MF Order no. 4164/2024: Impact of the updated size criteria on reporting entities

MF Order no. 4164/2024: Impact of the updated size criteria on reporting entities

Numărul 33-34, 21 aug. - 3 sep. 2024  »  Finance & Economics

Conf. univ. dr. Marcel Vulpoi, expert contabil

MF Order no. 4164/2024 regarding the updating of the size criteria of reporting entities was published in the Official Gazette, Part I no. 843 of August 23rd, 2024.

The motivation for updating the size criteria is given by the transposition into the Accounting Regulations of a recent European directive, namely Delegated Directive (EU) 2023/2.775 regarding the adjustment of the size criteria for micro-enterprises and small, medium and large enterprises or groups, published in the Official Gazette of the European Union from December 21st, 2023.

The main changes in the Accounting Regulations approved by OMPF no. 1802/2014:

Depending on the size criteria, the entities provided by these regulations are grouped into three categories, as follows: micro entities; small entities; medium and large entities.

Micro-entities are entities that, at the balance sheet date, do not exceed the limits of at least two of the following three criteria:

  1. total assets: 2,250,000 lei;
  2. net turnover: 4,500,000 lei;
  3. average number of employees during the financial year: 10.

Small entities are entities that, at the balance sheet date, do not fall into the category of micro entities and that do not exceed the limits of at least two of the following three criteria:

  1. total assets: 25,000,000 lei;
  2. net turnover: 50,000,000 lei;
  3. average number of employees during the financial year: 50.

Medium and large entities are entities that, at the balance sheet date, exceed the limits of at least two of the following three criteria:

  1. total assets: 25,000,000 lei;
  2. net turnover: 50,000,000 lei;
  3. average number of employees during the financial year: 50.

Depending on the size criteria, the groups are divided into two categories, as follows: small and medium groups, respectively large groups.

Small and medium-sized groups are the groups made up of parent companies and subsidiaries that are to be included in consolidation and that, on a consolidated basis, do not exceed the limits of at least two of the following three criteria at the date of the parent company's balance sheet:

  1. total assets: 125,000,000 lei;
  2. net turnover: 250,000,000 lei;
  3. average number of employees during the financial year: 250.

Large groups are groups made up of parent companies and subsidiaries that are to be included in consolidation and that, on a consolidated basis, exceed the limits of at least two of the following three criteria at the parent company's balance sheet date:

  1. total assets: 125,000,000 lei;
  2. net turnover: 250,000,000 lei;
  3. average number of employees during the financial year: 250.

There are changes to the size criteria that also apply to entities that apply the Accounting Regulations in accordance with the International Financial Reporting Standards, according to OMFP 2844/2016.

Note: The new size criteria apply starting with the annual financial statements related to the financial year of 2024.

Entities that chose a financial year different from the calendar year apply the provisions of this order starting with the annual financial statements related to the financial year thus chosen, which starts after January 1st, 2024.

(Copyright foto: 123RF Stock Photo)




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