Companies Act 2014 section 350

Qualification of company as small or medium company

Section 350 sets out the conditions under which a company may qualify to be treated as a small or medium company for the purposes of financial reporting and disclosure.

• A small company must meet at least two of three thresholds: turnover not exceeding €8.8 million, balance sheet total not exceeding €4.4 million, and average employees not exceeding 50.
• A medium company must meet at least two of three thresholds: turnover not exceeding €20 million, balance sheet total not exceeding €10 million, and average employees not exceeding 250.
• Once a company qualifies (or ceases to qualify) as small or medium, it must fail (or meet) the conditions for two consecutive years before its status changes.
• Holding companies that prepare group financial statements, and companies falling within Schedule 5, are excluded from qualifying as small or medium companies.