MIA promotes profession in students’ careers fair
The Malta Institute of Accountants took part in the 2020 edition of the iChoose Careers Fair to introduce Form V students to the world of the accounting profession. Organised by the Education Ministry, the annual fair gives students a view of the options ahead of them and puts them in touch with the people who can help then start their own career path.
For more information, click here.
MIA’s Contribution in the form of Consultation Feedback
In July 2020 The Malta Institute of accountants has participated in 2 consultation papers: 1) European Commission’s Consultation on the Renewed Sustainable Finance Strategy 2) Malta Gaming Authority’s consultation on Suspicious Betting Reporting Requirements & Other Sports Integrity Matters.
For more information, click here.
Q&A sessions held in July 2020
In July 2020 the MIA organised the following information sessions:
1) IDPC Data Protection Q&A Session
2) MBR BO Forms updates Q&A Session
For more information, click here.
MIA Social Throwback
Click here to see the social throwback.
MIA’s Contribution to the future of accounting: Non-Financial Reporting Directive
Earlier in June 2020, the Malta Institute of Accountants (MIA) has contributed to the European Commission’s Consultation document on the review of the Non-Financial Reporting Directive (NFRD). This was tackled through a Working Group set up composed of a few members of the MIA Financial Reporting Committee as well as MIA members, nominated by the said Committee.
The aim of this consultation is to collect the views of stakeholders regarding possible revisions to the provisions of the NFRD. The NFRD requires large companies, specifically Public Interest Entities with more than 500 employees, to include a non-financial statement as part of their annual public reporting obligations. There are 4 main sustainability issues that are core to the NFRD:
1. Environment
2. Social and employee Issues
3. Human Rights
4. Bribery and Corruption
Companies are required to disclose information surrounding these issues, including information about their business model, policies, outcomes, risk and risk management and key performance indicators. In compliance with the NFRD companies must disclose the double materiality perspective, this means that they must not only disclose how sustainability issues could affect the company but must also disclose how the company affects the society and environment in which it is operating.
It is clear, that in today’s current environment the non-financial information needs of users, especially investors have increased substantially. There is the demand for more and better information that will help users better understand the financial risks resulting from the sustainability crises we are currently facing and the demand to have products that address the environmental and social problems.
The main problem noted is that there is currently inadequate publicly available information on how non-financial issues and sustainability issues impact companies, and how companies in turn impact the society and environment. There is also a degree of uncertainty and complexity as to what type of non-financial information to report as well as how and where to report it. One may also note that companies are also incurring unnecessary and avoidable costs with regards to the reporting of non-financial information.
Through this consultation the European Commission is working towards its commitment to review the NFRD in 2020 as part of the European Green Deal’s strategy – to strengthen the foundations of sustainable investment. The aim of NFRD is to strengthen sustainable finance by improving transparency. Companies must shift their focus from short-term financial performance to long-term development and sustainability.
The outbreak of COVID-19 has shown how economic, social, and environmental aspects are interlinked; therefore, companies should make the shift towards prioritising shareholder’s long-term interests. This step towards revising the NFRD and all the input that contributed to such a consultation is an important element that can help us achieve this.
DIER Top-up exemption declaration procedures
Reference is made to the DIER reduction of the €400 wage supplement top-up declaration form. The MIA has been working with the DIER on the subject matter. Employers are now being classified into three different categories and DIER declaration submissions vary by category, as highlighted below:
Category 1
Employers within this category are:
a) Sole traders with a maximum of 5 employees; or
b) Partnerships with up to a maximum of 5 employees; or
c) Private companies with a maximum of 5 employees with a balance sheet total that does not exceed €100,000.
These Employers are required to submit the Category 1 declaration, which should be signed ONLY by a representative of the employer. In this category the signature of a warranted accountant is NOT required.
Category 2
These are Employers, which do not meet the criteria for Category 1 classification. These Employers are required to submit the Category 2 declaration, which should be signed by a representative of the employer AND by a warranted accountant. The warranted accountant signing off will be the accountant employed or contracted/engaged by the employer – in lieu of an employed accountant – to assemble and prepare the management financial information of the employer, utilised for the purposes of the declaration.
Category 3
Employers which do not fall within Categories 1 or 2 and which do not have an employed or contracted warranted accountant to assemble and prepare the management financial information of the employer for the purposes of this declaration, are required to engage a warranted accountant to support the Employer’s assessment that the Employer was not in a financial position to commit to the monthly wage top-up payment of €400 per employee, over and above the COVID Wage Supplement that is being granted by Malta Enterprise.
The Employers in Category 3, are required to submit to the DIER the Category 1 declaration, which should be signed SOLELY by a representative of the Employer and a copy of the Agreed Upon Procedures Document (AUP) signed by the warranted accountant they engaged.
Any queries on the subject matter should be directed to technical@miamalta.org.
Registration of a Fiscal Unit in terms of the Consolidated Group (Income Tax) Rules
On the 29th of May 2020 the Malta institute of Accountants (MIA) together with the Institute of Financial Services Practitioners (IFSP) and the Malta Institute of Taxation (MIT) held a joint webinar on the online application for the registration of a Fiscal Unit in terms of the Consolidated Group (Income Tax) Rules. This is a new concept issued by the CfR on the 18th of May 2020. The webinar was well attended with over 370 professionals joining in for the 1-hour long session. Read more…
Info sessions within the May newsletter i.e. DIER (include Q&A) & MBR sessions
Online webinar: 4th May – COVID-19 DIER – Conditions of Work – Q&A Session
As a response to the frequently asked questions by MIA members, being currently asked in light of the recent COVID-19 disruptions on employment, the MIA invited representatives from the Department of Industrial and Employment Relations (DIER) to provide clarity on queries such as:
Can I force my employees to go on vacation leave?
Does an employer need permission when employees go on unpaid leave?
To read more, click here.
Revised Accreditation Rules for Face-to-Face Courses
As the approved accountancy body, the MIA is delegated a number of tasks by the Accountancy Board. This include accreditation of CPE Activities as stipulated in Directive 1 issued in terms of the Accountancy Profession Act.
Course providers offering courses which are relevant to the accountancy profession can accredit their courses with the MIA. Accreditation is normally sought by the course provider as a marketing tool to promote the event amongst MIA members and warrant holders. On the other hand, participating/attending accredited courses provides the peace of mind that the course applies for CPE purposes.
The MIA has liaised with the Accountancy Board to revise the Accreditation Rules of face-to-face courses. Such Rules have been approved by the Board on 15 April 2020.
Earlier on this month, the Board approved a set of new temporary rules pertaining to online courses in light of the Covid-19 outbreak. The MIA has worked closely with the Board in this regard for the benefit of both members and course providers. Such Rules can be accessed via the following link.