Defining New Frontiers – Translating Vision into Value

2014 MIA Conference
Defining New Frontiers – Translating Vision into Value
Thursday 6 and Friday 7 November – Portomaso Suite, Hilton, St Julians
Entitled Defining new frontiers - Translating vision into value, this year’s MIA Conference assumes a particular
importance in view of the recent accounting and auditing reforms that have been approved by the EU, which
reforms will affect the Maltese business sector profoundly. Incidentally this year Malta celebrates its 10th
anniversary of EU membership and it was considered fitting for the event’s theme to be related to Malta’s fabric
now, 10 years after having joined the EU and considering those legislative initiatives that are increasingly shaping
Malta’s legislative framework.
The new developments in audit and accounting are not the only ones, and other changes in tax, prevention of
money laundering and public sector accounting are also expected to effect the local accountancy profession.
Matters have come to a point where we as a profession should have the courage to question ourselves, especially
at times such as this. The Accountancy profession has been one of the professions that have been mostly affected
by EU legislative initiatives, albeit these changes also affecting local enterprises. For us Accountants, the EU poses
a twofold challenge: firstly, we need to understand how the key forces emanating from the EU will shape the
future around us. Secondly, we need to assess how these changes and developments will impact our profession.
Thursday 6 November 2014
08.15 – 09.00
Registration and Welcome Coffee
09.00 – 09.10
Welcome speech by the President of the Malta Institute of Accountants
Maria Micallef
09.10 – 10.00
Session 1A: Setting the scene – EU legislative initiatives
The first part of the introductory session will introduce delegates to the Conference’s theme and those legislative
initiatives that are increasingly shaping Malta’s legislative framework by including subject matter experts who
will present these EU legislative initiatives that will most affect the profession in the years ahead.
10.00 – 11.00
Session 1B: (EU legislative initiatives) The Effect on Malta Offering
In this second part of the Conference’s introductory session, a panel will be debating the effect that the EU
legislative initiatives will have on the Maltese accountancy profession and consequently on the robustness of
the Malta offering and on the profession’s ability to offer their services to international clients. Panel members
will do so by debating the negative points that may affect the ability of professionals to sell Malta. Having
established any pros and cons on Malta’s standing as a reputable jurisdiction for attracting foreign direct
investment, the panellists will conclude by considering the particular effects on accountants.
Bernard Scicluna ............................
Michel Cordina ...............................
Dr Louis Degabriele ........................
Bruno L'Ecuyer ...............................
Kevin Valenzia .................................
Risk & Reputation Leader, Deloitte Malta (Moderator)
Head of Commercial Banking, HSBC
Partner, Camilleri Preziosi Advocates
Head of Business Development, FinanceMalta
Territory Senior Partner, PwC
1
11.00 – 11.30
Coffee Break
11.30 – 13.00
Concurrent Workshops
Workshop 2.1: Audit policy reforms
The European Union (EU) audit market reform began in 2010 with a European Commission (EC) consultation
Green Paper entitled “Audit Policy: Lessons from the Crisis”. After three years of negotiations, the new European
audit legislation was final in the spring of 2014. The legal texts, which entered into force in June 2014, bring
many challenges for the audit profession and the European business environment at large.
The Directive 2014/56/EU on statutory audits of annual accounts and consolidated accounts, amending the
Directive 2006/43/EC on statutory audits and containing a series of amended and new requirements governing
every statutory audit in the European Union (hereafter referred to as “the Directive”). The Regulation (EU) No
537/2014 on statutory audit of public-interest entities containing additional requirements that relate specifically
to statutory audits of Public Interest Entities (PIEs) in addition to the ones stated in the Directive (hereafter
referred to as “the Regulation”).
The legislation will be applicable in all EU Member States and in the countries of the European Economic Area
(EEA), being Iceland, Liechtenstein and Norway. Member states will have two years to transpose (adopt and
publish) the provisions to comply with the amended Directive after its entry into force, namely on 16 June 2016.
Although the Regulation will technically come into effect on 16 June 2014, there is a two-year delay in the
application of most provisions included in the Regulation from the date it enters into force. This workshop will
discuss the affect that the audit reform would have in Malta.
Keynote speaker
Miles Thompson ............................ FEE Audit and Assurance Policy Group Chairman
Panel discussion
Mark Abela .....................................
Mark Bugeja ....................................
Glenn Collins ...................................
Anthony Doublet ............................
Simon Flynn ....................................
Miles Thompson .............................
Technical Director, MIA (Moderator)
Managing Partner, Grant Thornton
Head of Technical Advisory, ACCA
MIA Council Member and Assurance Leader, EY
MIA Council Member and Head of Assurance, PwC
Federation of European Accountant (FEE) Audit and Assurance Policy Group
Chairman
Workshop 2.2: Alternative sources of finance
Access to finance will continue to be a critical issue for policy makers and business leaders in the coming months.
This workshop will be exploring other sources of funding that are available to Maltese SMEs besides the tradition
bank loans.
