28. Provisions
Provisions are recognised when TMF Group has a present legal or constructive obligation as a result of past events, then it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense.
|
In millions of Euro |
Legal |
Restructuring |
Employee benefits |
Dilapidation |
Other |
Total |
|---|---|---|---|---|---|---|
|
Balance at 31 December 2023 |
3.4 |
1.2 |
5.1 |
3.0 |
0.8 |
13.5 |
|
Balance at 1 January 2023 |
- |
- |
- |
- |
- |
- |
|
Acquired through business combinations |
1.0 |
1.1 |
4.9 |
2.9 |
1.3 |
11.2 |
|
Charged to the income statement: |
||||||
|
- Additions |
2.9 |
- |
1.0 |
0.3 |
0.4 |
4.6 |
|
- Exchange differences |
- |
- |
- |
(0.1) |
- |
(0.1) |
|
Released/Used during the year |
(0.5) |
0.1 |
(0.8) |
(0.1) |
(0.9) |
(2.2) |
|
In millions of Euro |
31 December 2023 |
31 December 2022 |
|---|---|---|
|
Total provisions |
13.5 |
- |
|
Non-current |
7.5 |
- |
|
Current |
6.0 |
- |
Legal
The legal provisions relate to legal cases involving subsidiaries of TMF Group. The amount provided for relates to costs and damages expected to be incurred for these legal cases.
Restructuring
At 31 December 2023, the restructuring provisions mainly include a short-term provision for costs of TMF Group-wide (tax) transformation programs. A provision for restructuring is recognised when there is an approved, detailed and formal restructuring plan and the restructuring has either commenced or has been announced publicly. A provision for restructuring is based on the Group’s best estimate of costs to be incurred. If actual costs are different than originally estimated, this could affect operating result and net result.
Employee benefits
The provision for employee benefits mainly relates to long-term jubilee and anniversary benefit schemes.
Dilapidation
The dilapidation provision relates to expected dilapidation expenses with respect to the lease of office buildings. The usage of the provision is dependent on the lease term of the office buildings.