Increased Size Thresholds to Assist Irish SMEs with Audit & Reporting Requirements

The European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 were signed into law, increasing the balance sheet and turnover thresholds for “micro”, “small”, “medium” and “large” companies and groups under the Companies Act 2014 by 25% to account for inflation.

This change means more Irish companies will move into the micro and small categories and may benefit from abridged reporting and audit exemption. It will also reduce regulatory and administrative burden.

The changes may also result in companies falling outside the scope of reporting obligations imposed under the Corporate Sustainability Reporting Directive (CSRD).

The new thresholds are as follows:

Micro Company thresholds:

  • Balance sheet total not exceeding €450,000 – (previously €350,000)
  • Turnover not exceeding €900,000 – (previously €700,000)
  • Average number of employees does not exceed 10 – (unchanged)

Small Company thresholds:

  • Balance sheet total not exceeding €7.5 million – (previously €6 million)
  • Turnover not exceeding €15 million – (previously €12 million)
  • Average number of employees does not exceed 50 – (unchanged)

Small Group thresholds:

  • Group balance sheet total not exceeding €7.5 million net or €9 million gross – (previously €6 million net or €7.2 million gross)
  • Group turnover not exceeding €15 million net or €18 million gross – (previously €12 million net or €14.4 million gross )
  • Average number of Group employees does not exceed 50 – (unchanged)

Medium Company thresholds:

  • Balance sheet total not exceeding €25 million – (previously €20 million)
  • Turnover not exceeding €50 million – (previously €40 million)
  • Average number of employees does not exceed 250 – (unchanged)

Medium Group thresholds:

  • Group balance sheet total not exceeding €25 million net or €30 million gross – (previously €20 million net or €24 million gross)
  • Group turnover not exceeding €50 million net or €60 million gross – (previously €40 million net or €48 million gross)
  • Average number of Group employees does not exceed 250 – (unchanged)

Large Company and Group thresholds:

  • Exceeds the thresholds for a Medium Company or Group as outlined above.

These new thresholds are effective from 1 July 2024 and will apply for financial years commencing 1 January 2024, enabling companies to benefit immediately. Companies also have the option to elect to apply the new thresholds for any financial year commencing on / after 1 January 2023.

If you have further queries on what this means for your business, please contact us.