From the 1st July 2024 the EU has updated the SIZE THRESHOLDS for companies and groups by increasing the balance sheet and turnover limits by 25% to account for inflation. This will help many Irish companies qualify as “micro” or “small” to avail of simpler reporting and audit exemptions, which will reduce their regulatory burden. Some businesses can also avoid the newly introduced reporting requirements under the Corporate Sustainability Reporting Directive (CSRD).
Micro Companies **Previous limits in brackets.
Balance sheet: up to €450,000 (€350,000)
Turnover: up to €900,000 (€700,000)
Employees: up to 10 (unchanged)
Small Company
Balance sheet: up to €7.5 million (€6 million)
Turnover: up to €15 million (€12 million)
Employees: up to 50 (unchanged)
Small Groups
Group balance sheet: up to €7.5 million net or €9 million gross (€6 million net or €7.2 million gross)
Group turnover: up to €15 million net or €18 million gross (€12 million net or €14.4 million gross)
Employees: up to 50 (unchanged)
Medium Companies
Balance sheet: up to €25 million (€20 million)
Turnover: up to €50 million (€40 million)
Employees: up to 250 (unchanged)
Medium Groups
Group balance sheet: up to €25 million net or €30 million gross (€20 million net or €24 million gross)
Group turnover: up to €50 million net or €60 million gross (€40 million net or €48 million gross)
Employees: up to 250 (unchanged).
Large Companies or Groups
Exceeds the thresholds for Medium Companies or Groups.
NOTE
These changes are effective from 1 July 2024 and apply to financial years starting from 1st January 2024, however companies may choose to apply the new thresholds for financial years beginning on or after 1st January 2023.
So talk to your auditor/ accountant to get advice and make sure you benefit from these changes.
Mark Fielding – July ’24.
