Movements in provisions in 2023/2024:
|
EUR 000 |
Onerous contracts |
Claims and legal proceedings |
Total |
|
Balance as at October 1 |
75 |
43,816 |
43,891 |
|
Utilized |
-63 |
-43,616 |
-43,679 |
|
Addition |
23 |
3,550 |
3,573 |
|
Balance as at September 30 |
35 |
3,750 |
3,785 |
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. This penalty was provided for as per September 30, 2023 and was paid during 2023/2024.
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:
|
September 30, 2024 |
September 30, 2023 |
|||||
|
< 1 year |
> 1 year |
Total |
< 1 year |
> 1 year |
Total |
|
|
Onerous contracts |
35 |
– |
35 |
63 |
12 |
75 |
|
Claims and legal proceedings |
3,350 |
400 |
3,750 |
43,816 |
– |
43,816 |
|
3,385 |
400 |
3,785 |
43,879 |
12 |
43,891 |
|