1 General
KPMG N.V. (the Company) is the holding company of companies that operate in the Assurance or Advisory business segments. Read more over 1 General
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. Read more over 2 Basis of preparation
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 2.6, which address changes in Read more over 3 Significant accounting policies
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. Read more over 4 Segment reporting
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 labor. Read more over 5 Revenue
6 Other income
Other sources of income include amounts billed to third parties for services other than assurance and advisory services. Read more over 6 Other income
7 Cost of outsourced work and other external charges
Costs of outsourced work and other external charges relate to third-party services, including those from other members of the KPMG network, and expenses directly attributable to engagements. Read more over 7 Cost of outsourced work and other external charges
8 Employee benefits expenses
Salaries and other employee benefit expenses increased by over 11% mainly in line with the increase in number of staff of more than 10% and additionally as a result of increased fixed pay. Read more over 8 Employee benefits expenses
9 Other expenses
Other employee expenses increased as a result of higher training costs and costs related to secondments of personnel. Read more over 9 Other expenses
12 Income taxes
Under management agreements, all earnings of KPMG N.V. are distributed to the partners, through Coöperatie KPMG U.A., who pay tax on these earnings. Read more over 12 Income taxes
13 Fees payable to Coöperatie KPMG U.A.
The management fee payable to the partners, through Coöperatie KPMG U.A., is remuneration for professional services performed and entrepreneurial risk. Read more over 13 Fees payable to Coöperatie KPMG U.A.
14 Intangible assets and goodwill
Software mainly relates to back-office systems. The remaining period of amortization as at 30 September 2023 is two to eight years (30 September 2022: two to eight years). Read more over 14 Intangible assets and goodwill
16 Other financial assets
Information about the Group’s exposure to credit and market risks, and fair value measurement, is included in Note 24 Financial instruments and associated risks. Read more over 16 Other financial assets
17 Receivables
The recoverable amounts of trade receivables are estimated every quarter. Read more over 17 Receivables
18 Cash and cash equivalents
Bank balances, including business savings accounts, are at the free disposal of the Group. Read more over 18 Cash and cash equivalents
19 Equity
The Company has an authorized capital of EUR 20,000 (2021/2022: EUR 20,000), which is divided into 800 shares of EUR 25 each (2021/2022: 800 shares of EUR 25 each). Read more over 19 Equity
20 Loans and borrowings
Employees have had the opportunity to participate in short‑term employee bonds with a maturity of one year, a one-year EURIBOR + 3% base rate interest, and a variable surplus based on the realized profit before income tax of KPMG N.V. In 2023, 4,820 Read more over 20 Loans and borrowings
21 Employee benefits
Long-term employee benefits mainly consist of WIA supplement (Occupational Disability Insurance Act) benefits and provisions for long-service entitlements. Read more over 21 Employee benefits
22 Provisions
Movements in provisions in 2022/2023: Read more over 22 Provisions
23 Trade and other payables
The Group’s liquidity risk relating to trade and other payables is disclosed in Note 24.3 Liquidity risk. Read more over 23 Trade and other payables
24 Financial instruments and associated risks
Financial instruments that are used by KPMG N.V. arise directly from normal business operations. During the financial year it was KPMG N.V. Read more over 24 Financial instruments and associated risks
25 Leases
The Group leases office buildings, cars and office equipment. The leases typically run for a period of five years for cars, five to 15 years for buildings and five years for office equipment. Read more over 25 Leases
26 List of subsidiaries
Unless otherwise stated, the following subsidiaries are wholly owned by KPMG N.V. Read more over 26 List of subsidiaries
27 Liabilities and assets not recognized in the consolidated statement of financial position
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. Read more over 27 Liabilities and assets not recognized in the consolidated statement of financial position
28 Collaboration agreements and related parties
In the Netherlands, the Group collaborates with an independent firm of tax consultants, Meijburg & Co. The financial figures of this firm are not included in the consolidated financial statements of KPMG N.V. Read more over 28 Collaboration agreements and related parties
29 Subsequent events
In March 2024, KPMG reached an agreement with the bankruptcy trustees of Imtech. Read more over 29 Subsequent events