FAQ - Group of limited proportions

1. Calculation methods

The first method - full consolidation - means that any exceeding of the size criteria is assessed on the basis of figures for the whole group and in accordance with the provisions on consolidation set out in the Royal Decree on the Company Code, Articles 137,144 and 146.

The assessment applies not only to the ultimate parent company, but also to all other companies belonging to the group and which are also parent companies themselves.
As far as the workforce criterion is concerned, the average number of employees of all the affiliated companies is added up.

Full consolidation is a heavy administrative burden for firms that belong to a group of limited proportions. Under the simplified method, the parent company can just count the sum of the totals for turnover and the balance sheet of all the affiliated companies. In this case, the limits for turnover and the balance sheet total are reduced by 20%.

Thresholds for small and large parent companies

Workforce 50 FTE
Turnover 10.800.000 euro
Balance sheet total

5.400.000 euro

Further information and format: see CBN-CNC Opinion 2016/3, pages 7-8

2. Does the subsidiary have to file consolidated annual accounts as well as the simplified or statutary accounts?

No, a subsidiary - which is not a parent company itself - and which does not exceed the size criteria for a small enterprise on a simplified basis, is considered to be a small enterprise and therefore does not have to submit consolidated annual accounts.

3. How and when are the figures checked? Different closing date for consolidated companies

The figures are checked on the date on which the consolidating parent company’s annual accounts are closed, based on the last financial statements drawn up for the subsidiaries to be consolidated.

4. Exceeding (or no longer exceeding) the criteria – consistency principle

(Company Code Art 16,§2)

The average workforce is the average number of employees expressed in full-time equivalents (FTE) that is registered in the DIMONA database at the end of each month of the financial year.

5. The workforce

(Company Code Art 16,§3)

The average workforce is the average number of employees expressed in full-time equivalents (FTE) that is registered in the DIMONA database at the end of each month of the financial year.

6. (Annual) turnover

(Company Code Art 16,§3)

The turnover is the amount generated from sales of goods and the provision of services to third parties as part of the company’s normal business activities less the value of discounts (reduction, rebate, discount) and VAT and any other turnover-related tax. (RD of 30 January 2001 implementing Company Code Art. 96)

  • Derogation:
    when more than 50 % of the income consists of revenue that does not comply with the above definition, turnover is the total of the corporate and financial revenue excluding non-recurring revenue.
    see the Belgian Accounting Standards Board CBN-CNC Opinion 2016/3, pages 4-5
  • If the financial year runs for more or less than 12 months:
    see CBN-CNC Opinion 2016/3, page 5

The assessment is carried out on a consolidated basis if the company is affiliated to one or more enterprises, i.e. if it:

  • has one or more subsidiaries
  • is a subsidiary company itself
  • forms part of a group of enterprises.

In this case, the “annual average number of employees” criterion is calculated by totting up the annual average number of workers that are employed by each of the affiliated companies concerned, and the “annual turnover” and “balance sheet total” criteria are calculated on a consolidated basis.