Increase in Criteria to be classed as a Small Company

August 17, 2012 Leave a comment

On the 3rd of August 2012 Statutory Instrument 304 of 2012 changed the size criteria of a small company. Under the new legislation a company can now be defined as a small company provided the turnover does not exceed €8,800,000 and the balance sheet total does not exceed €4,400,000.

Prior to the enactment of Statutory Instrument 304 a private company qualified to be a small sized company if in that year and the previous financial year it satisfied two of the three conditions:

  • Balance Sheet total not exceeding €1,904,607
  • Turnover not exceeding €3,809,214
  • Average number of employees not exceeding 50

Now the size criteria are :

  • Balance Sheet total not exceeding €4,400,000
  • Turnover not exceeding €8,800,000
  • Average number of employees not exceeding 50

The big advantage that this change creates for small companies is in relation to the reduced requirement for information in their abridged accounts under the Companies Act 1986. Small company abridged accounts do not need to include directors reports, profit and loss accounts and the notes relating to the profit & loss accounts, substantially reducing the requirements for note disclosures back to the bare statutory note disclosure requirements.

Filed under Economy Tagged with , , , , , ,

About ericpower
Qualified Accountant and Registered Auditor with Association of Chartered Certified Accountants (ACCA) Broad experience and highly successful in implementing financial, management and audit reporting process improvements, in both industry and practice, with the ability to access and analyse complex problems to workable solutions. Specialties Management Accounts, Statutory Financial Reporting, Auditing, Due Diligence, Budgeting, Staff Training, Grant & Finance Applications, Tax Minimisation. Pro-Active Accounting (not just historic) using IT solutions to give SMEs the information to drive their business.

Leave a comment