25578198 2022-10-01 2023-09-30 25578198 2018-10-01 2019-09-30 1 25578198 2018-10-01 2019-09-30 25578198 2018-10-01 2019-09-30 2 25578198 2019-09-30 25578198 2018-10-01 2019-09-30 3 25578198 2018-10-01 2019-09-30 101 25578198 2019-10-01 2020-09-30 1 25578198 2019-10-01 2020-09-30 25578198 2019-10-01 2020-09-30 2 25578198 2020-09-30 25578198 2019-10-01 2020-09-30 3 25578198 2019-10-01 2020-09-30 101 25578198 2020-10-01 2021-09-30 1 25578198 2020-10-01 2021-09-30 25578198 2020-10-01 2021-09-30 2 25578198 2021-09-30 25578198 2020-10-01 2021-09-30 3 25578198 2020-10-01 2021-09-30 101 25578198 2021-10-01 2022-09-30 1 25578198 2021-10-01 2022-09-30 25578198 2021-10-01 2022-09-30 2 25578198 2022-09-30 25578198 2021-10-01 2022-09-30 3 25578198 2021-10-01 2022-09-30 101 25578198 2022-10-01 2023-09-30 1 25578198 2022-10-01 2023-09-30 2 25578198 2023-09-30 25578198 2022-10-01 2023-09-30 3 25578198 2022-10-01 2023-09-30 101 25578198 2021-09-30 fsa:ContributedCapitalMember 25578198 2021-10-01 2022-09-30 fsa:ContributedCapitalMember 25578198 2022-09-30 fsa:ContributedCapitalMember 25578198 2021-09-30 fsa:RetainedEarningsMember 25578198 2021-10-01 2022-09-30 fsa:RetainedEarningsMember 25578198 2022-09-30 fsa:RetainedEarningsMember 25578198 2021-09-30 fsa:ReserveForDevelopmentExpenditureMember 25578198 2021-10-01 2022-09-30 fsa:ReserveForDevelopmentExpenditureMember 25578198 2022-09-30 fsa:ReserveForDevelopmentExpenditureMember 25578198 2021-09-30 fsa:ReserveForUnpaidContributedCapitalMember 25578198 2021-10-01 2022-09-30 fsa:ReserveForUnpaidContributedCapitalMember 25578198 2022-09-30 fsa:ReserveForUnpaidContributedCapitalMember 25578198 2022-10-01 2023-09-30 fsa:ContributedCapitalMember 25578198 2023-09-30 fsa:ContributedCapitalMember 25578198 2022-10-01 2023-09-30 fsa:RetainedEarningsMember 25578198 2023-09-30 fsa:RetainedEarningsMember 25578198 2022-10-01 2023-09-30 fsa:ReserveForDevelopmentExpenditureMember 25578198 2023-09-30 fsa:ReserveForDevelopmentExpenditureMember 25578198 2022-10-01 2023-09-30 fsa:ReserveForUnpaidContributedCapitalMember 25578198 2023-09-30 fsa:ReserveForUnpaidContributedCapitalMember 25578198 2022-10-01 2023-09-30 1 25578198 2021-10-01 2022-09-30 1 25578198 2022-10-01 2023-09-30 1 25578198 2022-10-01 2023-09-30 2 25578198 2022-10-01 2023-09-30 3 25578198 2021-10-01 2022-09-30 1 25578198 2021-10-01 2022-09-30 2 25578198 2021-10-01 2022-09-30 3 25578198 2022-10-01 2023-09-30 1 25578198 2022-10-01 2023-09-30 1 25578198 2022-10-01 2023-09-30 1 25578198 2022-10-01 2023-09-30 2 25578198 2022-10-01 2023-09-30 3 25578198 2022-10-01 2023-09-30 4 25578198 2022-10-01 2023-09-30 5 iso4217:DKK xbrli:pure Henrik Bechgaard KPMG P/S Dampfærgevej 28 2100 København Ø 70 70 77 60 kpmg.dk kpmgdanmark@kpmg.com 25578198 Dirch Passers Allé 76 2000 Frederiksberg KPMG in DenmarkRevenue KPMG in DenmarkRevenue KPMG in DenmarkRevenue KPMG in DenmarkRevenue KPMG in DenmarkRevenue 829331000 1009737000 1111559000 1365279000 1485901000 578113000 690406000 735513000 897045000 939287000 -240000 7779000 4604000 10509000 806000 240000 -1585000 -1107000 -961000 264000 Profit for the year Profit for the year Profit for the year Profit for the year Profit for the year 0 6194000 3497000 9548000 1070000 266831000 353201000 304689000 334550000 353237000 3201000 2530000 4662000 8411000 4249000 49627000 57594000 55544000 77829000 87555000 13947000 110418000 -76086000 -4604000 21140000 -3311000 -4792000 -7424000 -9251000 -6926000 8625000 23000 -3297000 11987000 6406000 19261000 105649000 -86807000 -1868000 20620000 Revenue growth Revenue growth Revenue growth Revenue growth Revenue growth 0.14 0.19 0.07 0.22 0.05 0.19 0.16 0.18 0.23 0.25 555 593 678 885 869 Gender split (male/female) in % 67/33 66/34 63/37 62/38 60/40* KPMG P/S, KPMG Acor Tax Partnerselskab and other Danish KPMG member firms combined as KPMG in Denmark.** For definitions, see note 1, Accounting policies. FY23 was indeed a year filled with contrasts. The world is in turmoil, and we are experiencing war in both Europe and the Middle East, economic uncertainty, geopolitical shifts and groundbreaking technological leaps. These changes have the potential to reshape how we work and fundamentally alter our perspectives and actions. No one can tell how the way ahead is shaping up, and what we saw in 2023 was, once again, unprecedented.At KPMG, this uncertainty has of course affected us as well. Much like many Danish and international businesses, we have been anticipating and preparing for a potential slowdown on growth and on focusing on ensuring sustainable and responsible development. Despite the circumstances, in FY23 we achieved a total revenue growth of 9 % across Advisory, Audit and Tax. Overall, total revenue increased from DKK 1,365 million in 2021/22 to DKK 1,486 million in 2022/23.Looking into another unpredictable year, we will do our best to continuously adapt our strategy and align with reality, always making sure that we continue to inspire confidence and empower our people, clients and society to cope with unpredictability and set a course for real change.In the middle of FY23, we had a change in leadership where Morten Mønster stepped down as Senior Partner and CEO. Therefore I, Mads Raahede, have the honour to be addressing this Management’s review, as the newly appointed Senior Partner and CEO of KPMG P/S.Having been a part of the Leadership Team for two years, I am fully aligned with the task at hand. I am excit-ed about the opportunity to chart the course for KPMG P/S, championing our Multidisciplinary Model that spans Audit, Advisory and Tax. We are steadfast in our dedi-cation to delivering outstanding services to Denmark’s top-tier companies within energy, financial services, digital transformation, M&A transactions, ESG report-ing, compliance, assurance and more. We are pleased to announce a commendable overall Client Satisfaction Score of 4.35 out of 5 for FY23. Our clients’ satisfaction remains at the core of our mission, and we look forward to further enhancing our partnerships in the years ahead.Coming out of FY23, we are dedicated to show sus-tainable growth and proud to be a people-first company focusing on quality of life and quality of work. Together we make the difference.The people shape our companyAs a company, KPMG is still growing and in FY23, we maintained a diverse workforce comprising 45 different nationalities among our exceptional employees. Now more than ever we need to be inclusive, focus on well-be-ing and provide opportunities for personal and profession-al growth within fields that resonate with each individual. As an example, in FY23 we further enhanced our internal Ally groups to now consist of five groups : Parent Group, Gender Balance, Footprint Group, MindSpace and QueerSpace, our well-renowned group through many years focusing on creating an inclusive workspace irrespective of sexuality or gender. These groups are made up of passionate employees and supported by leadership. To continuously strive to do better, we launched our new Koach framework to further improve our people leadership. In a sports team, it is up to the coach to ensure that every player reaches their full potential, plays effectively with others and is given opportunities to develop. The same goes for our KPMG Koaches. Koaches are people leaders with the responsibility to develop and motivate. In FY23, we successfully trained more than 150 internal Koaches. After the training, 96 % of the partici-pants felt considerably more proficient in handling their daily tasks and navigating people leadership responsibili-ties more effectively. We also strive to have a positive impact on society. One way to achieve this is through our sponsorship of Team Rynkeby, for the sixth year in a row. No less than four of our employees chose to bike to Paris to support children with critical diseases. We recognise our respon-sibility to contribute to education and give back to socie-ty. In line with this commitment, we have sustained our partnership with Velkommen Hjem - an organisation that supports formerly deployed veterans in their transition back to a civilian life. We believe that some of these initiatives are the reason why 80 % of our people express that they are proud to work for KPMG and would recommend KPMG as a great place to work, despite the uncertain times. AI is starting to realise its full potential2023 showed us that AI is operational on a practical scale, and we are proud to continue being one of the leading advisors on building and implementing AI in Danish organisations, as well as serving as advisors to The Confederation of Danish Industry on AI’s impact on business and society.Bringing potential to life through digital transformation while maintaining trust is a true reflection of our way of thinking and working in KPMG. We challenge the status quo, while striving towards excellence in all we do. As part of the global KPMG network, we have officially joined the IBM Quantum network to further explore the potential of quantum computing. We have also expanded our global alliance with Microsoft to put AI at the fore-front of professional services.As another result of our tireless work with digital trans-formation, we are also pleased to note that our efforts and, more importantly, our exceptional talent within new technology have played a part in moving us up the ladder as a preferred employer among IT professionals. We will continue to help our clients unlock the potential of digital transformation, as it will continue to play a pivotal role in the success of businesses, both inside and across borders. As a technology, AI is also driving another agenda. We are proud to have partnered up with the organisation Women in AI, where we showcase some of the female frontrunners in this booming field. The seats are packed at the events, and we are delighted to be a central part of both the tech and equality agenda.Raising our voice on ESGAchieving net zero will be one of the greatest challenges in the 21st century, and young people have a vital role to play in driving climate action. Therefore, we launched our Leaders 2050 network in the spring of FY23. A profes-sional network led by KPMG for future leaders who have an interest in net zero and sustainability, with a focus on diversity and inclusion. The network’s mission is to equip the next generation with the skills, networks and purpose needed to drive towards a more sustainable future.We are currently hosting Leaders 2050 events and have ambitious plans for the upcoming year, including col-laborative initiatives with organisations such as the UN and with a focus on COP28. Our network expanded by more than 360 new members – all committed to making a change and providing a platform for knowledge sharing to ensure that we build the leaders of tomorrow. We look forward to growing the network in FY24.At KPMG, inspiring senior leaders to effectively address and drive the ESG (Environmental, Social and Govern-ance) agenda forward is a key priority for us. We therefore hosted two events in FY23 focusing on sustainable lead-ership which turned out to be some of the biggest ESG events we have hosted. Across Copenhagen and Aarhus, we inspired over 250 participants to engage in discus-sions on how to approach the new leadership challenges. We also embarked on an exciting new collaboration with FINANS, resulting in the establishment and success-ful launch of the FINANS IMPACT Award show. This pres-tigious event aims to recognise companies and organisa-tions that are truly making a positive impact in the realm of ESG. The inaugural award show exceeded expecta-tions, and we are thrilled to announce our commitment to replicating this success in FY24. Once again, we will be presenting awards in the categories of Climate, Social and Tech to honour those leading the way. In FY23, we were also one of the premium sponsors of Årets SMV, an award show that celebrates small and medium-sized companies in Denmark, also on their ESG impact within the category “ESG Frontrunner of the year”.Almost 10 years youngWe are a people business. Our people are our first and foremost asset. As a young company in Denmark, we are not weighed down by legacy and traditional ways of working. 