From GAPSE to GAPSME : understanding the various stakeholders’ point of view

Abstract

Purpose for dissertation: Malta has been using IFRS as a default accounting framework for a number of years. However, through the introduction of the Directive 2013/34/EU of the European Parliament, also known as the Single Accounting Directive, a new framework called GAPSME was adopted by Malta applying to small and medium companies. Companies of a smaller size are the backbone of the Maltese economy and these companies represent the strong majority of all companies in Malta. Therefore, this study aims to understand how small businesses as well as other stakeholders are affected by the change in accounting framework. Design: In depth interviews were carried with various stakeholders and accounting practitioners in order to get an understanding of how these stakeholders are going to be affected when the new framework is in full effect. Findings & Conclusions: During the research, some concerns with regards to the new framework were mentioned and which may prove to be drawbacks for some stakeholders. However, since the introduction of GAPSME is still in its early stages, one still has to see if these affects truly influence the stakeholders in the future. The biggest influence of the new framework is on accounting professionals as well as banks. Implications: The changes brought about by GAPSME will affect the whole business community in Malta especially since Malta is a country who is heavily dependent on small business. In the future, stakeholders may need to require further information that what is required under GAPSME since most stakeholders believe the requirements are not enough.