1 General
KPMG N.V. (the Company) is the holding company of companies that operate in the Assurance or Advisory business segments.
2 Basis of preparation
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU IFRS) and with Section 2:362(9) of the Dutch Civil Code.
3 Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements and by all companies included in the consolidation, except those explained in Note 2.5, which address changes in
4 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components.
5 Revenue
The Group generates revenue primarily from single or multiple performance obligations to deliver assurance and advisory services. The main component of these contracts is labour.
6 Other income
Other sources of income include amounts billed to third parties for services other than assurance and advisory services.
7 Employee benefits expenses
The average salary per FTE increased by 13.4% (2019/2020: increase 2.2%), mainly as a result of higher variable pay and additional one-time payments. Total employee expenses increased by 10.4% (2019/2020: increase 4.9%).
8 Other expenses
Other employee expenses decreased as a result of lower costs of hiring third parties, due to cost reduction measures following the Covid-19 outbreak (full year effect), and lower expat transfer costs.