5. Revenue

TMF Group provides services in 4 types of categories:

• Accounting and tax - Financial administrative services for clients which includes: statutory bookkeeping and international management reporting services, consolidated reporting services, assistance in preparing accounting report, accounting reconciliation, operating bank accounts, preparation of payment instructions, cash management and all tax compliance services;

• Global entity management - All legal administrative services for clients with respect to representation (i.e. providing directors) and to ensure local entity is in compliance with local legislation. This includes: incorporation and registration, reviewing and preparation of corporate legal documents, maintaining the company (shareholders) register, organising of board and shareholder’s meetings, reporting to appropriate authorities and all other on demand services;

• Payroll and HR - Human resources and payroll services for clients which includes: contracts, employee relations, leave management, benefits, mobility and general HR administration and processing in-country- payroll;

• Other, including consultancy solutions - A wide range of consultancy offerings and implementation services.

The following table sets out TMF Group's revenue earned during 2023 and 2022.

Service line information

Revenue is recognised to the extent that it is probable that the economic benefits will flow to TMF Group and the revenue can be reliably measured. We measure revenue at the fair value of the consideration received or receivable excluding discounts and sales taxes or duty. The amount of consideration may be less than the price stated in the contract if the consideration is variable because TMF Group may offer the customer a price concession. There are no rights of return or other variable considerations that require significant judgement in determining a transaction price. Revenue is recognised in profit and loss to the part of the services rendered to the client during the reporting date.

The following revenue recognition methods are used:

• fixed fee revenue – non-time based is generally realised over the period the services are delivered;

• fixed fee revenue – time based is realised based on the finalisation of a performance obligation. This means that at the start of such a contract it is budgeted how many hours of the total hours will be spent per performance obligation;

• hourly based revenue – is recognised at the contractual rates as time is spent. Only chargeable and recoverable hours are recorded as revenue;

• item based revenue – is recognised based on the number of ‘items’ in the month and the fee per item.

For disclosure of deferred income including impact for over time recognised revenue, reference is made to note 30: Trade and other payables.