22 Provisions

Movements in provisions in 2022/2023:

EUR 000

Onerous contracts

Claims and legal proceedings

Total

Balance as at 1 October, as previously reported

200

200

Adjustment on initial application of amendments to IAS 37

628

628

Balance at 1 October

628

200

828

Utilized

-567

-567

Addition

14

43,616

43,630

Balance at 30 September

75

43,816

43,891

The provision for onerous contracts relates to contracts with clients where the expected costs to complete the engagement exceed the expected benefits.

The provision for claims and legal proceedings relates to various claims and proceedings against the Group on the grounds of alleged failure to perform professional duties and other legal matters. The Group carries professional indemnity insurance.

In 2022, an investigation in relation to answer sharing during mandatory training tests was initiated. In April 2024, the PCAOB imposed a USD 25 million civil money penalty on KPMG.

In addition, the Group faces other claims and/or legal proceedings. No separate disclosure is made of the detail of claims and/or legal proceedings as to do so could prejudice seriously the position of the Group.

In situations where the Group estimates that it is probable that an outflow of economic benefits will be required, a provision is recognized.

The periods during which the provisions are expected to be utilized are as follows:

30 September 2023

30 September 2022

< 1 year

> 1 year

Total

< 1 year

> 1 year

Total

Onerous contracts

63

12

75

567

61

628

Claims and legal proceedings

43,816

43,816

200

200

43,879

12

43,891

767

61

828