On the 3rd of August 2012 the European Union (Accounts) Regulations 2012, Statutory Instrument No 304 was enacted. The new regulations had increased the size criteria for small companies. The balance sheet total was increased to €4.4 million and the turnover figure was increased to €8.8 million. The new legislation now means that for a company to be defined as a small company it must meet 2 of the follow 3 conditions in that financial year and in the previous financial year:

• Balance sheet total does not exceed €4.4 million
• Turnover does not exceed €8.8 million
• Average number of employees do not exceed 50

The new limits have the benefit for an increased number of companies falling within the small company size limits having to produce small company abridged accounts as opposed to the onus of having to prepare medium sized accounts. This applies to companies with a financial year ending on/after 3 August 2012.