Important Legislative Changes for Reporting Entities in 2024

The purpose of these changes is to align size criteria at the European level for more uniform financial reporting, adapted to current economic realities, as part of the harmonization process with European legislation, in line with Directive (EU) 2023/2775.

Size criteria are used to classify reporting entities based on the size of assets, turnover, and the average number of employees. Entities are categorized as follows, using the updated thresholds:

Microentities are entities that, at the balance sheet date, do not exceed the limits of at least two of the following three criteria: a) Total assets: 2,250,000 lei;
b) Net turnover: 4,500,000 lei;
c) Average number of employees during the financial year: 10.

Small entities are those that, at the balance sheet date, do not fall into the category of microentities and do not exceed the limits of at least two of the following three criteria: a) Total assets: 25,000,000 lei;
b) Net turnover: 50,000,000 lei;
c) Average number of employees during the financial year: 50.

Medium and large entities are those that, at the balance sheet date, exceed the limits of at least two of the following three criteria: a) Total assets: 25,000,000 lei;
b) Net turnover: 50,000,000 lei;
c) Average number of employees during the financial year: 50.

The update of these criteria will affect the type and level of detail reported in the annual financial statements. Starting in 2024, companies will need to adjust their financial reporting according to the new thresholds. For companies using a financial year different from the calendar year, the provisions will apply starting with the first financial report submitted after January 1, 2024.