6 Revenue

Performance obligations and revenue recognition policies

Revenue is measured based on the consideration specified in a contract with a customer. The Group has determined that for assurance and advisory services, the Group recognizes revenue when (or as) it satisfies a performance obligation by transferring services to a customer. The customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs.

The Group has elected to apply the practical expedient of IFRS 15.63. That means it does not adjust the promised amount of the consideration for the effects of a significant financing component if the Group expects, at the inception of a contract, that the period between when the Group transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

Information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and the related revenue recognition policies, is described below.

Assurance and advisory services

Nature and timing of satisfaction of performance obligations, including significant payment terms

The Group has determined that for assurance and advisory services, the customer controls all of the work in progress as the services are being provided. Furthermore, under such contracts, services provided do not create an asset with an alternative use to the Group as they relate to facts and circumstances that are specific to the customer and, in the event that a contract is terminated by the customer, the Group is entitled to reimbursement of the costs incurred to date, including a reasonable margin, unless a contract is onerous.

Invoices are issued according to contractual terms and are usually payable within 15 days. Amounts not yet invoiced are presented as unbilled services, as part of contract assets or contract liabilities.

Revenue recognition

Revenue is recognized over time by measuring the proportion of costs incurred to date compared with the estimated total costs of the service.

For those contracts with a constrained variable consideration that is highly susceptible to factors outside the Group’s influence (e.g. success fees), the constrained amount is not included in the transaction price until the uncertainty associated with the variable consideration is resolved.

In contracts with multiple performance obligations, the stand-alone selling price of assurance and advisory services is estimated based on the cost-plus margin approach.

Software as a Service (SaaS) licenses

Nature and timing of satisfaction of performance obligations, including significant payment terms

Customers obtain control of the SaaS over time, during the period that the customer has the ability to consume and receive benefit from its access to the SaaS. Invoices are issued according to contractual terms and are usually payable within 15 days. Amounts not yet invoiced are presented as unbilled services.

Revenue recognition

Revenue is recognized over time using a time basis as a measure of progress after the go-live date of the SaaS.

In contracts with multiple performance obligations, the stand-alone selling price of SaaS is based on the list prices at which the Group sells the SaaS licenses. In the event that discounts are given in those contracts, and there is no observable evidence that the discount corresponds completely to a single performance obligation, the discount is allocated proportionally to all performance obligations of the contract.

Revenue streams

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.

Disaggregation of revenue from contracts with customers

In the following table, revenue from contracts with customers is disaggregated by primary service lines.

Contract balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.

Contract assets

The contract assets primarily relate to unbilled services in relation to contracts with customers, amounting to EUR 46,447 as at September 30, 2025 (September 30, 2024: EUR 44,675).

The remainder of the contract assets are related to costs to fulfil contracts where the Group performs set-up activities to deliver Software as a Service (SaaS licenses). These costs were determined based on the cost price of consulting hours related to the set‑up activities performed before the go-live date of the SaaS licenses. These contract assets are amortized over the period that the SaaS license is provided to the customer.

The amount of amortization of contract assets during the year ended September 30, 2025 was EUR 48 (September 30, 2024: EUR 56). The amortization expenses relate partly to contract assets formed during the financial year and partly to existing contract assets as at the start of the financial year.

Contract liabilities

The contract liabilities primarily relate to advance billings for various activities in line with KPMG’s services to be provided. Contract liabilities also include setup activities that do not transfer a service to the customer on their own, but are necessary for the use of the SaaS licenses to be provided to the customer.

No amount has been recognized as revenue from performance obligations satisfied (or partially satisfied) in previous periods (EUR nil for the year ended September 30, 2024).

Transaction price allocated to the remaining performance obligations

The Group applies the practical expedient in paragraph 121 of IFRS 15 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.