Accountancy & Reporting 30 October, 2023

Monetary size criteria increased by 25% 

Crowe Peak/ Knowledge Hub/ Accountancy & Reporting/

Monetary size criteria increased by 25% 

Is your (Dutch) organization subject to the micro, small, or medium/large enterprise classification starting in 2024?

On October 17, 2023, the European Commission decided to raise the monetary size criteria used to determine whether an enterprise falls under the categories of “micro,” “small,” or “medium/large” by 25%. As a result, the new size criteria will soon be applicable to Dutch companies. The final decree regarding the monetary size criteria has been published on 12 March 2024. These increased size criteria apply to reporting years commenced on or after 1 January 2024. The increased size criteria may also be applied for financial years commenced on or after 1 January 2023. If you have inquiries regarding how this modification may impact your organization’s accounting and potential audit requirements, please do not hesitate to reach out to our experts. 

Size criteria

Size criteria, as stipulated in both European and Dutch laws and guidelines for annual reporting, are important when preparing the financial statements of organizations. These criteria determine whether a company falls into the categories of “micro”, “small,” “medium,” or “large” enterprises. This classification carries extensive implications, impacting the organizations and stakeholders such as investors, creditors, and regulatory authorities. 

To begin with, the size classification determines the scope of mandatory financial reporting. Smaller companies are typically exempted from certain reporting requirements that are obligatory for larger companies. This exemption alleviates administrative burdens and reduces costs for smaller companies, thereby enhancing their competitiveness and growth prospects. 

Furthermore, the classification level influences the degree of disclosure and transparency. In the Netherlands, larger companies are obliged to provide more comprehensive financial information, which is essential for investors and other stakeholders in making well-informed decisions. Additionally, an external audit of the financial statements is mandatory when organizations meet specific seize criteria ensuring compliance. Hence, it is imperative to have a clear understanding of the size category within which your company falls.

Adjustment of thresholds  

To ascertain whether a company falls within the categories of “micro,” “small,” or “medium/large,” Dutch legislation (which aligns with European standards in this context) provides a set of criteria referred to as “size criteria.” These criteria encompass three key aspects: 

  1. Total assets;  
  2. Revenues; and  
  3. Average number of employees during a fiscal year.  

With respect to the initial two criteria (the monetary size criteria), the European Commission has recently resolved to augment the corresponding thresholds by 25%. This adjustment results in a reduced likelihood of companies transitioning to a “higher” category. The revised threshold values, as outlined by the European Commission, are now as follows: 

    Micro Small Medium/large 
Total assets New < EUR 450,000  < EUR 7,500,000 < EUR 25,000,000 
  Current < EUR 350,000  < EUR 6,000,000 < EUR 20,000,000 
Revenues New < EUR 900,000 < EUR 15,000,000 < EUR 50,000,000 
  Current < EUR 700,000 < EUR 12,000,000 < EUR 40,000,000 
Average number of employees   < 10 < 50 < 250 

Would you like to learn more about the new thresholds or Crowe Peak’s Audit & Assurance services? Read more here or contact us directly. 

Crowe peak

Curious to see what we can do for your organization?

Let’s meet!

Make appointment