In order to take inflation into account, the European Commission adopted a delegated directive, published in the Official Journal of the European Union on December 21, 2023, which raises the thresholds relating to turnover and balance sheet of the accounting directive of 25% (and 28.6% for micro-enterprises) (Delegated Dir. 2023/2775/EU, Oct. 17, 2023: OJEU, Dec. 21 amending Dir. 2013/34/EU).
These thresholds help to define the categories of companies (micro, small, medium and large companies) and groups of companies, particularly taken into account within the framework of the obligations relating to the establishment and certification of accounts and information regarding sustainability.
Increase in thresholds for companies and groups
The decree of February 28, 2024 raises the financial thresholds of the different categories of companies and groups, making it possible in particular to set the various obligations for presentation, publication and control of annual accounts and preparation of the management report.
Business category Balance sheet total Net turnover Average workforce Old thresholds New thresholds Old thresholds New thresholds Companies (C. com., art. D. 123-100 and art. D. 230-1 as amended) Micro-enterprise 350 €000 €450,000 €700,000 €900,000 10 Small company €6 million €7.5 million €12 million €15 million 50 Medium company €20 million €25 million €40 million €50 million 250 Large company > €20 million > 25 M€ > 40 M€ > 50 M€ > 250 Groups of companies (C. com., art. D. 230-2 amended) Small group 7 M€ 9 M€ 14 M€ 18 M€ 50 Medium group 24 M€ 30 M€ 48 M€ 60 M€ 250 Large group > 24 M€ > 30 M€ > 48 M€ > 60 M€ > 250
Restriction of the scope of the legal audit
The decree restricts the scope of the legal audit in France in commercial companies by increasing the threshold for triggering the obligation to appoint statutory auditors (Cac).
Commercial companies will now be obliged to designate a Cac as soon as they exceed two of the following three thresholds (C. com., art. D. 221-5 modified):
- 5 million euros in balance sheet total (and no longer 4 million);
- 10 million euros in net turnover (and no longer 8 million);
- 50 employees employed during the financial year (threshold unchanged).
These new thresholds apply in SA, SARL, SAS, SCA, SCS, SNC, as well as in small groups for parent entities and the companies they control.
Furthermore, companies controlled by the parent entity of a small group are required to designate a Cac as soon as they now exceed two of the following three thresholds (C. com., art. D. 821-172 amended):
- 2.5 million euros in balance sheet total (instead of 2 million euros);
5 million euros in net turnover (instead of 4 million euros);
25 employees employed during the financial year.
Coming into force
The provisions of the decree come into force from March 1, 2024. They apply to accounts and reports relating to financial years opened from January 1, 2024.
However, the mandates of auditors in progress on March 1, 2024 continue until their expiry date.
The NetPME team
2024-03-04 20:10:35
#VSEs #SMEs #large #companies #company #classification #thresholds #raised
