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Comprehensive Financial Statement Consolidation Services in Malta for Accurate Group Reporting
A2CO supports Maltese holding companies, family groups, and multinational organisations with accurate and GAPSME/IFRS-compliant financial statement consolidation. Preparing consolidated financial statements under IFRS 10 and IFRS 12 requires technical expertise and careful coordination—areas in which A2CO’s accounting professionals excel. The firm consolidates group-level data across subsidiaries, associates, and joint ventures, ensuring consistent reporting, the elimination of intercompany transactions, and precise recognition of non-controlling interests.
This process delivers a true and transparent view of group financial performance and position. A2CO’s consolidation services also extend to acquisition accounting, restructuring support, and the selection or implementation of financial consolidation software. Whether you are a Maltese group reporting to auditors or an international enterprise managing complex structures, A2CO provides efficient, compliant, and audit-ready group reporting solutions that enhance confidence among regulators and stakeholders alike.
Consolidation Threshold
Small Group
A parent company may be exempt from preparing consolidated financial statements if, on a consolidated basis, the group does not exceed two of the following three thresholds for two consecutive years:
-
Balance sheet total: €4,000,000 (net) or €4,800,000 (gross)
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Total revenue: €8,000,000 (net) or €9,600,000 (gross)
-
Average number of employees: 50 or fewer
If the group exceeds two of these thresholds, it will be required to prepare consolidated financial statements.
Medium-Sized Group
A group that exceeds the small group thresholds but remains below the large group thresholds is considered medium-sized. In such cases, certain reporting options may apply — for example, the group may choose to prepare its consolidated financial statements under GAPSME instead of full IFRS.
The thresholds for medium-sized groups are:
-
Balance sheet total: less than €20,000,000 (net) or €24,000,000 (gross)
-
Total revenue: less than €40,000,000 (net) or €48,000,000 (gross)
-
Average number of employees: 250 or fewer
Additional Notes and Application
“Net” refers to figures calculated after consolidation adjustments, while “Gross” refers to figures before such adjustments. The small group exemption, which allows a company not to prepare consolidated accounts, applies only if the criteria are met for two consecutive accounting periods. Even if a group qualifies as small, consolidation may still be required if its financial statements are included in the consolidated accounts of a higher-level parent company.
Under the Malta Companies Act (Cap. 386), consolidated financial statements may be prepared using either:
-
International Financial Reporting Standards (IFRS) as adopted by the EU, or
-
General Accounting Principles for Small and Medium-Sized Entities (GAPSME), provided the parent company and all subsidiaries qualify as small or medium-sized under the thresholds set out in the Act.
Small Group
A parent company may be exempt from preparing consolidated financial statements if, on a consolidated basis, the group does not exceed two of the following three thresholds for two consecutive years:
-
Balance sheet total: €4,000,000 (net) or €4,800,000 (gross)
-
Total revenue: €8,000,000 (net) or €9,600,000 (gross)
-
Average number of employees: 50 or fewer
If the group exceeds two of these thresholds, it will be required to prepare consolidated financial statements.
Medium-Sized Group
A group that exceeds the small group thresholds but remains below the large group thresholds is considered medium-sized. In such cases, certain reporting options may apply — for example, the group may choose to prepare its consolidated financial statements under GAPSME instead of full IFRS.
The thresholds for medium-sized groups are:
-
Balance sheet total: less than €20,000,000 (net) or €24,000,000 (gross)
-
Total revenue: less than €40,000,000 (net) or €48,000,000 (gross)
-
Average number of employees: 250 or fewer
Additional Notes and Application
“Net” refers to figures calculated after consolidation adjustments, while “Gross” refers to figures before such adjustments. The small group exemption, which allows a company not to prepare consolidated accounts, applies only if the criteria are met for two consecutive accounting periods. Even if a group qualifies as small, consolidation may still be required if its financial statements are included in the consolidated accounts of a higher-level parent company.
Under the Malta Companies Act (Cap. 386), consolidated financial statements may be prepared using either:
-
International Financial Reporting Standards (IFRS) as adopted by the EU, or
-
General Accounting Principles for Small and Medium-Sized Entities (GAPSME), provided the parent company and all subsidiaries qualify as small or medium-sized under the thresholds set out in the Act.
