The Department of Enterprise Trade and Employment has announced that the European Union (adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 https://www.irishstatutebook.ie/eli/2024/si/301/made/en/pdf were signed into law on the 19 June and come into operation on the 1 July 2024.
The purpose of the Regulations is to adjust company size thresholds in line with 25 per cent inflation, thereby reducing the regulatory and administrative burden on companies, which would otherwise become subject to audit and reporting requirements applicable to larger companies.
The Regulations, which transpose delegated Directive 2023/2775/EU, amend the Companies Act 2014 increasing company size thresholds as follows:
micro company –a balance sheet not greater that €450,000 with a net turnover of €900, 000 and 10 employees.
small company – a balance sheet no greater than €7.5 million with a net turnover of €15 million and 50 employees.
medium sized company – a balance sheet must be no greater than €25 million with a net turnover of €50 million and 250 employees.
large company – a balance sheet no greater than €25 million with a net turnover of €50 million and 250 employees, or that exceeds the thresholds for a medium company.
Link to the DETE announcement.
The legislation will impact on company directors and advisors in respect of the level of financial reporting requiring requirements for SME companies at the respective threshold levels, as well as allowing more latitude for the small company audit audit exemption.
This article is of a general nature in relation to company size limits and respective legislation. For professional advice call our team at Company Auditor 4U Ltd who are available on our confidential line 01 444 5260 for queries and advice.
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