Developments in financial accounting and reporting
With the continuous developments in International Financial Reporting Standards (IFRSs) as adopted by the EU, the areas of financial accounting and reporting have become a lot more challenging for many entities. We understand that preparing financial information in accordance with the requirements of IFRSs is becoming onerous taking into account measurement issues, but also presentation and disclosure matters. The introduction of General Accounting Principles for Smaller Entities (GAPSE) has been an important step towards simplification in Malta; the extent of adoption of these principles by reporting entities in Malta is expected to increase.
In the current climate of enhanced corporate governance requirements and increasing regulations, we are aware many entities are becoming increasingly cognisant of their obligations to meet financial reporting requirements in an independent manner. Reporting deadlines and timelines are becoming tighter. Simultaneously shareholders and stakeholders are demanding more quality and different financial information. Ensuring that the reporting entity meets these obligations in a timely manner and having the ability to oversee and control the related financial processes, both present a significant challenge in terms of resources and costs.
Are the following situations familiar?
- Your company has carried out a significant transaction and you would like someone to review your assessment of accounting and financial reporting implications
- You have a difficult technical accounting issue in respect of which you would like a second opinion
- Your company effected an acquisition and you need to understand the impacts in terms of harmonising accounting policies, accounting for cost of acquisition and allocating purchase price to assets acquired
- You would like to keep yourself or your team up-to-date on developments in IFRSs and in GAPSE
- You would like to assess the impact of new or revised standards and pronouncements on the company’s financial information
- You require an independent advisor or service provider in respect of accounting advice and support
- You have a small finance function and would require support from financial accounting and reporting specialists
- You are already familiar with IFRSs, but need to understand how GAPSE compares
- The transition to GAPSE has raised the issue of staff training and the need for reliable and comprehensive accounting guidance
PwC's Accounting Advisory Services
For all entities that require high quality accounting advice, PwC has the breadth and depth of knowledge and technical expertise to help. As the leading local and international accounting firm, PwC offers comprehensive experience in all areas of accounting and financial reporting. PwC has an Accounting Advisory Services (AAS) specialised team led by IFRS specialists who have been providing IFRS advice and technical guidance to entities in Malta, comprising both audit and non-audit clients, for a significant number of years. These specialists have followed IFRS developments throughout the years and led the firm’s initiatives in supporting clients in this respect. PwC has been heavily involved in the development of GAPSE in Malta.
PwC experts, advise and support in the preparation of reporting under IFRSs and GAPSE, building on cooperation with specialists across a significant number of industries and deploying tried-and-tested PwC tools. These resources prepare statutory and other financial information, provide expert analysis on specific issues and are available to respond to individual needs.
As a firm we strive to provide value-for-money services and solutions which are flexible and tailored to the particular circumstances and needs of the particular entity, whether on-site or off-site, project-based or ongoing.
- Setting up of a chart of accounts
- Assistance with the selection of appropriate accounting policies
- Design of accounting procedures and processes
- Accounting advice on complex areas or subject matters
- Guidance on the accounting impacts of a specific transaction, structure or significant event, in conjunction with the firm’s Tax and Legal specialists
- Advice on the introduction of new or revised standards and pronouncements, and the impact these will have on the entity
- Conversion from IFRSs to GAPSE
External and internal financial reporting
- Advice on presentation and disclosure requirements under both IFRSs and GAPSE
- Advice on, and assistance with, issuance of financial information and management accounts, including preparation of periodical reports
- Analysis of financial information produced by the entity
- Preparation, or assistance with the compilation, of statutory financial statements and consolidated financial statements in accordance with IFRSs or GAPSE
- Performing consolidations under IFRSs and the preparation of related consolidation schedules
- Preparation of group accounting manual and chart of accounts for subsidiaries in the context of the consolidation process
- Preparation of group consolidation instructions for subsidiaries and head office
- Providing tools for preparation of financial information (e.g. forecasts, cash-flow projections, cash-flow statements and interim reporting) in conjunction with the firm’s Financial Advisory specialists
- Connection and liaison with auditors in the context of financial reporting matters
Training events teaming up with PwC's Academy
- Providing basic and advanced in-house training courses tailored for individual needs
- Accounting and financial reporting developments seminars, possibly addressing specific subject matters