Recent changes to the local GAAP : implications on the accountancy profession

Abstract

PURPOSE: The Accounting Directive 2013/34/EU was transposed into Maltese law through the 2015 changes in the Companies Act and the introduction of the GAPSME framework. This study, aims to assess the implications that the aforementioned changes in the local GAAP had on the accountancy profession. DESIGN: A mixed-methods research methodology was adopted. Following a thorough analysis of the literature, a survey and a set of interview questions were devised in order to answer the research objectives. For this study, the survey responses collected (n=219) and the semi-structured open ended interviews conducted (n=11) were crucial to obtain a holistic view of the accountancy profession. FINDINGS: The findings of this research study highlights a number of implications that the recent changes in the local GAAP had on the accountancy profession. Some of the aforementioned implications include: changes in the workload; audit effort required under the new GAAP; changes in fees; education of the accountancy profession; loss of IFRS knowledge, two-tier accounting system, training and services offered. Furthermore, the accountancy profession gave its views on the effects that the new local GAAP had on reporting entities such as their transparency and accountability. The aforementioned views were deemed to be important as such effects could have a direct impact on the accountancy profession as the latter deals with reporting entities regularly. Additionally, the findings highlight the perceptions of the accountancy profession on the effects that the long term application of the new GAAP will have in the future to come. CONCLUSION: It has emerged from this study that the recent amendments to the local GAAP have affected the accountancy profession in a number of ways. Moreover, the accountancy profession has endorsed these changes in the local GAAP and the latter, has been hailed as a step forward for the profession. VALUE: The study focuses on the local accountancy profession. Hence, it can add to local literature as it provides an insight on the implications that the new local GAAP had on the accountancy profession. The study can also be used by various institutions as it provides feedback on the way the accountancy profession has been impacted by the recent amendments to the local GAAP which could prove useful for any changes in the future.