2024 marks our 10th anniversary, and we look forward to celebrating the culture we have built together and the great progress we have made so far.We must venture into our 10th year with our purpose held high to inspire confidence and empower change. We will stay committed to building trust in the capital mar-kets and ensuring that we keep the momentum we have generated and carry it into the future. Positive growth and continuously advising, challeng-ing and focusing on our clients have been key through FY23. I am truly honoured and energised about the task at hand, and I look forward to taking KPMG to the next level. Thank you one and all in the KPMG family. You truly made a difference and made a challenging year another year of growth.Our global networkKPMG is a global network of pro-fessional services firms providing advisory, audit and tax services. We operate in 143 countries and have 273,000+ people working in member firms around the world. We work closely with a broad range of clients, such as busi-ness corporations, governments and public sector agencies and not-for-profit organisations. We support them in mitigating risks and exploiting business opportu-nities. We lead with a commitment to quality and integrity across the KPMG global organisation, bringing a passion for client suc-cess and a purpose to serve and improve the communities in which KPMG firms operate. In a world where rapid change and unprec-edented disruption are the new normal, we inspire confidence and empower change in all we do.In our constant strive toward creating an even better workplace, FY23 was characterised by a focus on both the internal and external aspects surrounding our people at KPMG – specifically regarding recruitment of new tal-ent and actively working on motivating, developing and empowering our colleagues.We are always working for a better KPMG and look for new ways of raising our standards. Our annual Global People Survey provides a clear indication of how well we are faring, and we are proud to have reached a response rate of 90 % in FY23. Listening to almost every voice and focusing on selected areas are the best ways to make sure we do better for the people at KPMG in Denmark.Introducing the Koach frameworkOne of the focus points from earlier years has been to further strengthen and educate our leaders in KPMG. As a result of this effort, we are very proud to have intro-duced the new Koach framework – KPMG’s version of a performance manager.This new framework marks a well-defined step up in terms of taking care of our employees and our people leaders over the longer run. Our Koaches are now better educated and actively engaged in the task at hand. Being a Koach comes with an expectation to continuously motivate and develop the Koachee. Being a people leader is not a role suited for everyone, and it is important to equally value both people leader and non-people leader roles.We are proud to have educated 150+ Koaches across our service lines ranging from Senior Consultant to Part-ner level through our specially designed course.I love the safe space that was created– KPMG KoachWe are delighted to report that the framework has proven to be highly successful, and 98 % agreed that they were satisfied with the quality of the course.We will continue to develop the framework and look forward to educating and upskilling more Koaches in the years to come to ensure that we have the best suited people to guide our employees through the next steps of their career.Bring your diverse passion to work At KPMG, Diversity, Equity and Inclusion (DEI) holds a prominent position on our agenda.We are proud to say that 42 % of all job applications we received in FY23 came from women. Overall, 40 % (FY22 : 38 %) of our employees are women, and we continue to focus on gender equality and inclusion so that all employees, regardless of whether they are men, women or non-binary feel welcome and respected. To increase the number of women working at KPMG, we launched an external campaign in September, casting our own employees, which highlights how we stand behind each other and how women can thrive and make a mark in their career with us.With the 45 different nationalities present at KPMG in FY23, we fully acknowledge that every employee is unique and embodies a wealth of passion, interest and skills that extend beyond their daily work. That is why we are mobilising the passion of our employees into our Ally groups – each group with its own focus and man-date.Ally groups at KPMG in Denmark• Gender Balance advocates for a KPMG that is fair and inclusive for all genders, and from which gender balance naturally emerges.• Footprint’s mission is to drive key initiatives that can help KPMG in Denmark reduce its carbon footprint, mitigate climate risks, promote biodiversity and adopt circular practices.• QueerSpace is KPMG in Denmark’s LGBTQIA+ com-munity that aims to drive change, promote equality for all and strives to create a better, safer and more inclusive work environment.• MindSpace’s initiatives concentrate on personal growth with a focus on personal mental well-being, positively influencing one’s professional life.• Parents are working on ways to ensure that life as a parent can go hand in hand with a successful career at KPMG.Through the groups, employees across functions, ages – our average age being 34 years old – and genders can contribute their thoughts and ideas to the ongoing devel-opment of KPMG. These groups are 100 % driven by the employees supported by a more senior advisory board.This year, the Footprint Ally Group hosted Earth week in April to bring more awareness on employees’ climate footprint and championed actions for implementing a greener future. Furthermore, the new Leaders 2050 network, a professional network led by KPMG for future leaders in all sectors, was launched in June. With 350+ members and counting, the initiative’s mission is to educate and develop the leaders of the future to ensure a greener and more sustainable future. QueerSpace also secured our participation in the Copenhagen Pride Parade in August, and we are the proud partners of Copenhagen Pride for the fourth year in row.We remain actively engaged in Above and Beyond and are thereby members of the Diversity Council, as well as Inspired Beyond Babies to ensure we support our employ-ees no matter the life stage or situation they are in.Ensuring a great startIn September, we onboarded 42 new graduates and 35 trainees across Advisory and Audit and received 1,234 applications. They kickstarted their career at KPMG during a week-long on-boarding trip to The Netherlands, where they were able to visit the KPMG headquarters and gain important insights on how to work together for better, but also on how to challenge our clients’ perspectives.However, we have decided to modify the Graduate Pro-gramme to make it available to all new junior employees, to provide a smooth start for all our junior new joiners at KPMG. The KPMG Challenger Academy thus ensures that junior new joiners receive the same training as previous graduates, with a focus on core consulting skills, audit foundations and personal development courses – no matter which month they started their career at KPMG. The KPMG Challenger Academy also fosters a better working environment, as it enables our colleagues to build a strong network, work across service lines and challenge the status quo. We are looking forward to launching the new initiative in the year to come.It is all about the talentOur ability to recruit the best people in the business is pivotal for our success. Therefore, we are very proud that our recruitment team was nominated as one of three finalists for DANSK HR’s “HR Prisen 2023”. This award celebrates the most outstanding HR departments in Denmark, and we were selected based on our new and improved recruitment process that enhances our focus on diversity, equity and inclusion. Despite not securing a win, we are proud to be recognised in the field and that our efforts are appreciated.As a part of the improved process, we have been even more focused on delivering a meaningful candidate expe-rience. We aim to be involved from day one in the recruit-ing process, reducing potential errors, battling uncon-scious bias and significantly boosting candidate diversity.In our efforts to attract more talents, we engaged in over 70 events and fairs during FY23. Additionally, we organ-ised numerous in-house events to provide prospective tal-ents with a first-hand experience of the KPMG culture and an opportunity to connect with our employees. Moreover, we continue our alliances with universities, high schools and student organisations, including collaborations with the Female Leadership Academy, and giving guest lec-tures at Copenhagen Business School. Our emphasis on promoting diversity among young women is also support-ed by our partnership with Women in AI, enhancing our focus on women working with emerging technologies. We are honoured that our initiatives are being recog-nised as we climbed 8 places among both IT and busi-ness professionals in the FY23 Universum ranking.All these efforts are more important than ever in the current and future recruitment landscape. Together with FSR – Danish Auditors, the Danish trade organisation of auditing, accounting, tax and corporate finance, we are fronting a common message in motivating young people to become auditors and focusing on the crucial role they play in the Danish society. The future lack of skilled auditors is a serious concern, and we take pride in doing our part to solve this issue that could potentially impact everyone.Looking ahead, the strategic focus will also be on retaining valued employees, with a keen eye on future growth expectations. We are proud to recruit people with various backgrounds within tech, engineering, business, economics and audit. As a company, we recognise the need to align with the expectations of the new genera-tions. This involves adapting to a heightened focus on flexibility and job security, recognising their significance alongside traditional factors such as remuneration and climbing the career ladder. We will continue to watch the trends closely and match them with our company needs and recruitment effort.Our valuesEveryone can create a good business. Big, blue and bland.Creating a great business. Now that’s a lot harder.That’s going to take you.Because it takes you to never stop learning and improving.Never settling for less than excellence because that’s just how KPMG people roll.Just as it takes you to think and act boldly.Add curiosity to your skill set. Be open to new ideas and people, and unlearn the old ways.Find the courage to chase the gold at the end of the rainbow.But that’s not enough. It takes you to do what’s right.That means no cheating and no shortcuts. Carry yourself – and your work – with integrity.This also means it takes you to respect others and draw strengths from our differences.Sounds like too much ? Well, don’t worry – at KPMG we do it together.In the end it takes you to do what matters.So let’s do this. Have fun while we build a stronger future together.Do it for better. For your colleagues, for the world around you – and for yourself.It takes you to make KPMG.There is no doubt that AI is fundamentally transforming audits, enhancing the quality of audits, and revolution-ising the way audits are conducted. One of the great advantages of AI lies in the empowerment of audit teams. Auditors are able to analyse and extract large amounts of data and automate routine tasks such as risk assessment and anomaly detection leading to stronger audit evi-dence, more efficient audits which in turn deliver compre-hensive insights to our clients and ultimately a strength-ening of the quality and trust in financial reporting. Therefore, we are also delighted that in FY23 we formed a strategic alliance with MindBridge to integrate AI into audits conducted by KPMG member firms world-wide. This collaboration will empower AI to play a more prominent role in our audits, particularly among our portfolio of large-cap clients, enhancing the detection of unexpected or high-risk transactions and thereby elevat-ing the quality of our audits. Nevertheless, we firmly believe that AI should support, not replace, human auditors. AI should be implemented with care, guided by ethics and transparency emphasis-ing the importance of having human professional judge-ment and scepticism in the audit process. As auditors, we continue to assume a vital role, collab-orating closely with our clients as they navigate the path to the future in a volatile