The accounting profession is a dynamic component of Malta’s financial services sector, which contributes roughly 12 per cent to the Gross Domestic Product, said Prime Minister Lawrence Gonzi yesterday.

The prime minister was addressing the delegates attending a forum organised by the International Federation of Accountants (IFAC) and co-hosted by the Malta Institute of Accountants (MIA). The forum centred on small and medium practices (SMPs) and their contribution towards small and medium enterprises (SMEs).

Dr Gonzi gave an overview of the local business spectrum, 98 per cent of which is made up of SMEs and 90 per cent of them micro enterprises as they employed 10 or fewer people. He added that SMEs provided around 60 per cent of private sector employment and were “the backbone of our commercial and social infrastructure and a major engine of growth”.

He told the delegates, who are celebrating the federation’s 30th anniversary, that the Maltese accountancy profession, which trebled over the last three decades, embraces international standards. In fact, the local sector employs international financial reporting standards while audits are carried out in accordance with international standards on auditing. Furthermore, he added, the code of ethics regulating all warranted accountants is based on the model code promulgated by the IFAC.

The 8th Council Directive on audit of annual accounts and consolidated accounts, according to the prime minister, will be transposed to Maltese legislation after the Accountancy Board within the Finance Ministry reviewed the legislative framework surrounding the accounting and auditing profession.