1587. (1) Subject to section 1588, Chapter 2 shall apply –

(a) subject to paragraph (c)(ii), for financial years commencing on or after 1 January 2024, to an applicable company falling within paragraph (a) of the definition of "applicable company" that, in relation to a financial year –

(i) has an average number of employees that exceeds 500 and is a public-interest entity, or

(ii) in the case of a holding company, the company is the holding company of a group, the aggregate average number of employees of which exceeds 500, and is a public-interest entity,

(b) subject to paragraph (a) and (c)(ii), for financial years commencing on or after 1 January 2025, to an applicable company falling within paragraph (a) of the definition of "applicable company", and

(c) for financial years commencing on or after 1 January 2026, to –

(i) an applicable company falling within paragraph (b) of the definition of "applicable company", and

(ii) an applicable company falling within paragraph (a) or (b) of the definition of "applicable company" that is either –

(I) a small and non-complex institution as defined in point (145) of Article 4(1) of Regulation (EU) No 575/2013, or

(II) a captive insurance undertaking as defined in point (2) of Article 13 of Directive 2009/138/EC, or a captive reinsurance undertaking as defined in point (5) of Article 13 of that Directive.

(2) Chapter 3 shall apply for financial years commencing on or after 1 January 2028.

(3) Save where otherwise provided, Chapters 4, 5, 6 and 7 shall apply –

(a) in so far as they relate to the assurance of sustainability reporting and the duties and powers of statutory auditors and audit firms in relation thereto, to the conduct of the assurance of sustainability reporting for financial years commencing on or after 1 January 2024, and

(b) as regards each other matter provision for which is made by those Chapters, on and from 6 July 2024.

(4) For the purposes of subsection (1)(a), the average number of employees of a company in the financial year concerned shall be determined by applying the methods specified in section 317 in respect of determining the average number of persons employed by a company for purposes of subsection (1)(a) of that section.

(5) For the purposes of subsection (1)(a), the aggregate average number of employees of a holding company in the financial year concerned shall be determined by aggregating the equivalent figures determined in accordance with subsection (4) for each member of the group.

(6) For the purposes of subsection (5), the figures for each subsidiary undertaking of the holding company shall be those included in its entity financial statements for –

(a) where its financial year ends with that of the holding company, that financial year, and

(b) where it does not, the financial year ending last before the end of the financial year of the holding company.]