Notes to the consolidated financial statements

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

The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as endorsed by the European Union (EU-IFRS) and with Section 2:362(9) of the Dutch Civil Code. Read more over 2 Basis of preparation

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 Material accounting policies

A number of new standards, amendments to standards, and interpretations are effective for annual periods beginning after January 1, 2024, and have not been applied in preparing these consolidated financial statements. Read more over 4 New standards and interpretations not yet adopted

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 5 Segment reporting

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 6 Revenue

Other sources of income include amounts billed to third parties for services other than assurance and advisory services. Read more over 7 Other income

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 8 Costs of outsourced work and other external charges

Salaries and other employee benefit expenses increased in line with the increase in number of staff by 2.5% and additionally as a result of increased fixed pay. The average salary per KPMG employed FTE increased by 4.0% (2022/2023: increase 1.6%). Read more over 9 Employee benefits expenses

Other employee expenses decreased as a result of lower support personnel required for software development activities. Read more over 10 Other expenses

    Read more over 11 Finance income

    Read more over 12 Finance expenses

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 13 Income taxes

The management fee payable to the partners, through Coöperatie KPMG U.A., is remuneration for professional services performed and entrepreneurial risk. Read more over 14 Fees payable to Coöperatie KPMG U.A.

Software mainly relates to back-office systems. The remaining period of amortization as at September 30, 2024 is two to eight years (September 30, 2023: two to eight years). Read more over 15 Intangible assets and goodwill

Read more over 16 Property, plant and equipment

Information about the Group’s exposure to credit and market risks, and fair value measurement, is included in Note 25 Financial instruments and associated risks. Read more over 17 Other financial assets

The recoverable amounts of unbilled services and trade receivables are estimated every quarter. Read more over 18 Receivables

As at September 30, 2024, cash and cash equivalents only consists of bank balances. Bank balances, including business savings accounts, are at the free disposal of the Group. Read more over 19 Cash and cash equivalents

The Company has an authorized capital of EUR 20,000 (2022/2023: EUR 20,000), which is divided into 800 shares of EUR 25 each (2022/2023: 800 shares of EUR 25 each). Read more over 20 Equity

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 2024, 4,708 Read more over 21 Loans and borrowings

Long-term employee benefits mainly consist of WIA supplement (Occupational Disability Insurance Act) benefits and provisions for long-service entitlements. Read more over 22 Employee benefits

Movements in provisions in 2023/2024: Read more over 23 Provisions

The Group’s liquidity risk relating to trade and other payables is disclosed in Note 25.3 Liquidity risk. Read more over 24 Trade and other payables

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 25 Financial instruments and associated risks

The Group leases office buildings, cars and office equipment. The leases typically run for a period of four to five years for cars, five to 15 years for buildings and five years for office equipment. Read more over 26 Leases

Unless otherwise stated, the following subsidiaries are wholly owned by KPMG N.V. Read more over 27 List of subsidiaries

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

In the Netherlands, the Group collaborates with an independent firm of tax consultants, KPMG Meijburg & Co. The financial figures of this firm are not included in the consolidated financial statements of KPMG N.V. Read more over 29 Collaboration agreements and related parties

In November 2024, the Group extended the lease for the head office in Amstelveen. This is expected to increase the right of use assets and lease liabilities by approximately EUR 34 million. Read more over 30 Subsequent events