The Malta Institute of Accountants (MIA) and the National Euro Changeover Committee (NECC) have published a set of guidance notes on the “Euro changeover for accountants”.

The aim of the notes is to identify the main considerations that are relevant to accountants in planning and carrying out procedures relative to the euro changeover, as well as to set out the MIA best practice recommendations pertinent to these considerations. The document provides guidance on financial reporting considerations such as the financial statements conversion process, the treatment of the change in presentation currency from Maltese lira to euro (even when the underlying functional currency is not Maltese lira) and the presentation of 2007 and earlier financial statements.

Accounting considerations to be found in the notes include accounting for the change in functional currency from Maltese lira to euro and accounting for such a change in an entity’s accounting records, conversion of the bookkeeping currency before euro-day and conversion of the bookkeeping currency for overnight traders. Guidance is also given on the conversion of historic transactions originally denominated in euro, conversion of past data in accounting records and the translation of comparatives.

Fiscal Reporting considerations contemplated by the Guidance Notes include VAT and income tax reporting as well as guidance on the Income Tax Deductions (Euro Related Expenditure) published by virtue of Legal Notice 93 of 2007.

The document also looks into IT and MIS considerations and although it does not seek to make recommendations in this respect it identifies some IT issues that might be particularly relevant to accountants and which may have to be considered in relation to the changeover to the euro.

The Guidance Notes, which come into force as from today, can be freely downloaded

from the Technical Pro-

nouncements section of the MIA website (www.mia

malta.org) or from the NECC website (www.euro.gov.mt).