Reconciliation of carrying amount
|
EUR 000 |
Goodwill |
Software |
Internally developed software |
Total |
|
Balance as at October 1, 2023 |
||||
|
Cost |
6,395 |
10,433 |
4,023 |
20,851 |
|
Accumulated amortization and impairment |
– |
3,941 |
3,005 |
6,946 |
|
Carrying amount |
6,395 |
6,492 |
1,018 |
13,905 |
|
Movements during 2023/2024: |
||||
|
Additions |
– |
903 |
353 |
1,256 |
|
Amortization |
– |
-1,467 |
-719 |
-2,186 |
|
Impairment |
– |
– |
– |
– |
|
Disposals cost |
– |
– |
-922* |
-922* |
|
Disposals accumulated amortization and impairment |
– |
– |
922* |
922* |
|
Balance as at September 30, 2024 |
6,395 |
5,928 |
652 |
12,975 |
|
Cost |
6,395 |
11,336 |
3,454* |
21,185* |
|
Accumulated amortization and impairment |
– |
5,408 |
2,802* |
8,210* |
|
Balance as at October 1, 2024 |
6,395 |
5,928 |
652 |
12,975 |
|
Movements during 2024/2025: |
||||
|
Additions |
– |
788 |
254 |
1,042 |
|
Amortization |
– |
-1,478 |
-209 |
-1,687 |
|
Impairment |
– |
– |
– |
– |
|
Disposals cost |
– |
– |
-2,384 |
-2,384 |
|
Disposals accumulated amortization and impairment |
– |
– |
2,384 |
2,384 |
|
Balance as at September 30, 2025 |
6,395 |
5,238 |
697 |
12,330 |
|
Cost |
6,395 |
12,124 |
1,324 |
19,843 |
|
Accumulated amortization and impairment |
– |
6,886 |
627 |
7,513 |
|
Balance as at September 30, 2025 |
6,395 |
5,238 |
697 |
12,330 |
Software
Software mainly relates to back-office systems. The remaining period of amortization as at September 30, 2025 is two to eight years (September 30, 2024: two to eight years).
Internally developed software
Internally developed software mainly relates to digital risk software. During 2024/2025 an amount of EUR 254 was capitalized (2023/2024: EUR 353).
Impairment loss
No impairments on software was recorded in 2024/2025 (2023/2024: nil).
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the Group’s cash-generating units (CGUs).
The aggregate carrying amounts of goodwill allocated to each CGU are as follows:
|
EUR 000 |
09/30/2025 |
09/30/2024 |
|
KPMG Advisory |
6,395 |
6,395 |
On an annual basis, the Group carries out impairment tests on capitalized goodwill, which are based on the estimated cash flows of the related CGU. The CGU represents the lowest level within the Group at which the goodwill is monitored for internal management purposes, which is not higher than the Group’s operating segment as reported in Note 5 Segment reporting. The recoverable amount of the relevant CGU is determined on the basis of its value in use. Determination of the value in use is performed by using estimated future cash flows, based on the 2025/2026 business plan approved by the Board of Management and further financial projections for the financial years through 2027/2028. Cash flows after this period are extrapolated by using a growth rate to calculate the terminal value.
The key assumptions in the cash flow projections are:
Total revenue growth and result development, which is based on historical performance, expected future market developments, and the 2025/2026 business plan. For the period 2025/2026, a real revenue growth of 3% is included. For the period thereafter, KPMG has used a real growth of 0%, in addition to an inflation component based on inflation forecasts derived from the Economist Intelligence Group (EIU);
A post-tax discount rate of 8.2% (2023/2024: 7.5%) to calculate the present value of the estimated future cash flows (on a post-tax basis). The pre-tax discount rate amounts to 10.6%;
An indefinite growth rate, including an inflation correction, based on the lowest of the risk-free rate assumed in the weighted average cost of capital and the long-term inflation forecasts derived from EIU: 2% (2023/2024: 2%).
The values assigned to the key assumptions represent management’s assessment of future trends in the respective markets and are based on both external and internal sources (historical and forward-looking data).
A sensitivity analysis has been performed, taking a change in the pre‑tax weighted average cost of capital and the revenue growth expectations into consideration. No reasonably possible change in the assumptions would cause the carrying amount to exceed the recoverable amount.
Based on the outcome of the impairment tests, no impairments have been recorded.