On 1 July 2024, regulations1 came into force that
increased the balance sheet and turnover thresholds for
'micro', 'small', 'medium' and
'large' companies in the Companies Act 2014.
The news will be welcomed by many as this circa 25% threshold
increase will result in a large number of companies being
reclassified as micro or small companies and accordingly being
eligible to benefit from certain exemptions including audit
exemption and / or the entitlement to file abridged as opposed to
full financial statements. It will also increase the number of
companies that will be permitted to prepare financial statements as
micro and small companies resulting in those companies benefitting
from less onerous accounting requirements and disclosures.
The new thresholds apply to financial years commencing on or after
1 January 2024 and companies will also have the option to apply
them from 1 January 2023 in certain circumstances.
We have set out below the company size thresholds as of 1 July
2024. If a company satisfies any two of the criteria, it will be
deemed to fall under that size category:
Micro Companies
| Turnover | €900k (previously €700k) |
| Balance Sheet | €450k (previously €350k) |
| Employees | 10 |
Small Companies (General)
| Turnover | €15m (previously €12m) |
| Balance Sheet | €7.5m (previously €6m) |
| Employees | 50 |
Medium Companies (General)
| Turnover | €50m (previously €40m) |
| Balance Sheet | €25m (previously €20m) |
| Employees | 250 |
Small Companies (Group Situation)
| Turnover | €15m net or €18m gross (previously €12m) |
| Balance Sheet | €7.5m net or €9m gross (previously €6m) |
| Employees | 50 |
Medium Companies (Group Situation)
| Turnover | €50m net or €60m gross (previously €40m) |
| Balance Sheet | €25m net or €30m gross (previously €20m) |
| Employees | 250 |
Large Companies
A company that does not qualify as a micro, small or medium company
in accordance with the Companies Act 2014 shall be deemed to be a
large company.
Footnote
1 European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 S.I. No. 301/2024 - European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 (irishstatutebook.ie)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
