New limits for the preparation of the abridged financial statements and the financial statements of micro-enterprises.

Limits of the abridged balance sheet

As a result of the amendments made by Article 16, paragraph 1, letter a) of Legislative Decree 125/2024 to Article 2435- bis , paragraph 1, of the Italian Civil Code, unlisted companies may prepare abbreviated financial statements when, in the first financial year or subsequently, for two consecutive financial years, they do not exceed two of the following limits:

• Total of the assets on the balance sheet: € 5,500,000.00 (previously € 4,400,000.00);

• revenue from sales and services: € 11,000,000.00 (previously € 8,800,000.00);

• Average number of employees during the fiscal year: 50 (unchanged).

It remains true that, pursuant to Article 2435- bis , paragraph 8, of the Italian Civil Code, companies that prepare abbreviated financial statements must prepare them in the ordinary form when, for the second consecutive fiscal year, they exceed two of the limits indicated above.

Balance sheet limits for micro-enterprises

As a result of the amendments made by Article 16, paragraph 1, letter b) of Legislative Decree 125/2024 to Article 2435- ter , paragraph 1, of the Italian Civil Code, unlisted companies that can prepare abbreviated financial statements are considered micro-enterprises when, in the first financial year or subsequently, for two consecutive financial years, they do not exceed two of the following limits:

• Total of the State's assets on the balance sheet: € 220,000.00 (previously € 175,000.00);

• revenue from sales and services: € 440,000.00 (previously € 350,000.00);

• Average number of employees during the year: 5 (unchanged).

The information required for this category of businesses is particularly simplified.

It remains true that, pursuant to Article 2435- ter , paragraph 4, of the Italian Civil Code, companies that make use of the simplifications provided therein must prepare the financial statements, as the case may be, in abbreviated or ordinary form, when, for the second consecutive fiscal year, they exceed two of the limits indicated above.

For the purpose of easier comparison, the new limits are shown in the following table.

Dimensional limits	Micro-enterprises	Abbreviated financial statement	Ordinary budget
Total of the assets on the balance sheet	≤ 220,000 euros	≤ 5.5 million euros	> 5.5 million euros
Sales revenue and performance	≤ 440,000 euros	≤ 11 million euros	> 11 million euros
Employees engaged on average during exercise	≤ 5 units	≤ 50 units	> 50 units

Effective date of the new limits

The new parameters should be applied to financial statements relating to fiscal years ending (or approved) from 25.9.2024 onwards.