From 1 July 2024 more Irish companies should be able to benefit from audit exemption and abridged filings under new company size thresholds.
Recent changes in EU regulations mean that more companies will now be categorised as micro, small or medium and will therefore be able to benefit from the abridgement and audit exemptions in their 2024 Companies Registration Office (CRO) filings.
DECREASE COST OF DOING BUSINESS
The European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 increased the thresholds for ‘micro’, ‘small’, ‘medium’ and ‘large’ companies in the Companies Act 2014 by 25% to account for inflation.
The new Regulations came into force on 1 July 2024 and the new thresholds will apply for the financial years commencing 1 January 2024, with companies also having the option to apply them from 1 January 2023.
It is hoped that these changes will decrease the cost of doing business by reducing the reporting and regulatory requirements for certain categories of companies.
EXEMPTION THRESHOLDS
In broad terms, the exemptions allowed to smaller companies under this part of the legislation govern:
- The ability to submit abridged financial statements to the CRO.
- Exemption from the requirement to prepare audited financial statements.
- Exemption from preparing consolidated financial statements for small groups.
The current rules apply in respect of claiming the exemptions with the new thresholds to be considered in the place of the old thresholds. It’s worth noting that certain companies (e.g. credit institutions) are not exempt no matter their size and the requirements may differ between micro, small and medium enterprises.
A table outlining the changes is below.
DHKN’S EXPERTISE
The above is a brief summary of the changes enacted on 1 July and there may be other detailed requirements which impact your company’s ability to avail of these exemptions.
DHKN’s Corporate Governance & Compliance team works with companies and directors to ensure they meet all statutory filing requirements on time and are structured for success.
For an informal discussion with our experts about how we can help your business match your ambition, contact George Alton at galton@dhkn.ie.
For more information about DHKN’s other services, see www.dhkn.ie
