The use of Maltese in financial reporting

Abstract

Purpose: The main objective of this study is to analyse the use of the Maltese language in financial reporting by listed entities, co-operatives and media participants, and to establish the National Council for the Maltese Language’s perspective on the matter. This will be achieved by investigating the extent of Maltese financial reporting and the reasons for using or not using Maltese. In addition, the study sets out in identifying the difficulties encountered when producing financial information in Maltese, and in determining whether dictionaries are utilised, as well as whether standardised terminology and correct wording is utilised. Design: This research was carried out using a mix of qualitative and quantitative methods, with the data being gathered through semi-structured interviews and complemented with questionnaires. Findings: The study demonstrates that 30.4% of co-operatives and 55% of listed entities prepare financial reports in Maltese. Maltese is also widely used during Annual General Meetings and in the media. However, the technical terminology involved, as well as the need for translation, renders the preparation of Maltese financial reports difficult. In fact, media participants and the majority of listed entities refer to dictionaries, when preparing Maltese financial reports. In spite of the fact that the National Council for the Maltese Language offers its assistance where difficulties with the use of Maltese arise, standardisation of Maltese financial terminology has not been truly achieved. The findings also indicate that the majority of co-operatives are of the opinion that the user’s preference does not impact the decision on whether financial reports are prepared in Maltese or in English. Among the listed entities, there are mixed views about the matter. Conclusions: Although the use of Maltese in financial reporting may be deemed by some as a waste of time, this study establishes that in certain cases, the use of Maltese helps in increasing the degree of understandability for shareholders and the general public. Thus, the use of Maltese should be encouraged, particularly during Annual General Meetings and in the media. Values: Research about the use of the Maltese language in financial reporting is currently lacking, thereby rendering this study important. This study may also be beneficial to preparers of financial information as it establishes the circumstances in which it is more suitable to use Maltese in financial reporting.