world. By consistently making good use of the capabilities of evolving technologies, we not only ensure the delivery of high-quality audits and assurance engagements, but we also tap into our clients’ data resources to deliver additional value from the audit-ing process. Full support on the ESG journey With the implementation of the new sustainability reporting regulations, our commitment as auditors lies increasingly in providing assurance for both financial and non-financial information.For many companies, big and small, it is a new area with numerous requirements that can seem extremely complex and difficult to navigate. At the same time, many companies have limited knowledge and experi-ence in this field, which increases the complexity of the challenge. We are therefore very excited about helping our clients navigate the evolving landscape of ESG reporting and compliance. As ESG reporting often crosses borders, we have a close collaboration with our Nordic and Glob-al colleagues, ensuring we are well-equipped to offer services such as ESG assurance, sustainability reporting, supplier audits, ESG readiness assessments and compre-hensive advisory services.Our aim is to support our clients on their entire ESG journey, ensuring they are well-prepared for the future and can anticipate challenges, avoiding any unexpected surprises along the way. Nurturing a culture of belonging Given the historically elevated churn rates among audit firms, cultivating a profound sense of belonging is of great importance to our audit practice. Thus, our commit-ment to fostering belonging remains an ongoing priority, aligning with our core values of Together and Excellence. This emphasis has been instrumental in mitigating churn rates and ensuring stability within our teams, crucial aspects that are highly valued by our clients. Our Region West’s successful implementation of strat-egies such as reverse mentoring, integrating specialists into teams through a holistic 360-degree approach and local leadership initiatives serves as a testament to the direct correlation between fostering belonging and achieving sustained success, evidenced by our partner-ships with new clients such as RTX, Sanistål, Scandinavi-an Medical Solutions, Scada and Siemens Gamesa. As leader of KPMG West, encompassing Funen and Jutland, I have witnessed first-hand the power of fostering a sense of belonging within our teams. It is not just about reducing turnover ; it is about creating an environment where everyone feels valued, heard and integral to our collective success. This sense of belong-ing fuels our innovation and ultimately drives the exceptional service we provide to our clients.Mikkel Trabjerg Knudsen, PartnerEducation remains a cornerstone to us Equally important is our commitment to education. Achieving the status of a State-Authorised Public Accountant (SR) is a rigorous and demanding journey, both professionally and personally. In recognition of the challenges this path presents, we took a significant step forward last year by introducing the SR Academy. Our aim was clear : to empower our professionals with the knowledge and skills needed to pass the SR exam while maintaining a balanced life. The SR Academy offers a set of enhanced conditions designed to support our candidates on their journey. These include dedicated study time with Fridays set aside for learning, structured learning sessions, bi-week-ly exam training, an additional allocation of 20 study days for flexible use, and quarterly exam manuduction sessions. We have over the last years significantly increased the number SR candidates and the percentage of them passing the SR Exams. But our commitment to the development of our people does not conclude with exam success. We firmly believe that obtaining the licence to sign an audit report marks just the initial step on the path to becoming a successful auditor. Thus, our academy’s mission extends beyond the exam, focusing on diverse areas such as providing guidance in tax and business matters, nurturing personal development and provid-ing leadership training. As auditors, we recognise that growth is a continuous journey, and we are dedicated to shaping well-rounded professionals equipped to thrive in the ever-evolving audit landscape.Supporting female entrepreneurship As we focus on our own culture, we have also put the sup-port for another important matter on top of our agenda in FY23 : female entrepreneurship. We believe that empow-ering women in entrepreneurship is not just a matter of fairness ; it is an investment in a brighter and more inclusive economic future. Encouraging and supporting female entrepreneurs not only unlocks their potential but also leads to more vibrant and dynamic economies. Again this year, we have been heavily involved in sup-porting Tech Nordic Advocates which is the largest tech and startup ecosystem and women-in-tech community in Northern Europe. We are proud to actively participate in their accelerator programmes by providing mentors. In FY23, we also initiated a collaboration with Angella Invest, consisting of female angel investors, and together, we hosted events and presentations at their gatherings, creating a supportive environment for female investors. Our dedication to support female entrepreneurship through both sponsorships, partnerships and personal commitments among our people underlines our true commitment to foster diversity and inclusion in the business world and promote economic empowerment for women.I believe that the importance of female entrepreneurship lies in its ability to tap into a diverse range of talents, skills and perspectives that might otherwise remain untapped. Women entrepre-neurs bring fresh ideas to the table, develop new products and services and challenge the status quo.Katrine Gybel, Partner Celebrating Danish Tech start-ups and SMEs Our team in MidMarket is strongly engaged in work-ing with start-ups, scale-ups and SMEs as they grow and expand. Therefore, we also have a strong focus on acknowledging companies on their successes and on nurturing the eco-system through partnerships. For the second consecutive year, we organised the KPMG Private Enterprise Global Tech Innovator com-petition in Denmark, with the goal of selecting a rep-resentative for KPMG’s global competition. With this initiative, we aim to recognise the most rapidly growing and innovative technology companies, and in this year’s edition, Healthycrop.world became the Danish winner, earning the opportunity to advance to the global finals. Healthycrop.world specialises in the development of crops that exhibit natural resistance to fungal infections by harnessing the plant’s inherent defence mechanisms.Another of our important commitments is that we have proudly become a Premium Partner for “Årets SMV”, an award show that celebrates and honours the dedicated individuals behind the achievements of small and medi-um-sized companies in Denmark. What sets “Årets SMV” apart from other business awards is its unique focus on the people rather than just the outcomes. Through this partnership, we aim to convey our strong commitment to the SME sector, and we believe that the individuals responsible for these results deserve recog-nition and celebration. We look forward to being part of the award show once again in 2024 which provides us with an exciting opportunity to engage with inspiring role models in the Danish business community. Tailored audit and advisory services to the NGO sector Over the last year, we have also strengthened our com-mitments in regard to NGOs. NGOs engaged in devel-opment aid and emergency relief are currently facing increasing complexity and heightened expectations from their donors. To meet the demands for high-quality and efficient audits that align with these evolving needs and rising expectations, we provide audit and advisory servic-es tailored to their unique requirements. Our NGO Team comprises dedicated professionals who specialise in serving non-governmental organisations, particularly those receiving funding from entities like Danida and other international actors or governments, primarily for development assistance or emergency aid. Fostering the next generation of LargeCap auditors Strategic global alliances are integral to our operations, especially within our LargeCap practice, significantly enhancing the value we offer our clients. Our collaboration with partners like MindBridge, whose advanced analytics technology is integrated into our digital audit platform, KPMG Clara, exemplifies the transformative potential of these alliances. This integration empowers us to conduct thorough transaction analyses, enhancing the transparen-cy and effectiveness in our audit processes – particularly beneficial for clients handling millions of transactions. Moreover, our partnership with Microsoft has yielded a suite of pioneering solutions tailored to bolster our clients’ ESG initiatives. These solutions focus on deliv-ering data-driven insights and support, spanning from environmental impact tracking to the implementation of sustainable growth strategies. Innovation is therefore at the core of fostering the next generation of LargeCap auditors, facilitating broader and forward-thinking perspectives. The advent of new tech-nologies enables auditors to transcend limitations in data volume, enabling more comprehensive observations. With access to real-time internal and external perspec-tives, auditors can now approach assessments holistical-ly, adding substantial value to their clients. Investing for tomorrow’s challenges and opportunities We recognise that the transformative impact of AI is revo-lutionising the audit landscape. Additionally, the ongoing advancements in sustainability reporting requirements will reinforce our pivotal role as providers of trust. Regard-less of the eventual reporting standards, we acknowledge that ESG disclosures and data must be approached with the same rigor, quality and trustworthiness as financial data. Looking ahead, we are convinced that our audit profes-sionals will only continue to deliver even greater value to our clients and that our profession will continue to attract exceptional talents, further enhancing our collective jour-ney and commitment to society. Client case :Assisting Bitzer Electronics A/SSince August 2023, KPMG has assisted Bitzer Electronics A/S in the finance department with various tasks, including reviews, reports, budget follow-up and the like. In addition, KPMG is also assisting OJ Electronics A/S (subsidiary to Bitzer) in the finance department with tasks such as financial reporting, VAT, budgets, etc. Both in Bitzer and in OJ, KPMG consultants fill the roles of interim Finance Managers, stepping in and making a difference from the first day.I am very happy with the service provided by KPMG’s Interim Services division. Despite the unexpected departure of our controller five months ago, the KPMG consultant seamless-ly stepped in, managing monthly controlling tasks independently, without much handover. This allowed us to keep operations running smoothly, freeing up valuable time for us to focus on recruiting a new controller. The auton-omy demonstrated by the consultant has been a significant asset, sparing us from the need for extensive training or ongoing support.Silvia Petralli,Finance Director at Bitzer Electronics A/S In FY23, we continued our strong focus on placing technology and ESG at the core of our advisory services offerings. We have helped our clients transform their businesses by applying technology from our leading technology alliance partners and still focus on the people aspects of the transformation. To us, this represents real business value for our clients. Our advisory practice delivers a wide range of services within Deal Advisory, Risk Consulting and Management Consulting, and we provide services in many sectors such as financial services, energy and public. Earlier this year, we further improved the foundation for our advi-sory function as we implemented a restructuring of our Management Consulting business. The purpose of this has been to streamline our service lines and consolidate our knowledge to better serve our clients, minimise fric-tion and deliver on even bigger transformative projects. We have already seen the improved results on collabora-tion and knowledge sharing across our different areas of expertise and received great