Changes to Company Size and Audit Exemption Criteria

In June 2024, the Minister for Enterprise, Trade and Employment, enacted the European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024, which raises the balance sheet and turnover thresholds for 'micro', 'small', 'medium', and 'large' enterprises as defined in the Companies Act 2014, by approximately 25% to address inflation.

These changes took effect from 1 July 2024 for accounting periods starting on or after 1 January 2024, with companies also able to adopt the new thresholds for financial years beginning on or after 1 January 2023.

What impact will this change have?

The recent changes will lead to a greater number of companies qualifying as micro and small enterprises, allowing them to take advantage of several exemptions, including the audit exemption and the option to submit abridged financial statements instead of full ones at the Companies Registration Office. This increase in qualifying companies will enable them to enjoy reduced accounting obligations and disclosure requirements.

For more information on these changes, and how they might affect your business, read our full insight: Company Law Update on Changes to Company Size and Audit Exemption Criteria | Azets Ireland

For questions on this topic, please contact SFA Public Affairs Lead, Jonathan McDade - Tel: 01 605 1688 or Email: jonathan.mcdade@sfa.ie.