European Commission proposes changes to thresholds for determining size classes for corporations

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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.

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