client feedback. Better collaboration is also fostered when we keep an open dialogue with our employees across all roles and service lines. We have therefore established our Adviso-ry Sounding Board to give voice to the younger genera-tion, advising our leadership on matters of importance, at every level in the organisation. Here we also embrace critique and truly value the engagement and positive feedback this initiative has received along the way. To us, it already confirms that innovation and progress thrive best when everyone is given the opportunity to contribute. Four key themes shone bright in FY23 and drove the demand and agenda set by our clients : AI, risk manage-ment, green transition and regulatory compliance.Revolutionising tomorrow with artificial intelligence In the realm of business transformation, the integration of AI and generative AI into the core of organisational operations is no longer a futuristic idea, and FY23 was a breakthrough year for our AI solutions and services. The competitive landscape is evolving, with AI-enabled enter-prises taking the lead in proactive market responsiveness and operational efficiency. Over the past financial year, the demand for both AI and generative AI has surged due to technological advancements and enhanced accessibility. Furthermore, it seems that the enthusiasm surrounding ChatGPT has led business leaders and decision-makers to embrace and prioritise the new technology. Companies are recog-nising the value and potential of integrating AI into their operations to drive innovation, optimise processes and gaining that important competitive edge. Our proactive approach in this domain, coupled with our strengthened partnership with Microsoft, has positioned us as a frontrunner and a trusted advisor for businesses keen on leveraging generative AI to achieve strategic objectives.Our trajectory is meticulously designed towards delivering state-of-the-art solutions, with a pronounced emphasis on aligning with broader societal themes with-in the ESG agenda, especially sustainability and inclu-sivity. The collaboration with Microsoft continues to be a pivotal part of this strategy.The increasing adoption of AI and generative AI is poised to nourish our growth within our NextGen opera-tions. With more accessible solutions and tools, organi-sations will increasingly seek to leverage the transform-ative potential of AI, and thereby amplifying the demand for our comprehensive suite of services and solutions within this field.Building trust through risk managementIn today’s businesses, trust is everything. In an uncertain, constantly changing environment, customers, employees and investors look for organisations they can depend on. Client case :Furthering Energinet’s green agendaOur advisory team worked together with Energinet to assist Energinet’s green transition. During FY23 our Advisory team has assisted Energinet on energy system analysis and on the maturation and execution of construction projects including natural gas, energy islands, hydrogen and CO storage.2From the perspective of an energy infra-structure and system operator, a wide range of capabilities such as regulatory, commercial, digital and technical are key to securing energy supply while building and scaling new energy value chains.Marianne Hansen,Head of Corp. Finance, EnerginetBut building and protecting that sense of trust requires every part of the organisation to work together to deliver a consistent, unified vision.Across our advisory services, we work with clients that acknowledge that governance, risk and compliance (GRC), cybersecurity, privacy and third-party risk management all play a key role in building and maintaining that trust. This is especially important as businesses are ramping up data collection, expanding the use of AI and machine learning technologies while embracing the ESG agenda.Over the past years, we are proud to have supported our clients in a landscape where the increasing regu-latory requirements have become a growing factor. A key challenge lies in defining a holistic enterprise-wide governance and organisational setup that can adopt and implement new additional regulatory requirements. In addition, it is necessary to assess the impact of this framework on the existing security and compliance position. Our Digital Risk team advises our clients on how to establish a well-defined operating model for GRC & integrated risk management. In relation to this, we have advised our clients to implement an Information Security Management System (ISMS) to achieve centralised and standardised ways of working with risk. The ambition is to increase security maturity by fostering transparency and implementing a policy and document hierarchy with clear and well-defined roles and responsibilities. This ensures that every process and every control are actively monitored. One of the key tar-gets for this is to be better prepared to adopt new com-pliance requirements and adjust for changes in threats.During FY23, we have delivered transparency through a well-defined GRC setup and enabled our clients to demonstrate that they can manage and control the regu-latory requirements and be fully compliant. Advising on the green transitionDuring 2022 and 2023, events such as the war in Ukraine and the energy supply crisis have emphasised the need for security of supply in the EU and globally. Stable and affordable energy remains key to the modern world. Our clients strive to balance the green transition at a pace where both fossil and green energy supplies can build up a safe infrastructure delivering energy everywhere it is needed. We are proud to continuously assist the ongoing green transition of our Danish public and private clients across the energy value chain.The transition to climate neutrality drives change with our clients as political ambitions and strategic business targets are shaped by governments, regulations and senior management. This change, however, also comes with high complexity. Fluctuating renewable power from sources such as wind and solar is scaled and introduced into the energy system, and technologies like geother-mal heat, hydrogen, battery storage, e-fuels and carbon capture and storage are developed and scaled to replace or compensate for the use of fossil fuels. In KPMG Advisory, we stand out in the market by build-ing competences specific to the energy sector, and we assist our clients in successfully navigating the complexity by addressing three main themes in the green agenda : regulatory, commercial and technical matters. During FY23, our work within these three areas has been exempli-fied on projects in relation to the Bornholm and North Sea Energy Islands, the Baltic Pipe natural gas pipeline, CO2storage or production and transportation of hydrogen.Amid the transition, we see our clients further develop transparent sustainability reporting, including climate impact reporting. In a European context, the Corporate Sustainability Reporting Directive (CSRD) is phasing in and driving substantial change to the operating models of our clients. We have played a vital role as trusted advi-sors by combining sector insight and capabilities within assurance, digitalisation and performance management to assist our clients on this journey.Based on the market’s ambitions to deliver substantial emission reductions by 2030 and net zero by 2050, we expect further demand for our services in the coming years. We will continue to expand our capabilities and plan for our own sustainable growth within the field. We are proud to be called upon for advice by our clients across the energy value chain when the green transition needs an operational boost.New regulation continues to fuel growthIn recent years, a significant portion of the projects in KPMG Advisory has been dedicated to assisting clients in the implementation of regulatory requirements. In par-ticular, the financial sector needs to comply with complex and important regulation, and the enhanced focus within the EU on further strengthening this sector and enabling the green transition will continue to fuel the growth. The main regulatory focus points for the coming years will be ESG reporting within the financial sector, which will also be a major driver for us at KPMG. The industry will also have a continued focus on strengthening the financial solidity of the sector as well as the increased emphasis on risk management capabilities. Many of these aspects relate to technology which includes imple-mentation of DORA, the AI Act and validation require-ments to control model risk management. During FY23, we have successfully focused our efforts on targeting some of the most significant financial insti-tutions in Denmark with the most complex needs for con-sultancy assistance and the highest transaction volume. In the coming years, we expect to dive even deeper into regulation and maintain this focus while exploring every opportunity – staying diligent and keeping our clients compliant.Assisting our clients to navigate in the complex tax land-scape is not only a tax technical challenge, but increasing-ly also a data and a governance challenge. The many new aspects bring forward new demands from our clients. We truly believe that trust is one of the most important measures of our success, not only during the past year, but every day in terms of what we are able to accomplish and deliver to those that rely on us the most. Trust is key to engaging our employees and crucial to continuous-ly attracting new talent. Our clients and the society at large continue to trust us when navigating complex tax matters that require us to work across borders and disci-plines to collaborate more closely than ever. Strong financial results in FY23 are proof of our extraordinary people, successful 360-degree mindset and agility.Navigating the complexities of tax landscapeAt KPMG Acor Tax, our 360-degree approach and our dig-ital mindset are fundamental to how we go to market and work together internally. This holistic approach fosters sustainable solutions and loyal clients, whom we support through all complexities they may face. We collaborate closely with organisations of all shapes and sizes across a broad range of tax and technology areas – whether navigating complex tax matters, getting ahead of future compliance requirements, driving processes and cost effi-ciencies, or rethinking the way in-house functions operate to drive better value. Our objective is simple : helping our clients pay the right tax at the right time, using our deep expertise and continued investment in technology. In the past year, we have seen a substantial growth in renewable investments with more investment operators in the market, which has made the competition in this area a bit tougher than we have seen before. The market demands a high level of specialised knowledge from their advisors to help them navigate the landscape. As a result of this, our cross-functional team of tax experts within Renewables has been assisting an increased number of clients within this sector, and we expect this development to continue in the coming year as well. Compliance Management and Transformation is a stra-tegic focus area for KPMG globally and a rapidly growing business in Denmark. Our Compliance Management and Transformation services are market-leading, and we have had several significant wins in the compliance transfor-mation area over the past years. These wins are typically 3–5-year contracts where we are transforming existing global compliance processes to achieve increased quali-ty, standardisation, insights and efficiencies. Our Tax Dispute Resolution and Controversy services are recognised as market-leading in Denmark both by our clients and according to the global tax publication International Tax Review. Whether the Danish Tax Agency(Skattestyrelsen) or a foreign tax authority raises a claim against one of our clients, our tax dispute resolution and controversy leaders are able to assist our clients to protect against, prepare for and resolve disputes with tax authorities. We help our clients take control of the dispute resolution process to get effective results both locally and globally.In the area for Indirect Taxes, the added interest on all VAT and excise corrections has brought significant changes and challenges for companies in Denmark throughout 2023. The new rules came into effect as per 1 July 