September 2018 marked the 40th anniversary of the establishment of the Faculty of Economics, Management and Accountancy at the University of Malta. An important part of the faculty is the Department of Accountancy. The establishment of this department signified a very important change in the status of accounting within the local context.
Not only did the institution of another possible route to qualification complement the then existing route provided by the Malta Institute of Accountants but it also represented the upgrading of accountancy as an academic area within the university context where research joined tuition as an essential requirement for qualification as an accountant. In fact, research on the local accounting environment, in some cases with unexpected and insightful findings, was undertaken by over 1,000 students for their dissertation projects.
Good leadership and the work of dedicated academic staff quickly gained the University degree acceptance by local industry and commerce and a good number of accountancy students eventually achieved high positions in different fields. During this period, the department also ran numerous evening courses with the aim of upgrading the academic commercial knowledge of local businessmen.
In terms of degree structure, until 1987, the Department of Accountancy offered a five-year undergraduate course in accountancy, better known at the time as the BA (Hons) Accountancy degree. The late Fr Peter Serracino Inglott, who was rector at the time, decided to introduce a general undergraduate three-year course in commerce. This created the now well-known B.Com course but it also initiated a process wherein those eligible and thinking of pursuing a career in accountancy would immediately join the stream labelled as ‘major in accountancy’.
A new scenario is being encountered within the accountancy job market: demand is exceeding supply
More recently, in conformity with the Bologna convention, those students furthering their studies after acquiring their B.Com degree read for a Master’s in Accountancy degree.
Both the installation of the department as well as the eventual changes representing pluralism in education are in themselves a reflection of the changing needs of the economy. Way back in 1978 Malta was generating new economic wealth based on a planned diversified economy in preparation of the phasing out of all British military presence in 1979, necessitating the need for qualified accountants that can be trusted stewards.
The significant economic progress registered since Independence was to be consolidated as Malta sought accession to the European Union necessitating the implementation of new fiscal legislation such as value added tax and a major overhaul of our income tax regime. All this compelled the country to produce a required number of qualified accountants.
Today, a new scenario is being encountered within the accountancy job market: demand is exceeding supply. This is the direct result of the major development over the past 20 years on the international front, namely, that more than 120 jurisdictions around the globe now follow International Financial Reporting Standards (IFRSs).
Malta moved to IFRS way back in 1995, triggering all accountancy tuition to move in tandem. Given that we speak good English apart from another language created new opportunities for Maltese accountancy graduates – that of being assigned to the Big Four overseas offices within a year or so. This has now created an anomaly wherein not enough talent is available to cater for the local needs. This, in itself, represents a challenge to attract more youngsters to the profession.
The above gives a brief summary of what happened in the past 40 years since the Department of Accountancy came into being. The department cannot rest on its laurels. It has to look to the future, giving adequate attention to changes that are emerging; for example, the increase in economic crime, has created a demand for forensic accounting education.
Furthermore, with the advancement of bitcoin and blockchain as a means of payment, it is imperative that the department keeps up with the ever-changing world of finance if it is to remain relevant in the foreseeable future.
Ivan Grixti is a lecturer in financial accounting at the University of Malta.
This is a Times of Malta print opinion piece