The Malta Institute of Accountants has just celebrated its golden anniversary. May 28, 1965, represents the establishment of this professional body soon after Malta gained its independence from the UK.
Although the MIA came into being in 1942, there existed another professional body, namely, the Malta Incorporation of Accountants.
The introduction of the Commercial Partnerships Ordinance in 1962 triggered off a process of bilateral discussions between both bodies. This was imperative since the newly-instituted company law required that a set of financial statements be audited by a member of a recognised body. Hence, the question immediately arose as to which professional body would be recognised.
A publication on the institute’s history was commissioned as part of the 50th anniversary celebrations. This initiative complements the author’s drive to commence scholarly works on Maltese accounting history. Fellow academics abroad have already contributed to the raft of literature, looking in particular at the influence of imperialism on accountancy.
The past 50 years have seen the profession develop in response to major political and economic milestones
The first impressions seem to be that the colonial notion of ‘divide and rule’ applied also to accountancy in Malta, so much so that the amalgamation agreement was signed eight months after Malta became an independent nation. It is envisaged that meticulous archival research will shed light on these and other themes.
The past 50 years have seen the profession develop in response to major political and economic milestones. From being the sole provider of an educational programme to qualify as an accountant, the MIA had to adapt itself to the 1979 Accountancy Profession Act. The then Labour government instituted legislation not only to enshrine the regulation of the profession in the hands of the government but also to recognise the eligibility of the university’s under-graduate accountancy course in acquiring the warrant of a certified public accountant.
The globalisation of business activity coupled with Malta’s bid to become a full member of the European Union saw the Nationalist government revamp Malta’s company law with the installation of the 1995 Companies Act. That legislation saw our nation setting an example to the rest of the world not only by selecting to adopt International Accounting Standards but even entrenching them into that legislation. Today, IFRSs are now adhered to by more than 120 jurisdictions, elevating the accountancy profession to become the first global profession.
MIA’s bold decision to offer Maltese youth the possibility to undergo a professional qualification such as ACCA – rather than running its own training programme – has seen increasing numbers of talented young people moving into accountancy. It has also made it possible for those who for some reason or another fail to pursue the Master’s degree programme at the university but are still determined to become qualified accountants.
The MIA currently boasts a membership of 2,500 individuals with a student complement of some 900 students across the three levels of the ACCA programme.
So what lies ahead for the MIA? In the near future, links with the university are bound to strengthen even further. Although a technical department already exists, I envisage the MIA supporting its members through enhanced technical support as the pressures for increased accountability by society at large continue unabated.
However, in the medium to longer term, I envisage the MIA will take on two important roles: to commence participation in international fora to stimulate discussion about how IFRS impact small jurisdictions such as Malta; and to assist other jurisdictions in setting up the profession where it is still inexistent – Libya being a case in point, once the dust settles and a stable government is installed.
Ivan Grixti lectures in financial accounting at the University of Malta.