ACCOUNTANCY PROFESSION (ACCOUNTING AND AUDITING STANDARDS) REGULATIONS

ACCOUNTANCY PROFESSION

(ACCOUNTING AND AUDITING STANDARDS)

SUBSIDIARY LEGISLATION 281.02

ACCOUNTANCY PROFESSION (ACCOUNTING

AND AUDITING STANDARDS) REGULATIONS

1st October, 2008

LEGAL NOTICE 19 of 2009, as amended by Legal Notice 233 of 2016.

The title of these regulations is the Accountancy

Profession (Accounting and Auditing Standards) Regulations.

In these regulations, unless the context otherwise requires

"accounting reference period" shall have the meaning assigned to

it in the Companies Act;

"Accounting Regulation" means Regulation No. 1606/2002 of

the European Parliament and of the Council of the European Union

of 19 July 2002 on the application of international accounting

standards;

"the Act" means the Accountancy Profession Act;

"Board" means the Accountancy Board established by article 6

of the Act;

"consolidated accounts" shall have the meaning assigned to it in

the Companies Act;

"individual accounts" shall have the meaning assigned to it in the

Companies Act;

"international accounting standards" means International

Accounting Standards (IAS), International Financial Reporting

St a n d a r d s ( I F R S ) a n d r e l a t e d I n t e r p r e t a t i o n s ( S I C - I F R I C

interpretations), subsequent amendments to those standards and

related interpretations, and future standards and related

interpretations issued or adopted by the International Accounting

Standards Board (IASB);

"international accounting standards as adopted by the EU" means

the international accounting standards as adopted by the European

Commission in accordance with the provisions set out in Article 3

of the Accounting Regulation;

"International Accounting Standards Board (IASB)" means the

board established by deed of constitution on the 28th June, 1973

which comprises the professional accountancy bodies which are

members of the International Federation of Accountants, which

federation was established at the International Congress of

Accountants in Munich in 1977, or any body succeeding the board

by whatever name it may be known;

"international auditing standards" means International Standards

in Auditing (ISAs), International Standards in Quality Control

(ISQCI) and other related Standards, insofar as they are relevant to

the statutory audit, issued from to time to time by the International

ACCOUNTANCY PROFESSION

(ACCOUNTING AND AUDITING STANDARDS)

Auditing and Assurance Board (IAASB), a standard-setting body

d e s i g n a t e d b y, a n d o p e r a t i n g u n d e r t h e a u s p i c e s o f , t h e

International Federation of Accountants (IFAC), which federation

was established at the International Congress of Accountants in

Munich in 1977, or any body succeeding the board by whatever

name it may be known;

"international auditing standards as adopted by the EU" means

international auditing standards as adopted by the European

Commission in accordance with the provisions set out in Article 26

of the Statutory Audit Directive;

"Statutory Audit Directive" means Directive 2006/43/EC of the

European Parliament and of the Council of the European Union of

17 May 2006 on statutory audits of annual accounts and

consolidated accounts as amended by Directive 2014/56/EU of the

European Parliament and of the Council of 16 April 2014;

"statutory audit" shall have the meaning assigned to it in the Act.

(1) Compliance with "generally accepted accounting

principles and practice" shall mean adherence to international

accounting standards as adopted by the EU

Provided that for accounting reference periods commencing

on or before 31 December 2007, compliance with "generally

accepted accounting principles and practice" shall mean adherence

to international accounting standards

Provided further that if all the conditions for eligibility

prescribed therein are met, compliance with "generally accepted

accounting principles and practice" may be achieved by adherence

to general accounting principles for qualifying private or small and

medium sized entities as may be prescribed by regulations,

directives or guidelines issued from time to time in terms of the

Accountancy Profession Act.

(2) The provisions of subregulation (1) shall be applicable to

individual accounts and consolidated accounts.

(3) For the avoidance of doubt, the "generally accepted

accounting principles and practice" applicable to an accounting

reference period as determined in accordance with the provision of

subregulation (1) shall also be applicable to comparative figures

presented in the individual accounts, and in the consolidated

accounts, where applicable, for that accounting reference period so

that the same "generally accepted accounting principles and

practice" are applicable for the current period and the comparative

figures.

Compliance with "generally accepted auditing standards"

shall mean adherence to international auditing standards

Provided that international auditing standards as adopted by

the EU on a particular subject-matter shall apply instead and to the

exclusion of international auditing standards covering the same

subject-matter

Provided further that in conducting the statutory audit of

small undertakings, the application of the auditing standards is to

ACCOUNTANCY PROFESSION

(ACCOUNTING AND AUDITING STANDARDS)

be proportionate to the scale and the complexity of the activities of

such undertakings. The Board may take measures in order to ensure

the proportionate application of the auditing standards of the

statutory audits of small undertakings.

In any of the applicable accounting and auditing standards

prescribed in these regulations, if there is any conflict between the

English and Maltese texts, the English text shall prevail.