Delegated Directive amending the size criteria for undertakings published in the Official Journal of the EU

On 21 December 2023, Delegated Directive (EU) 2023/2775 amending the Accounting Directive (Directive 2013/34/EU) was published in the Official Journal of the European Union.

This Delegated Directive adjusts the monetary thresholds specified in the Accounting Directive for micro, small, medium-sized and large undertakings or groups:

	Micro undertakings	Small undertakings	Medium-sized undertakings	Large undertakings
balance sheet total	≤ 450.000 €	≤ 5.000.000 €	≤ 25.000.000 €	> 25.000.000 €
net turnover	≤ 900.000 €	≤ 10.000.000 €	≤ 50.000.000 €	> 50.000.000 €
number of employees	unchanged	unchanged	unchanged	unchanged

 

EU Member States may define thresholds for small companies exceeding the above-mentioned thresholds. However, the thresholds shall not exceed 7.500.000 € for the balance sheet total and 15.000.000 € for the net turnover for small companies.

The Delegated Directive must be transposed into national law by 24 December 2024. The provisions of the Delegated Directive must be applied for financial years beginning on or after 1 January 2024. However, EU Member States may allow undertakings to apply those provisions for financial year beginning on or after 1 January 2023.

Background:

The thresholds were last adjusted in 2013. With this amendment, the European Commission is taking account of the effects of inflation. The European Commission is obliged to review the thresholds at least every five years and, if necessary, to amend them by means of delegated acts, taking into account the inflation data published in the Official Journal of the European Union (Article 3 (13) of the Accounting Directive).