The development of Air Malta's financial reporting framework : a case study

Abstract

Purpose: The principal aim of this dissertation is to extract the financial reporting framework of Air Malta from inception to date, underlining the key triggers with respect to financial regulation within Malta. It also ascertains the implications such developments have on the company’s accountability. Design: A Qualitative single case study approach was employed throughout the study in order to achieve the research objectives. Content analysis has been utilised as the primary method of data collection which comprised of the thorough perusal of Air Malta’s financial statements between 1973 and 2018. Findings: The development of local financial legislation along with the local adoption of international accounting standards have resulted in huge strides forward with respect to Air Malta’s financial reporting framework. In most recent financial statements, the company recorded relatively high levels of accountability and stewardship as a result of its journey in compliance with the Companies Act 1995 along with the adoption of both IASs and IFRSs. Conclusions: Ultimately through the analysis of over 40 years’ worth of annual accounts, the extent to which the latest financial statements presented in 2018 improved over the first set of accounts produced in 1974 is seen as substantial. International standards brought further transparency to the financial statements, which when coupled with the qualitative characteristics of financial reporting promoted by the conceptual framework, diminish the information gap which is present between Air Malta’s stakeholders and those charged with governance. Value: As an initial attempt, the study offers useful insights towards the major milestones achieved in the historical development of financial reporting in a local context with a special emphasis on a state-owned entity.