Author Archives: Zampa Debattista

Going Concern Considerations During COVID-19

In the current COVID-19 reality, numerous entities have been forced to either shut down their operations, or to operate at a reduced capacity. Consequentially, users of financial statements will be looking at the going concern disclosure with particular interest. Auditors need to keep this in mind and apply careful judgement when signing reports. However, it […]

Applications for the Micro Invest Scheme Are Now Open!

Malta Enterprise may approve a tax credit equivalent to 45% of eligible expenditure in favour of each undertaking. The maximum eligible tax credits shall be capped at €50,000 over any period of three consecutive fiscal years. The percentage of eligible expenditure and/or the maximum tax credit can increase in certain instances. Eligible Costs Increase in […]

Audit & IFRS Q.4 – 2020

Learn about the most recent changes in IFRS & audit internationally: IFRS Changes For 2020 Financial Statements Amendments to IFRS 16 ‘Leases’ – COVID-19-Related rent concessions Amendments to various financial instruments standards – ‘Interest Rate Benchmark Reform – Phase 1’ Amendments to IFRS 3 ‘Business Combinations’ – ‘Definition of a Business’ Amendments to IAS 1 ‘Presentation […]

VAT Newsletter Q.4 – 2020

Learn about the most recent VAT changes in Malta & the EU: 19 October 2020 – VAT measure – 2021 Budget Speech 28th October 2020 – COVID-19: Commission puts forward taxation and customs measures to support access to more affordable equipment, vaccines and testing kits 3 November 2020 – Council Implementing Decision (EU)2020/1662 7th December […]

General Accounting Considerations for Shareholders

Issued shares, or equity instruments, may be in the name of individuals or companies. Companies are required to present their accounts, and as such need to make a number of accounting and legal considerations, in order to classify and measure shares in their own name correctly on their balance sheet. Assessment of the Underlying Reporting […]

Gift Vouchers and VAT

Giving a gift voucher to a loved one is a convenient, practical and safe choice. It cuts out on the logistics, saves time and most important would allow the recipient to self-choose a gift to cherish. Over the years, the gift voucher retail market share has been progressively growing, with an estimated GBP 7 billion […]

Impairment Considerations in a COVID-19 Reality

COVID-19 is an impairment indicator in all effects, in the context of IAS 36 ‘Impairment Of Assets’. An impairment indicator does not necessarily mean that an impairment will be booked, but it does mean that documentation of testing is required. At the same time, IFRS 9 ‘Financial Instruments’ imposes an impairment adjustment for all financial […]

Yacht Leasing in Malta – VAT Updates: Malta’s Response to EU Concerns

On 30 October 2020, the European Commission decided to close a number of infringement procedures initiated against Member States for not complying with the provisions of the Council Directive 2006/112/EC (“VAT Directive”). The VAT treatment of yacht leasing in Malta had been among the procedures undergoing examination. In this regard, the Guidelines regarding item 12, […]

VAT Grouping in Malta: Practical Guide

Following the introduction of the VAT Grouping legislation in Malta, we can conclude that this important regime has provided licensed operators with a fiscal tool aimed at improving their cashflow position and, in certain instances, optimising their VAT situation. We have seen a successful take up among companies operating in the financial services and gaming […]