27 Liabilities and assets not recognized in the consolidated statement of financial position

27.1 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 2023 amounted to EUR 30,362 (30 September 2022: EUR 35,616).

Non-cancellable commitments:

The Group has significant long-term commitments that are based on FTEs and/or volume used, such as telecom contracts (the longest of which until 2024/2025), mobility related contracts (the longest of which until 2027/2028) and subscriptions to certain news channels (the longest of which until 2025/2026). 

The future rental income from sub-leases is as follows:

The following expenses related to other commitments and rental expenses were recognized in the consolidated statement of profit or loss and other comprehensive income:

27.2 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.

27.3 Guarantees and pledges

The Group has a combined credit and guarantee facility of EUR 50,000 (2021/2022: EUR 50,000), of which no drawdown was made (2021/2022: no drawdown) in the form of cash or guarantees. All trade receivables and bank balances including business savings accounts are subject to a first pledge in favor of the bank in connection with the credit facility provided.

Unbilled services and Property, plant and equipment, with the exception of assets under construction are subject to a first pledge in favor of Coöperatie KPMG U.A. as security for loans advanced. In addition, all trade receivables and bank balances including business savings accounts are subject to a second pledge in favor of Coöperatie KPMG U.A. as security for loans advanced.

The Company provided Parent Company guarantees related to some of the properties that are leased. The total of those guarantees as at 30 September 2023 amounted to EUR 3,383 (30 September 2022: EUR 3,629).

The Company provided a guarantee to a bank relating to all audit partners of the KPMG group that are financed by this bank. The guarantee relates to outstanding balances insofar used to finance KPMG and to the extent that profits have been deferred in line with measure 3.5, published by the Royal Netherlands Institute for Chartered Accountants.

27.4 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 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. The status of cases of this nature can be 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.