Maltese Local Councils are required to prepare financial reports compliant with International Financial Reporting Standards (IFRS). Through documentary research, this study examined the suitability of this requirement and implications for institutional relationships. This study showed that IFRS statements are problematic to produce and interpret at the local level of government, and that, on their own, they are undermining the control needs of the Central Government. This study highlighted the important role of financial reporting for accountability by showing that the use of financial reporting systems that do not fit the reporting entity may actually lead to avoidance of accountability by mystifying reality.
Caruana, J., Mattei, G. (2017). Financial Reporting Dilemmas for the Maltese Local Government. JOURNAL OF MODERN ACCOUNTING AND AUDITING, 13(10), 435-450 [10.17265/1548-6583/2017.10.002].