In December last year, an amendment to Directive 2013/34/EU on the annual accounts, consolidated accounts and related reports of certain types of undertakings came into force, which changes the limits for the categorisation of accounting units.
The amendment to the directive increases the monetary limits (assets, net turnover) for the categorisation of accounting units by about 25% compared to the current situation. The limit relating to the number of employees remains unchanged.
The new limits under the Directive are:
Micro-entity:
▪ Balance sheet total up to EUR 450,000 (CZK 11,065,050); the current limit is CZK 9,000,000
▪ Net turnover up to EUR 900,000 (CZK 22,130,100); current limit of CZK 18,000,000
Small accounting unit:
- Balance sheet total up to EUR 5,000,000 (CZK 122,945,000); existing limit CZK 100,000,000
- Net turnover up to EUR 10 000 000 (CZK 245 890 000); current limit CZK 200 000 000
The amended Directive includes the possibility for a Member State to set these limits at a higher level. However, these may not exceed EUR 7 500 000 (CZK 184 417 500) for balance sheet total and EUR 15 000 000 (CZK 368 835 000) for net turnover.
Medium-sized unit:
▪ Balance sheet total up to EUR 25 000 000 (CZK 614 725 000); current limit CZK 500 000 000
▪ Net turnover up to EUR 50 000 000 (CZK 1 229 450 000); current limit CZK 1 000 000 000
Small group:
▪ Balance sheet total up to EUR 5 000 000 (CZK 122 945 000); current limit CZK 100 000 000
▪ Net turnover up to EUR 10 000 000 (CZK 245 890 000); current limit CZK 200 000 000
Here again, the Amended Directive offers Member States the possibility to set these limits at a higher level, but not exceeding EUR 7,500,000 (CZK 184,417,500) for balance sheet total and EUR 15,000,000 (CZK 368,835,000) for net turnover.
Medium group:
▪ Balance sheet total up to EUR 25 000 000 (CZK 614 725 000); current limit CZK 500 000 000
▪ Net turnover up to EUR 50 000 000 (CZK 1 229 450 000); current limit CZK 1 000 000 000
The exchange rate of 24.589 as of 22.12.2023 was used for the conversion.
The main reason for this Amendment is to take account of inflation across the Eurozone, where the inflation rate was 24.3% between 2013 and 2023 and 27.2% across Europe.
All Member States are obliged to implement this Amendment within 12 months of its publication. The adjusted limits apply to the accounting period already started from 1 January 2024.
