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Petra Čechová | January 30, 2024

Change of limits for categorisation of accounting units

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At the end of 2023, an amendment to European Union Directive 2013/34/EU came into force, which changes the criteria for categorising accounting entities. The asset and net turnover limits were increased by 25%. The amendment is to be applied by individual EU Member States within 12 months of the publication of the amendment in the Official Journal of the European Union.

Micro, small, medium and large entities will be assigned new values for total assets and net turnover, according to which they will be categorised. There is no change in the average number of employees criterion.

In the Czech Republic, this change (increase) is expected to be reflected in the forthcoming new Accounting Act.

An overview of changes in assets and net turnover for individual categories of accounting units can be found on the website of the Chamber of Auditors, which has addressed the issue in recent days.