European Commission proposes changes to thresholds for determining size classes for corporations
14 Sep, 2023
The European Commission has published a draft delegated act amending the thresholds in the Accounting Directive for determining the size class of corporations. In the draft, the European Commission proposes to raise the thresholds set out in the Accounting Directive by around 25%.
In addition, the draft provides for allowing member states to adjust the proposed thresholds for small enterprises upwards. However, these may not exceed €7,500,000 for the balance sheet total and €15,000,000 for net turnover.
The application of the new thresholds is already planned for financial years beginning on or after 1 January 2024. The European Commission intends to adopt the relevant delegated act in the fourth quarter of 2023. It must then be implemented by the EU member states.
If the draft is finalised as proposed, it would have an impact on the scope of application of CSRD sustainability reporting.
Please click for access to the draft delegated act on the European Commission website. Comments are requested by 6 October 2023.
Note: The Commission has adopted the delegated directive on 17 October 2023 and it was published in the Official Journal of the EU on 21 December 2023. The directive entered into force on 24 December 2023. Please click to access the final text published in the Official Journal on the EU website.
