Such recommendation is contained in Directive (EU) 2023/2775. In accordance with this provision, the Ministry of Finance finalized the draft law amending Law No. 287/2017 on Accounting and Financial Reporting. The document has been submitted for public consultation.
The need to adjust the financial thresholds for categorizing enterprises as micro, small, medium and large is explained by inflation.
As noted in the EU directive, for 10 years (from January 1, 2013 to March 31, 2023), the accumulated inflation was 24.3% in the euro zone and 27.2% – in the European Union as a whole. In this regard, the European Commission considers it necessary that the thresholds relating to the amount of balance sheet and turnover used to classify companies and groups of companies be adjusted by 25% and rounded upwards.
The financial thresholds will increase from January 1, 2027, in line with the ongoing harmonization of accounting and financial reporting legislation with European Union regulations.
As a result of the change in the financial criteria used to determine the size of an entity, the number of legal entities preparing simplified financial statements will increase.