2023, where it is no longer interest-free to be in non-compliance for VAT and duties. The rules have retrospective effect and interest will therefore also be calculated on retrospective declarations that cover old duty periods.In parallel with that, the Danish Tax Agency increased their focus on controls and audits in this area that affected many companies. Consequently, our Indirect Tax Team has been assisting a large number of clients in navigating this landscape and ensuring compliance within the area.Demand for talent, global digitalisation and employ-ees’ desire and need to work from anywhere require employers to rethink their future workspaces. Under-standing the future of work, including its opportunities of working from anywhere and recruiting talents in loca-tions that were not available before, underpins the need for a 360-degree perspective. Our Global Mobility team has worked closely with our clients to embrace their jour-ney while getting all the tax aspects right. In the Financial Services (FS) tax area, our market-lead-ing team is helping many of the largest Danish clients within banking, life and non-life insurance as well as asset management. The growing demand for regulatory compliance within the Financial Services (FS) sector also implies a significant increased focus on tax compliance within the sector where we have our highly specialised teams service our clients. Sustainability and ESG in TaxThe world is evolving. The growing climate crisis is driving increasing demands on businesses to implement sustainable initiatives and turn ESG into action.As national and international tax policymaking shapes behaviour towards a sustainable world, and with tax revenues being a key lever to deliver on the UN’s Sus-tainable Development Goals, tax is becoming a strategic governance issue for companies. Our cross-functional team of experienced professionals has also this year provided advice to a large number of clients on key tax and ESG focus areas such as environmental and climate-related taxes, tax transparency reporting, good tax governance in a responsible tax context, sustainable supply chains and our development and marketing of our Tax Footprint Analyzer. To support our clients in bridging the gap between tax and sustainability leaders, this year we hosted a flagship Sustainability and ESG in Tax event, where we explored the role a tax function can play for a sustainable future. For the second year in a row, we also launched our Nordic GRI 207 benchmark report disclos-ing the performance of tax disclosures for more than 100 companies across the Nordics. Digital Now. And tomorrow.Technology continues to evolve, shape and transform how businesses function and people interact. One of our key strategic priorities is to enable that our people contin-uously develop a digital mindset. We are in particular proud of the tailored programme prepared and facilitated by DTU (Technical University of Denmark) for our internal Digital Now ambassadors under the name Ready for the future − Digital technolo-gies and digital transformation. Digital Now is the name of our own internal tech journey, with focus on commer-cial mindset, tools and skills, making us fit for the future. The purpose of the course was to increase awareness of the new digital technologies and support the digital maturity of our business with focus on a) strengthening our digital understanding b) accumulating greater knowl-edge of digital technologies and the ability to navigate between them and c) gaining new insights into the pos-sibilities in relation to the development of smart services. The course was conducted by a strong interdisciplinary team from DTU of leading and in-demand researchers and lecturers in digitalisation as well as external experts from CBS and ITU. We will continue to enhance our tech-nology platform, enabling us to incorporate emerging technologies internally and externally.Business model KPMG P/S (“KPMG”) is a Danish approved state-author-ised public accountant firm that is operated by a limited liability partnership, owned by KPMG’s Danish equity partners. KPMG provides advisory and audit services to the Danish market. KPMG provides tax services in cooperation with the independent member firm KPMG Acor Tax Partnerselskab. KPMG does not deliver legal services. Legal services are delivered by the independent member firm KPMG Law Advokatfirma P/S. KPMG is split into two functions : Advisory and Audit. The Audit function delivers among others statutory audit of Danish entities, audit of reporting by Danish entities to foreign groups, other assurance reports, assurance services, accounting advisory services, ESG and interim services. The Advisory function delivers services within Manage-ment Consulting, Risk Consulting and Deal Advisory. At KPMG, we deliver most of the services ourselves or in cooperation with other KPMG member firms. External business partners such as sub-suppliers are used to a limited extent, and these are typically Danish entities. In addition, KPMG has some alliance partners which are also international KPMG alliance partners. These include among others Google, BluePrism, ServiceNow, SAS, SAP and Microsoft. As a state-authorised public accountant firm, KPMG is subject to regulation, where EU rules, local laws and auditing standards must be complied with. KPMG is sub-ject to external quality control from the Danish Regulator (Revisortilsynet). Being a member of the global KPMG network, we are obliged to comply with Global KPMG policies and procedures. KPMG’s culture and ethics have their roots in our international Code of Conduct. The essence of this is protection of the KPMG brand and the public trust, which mean our clients’, potential clients’, public authorities’ and society’s trust in KPMG. KPMG has a comprehensive quality management system to ensure this trust. For detailed description, we refer to our annual Transparency Report which is available at kpmg.dk. The consequence of focus on public trust is that KPMG is not a company that wishes to take great risks. In our view, our business model is not significantly exposed to risks related to environment, social matters and employee matters, human rights, anti-corruption and bribery. The operational risks facing our business include those we have in common with other professional services firms. These include notably a deterioration in market condi-tions, attracting, developing and retaining the best talent in the market, claims and reputational damage caused by either an actual or a suspected failure to deliver services of appropriate quality, or by taking on high-risk clients or engagements. Environmental matters, including minimising the climate impact of our operationsThe Global KPMG network of member firms has announced its intention to become a net-zero carbon organisation by 2030. This will see us : • Cut greenhouse gas emissions (directly and indirectly) by 50 % between 2019 and 2030, aligning with a sci-ence-based target to limit global warming to 1.5ºC.• Source 100 % renewable electricity by 2022 in KPMG’s Global Board countries, and by 2030 for the wider global organisation (including KPMG in Denmark). • Reduce consumption and waste (only purchase and produce what is needed).• Offset any remaining emissions which we cannot remove from our operations and supply chain by investing in externally accredited carbon removal projects. KPMG is committed to supporting the achievement of these goals through a rigorous approach, backed by the expertise of our in-house experts. To achieve these goals, we have in our facilities imple-mented various initiatives to combat climate change and support circularity and biodiversity covering : • Promoting responsible consumption (less meat in canteen, increased use of recycled materials in office supplies and eliminating single-use plastic products).• Increased recycling and reduced combustible waste through effective waste sorting.• Use of clean energy (electricity from renewable electricity at most of our offices and energy efficiency inspection performed by external party).• Priority parking for electric cars and use of electric taxis when possible.• Choosing organic whenever possible and maintaining the canteen’s Silver Organic Cuisine Label.KPMG wants to be at the forefront of climate reporting and in increasing recognition of the need for further expansion of renewable energy and uncertainty about the true impact of renewable energy certificates on the overall green transition, KPMG is aiming to enter into a Power Purchase Agreement (PPA) which will ensure that our electricity will come from renewable sources that contribute as much new green power to the electricity grid as we consume. KPMG has chosen to follow Energinet’s recommenda-tions to calculate all offices’ emissions according to the time-based calculation as recommended by Energinet (see pages 12–15 in the report “Miljøredegørelse 2022” on Energinet’s website : Forside > Mere > Energinets publikationer > Publikationer > Miljøredegørelse 2022) This means that CO emissions from electricity 2consumption at all our offices are included, despite the purchase of renewable energy certificates. This choice has been made in preparation for KPMG’s own work to secure new green power via a PPA that matches KPMG’s own power consumption. The results in FY23 stem from a combination of various ongoing initiatives, including updates to travel policies, preferred parking for electric cars, including electric car chargers, increased use of recyclable office supplies such as paper pens and less meat used per employee in our canteens. We have seen a decline in air travel, with a 26 % reduction in flight mileage compared to the previous year. However, there has been a slight increase in car mileage. This has had a positive overall impact on our emissions, and we strive to sustain this reduction as even more meetings can be held successfully online compared to pre-COVID-19 levels. We have upgraded our facilities with more and better digital meeting tools as well as supplying employees with working from home kits. With these upgrades, we expect to see a relatively reduced need for air travel and car mileage. In terms of recycling, our waste is separated into recyclable and non-recycla-ble waste, amounting to 23.9 tonnes (FY22 : 29.7 tonnes) of waste to non-recyclable and 34.8 tonnes (FY22 : 28.1 tonnes) waste recycled in FY23. Our waste initiative in our offices, where organic waste that otherwise would have been disposed of is separated and sent for gen-eration of energy, has been further expanded in FY23. This year we have worked actively to reduce the use of single-use products in our facilities and replace them with recyclable alternatives. All plastic bottles used in our premises are made of 100 % recycled plastic. We gener-ally work on replacing plastic products with non-plastic alternatives. We have also reduced the amount of paper used by 0.5 tonnes by reducing the number of copy/print-ing machines by more than 50 %, and at the same time we converted several printing/copy rooms into modern meeting rooms.In FY23, 17.6 tonnes (FY22 : 14.5 tonnes) of organic waste were reused for energy generation. Our water consumption across our 5 offices amounted to 4,576.90 m3 (FY22 : 4,153.91 m3 ). The increase compared to last year is mainly due to our overall increase in the number of employees. Going forward, learnings from remote and virtual working will continue to serve as considerations for maintaining lower level of emissions, in particular from business travel. Our relative carbon emissions (CO2per FTE) were 0.5 (FY22 : 0.6) tonnes of CO per FTE. 2Compared to the baseline year 2019, KPMG in Denmark reduced relative carbon emissions by 59 % (FY22 : 54 %). The significant relative reductions since the base year are a result of our combined efforts as described above. In absolute terms, our total CO emissions in FY23 were 392 2tonnes (FY22 : 401 tonnes). The decrease compared to last year is primarily attributed to a reduction in air travel.Looking ahead to the results of the coming years, particularly toward 2030, we are considering investing in externally accredited carbon removal projects to offset any remaining CO emissions. 