regulation to:
IFRS Standards as adopted by the EU are required in both the consolidated and separate company accounts of all banks, insurance companies, some other supervised financial institutions, and larger companies deemed significant in the local economy. The larger companies deemed significant in the local economy are those that meet any one of the following criteria:
IFRS Standards as adopted by the EU are permitted (but not required) in both the consolidated and separate company financial statements of all other companies.
Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in Malta (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their local accounting standards to be equivalent to IFRS Standards, in which case they may use their local standards. Further details may be found on the ‘Financial Reporting’ page of the European Commission’s website.
The process is described in the Profile of the European Union.
Additionally, subsidiary legislation in Malta known as the Accountancy Profession (Accounting and Auditing Standards) Regulations prescribes that ‘generally accepted accounting principles and practice’ shall mean adherence to IFRS Standards as adopted by the EU.
The European Union has 24 official and working languages. They are: Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish. Before they are published in the Official Journal of the European Union, and therefore become binding under EU law, individual IFRS Standards must be translated into all of those languages (other than English and Irish).
Pursuant to a copyright waiver agreement with the Directorate-General for Translation of the European Commission, the Commission takes care of the translation into the official languages according to their own translation process. The translation only covers the standards and mandatory guidance, which is then published in the Official Journal of the European Union.
In addition, some countries (usually the standard setter or institute) have a translation contract with the IFRS Foundation to produce an ‘official translation’ for publication of a bound volume of IFRS Standards (usually the ‘Red Book’) and publication, in some cases, of individual standards and exposure drafts.
Some large companies whose securities do not trade in a public market and that meet the definition of SMEs in the IFRS for SMEs Standard are required to use full IFRS Standards as adopted by the EU. Those are companies that meet any one of the following criteria:
All other SMEs may use full IFRS Standards as adopted by the EU or they may use the General Accounting Principles for Smaller Entities in 2009 (GAPSE) adopted by the Malta Institute of Accountants in February 2009.