New Audit Thresholds: Impact on company size determination
New Audit Thresholds: Impact on company size determination
As of 1 July 2024, increases to the maximum thresholds that determine the size of a company from an audit perspective have been introduced. These changes have been signed into law under the European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024.
As per this new legislation, there will be a 25% increase to the balance sheet and turnover thresholds for ‘micro’, ‘small’, ‘medium’ and ‘large’ companies as set out in the Companies Act 2014. The new thresholds are directly applicable to accounts with financial years beginning on or after 1 January 2024 as well as providing companies with the option to apply these thresholds on or after 1 January 2023, making the new thresholds available from the outset.
Micro | |
Criteria | Updated Threshold |
Balance Sheet Total | <€450,000 |
Net Turnover | <€900,000 |
Number of employees | < 10 |
Small | |
Criteria | Updated Threshold |
Balance Sheet Total | <€7,500,000 |
Net Turnover | <€15,000,000 |
Number of employees | < 50 |
Small Group | |
Criteria | Updated Threshold |
Balance Sheet Total | <€7,500,000 or €9,000,000 Gross |
Net Turnover | <€15,000,000 or €18,000,000 Gross |
Number of employees | < 50 |
Medium | |
Criteria | Updated Threshold |
Balance Sheet Total | <€25,000,000 |
Net Turnover | <€50,000,000 |
Number of employees | < 250 |
Medium Group | |
Criteria | Updated Threshold |
Balance Sheet Total | <€25,000,000 or €30,000,000 Gross |
Net Turnover | <€50,000,000 or €60,000,000 Gross |
Number of employees | < 250 |
Large | |
Criteria | Updated Threshold |
Balance Sheet Total | <€25,000,000 |
Net Turnover | <€50,000,000 |
Number of employees | < 250 |
We are here to help
If you have any questions in relation to the new adjustments and thresholds, please get in touch with your usual Azets advisor.