2Social matters, staff matters and the upholding of human rightsKPMG is dedicated to continuously supporting and devel-oping our talent and attracting and retaining top talents to KPMG. We have a clear commitment to equality and to a culture that is free from discrimination whether based on nationality, race, ethnicity, gender, gender identity, sexual orientation, disability, age, marital status and reli-gious beliefs. We promote an inclusive work environment and employee well-being. Due to our commitment to KPMG International, we follow the UN Guiding Principles on Business and Human Rights. This is outlined in KPMG International’s Business and Human Rights Statement. We expect all our stakeholders, including our suppliers and clients, to respect human rights and to act if a human rights risk is identified. During FY23, we have continued to listen to our employees by asking them to speak up in dialogue with our leadership team, partners and colleagues. More formally, we asked them to speak their minds in our annual Global People Survey (GPS). Furthermore, we continue through our Nor-dic Learning and Development (L&D) training centre and local training to design, develop and deliver high-quality and innovative learning solutions, along with personal development programmes to all staff across the region.Starting FY23 and onwards, we have decided to include data on the number of reports received through our whistleblower hotlines (local and international), dis-closing the number of reports received during the year as well as the number of reports which were substantiated. We do this to increase the transparency on our business since it is key to us that everyone is living and behaving in accordance with our values and our Global Code of Conduct. We regularly conduct internal campaigns to all employees encouraging them to speak up, including how to report concerns in confidentiality and without any risk of retaliation. In FY23, we received a total of five reports, all of which were received locally. Out of the five reports received and thoroughly investigated, four of them were substantiated.KPMG´s Work Environment, Health and Safety (WEHS) organisation’s main objective is to plan, manage and coordinate KPMG’s efforts on our work environment, security, health and well-being. The organisation oper-ates as an independent entity across offices and with representation from both senior leaders and employees. Matters related to WEHS are raised directly with local representatives and dealt with on a discretionary basis locally. More general or national matters are raised and dealt with in the WEHS organisation’s leadership team, supported by external consultants. The group also over-sees the annual Workplace Assessment (APV), and shares guidance on how to optimise health, safety and well-be-ing in the workplace. In FY23, our WEHS organisation received one report pertaining to a work-related accident.At KPMG, employees report sick leave through the time registration system. In FY23, the reported sick leave, including both general and long-term illnesses, was 2.4 %. This equals to an average of 5.3 sick days per employee in FY23. Sick leave is evenly distributed between our offices, and compared to country averages in national statistics, KPMG in Denmark has has a rela-tively low level of sick days.We also drive various communities such as Queer-Space devoted to the LGBTQI+ agenda reminding everyone to have the courage to be themselves and embrace differences, and the Balance Initiative looking at ways of attracting and developing female talent as well as helping our employees to balance their professional and private lives. The Balance Initiative committee is especially dedicated to looking at new ways of attracting and developing female talent, focusing on a balanced recruitment at all levels, retention of talent and improving work-life balance. Our industry-leading Parent Growth programmes giving, among other things, equal rights to parental leave between parents, offering paid leave on a child’s third day of illness and covering pension pay-ments if the parents decide to prolong their leave with up to 13 weeks to help mend the “pension gap” between men and women. This year, we had a 76 % (FY22 : 79 %) engagement score in our GPS and an overall participation score of 90 % (FY22 : 89 %). Continued high scores on important areas such as Career Growth, Inclusion and Diversity, Trust, Well-being, Quality, Collaboration and Values show that we have a good degree of employee satisfaction. In FY23, we completed onboarding programmes, many professional developments, technical and soft skills trainings including our new Koach framework focusing on improving our daily people leadership. All our audit professionals have completed minimum 40 hours of edu-cation. To improve the well-being of our employees, in FY23 we continued to upgrade our facilities to new ways of working with more collaborative areas, quiet zones and meeting rooms. At the same time, we improved our Life Stage Pro-gramme, our health care system, were again partner of the Copenhagen Pride week and held various community events like Inspired Beyond Babies. Our whistle-blower function has been established and is designed to provide a safe space for employees to confidentially voice their concerns, free from the fear of reprisals. We encourage all those interested in applying for a job to apply regard-less of age, gender, sexuality, disability, race, religion or ethnic affiliation. In respect of gender, we have noted that 42 % (FY22 : 43 %) of the 4,388 (FY22 : 4,570) job applications we received in FY23 were from women. We welcomed 77 (FY22 : 104) new graduates and trainees, of whom 39 % (FY21 : 34 %) were women. By the end of FY23, we had 45 (FY22 : 45) nationalities employed. By the end of FY23, we had 40 % (FY22 : 38 %) women and 60 % (FY22 : 62 %) men employed. Our average age is 34 (FY22 : 32) years. On continuous basis, we are dedicated to keep strengthening our employee satisfaction, and we commit ourselves to doing so. We will continue to focus on improving gender equality and creating an inclusive space for all our employees at KPMG. We will work towards ensuring that all our stakeholders, including our suppliers and clients, respect human rights and we will take action if a human rights risk is identified. Fighting anti-corruption and briberyCompliance with laws, regulation and standards is a key aspect for everyone at KPMG. We have zero tolerance of bribery and corruption. Therefore, we prohibit involve-ment in any type of bribery, even if such conduct is legal or permitted under applicable law or local practice. Neither do we tolerate bribery by third parties, including by our cli-ents, suppliers or public officials. KPMG has formal criteria around permissible gifts, entertainment, charitable dona-tions and sponsorships, together with a mechanism for monitoring these. Our supplier agreement and third-party agreement templates include anti-bribery clauses. Everyone at KPMG is required to comply with the Global Code of Conduct (“Code”) and to confirm com-pliance with the Code when joining the firm and on an annual basis thereafter. Furthermore, everyone at KPMG is required to take regular training covering the Code. We are committed to holding ourselves accountable for behaving in a way that is consistent with the Code. KPMG personnel have been instructed to consult with our Risk Management Partner immediately for guidance if a diffi-cult situation arises. In FY23, we ensured comprehensive training for both new joiners and existing personnel in the Code, includ-ing KPMG’s anti-bribery policies, compliance with laws, regulations and professional standards and reporting suspected or actual non-compliance with laws, regula-tions, professional standards and KPMG’s policies (in FY22, we provided similar training to all new joiners and existing personnel). In FY23 and FY22, all personnel completed the above training. Furthermore, during FY23, we requested confirmation from all personnel that they have complied with their individual responsibilities under the Code, including compliance with firm policies related to gifts and entertainment, anti-bribery and corruption (in FY22, we requested similar confirmation from all per-sonnel). In FY23 and FY22, all personnel confirmed their compliance with the Code and the policies described above. On an annual basis, we conduct and document an annual assessment of bribery and corruption risks facing our firm. The assessment includes an evaluation of anti-bribery and corruption risk factors, mitigation and evidence of effectiveness (in FY22, we conducted a similar assessment of bribery and corruption risks). Our processes for client acceptance and engagement conti-nuity are designed to identify, evaluate and document any potential risks related to the integrity of the client management and their potential involvement in bribery and corruption. Additional approval procedures are in place when risks are identified. Our finance function has established monitoring procedures and internal controls to ensure compliance with anti-bribery and corruption policies. During FY23, no incidents were identified relating to the firm or personnel as part of the annual assessment of bribery and corruption risks facing our firm. Completion of the annual assessment is monitored by our Quality and Risk Management department (in FY22, no incidents were identified relating to bribery and corruption). No instances of bribery and corruption issues were identified during FY23 Client and engagement onboarding pro-cedures (for FY22, no instances identified as part of the client and engagement onboarding procedures). Engagement teams may, when performing engage-ments, identify suspicions of non-compliance with laws and regulations. These are dealt with by the Engagement Partner together with the Quality and Risk Management Partner in accordance with company procedures and, if required, reported to the authorities. During FY23, our Quality and Risk Management department monitored compliance with finance procedures established to ensure that KPMG Global baseline internal controls relat-ing to anti-bribery and corruption policies were adhered to (in FY22, similar monitoring took place). We commit to continuously improving our standards by monitoring compliance with anti-bribery and corruption policies of our personnel, clients, third parties and suppliers and take prompt action when non-compliance is identified.Deinition of non-inancial key performance indicators Measuring employee engagementOnce every year, we send out our Global People Survey to all employ-ees. The survey is delivered from a recognised third-party supplier. As part of the survey, we measure what we call the Employee Engagement Score. The Engagement score is a percentage score based on different questions within three overall themes, namely : 1. How engaged do you feel ? 2. How enabled do you feel ? 