Newly launched accounting principles for small and medium-sized enterprises will reduce the needed accounting requirements.

The new principles reduce the audit and financial statement reporting requirements of smaller and medium-sized companies to a more realistic requirement, Finance Minister Tonio Fenech said.

He said although the accounting profession in Malta was among the first to adopt International Financial Reporting Standards, these had become more targeted towards multinational companies listed on the world’s capital markets.

Mr Fenech continued that these requirements go beyond understandable financial reporting needs. Companies whose revenues do not go over €35 million and whose balance sheet is less than €17.5 million can adhere to the new regime. This, Mr Fenech said, means that some 98 percent of local limited liability companies will be able to use the new accounting principles.