Extended thresholds for company size audit and bridging exemptions

More Irish businesses will benefit from reduced reporting and audit relief under the new business size thresholds.

The European Union (Revisions to the Size Criteria for Certain Companies and Groups) Regulations 2024 increased the balance sheet and turnover thresholds for “micro”, “small”, “medium” and “large” companies in the Companies Act 2014 by 25% .

These adjustments will result in more businesses being classified as micro or small and therefore benefiting from a shortcut and audit exemption.

The new Regulations will enter into force on July 1, 2024, and the new thresholds will apply for financial years starting on January 1, 2024, although companies will also have the option to apply them from January 1, 2023 in certain circumstances.

These changes are expected to reduce the cost of doing business by reducing reporting and regulatory requirements for certain categories of companies.