In the introductory part, a keynote speaker from the Malta Chamber of Commerce, Enterprise and Industry
(MCCEI) will present the research that the MCCEI carried out among its members on the types of funding that
are used by local entities. Keynote speakers from HSBC and the Malta Enterprise will present the funding support
measures that are offered by their respective organisation.
After this introduction, representatives of the Government, banking, advisory, industry and professional sectors
will discuss a variety of alternative funding sources for SMEs that have become or could become available and
establish whether there are areas in which Malta is lagging behind other competing jurisdictions. The evolution
of traditional bank financing will be considered particularly in relation to its prevalence in financing Maltese
investment ventures. Panel members will discuss ways in which new products could be introduced or existing
products refined in a bid to develop alternative investment platforms to invest in local entrepreneurs and help
them launch their businesses locally and also quite possibly overseas. In conclusion the profession’s supporting
role will be considered.
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Keynote speakers
Anton Borg ..................................... Deputy President, Malta Chamber of Commerce, Enterprise and Industry
James Woodeson ............................ Head of Global Banking and Markets, HSBC
Dr Mario Vella ................................. Chairman, Malta Enterprise
Panel discussion
Marcel Cassar .................................
Raphael Aloisio ...............................
Anton Borg .....................................
Dr Mario Vella .................................
James Woodeson ............................
First Executive Vice President and CFO, FIMBank plc (Moderator)
Leader Financial Advisory, Deloitte
Deputy President, Malta Chamber of Commerce, Enterprise and Industry
Chairman, Malta Enterprise
Head of Global Banking and Markets, HSBC
Workshop 2.3: Future of Tax: EU tax policy and International tax reforms
The European Commission's tax policy strategy was explained in a Communication of 23 May 2001 on "Tax policy
in the European Union - Priorities for the years ahead". The EC reiterated its belief that there is no need for a
harmonisation of Member States' tax systems and Member States are free to choose the tax systems they
consider most appropriate. Within this framework, this Communication established as a main priority for tax
policy that of eliminating tax obstacles to all forms of cross-border economic activity, in addition to continuing
the fight against harmful tax competition and promoting greater cooperation between tax administrations in
assuring control and combating fraud.
Delegates will be given a detailed overview of the European tax (indirect and direct tax) developments including:
the EC 2012 Action Plan against tax evasion, EU tax policy and the initiatives of the EU Commission on combating
tax fraud and tax evasion, Financial Transaction Tax and Common Consolidated Corporate Tax Base harmful tax
practices and the OECD’s work on Base Erosion and Profit Shifting (BEPS) and the 2015 changes in VAT Rules.
Panel members will consider whether tax law is effectively becoming a patchwork of regional, national and EU
rules and why there is a lack of a harmonised tax framework. The pressure on tax professionals is increasing
because they must give their own interpretation of the "spirit" of the tax laws even though there are no concrete
measures as yet. The role of the profession as well as that of the legislator and the tax authorities will also be
discussed in view of the societal expectations that they should not be party to any tax behavior which can be
deemed to be anti-social or ethically dubious.
Keynote speaker
Conrad Cassar Torregiani ............... Leader International Tax, Deloitte
Panel discussion
Karen Spiteri Bailey .........................
Conrad Cassar Torregiani ................
George Gregory ..............................
TBD .................................................
Petra Weymuller .............................
Partner, Spiteri Bailey and Co (Moderator)
Leader International Tax, Deloitte
Partner Tax and Corporate Services, RSM Malta
Commissioner for Revenue
Senior Manager, Federation of European Accountant (FEE)
13.00 – 14.15
Lunch and keynote speech
Speaker: Hon. Prof. Edward Scicluna, Minister for Finance
14.15 – 14.45
Session 3A: Roundup of technical workshops
Three rapporteurs will each give a 10 minute presentation of the discussions that ensued in each of the three
technical workshops.
14.45 – 15.15
Session 3B: Change your rhythm
A local entertainment company will take centre stage together with professional percussionists who will teach
the audience a number of different rhythm cycles. The audience will eventually create a piece of music alongside
the main percussive team on stage generating an incredible percussive crescendo! Everyone’s contribution is
imperative to work together and create one loud song!
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15.15 – 15.45
Coffee Break
15.45 – 17.15
Session 4: Family business and succession planning
The family business is a vital force in today’s local economy. It ranges in size from the traditional, small, corner
business to dynamic organisations employing a large number of people. Family businesses are a mainstay in the
Maltese economy. To this end, the issue of family businesses is a popular topic in public and policy discussions.
However, there is no specific legislation that differentiates between family businesses and non-family
businesses.
In 2013 the Government engaged in consultation with stakeholders with a view to enact a law with the aim of
facilitating business transfers between family members and from one generation to another without
compromising business continuity. The proposed law should encourage financial responsibility on the side of
business as well as reduce administrative bureaucracy on the side of Government. A specific committee, the
Family Business Act (FBA) Committee, was set up under the auspices of the Ministry for the Economy,
Investment and Small Business to drive this legislative initiative.
