28.1 Other commitments
The Group has long-term property leases for which the service costs are excluded from the lease liability and right-of-use asset in the consolidated balance sheet. In addition, the Group has commitments that are exempt from recognition in the balance sheet in accordance with IFRS 16, such as for personal computers and IT services, and commitments under long-term sponsorship agreements. The total of these commitments as at 30 September 2022 amounted to EUR 35,616 (30 September 2021: EUR 29,367).
Non-cancellable commitments:
|
EUR 000 |
30 September 2022 |
30 September 2021 |
||||
|
Service costs |
Other contracts |
Total |
Service costs |
Other contracts |
Total |
|
|
Within 1 year |
1,915 |
13,406 |
15,321 |
2,104 |
7,093 |
9,197 |
|
Between 1-5 years |
6,155 |
7,102 |
13,257 |
5,122 |
6,927 |
12,049 |
|
After 5 years |
7,038 |
– |
7,038 |
8,121 |
– |
8,121 |
|
15,108 |
20,508 |
35,616 |
15,347 |
14,020 |
29,367 |
|
The Group has significant long-term commitments that are based on FTE’s and/or volume used, such as telecom contracts (the longest of which untill 2024/2025) and subscriptions to certain news/intelligence (the longest of which until 2023/2024).
The future rental income from sub-leases is as follows:
|
EUR 000 |
30 September 2022 |
30 September 2021 |
|
Within 1 year |
2,063 |
2,834 |
|
Between 1 and 5 years |
5,084 |
5,256 |
|
After 5 years |
9,125 |
7,994 |
|
16,272 |
16,084 |
The following expenses related to other commitments and rental expenses were recognized in the consolidated statement of profit or loss and other comprehensive income:
|
EUR 000 |
2021/2022 |
2020/2021 |
|
Properties |
2,616 |
2,126 |
|
Cars |
317 |
119 |
|
Other contracts |
7,093 |
3,279 |
28.2 Tax Group
Together with its 100% subsidiaries, including KPMG N.V., Coöperatie KPMG U.A. forms a tax group for corporate income tax purposes. Each of the companies in the tax group is, under the relevant standard tax conditions, jointly and severally liable for the tax payable by all of the companies in the tax group. As the head of the income tax fiscal unity, the Cooperative pays the income tax assessments. It is, however, KPMG N.V. that incurs the total income tax expense of the tax group, except for the amount attributable to the Cooperative under the ruling with the Dutch Tax Authorities.
KPMG N.V. is part of a tax group for value added tax purposes, headed by Coöperatie KPMG U.A. Each of the companies in the tax group is, under the relevant standard tax conditions, jointly and severally liable for the tax payable by all of the companies in the tax group.
28.3 Guarantees
The Group has a combined credit and guarantee facility of EUR 50,000 (2020/2021: EUR 50,000), of which no drawdown was made (2020/2021: no drawdown) in the form of guarantees.
The Company provided Parent Company guarantees related to some of the properties that are leased. The total of those guarantees as at 30 September 2022 amounted to EUR 3,629 (30 September 2021: EUR 3,683).
28.4 Legal disputes and other contingencies
Claims have been filed and proceedings have been instituted against the Group on the grounds of alleged failure to perform professional duties. The Group evaluates whether relevant circumstances are such that it is reasonable to assume that they will result in the Group entity being held liable on the grounds of alleged failure to perform professional duties. A decision is taken on a case-by-case basis as to whether it is probable that settlement of the case will involve an outflow of resources from the Group. In such cases, a provision is accounted for. The Group carries professional indemnity insurance.
Investigations by regulators or investigations with a regulatory impact can lead to the imposing of fines. As per 30 September 2022, the status of investigations of this nature are such that either no financial impact is expected or no estimation can be made as to the financial impact. Consequently, in these cases no provision was recognized.