Size class (right)
Corporations are divided into four size classes in accounting law : smallest, small, medium-sized and large companies . Larger companies have stricter accounting requirements than smaller companies. The distinction between size classes is particularly important for the disclosure requirement with regard to the scope and degree of detail in which the content of the annual financial statements is to be disclosed. For medium-sized and large companies, Section 316 of the German Commercial Code also implies the obligation to have the annual financial statements checked by an auditor .
The accounting regulations of the HGB only apply to corporations and partnerships without a natural person as a personally liable partner (e.g. GmbH & Co. KG ). The classification into size classes is not relevant for the other commercial partnerships; according to the Publicity Act, it is only subject to a disclosure requirement for significantly larger key figures .
classification
The classification of a company in Germany is determined by § 267 , § 267a HGB. The characteristics of total assets , sales revenues and the number of employees that are customary when measuring company sizes are used as size criteria . According to this, listed companies are always considered to be large companies. All other companies are classified according to size. This is what one calls
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smallest : companies that do not exceed at least two of the three following criteria:
- 350,000 euros balance sheet total
- 700,000 euros in sales in the last 12 months before the reporting date
- 10 employees on an annual average
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small : companies that do not exceed at least two of the following three criteria:
- 6,000,000 euros balance sheet total
- 12,000,000 euros in sales in the last 12 months before the reporting date
- 50 employees on an annual average
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medium-sized : companies that do not exceed at least two of the three following criteria:
- 20,000,000 euros balance sheet total
- 40,000,000 euros in sales in the last 12 months before the reporting date
- 250 employees on an annual average
- large : companies that exceed at least two of the three criteria for medium-sized companies and capital market-oriented corporations
The classification of a society only changes from one category to another if the size characteristics justify this in two consecutive years. This avoids an annual change of the disclosure obligations . Unless otherwise regulated, the special regulations for small capital companies provided for small corporations apply accordingly.
Calculation of the number of employees: According to Section 267 (5) HGB, the average number of employees is used. Employees abroad are counted, but not trainees . Furthermore, legal comments can be found that part-time employees are fully counted, but the legal representatives of a corporation are not counted.
Further definitions
In addition to the commercial law definition, there are other definitions of terms. According to EU Recommendation 2003/361 / EG, companies with more than 250 employees or annual sales of over 50 million euros are considered large companies.
The Institut für Mittelstandsforschung Bonn (IfM) defines a company as a large company if it has 500 or more employees or an annual turnover of at least 50 million euros.