In this session, the FBA Committee Chairperson will talk about the state of family business regulation in Malta
and about the progress achieved by the FBA Committee. The panel discussion will discuss various important
themes in this context such as the challenges faced by family businesses especially in respect of succession
planning such as the main difficulties faced during succession planning and the main reasons why such
businesses fail. Fundamental questions in relation to the proposed FBA Act will be tackled such as why are family
businesses different from other businesses, how will Government ensure that there is no discrimination
between family businesses and other businesses, what will be the benefits offered by registration, and others.
Keynote speaker
Dr Nadine Sant ............................... Family Business Act Chairperson, Ministry for the Economy, Investment and
Small Business
Panel discussion
Franco Azzopardi ............................ Honorary Secretary, MIA and Professional Director in various listed,
........................................................ financial and family businesses (Moderator)
Etienne Borg Cardona .................... MIA Council Member and CEO, Forestals
Dr Louis Cassar Pullicino ................. Partner, Ganado Advocates
Martin Galea .................................. CEO, Joinwell
Dr Nadine Sant ............................... Family Business Act Chairperson, Ministry for the Economy, Investment and
Small Business
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Friday 7 November 2014
08.15 – 09.00
Registration and Welcome Coffee
09.00 – 10.30
Session 5: The Accountant: A trusted advisor
How is the role of the Accountant changing? What will be the Accountant’s role in the future? How will
accountants remain relevant? This forward looking session explore potential areas, along with regulatory and
technical developments, that could increase the opportunities for practitioners from large and smaller firms to
provide new services.
We will envisage what accountants will be like in the future, what will they be doing and what skills and
competencies they will need most to remain relevant and to be successful. Is there a need to look beyond the
traditional accounting and core assurance services? The panel will consider how the accountant’s relationship
with the client could evolve from that of a trusted attester to one of a trusted advisor. Above all, panel members
will try to answer the most fundamental of questions, how can accountants continue to evolve as strategic
partners of clients, business and employers.
Keynote speaker
Mario Abela ................................... Leader – Research and Development, International Federation of
Accountants
Panel discussion
Maria Micallef ................................ President, MIA and Partner, RSM Malta (Moderator)
Mario Abela ................................... Leader – Research and Development, International Federation of
Accountants
Peter J. Baldacchino ........................ Head of Accounting Department, FEMA, University of Malta
Prof. Robin Jarvis ............................ Special Advisor, ACCA
Tonio Zarb ...................................... Council Member, MIA and Senior Partner, KPMG
Winston J. Zahra ............................. CEO, Island Hotels Group
10.30 – 11.00
Coffee Break
11.00 – 12.00
Session 6: Accounting Directive update
In this session delegates will be given an update on the progress that has been achieved by the transposition
working group, which is currently considering a number of technical Member State options as part of the
Accounting Directive (Directive 2013/34/EU) transposition exercise.
Considering that several of the requirements for Small Entities are mandatory, with express provisions that no
further requirements may be added by Member States and that 99% of Maltese businesses would fall within the
‘Small’ category, esteemed experts will discuss the impact that the changes brought about by the Accounting
Directive will have on the financial statements of SMEs.
The session will also consider the effect that the Directive will have on Maltese GAAP in particular on the use of
IFRS and on the changes that would be necessary to adapt GAPSE to the new requirements set out in the
directive. The panel will consider those changes that will affect the information that is required for tax purposes
as well as whether the resulting financial statements will provide information that is relevant to users especially
banks.
Keynote speaker
Fabio Axisa ..................................... Treasurer, MIA and Partner, PwC
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Panel discussion
William Spiteri Bailey ...................... Secretary, MIA and Partner, Spiteri Bailey and Co
Fabio Axisa ...................................... Treasurer, MIA and Partner, PwC
Robert Ancilleri ............................... Executive Committee Member, Malta Bankers Association and Head of
........................................................ Finance at Banif Bank (Malta) plc
Marvin Gaerty ................................ Commissioner for Revenue
Charles Rapa ................................... Chairman, Accountancy Board
12.00 – 12.45
Session 7: Work-life balance
New technological equipment keeps being created to assist in decreasing our workload and to ‘simplify’ our
lives, both at work and at home. Notwithstanding this, we seem to have managed to create an extremely hectic
and complicated lifestyle for ourselves. Creating a healthy work/life balance is not simply walking out of the
office on time and leaving your work behind you. Panel members will discuss ways in which individuals can
reconcile their work commitments to their private lives by using stress management techniques.
Panel discussion
Franco Azzopardi ............................ Honorary Secretary, MIA and Professional Director in various listed,
........................................................ financial and family businesses (Moderator)
Dr Anthony Dimech ....................... Consultant Psychiatrist MD
Prof. Dr Albert Fenech .................... MP, Interventional Cardiologist
Andrew Farrugia ............................ Financial Controller, Grand Harbour Marina p.l.c
12.45 – 13.00
Concluding remarks by the President of the Malta Institute of Accountants
Maria Micallef
13.00 – 14.00
Lunch
Enquiries:
The Malta Institute of Accountants
Suite 4, Level 1, Tower Business Centre,
Tower Street, Swatar, BKR 4013
Malta
T: +356 2258 1900
F: +356 2132 3906
E: [email protected]
W: www.miamalta.org
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