ICAI: EU company size thresholds leaving Ireland behind

The Institute of Chartered Accountants in Ireland (ICAI) has today said that agreement between the European Parliament and the European Commission on company size thresholds would leave Irish small and medium entreprises a long way behind their European counterparts.

The Institute of Chartered Accountants in Ireland (ICAI) has today said that agreement between the European Parliament and the European Commission on company size thresholds would leave Irish small and medium enterprises a long way behind their European counterparts.

In a vote in the European Parliament last week accounting Directives, the company size thresholds were increased by 20%. Under the new regime, small companies will now be defined as companies with a turnover of €8.8m, up from €7.3m.

The figures for medium sized companies are €35m, in increase from €29.2m.

The comparative Irish figures are €3m and €12m respectively and despite a Company Law Review Group Recommendation to increase the thresholds to €5m and €20m, the Government is yet to implement that recommendation.

ICAI director of representation and technical policy, Aidan Lambe said: "The thresholds are important in so far as they determine the nature and degree of information that small and medium companies file with the Companies Registration Office.

"However, perhaps of more significance, is the link between the company size and audit exemption thresholds that operate across the continent, but not in Ireland. "