The new thresholds (and the existing ones) are:
Points to consider:
- Most companies qualifying as ‘small’ will not require a statutory audit.
- The new FRS 102, due to apply from January 2026, is highly likely to mean an increase in the total assets measure, for companies with significant operating leases.
- Adoption of the benefit of accounting and audit exemptions which prove to be a temporary measure, could prove expensive in the long-term.
- Companies wishing to benefit need to consider the long term plans for their business in terms of growth.
- Companies need to review their covenant
arrangements with their lenders and their requirements of their articles of
association.
Action to take
There may be proactive action that can be taken to benefit from these changes as early as 2025 but the transitional rules are complex and there are a number of considerations to be made. Please speak to your usual Crowe contact for guidance.