3. Material accounting judgements, estimates and assumptions

In preparing these consolidated financial statements, management has made judgements and estimates that affect the application of TMF Group's accounting policies and the reported amounts of assets, liabilities, income and expenses.

The results form the basis for TMF Group's assessment of the carrying amounts of the assets and liabilities that are not readily evident from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

We have made critical accounting estimates in respect of the following items:

• Valuation of intangible assets in acquisition of TMF Sapphire Topco B.V.: key assumptions in purchase price allocation - remaining useful life ("RUL"), royalty rate and contributory asset charges ("CACs") (note 15);

• Impairment of goodwill: key assumptions underlying recoverable amounts of cash generation units - discount rate, EBITDA growth and perpetual growth (note 16);

• Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of cash (note 28 & 32).