European Commission Increases CSRD Large Undertaking Thresholds

The European Commission has adopted a delegated act that adjusts the size thresholds for large undertakings. Large undertakings have reporting obligations under the EU's Corporate Sustainability Reporting Directive (the categorization is relevant for other purposes as well).

Balance sheet:Increases from €20 million to €25 million.

Turnover:Increases from €40 million to €50 million.

Employees (average number):Unchanged at 250.

The delegated act amends the size thresholds in the Accounting Directive. That directive provides the legal framework for the preparation, presentation, publication and audit of individual and consolidated annual financial statements for EU undertakings. The classification of an undertaking as large is based on meeting two out of the three size thresholds above.