The Department of Enterprise Trade and Employment has announced that the European Union Regulations 2024 were signed into law on 19 June and come into operation on 1 July 2024.
The increased size criteria are:
• Micro company- a balance sheet total of not greater than €450,000, a net turnover of not greater than €900,000 and no more than 10 average employees.
• Small company- a balance sheet total of not greater than €7.5 million, a net turnover of not greater than €15 million and no more than 50 average employees.
• Medium sized company- a balance sheet total of not greater than €25 million, a net turnover of not greater than €50 million and no more than 250 average employees.
• Large company- continues to be defined as a company that does not qualify as micro, small or medium (i.e. balance sheet total of greater than €25 million, net turnover of greater than €50 million and more than 250 average employees).
Group size thresholds have also increased:
• Small group- group balance sheet total of no greater than €7.5 million net (or €9 million gross), group turnover no greater than €15 million net (or €18 million gross) and no more than 50 average employees of the group.
• Medium group- group balance sheet total of no greater than €25 million net (or €30 million gross), group turnover no greater than €50 million net (or €60 million gross) and no more than 250 average employees of the group.
The measures apply for financial years beginning on or after 1 January 2024, enabling companies to benefit from the adjusted thresholds immediately. Companies may elect to apply the measures on or after 1 January 2023.
The purpose of the Regulations is to adjust company size thresholds in line with 25 per cent inflation, therefore reducing the regulatory and administrative burden on some companies, which would alternatively be subject to audit and additional financial reporting requirements.
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