Author Archives: Zampa Debattista

COVID 19 – a VAT perspective

Definitely trending … Coronavirus or Covid 19 … businesses thriving or not, many expanding, a few stable or contracting, but now all facing a crisis with no precedents. In order to support and sustain businesses Government announced a serious of aid packages primarily aimed at safeguarding employment and employees. Up to now, the only measure […]

[Leases – Article 4/5] Accounting For Leases After 2018 – Other Common Situations

Determining Direct Costs Direct costs are incremental costs that are incurred in the process of obtaining the lease. Other costs incurred irrespectively of whether the lease contract is entered into or not are not considered to be initial direct costs. Direct costs incurred at the initial stage of the lease are accounted for as part […]

COVID-19 – Financial Aid – 3rd Package

24th March 2020 On Tuesday evening the Government of Malta announced an economic package as agreed with the Malta Council for Economic and Social Development which contains additional and revised measures intended to aid businesses that have been adversely hit by the spread of the corona virus. The main highlight of this package is that […]

The Accounting Implications of Covid-19 from an IFRS and GAPSME perspective

On March 11, 2020, the World Health Organisation (WHO) officially declared that COVID-19 can be characterised as a ‘pandemic’. A pandemic is a strong, exceptional form of epidemic, in terms of its geographic reach. Whilst the health-related implications of a pandemic can be read in the WHO’s official communication in this link, the economic pinch […]

COVID-19 – Mini Budget – Financial Support

COVID-19 – Mini Budget – Financial Support 18th March 2020 In view of the current economic turmoil resulting from the COVID-19 pandemic, the Prime Minister, the Minister of Finance and the Minister for Economy, Investment and Small Business have announced several measures which are aimed at safeguarding Malta’s economy by improving companies’ liquidity and protecting […]

Merchants Shipping Act Updates through L.N. 31 of 2020

Shipping companies registered under the Commercial Partnerships Ordinance or shipping companies which have elected to be governed by the Companies Act shall be so defined as a company whose objects are limited to the sole purpose of owning, managing, administering or operating ships. In the case of a single member company, if default is made […]

Upcoming Replacement To IAS 1?

The IASB is seeking feedback on the Exposure Draft General Presentation and Disclosures (the deadline for comments is 30 June 2020). The proposals aim to improve how information is communicated in the financial statements, especially in relation to financial performance. Broadly speaking, the proposals cover three main topics: New subtotals in the income statement ‘Non-GAAP’ transparency […]

[Leases – Article 2/5] Determining the lease term

The term of the lease plays an important part in the accounting treatment of a particular lease. Under IFRS 16, it impacts the measurement of the right of use asset and lease liability in the lessee’s books. It also determines whether the exemption for short term leases may be applied or not, in which case […]