The Government has recently started a consultation on non-financial reporting that would ease the current burden imposed on medium-sized companies.
Currently if a company meets two of the criteria below, it is classed as medium sized: –
- Has a balance sheet total worth more than £5.1m but not more than £18m.
- The average number of employees is more than 50 but less than 250.
- Has an annual turnover more than £10.2m but not more than £36m.
This consultation follows a call for evidence which was launched in May 2023, where stakeholder feedback was provided. The Government are now putting forward two proposals to reduce reporting burdens.
The first proposal is to provide an exemption for medium-sized companies from producing a strategic report as a part of their annual report and accounts.
The second proposal is to amend the current definition (listed above) in respect of reporting, to increase the maximum number of employees from 250 to 500. This would align with the Government’s Better Regulation framework, under which a business with between 50 to 499 employees is considered a medium-sized business..
The Government has asked for responses to the consultation by 27 June 2024.
Non-financial reporting review: simpler corporate reporting
https://www.gov.uk/government/consultations/non-financial-reporting-review-simpler-corporate-reporting/non-financial-reporting-review-simpler-corporate-reporting
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