EFRAG has launched the public consultation on the Exposure Draft ESRS for listed SMEs (ESRS LSME ED) and the Exposure Draft for the voluntary reporting standard for non-listed SMEs (VSME ED).

MIA would like to invite its members to contribute to this consultation process by sending their feedback to technical@miamalta.org by 29 March 2024. Comments received will be taken into consideration when drawing up MIA’s consolidated feedback.

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The International Auditing and Assurance Standards Board (IAASB) launched a consultation process on proposed narrow scope amendments to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards). These proposed revisions have two key objectives:

1. Aligning definitions and requirements in IAASB standards with new definitions for publicly traded and public interest entities in the IESBA Code.
2. Extending the amendments applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities (PIE).

Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing such that they will be subject to:

• Engagement quality reviews;
• Providing transparency in the auditor’s report on specific aspects of the audit, including auditor independence, communicating key audit matters, and the engagement partner’s name; and
• Communicating with those charged with governance to help them fulfill their responsibility overseeing the financial reporting process, (e.g., communicating about quality management and auditor independence).

How to Comment

MIA would like to invite its members to contribute to this consultation process by sending their feedback to technical@miamalta.org by 29 February 2024. Comments received will be taken into consideration when drawing up MIA’s consolidated feedback.

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On 16 January 2024, the Council of the European Union decided to add one individual to the list of those subject to restrictive measures against ISIL (Da’esh) and Al-Qaeda and persons; groups, undertakings and entities associated with them.

The Council of the European Union also decided to de-list a deceased individual and thus a total of fifteen persons are currently subject to a travel ban and an asset freeze, and five groups to an asset freeze. In addition, EU persons and operators are forbidden from making funds or economic resources available to the listed persons and groups.

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On 12th January 2024, the Council of the European Union has adopted Decision (CFSP) 2024/254 regarding the amendments to the Guatemala Sanctions Regimes.

The Decision establishes a framework for targeted restrictive measures in view of the situation in Guatemala, which constitutes a threat to the stability of Guatemala and the region. The Decision provides for the freezing of funds and economic resources of, and the prohibition to make funds and economic resources available to, certain natural or legal persons, entities or bodies responsible for actions that undermine democracy, the rule of law or the peaceful transfer of power in Guatemala or undermining democracy or the rule of law in Guatemala, including through serious financial misconduct concerning public funds and the unauthorised export of capital, as well as against natural or legal persons, entities or bodies associated with them.

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The European Union has published a Commission Regulation (EU) 2023/2822 amending Regulation (EU) 2023/1803 as regards International Accounting Standard (IAS) 1. The Commission Regulation endorses the following Amendments to IAS 1 Presentation of Financial Statements:

• Classification of Liabilities as Current or Non-current;
• Classification of Liabilities as Current or Non-current – Deferral of Effective Date; and
• Non-current Liabilities with Covenants.

The endorsement of these amendments is now reflected in the updated EFRAG Endorsement Status Report.

The Amendments aim to clarify the principles in IAS 1 for the classification of liabilities as either current or non-current, mainly clarifying the notion of settlement, specifying how an entity classifies a liability arising from a loan arrangement with covenants as current or non-current, and regulating the disclosures to be provided when an entity has loan arrangements with covenants that could require the loan arrangement to become payable within twelve months after the reporting period.

The Amendments have become effective for annual periods beginning on or after 1 January 2024, with earlier application permitted. 

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Reporting Requirement for Cash Restriction Breach and ML/FT

As of 1st January 2024 a significant change concerning reporting requirements has been introduced with respect to goAML. When there is an element of cash restriction breach and Money Laundering/Financing of Terrorism (ML/FT), two separate reports must be submitted via goAML under their respective report type. Essentially, an SCRBR highlighting the cash breach and an STR/SAR indicating the suspicious ML activity. Apart from that, it is imperative to include the respective report indicator Internal 09, on STR/SAR report type only. 

A guidance document addressing the New Report Type on goAML: Suspicion of Cash Restriction Breach Report (SCRBR) has been released by the Financial Intelligence Analysis Unit (FIAU).

New Technical Package Schema

The FIAU also shared the updated technical package schema, incorporating improvements to enhance the accuracy and efficiency of reporting.

Any questions or requests for clarification are to be addressed to goamlsupport@fiaumalta.org.

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Further to the publication of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as ISA for LCEs, a standalone standard designed to the specific needs of an audit of less complex entities, the International Auditing and Assurance Standards Board (IAASB) issued a Fact Sheet, Frequently Asked Questions and a presentation to support users. 

Available resources can be accessed through this link.

On 12 December 2023, the Sanctions Monitoring Board published a Declaration in the Government Gazette in terms of article 7(5)(b) of the National Interest (Enabling Powers) Act.

Therein the Sanctions Monitoring Board declares two vessels to be deemed as frozen since they have been deemed to belong, directly or indirectly, to an entity listed under Council Regulation 269/2014 of 17 March, 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

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Council Implementing Regulation (EU) 2023/2789 of 11 December 2023 implementing Regulation (EU) No 401/2013 concerning restrictive measures in view of the situation in Myanmar/Burma

In view of the continuing grave situation in Myanmar/Burma, four persons and two entities should be added to the list of natural and legal persons, entities and bodies subject in Annex IV to Regulation (EU) No 401/2013.

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Council Implementing Regulation (EU) 2023/2793 of 11 December 2023 implementing Regulation (EU) 2023/1529 concerning restrictive measures in view of Iran’s military support of Russia’s war of aggression against Ukraine

In view of support to Russia’s war of aggression provided by the Iranian authorities six persons and five entities have been included in the list of natural and legal persons, entities and bodies subject to restrictive measures set out in Annex III to Regulation (EU) 2023/1529.

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