3. How energised do you feel ? The average percentage of the response to these questions results in the Employee Engagement score.Measuring CO2We have designed our greenhouse gas emission measuring methodology in accordance with the GHG Protocol. This internationally recognised stand-ard is the most prevalent and globally accepted method for calculating green-house gas emissions. For a description of the method, see the GHG Protocol website : ghgprotocol.orgMeasuring wasteWaste calculations for the period from October 2022 to September 2023 at our Copenhagen office have been determined based on the collected data provided by our supplier. It is divided into two categories : 1. Recycled waste – including glass bottles and glass containers, cor-rugated cardboard, iron and metal, containers of plastic or carton, sustainable frying oil, organic waste in packaging, mixed paper, mixed hard plastics, paper, and e-waste. Paper shredded has been account-ed for through our suppliers who calculate the amount of paper they collect and shred from the office.2. Non-recyclable waste – including combustible waste, landfill and non-combustible landfill waste.Measuring water consumptionWater usage data is reported from January 2023 to December 2023, reflecting a staggered reporting period distinct from KPMG. Water usage cal-culations for Aarhus, Aalborg, Frederi-cia and Odense are based on average consumption among renters. KPMG P/S (“KPMG”) believes that diversity is a strength and is committed to developing and maintaining a diverse workforce and work environment. In accordance with our values, we aim to uphold a socially responsible firm that attracts, develops, promotes and retains people based on merit and in a way that supports diversity. As part of our diversity commitment, we are also working on a more equal gender representation in our firm. At KPMG, we aim to have at least 40 % women in our Board of Directors by the end of FY26. For other management levels (Senior Managers, Directors and Partners), we aim at having at least 35 % women by the end of FY30. We will continue to pursue a more equal gender balance in KPMG on all levels so that at least 40 % are women. We have taken specific action in four areas : recruitment, development, promotion and retention. Within recruitment, we have a number of initi-atives aimed to attract more female applicants, as well as hiring more female employees. We launched an external campaign in September, casting our own employees, which highlights how we stand behind each other and how women can thrive and make a mark in their career with us. All our job applications are put through a tech-nology-enabled screening to make sure we communicate our jobs in a gender-neutral way.We conduct interview training workshops where we focus on unconscious bias, we have strategic part-nerships with student groups to encourage women to apply and also reach a wider pool of candidates, among others Hypatia (Women in engineering, DTU) and Female Leadership Academy. Within development, we have processes in place to ensure a balanced representation of female and male employees in both internal and external training programmes. Our new KPMG Koach programme was launched in FY23, training more than 150 internal Koaches in people leadership, where 96 % of the partici-pants after completing the training reported feeling much better equipped to handle daily tasks and navigate people leadership responsibilities more effectively.Within promotion cycles, we have processes in place to counter bias and ensure that equal performance is treated equally, and we measure the percentage of promotions by gender and communicate the numbers internally to the responsible leaders. We run various pro-grammes dedicated to retaining and motivating female employees, including our Ally Parent Group, 1 :1 coaching around maternity leaves, our Gender balance group, role model lunches, specific networking for coming and current new parents, partnerships with external commu-nities such as Female Leadership Academy, Women in AI, Inspired Beyond Babies, Leaders 2050 and Above and Beyond. Also, we run a programme called the MindSpace Initiative where we run targeted activities and networking to support the growth and well-being of our employees. At the close of FY23, there were no women among the five members on our Board of Directors, as no suitable female board candidates had been identified (FY22 : 1 out of 5 members of our Board og Directors was a woman). At the close of FY23, we were 28 % (FY22 : 24 %) women and 72 % (FY22 : 76 %) men at other management levels. Accordingly, in FY23, we saw a continued shift towards a more equal gender balance. At the close of FY23, across KPMG we were 40 % (FY22 : 38 %) women and 60 % (FY22 : 62 %) men. Accordingly, in FY23 we saw a movement in the desired direction. We will continue to pursue equal gender balance in KPMG on all levels by educated focus on the four above-mentioned areas in order to meet our goals. At KPMG we define Data Ethics as Ethical considerations related to how our use of data, development and use of artificial intelligence etc. affect our society. We have a Data Ethics policy which governs the way we handle and protect data in a compliant, relevant and responsible way. The policy is adopted and approved by our Board of Directors. We recognise that our use of data may entail risks to individuals and organisations that are not addressed by legislation. Legislation may struggle to keep pace with technological advances, leading to situations where it permits data use that is inconsistent with KPMG’s values, Code of Conduct and Fundamental Ethical Principles. When servicing our clients, we obtain, combine, analyse and use data to provide insights, advice or assurance on financial and non-financial information. KPMG also obtains data related to employees and potential employees which can be combined with other internal data and analysed and used for making business decisions. KPMG only obtains, combines, analyses, and uses data that is necessary to provide agreed services to clients and to make business decisions. Data ethics is therefore required to be integrated into the way KPMG operates and provides services to comply with legisla-tion, our policies and to ensure responsible use of data and new technologies such as artificial intelligence. Regular training sessions are conducted for all employ-ees to ensure they handle date in compliance with regulations, and internal drills are conducted to create awareness on data protection and cybercrime. To provide trust to clients and other stakeholders on our handling of personal data, we obtain annually an ISAE 3000 assur-ance report on controls that address the requirements in the General Data Protection Regulation (GDPR) and the Danish Personal Data Act. As KPMG’s business is increas-ingly digitalised, procedures and general IT controls must be continuously adapted. To ensure that KPMG complies with best practice, KPMG has chosen to become ISO 27001 certified. This is followed up annually, and KPMG is re-certified every three years. Development in activities and financial position In FY23, KPMG P/S realised revenue of DKK 939 million compared to DKK 897 million in FY22, an increase of DKK 42 million and corresponding to a growth of 5 %. The growth comes from a purely organic expansion of our business. Our revenue growth is below our expectations given the uncertainties and volatility in the markets, and the profit for FY23 was below last year’s and below what was expected. Profit for the year was DKK 1.1 million com-pared to DKK 9.5 million in FY22. As KPMG is an equity partner-owned company, the remuneration to the equity partners in terms of their performance is included under Staff costs. In general, our results reflect our economic condition : our continued growth across our service lines, expanding services within audit, assurance, M&A, out-sourcing and advisory services, especially within financial services and digitalisation. We have incurred costs in relation to our organic growth, especially in regard to our hiring processes, attracting new talents and further invest-ing in our people, facilities, tools and structures. These investments ensure the expanding delivery of high-quality services to our clients. Our net cashflow was overall posi-tive, impacted mainly by changes in work-in-progress. At year end, our total assets amounted to DKK 353 million, compared to DKK 335 million last year, due to a higher cash flow from the changes in working capital.Financing and capital reservesOur equity amounted to DKK 88 million compared to DKK 78 million last year, following a cash capital increase from new equity partners as well as retained earnings. The equity includes DKK 22,5 million in unpaid contribut-ed capital. The solidity including unpaid capital reserves amounted to 25 % of total assets, compared to 23 % last year. As a result, our solidity is strengthened.Financial outlookWe expect to keep growing in the coming year as we continue to see a demand for our expanding services in the market. We continue to invest in our growth, attract-ing and retaining highly-skilled people positioning our-selves to adapt to the changing market conditions. From a business point of view, we see that the coming FY24 still has some uncertainties given the macro situation in geopolitics, along with general conditions influenced by fluctuations in inflation and interest rates. We therefore expect reported revenue growth to be on par in the com-ing financial year FY24, around 2–8 % and a net result in the range of DKK 2–6 million.Operational riskThe operational risks facing our business include those we have in common with other professional services firms. These include notably a deterioration in market conditions, attracting, developing and retaining the best talent in the market, claims and reputational damage caused by either an actual or a suspected failure to deliver services of appropriate quality, or by taking on inappropriate clients or engagements. It is vital for us to uphold a very high public trust with employees, clients, capital markets, regulators and society. We have implemented a system of quality management based on KPMG International’s Quality Framework, and we regular-ly conduct enterprise risk assessments where we identify potential risks and their impact on our business. Based on that, we plan remediating actions as well as quality performance and risk compliance reviews.Financial riskWe are exposed to credit risk through our ongoing work-in-progress and receivables, which is mitigated by a broad and diverse client base across several industries. The current economic situation does not pose an overall elevated credit risk, and Management has factored this into the accounting policy. We do not have any material credit risk on individual debtors. We are to a minor extent exposed to fluctuations in foreign currencies, mostly USD.Events after the balance sheet dateExcept as disclosed in note 14, no events materially affecting the assessment of the annual report have occurred after the balance sheet date. Mads Raahede CEO and Senior Partner Klaus Rytz Henrik Barner Christiansen Nikolaj Møller Hansen Chair and Partner Partner Partner Hans Jørgen Andresen Jan Hove Sørensen Partner Partner The Board of Directors and the Executive Board have today discussed and approved the annual report of KPMG P/S for the financial year 1 October 2022 – 30 September 2023.The annual report has been prepared in accordance with the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the Company’s assets, liabilities and financial position at 30 September 2023 and of the results of the Company’s operations and cash flows for the financial year 1 October 2022 – 30 September 2023.Further, in our opinion, the Management’s review gives a fair review of the matters discussed in the Management’s review.We recommend that the annual report be approved at the annual general meeting. Copenhagen We have audited the financial statements of KPMG P/S for the financial year 1 October 2022 – 30 September 2023, which comprise income statement, balance sheet, statement of changes in equity, statement of cash flows, notes and a summary of significant accounting policies, for the Company. The financial statements are prepared under the Danish Financial Statements Act.In our opinion, the financial statements give a true and fair view of the financial position of the Company at 30 September 2023, and of the results of the Company’s operations and cash flows for the financial year 1 Octo-ber 2022 – 30 September 2023 in accordance with the Danish Financial Statements Act. We conducted our audit in accordance with Interna-tional Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these require-ments and the IESBA Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Company’s ability to contin-ue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Com-pany or to cease operations, or has no realistic alterna-tive but to do so. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influ-ence the economic decisions of users taken on the basis of these financial statements.As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain profes-sional scepticism throughout the audit. We also :• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures respon-sive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material mis-statement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.• Obtain an understanding of the internal control rele-vant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effective-ness of the company’s internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.• Conclude on the appropriateness of Management’s preparation of the financial statements using the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncer-tainty exists arising from events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclo-sures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclu-sions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.• Evaluate the overall presentation, structure and con-tents of the financial statements, including disclosures in notes, and whether the financial statements reflect the underlying transactions and events in a manner that presents a fair view.We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, includ-ing any significant deficiencies in internal control that we identify during our audit. To the shareholders of KPMG P/S Our opinion on the financial statements does not cover Management’s review, and we do not express any form of assurance conclusion thereon.In connection with our audit of the financial state-ments, our responsibility is to read Management’s review and, in doing so, consider whether Management’s review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.Moreover, it is our responsibility to consider whether Management’s review provides the information required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that Management’s review is in accordance with the financial statements and has been prepared in accord-ance with the requirements of the Danish Financial State-ment Act. We did not identify any material misstatement of Management’s review. Copenhagen, RedmarkGodkendt Revisionspartnerselskab 29442789 Anders Schelde-Mollerup Funder State Authorised Public Accountant mne30220 989000 0 10743000 10032000 308127000 281044000 642892000 626033000 635266000 611256000 6820000 4268000 374000 812000 110000 1773000 1070000 9548000 1268000 0 370000 1567000 181000 0 1819000 1567000 9411000 10613000 9411000 10613000 149000 149000 17580000 16524000 17729000 16673000 28959000 28853000 171885000 182432000 58139000 52826000 22796000 20621000 157000 131000 8270000 7276000 261247000 263286000 63031000 42411000 324278000 305697000 63511000 57160000 276000 419000 1268000 0 22500000 20250000 5735000 7682000 5735000 7682000 71720000 70672000 55560000 44035000 132667000 134332000 259947000 249039000 259947000 249039000 353237000 334550000 46082000 -10038000 0 19500000 11078000 909000 0 750000 12737000 0 9548000 0 0 57160000 419000 0 20250000 8468000 878000 0 2250000 11596000 2117000 823000 0 0 2940000 -1268000 1268000 0 0 1070000 0 0 63511000 276000 1268000 22500000 Profit for the year Profit for the year 1070000 9548000 6820000 4268000 -1947000 -80000 15197000 -18340000 1388000 0 Acquisition of software Acquisition of software -233000 0 0 453000 4249000 8411000 Deposits (additions) Deposits (additions) -1166000 -1039000 Deposits (repayment) Deposits (repayment) 110000 652000 9346000 11987000 2940000 0 20620000 -1868000 44279000 Accounting policiesThe annual report of KPMG P/S for 2022/23 has been prepared in accordance with the provisions applying to reporting class C large entities under the Danish Financial Statements Act. Foreign currency translation On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses.Receivables, payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the latest financial statements is recognised in the income statement as financial income or financial expenses.Income statement Revenue The Company will be applying IAS 11 and IAS 18 as its basis of interpretation for the recognition of revenue. Revenue from the sale of services is recognised in the income statement as provid-ed. Consequently, revenue corresponds to the selling price excluding VAT of the work performed under the percentage of completion method and includes outlays on clients. Measurement at sell-ing price presupposes that total income and costs as well as the stage of completion at the balance sheet date can be determined reliably and that it is probable that payment will be received.Work performed for own account and capitalised Work performed for own account and capitalised includes staff cost for the year recognised in the costs for the Company’s development projects in the balance sheet.Other operating income Other operating income includes grants provid-ed by KPMG International, gains on disposal of assets, sublease rental income as well as net reimbursments received from public authorities.Other external expenses Other external expenses comprise costs related to sales, marketing, administration, office premises, training, etc.Staff costs Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs, etc., to the Company’s employees and partners.Financial income and expenses Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. Financial income and expenses comprise interest income and expense, exchange gains and losses on payables and transactions denominated in foreign currencies.Tax on profit for the year As a limited liability partnership, the Company is transparent for tax purposes. Income taxes are lia-ble to the partners of the Company. Consequently, no tax on the profit for the year has been provided for in the financial statements.Balance sheet Development projects Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or development opportunities are evidenced, and where the Company intends to produce, market or use the project, are recognised as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling costs and administrative expenses as well development costs. Other development costs are recognised in the income statement as incurred.Development costs recognised in the balance sheet are measured at cost less accumulated amortisation and impairment losses.Upon completion of development work, development costs are amortised on a straight-line basis over the estimated useful lives. The amortisation period is usually 3–5 years.Goodwill Goodwill is measured at cost less accumulated amortisation. Goodwill is amortised on a straight-line basis over the estimated useful life deter-mined on the basis of Management’s experience within the individual business areas. The amortisa-tion period is 5 years.Software Software is measured at cost less accumulated amortisation and impairment losses. Software is amortised on a straight-line basis over the estimat-ed useful lives. The amortisation period is usually three years.Gains and losses on the disposal of software are determined as the difference between the selling price less selling costs and the carrying amount at the date of disposal.Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Equipment and leasehold improvements Equipment and leasehold improvements are measured at cost less accumulated depreciation and impairment losses.Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for its intended use. The depreciable amount, which is calculated as cost less any estimated residual value at the end of the useful life, is depreciated on a straight-line basis over the estimated useful life. The estimated useful lives of equipment and leasehold improve-ments are 3–10 years.Gains and losses on the disposal of equipment and leasehold improvements are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively. The carrying amount of equipment and improvements is subject to an annual test for indications of impairment other than the decrease in value reflected by deprecia-tion. Impairment Impairment tests are conducted of individual non-current assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset’s net selling price and its value in use. The value in use is determined as the present value of the forecast net cash flow from the use of the asset or the group of assets, including forecast net cash flow from the disposal of the asset or group of assets after the end of the useful life. Particiating interestsParticipating interests (including associates) are measured at cost. When cost exceeds the recoverable amount, write-down is made to this lower value. The cost is reduced by dividends received exceeding accumulated earnings after the acquisition date. Receivables Receivables are measured at amortised cost, which usually corresponds to nominal value or net realisable value if lower.The company has chosen to use IAS 39 as a basis for interpretation when recognising impairment of financial assets, which means that impairment losses are recognised to offset losses where an objective indication is deemed to have occurred that an account receivable or a portfolio of accounts receivable is impaired. If an objective indication shows that an individual account receiv-able has been impaired, an impairment takes place at individual level.Services in progress Services in progress are measured in accordance with the percentage of completion method to the selling price of the work performed at the balance sheet date plus out-of-pocket expenses less pro-gress billings. The individual services in progress are recognised in the balance sheet as receivables or liabilities depending on whether the net value, determined as the selling price less progress billings, is positive or negative.Prepayments Prepayments comprise prepayments of costs relating to subsequent financial years.Equity Contributed capital Unpaid contributed capital is recognised according to the gross method, according to which the unpaid contributed capital is recognised as a receivable in the balance sheet. Dividends Proposed dividends are recognised as a liability at the date on which they are adopted at the annual general meeting (declaration date). The expected dividend payment for the year is disclosed as a separate item under equity.Reserve for development projects The reserve for development projects is equivalent to the amount of capitalised development costs. The reserve cannot be used for dividends, distribu-tion or to cover losses. The reserve is reduced by amortisation of capitalised development costs on an ongoing basis. If the recognised development costs are written down, the part of the reserve corresponding to the write-down of the develop-ments costs will be reversed. If a write-down of development costs is subsequently reversed, the reserve will be re-established. If the recognised development costs are sold or in other ways disposed of, the reserve will be dissolved and transferred directly to the distributable reserves under equity. Reserve for unpaid contributed capital An amount equal to the unpaid contributed capital is reclassified from retained earnings to reserve for unpaid contributed capital.Other provisions Provisions are recognised when, as a result of past events, the Company has a legal or a constructive obligation, and it is probable that there may be out-flow of resources embodying economic benefits to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.Corporation tax and deferred tax The Company is transparent for tax purposes. Consequently, neither current tax nor deferred tax is included in the balance sheet.Liabilities other than provisionsFinancial liabilities are recognised at the date of borrowing at cost, corresponding to the proceeds received less transaction costs paid. In subse-quent periods, the financial liabilities are measured at amortised cost, corresponding to the capitalised value using the effective interest rate. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses.Other liabilities are measured at net realisable value.Cash flow statementThe cash flow statement shows the Company’s cash flow from operating, investing and financing activities for the year, the year’s changes in cash and cash equivalents as well as the Company’s cash and cash equivalents at the beginning and end of the year.Cash flow from operating activities Cash flows from operating activities are calculated as the profit/loss for the year adjusted for non-cash operating items and changes in working capital.Cash flow from investing activities Cash flow from investing activities comprise payments in connection with acquisitions and disposals of intangible assets, equipment and leasehold improvements and investments.Cash flow from financing activities Cash flow from financing activities comprise proceeds or repayments related to changes in the Company’s contributed capital, related costs and payment of dividends to shareholders as well as proceeds from raising and repayment of interest-bearing debt.Cash and cash equivalents Cash and cash equivalents comprise bank depos-its. Financial ratiosFinancial ratios are calculated as follows :Revenue current year Revenue -Revenue prior year) x 100growthRevenue prior yearTotal equity x 100SolvencyTotal assets true DKK’000 2022/23 2021/222 : Segment informationRevenue arises from audit and advisory services, mainly delivered in Denmark Audit 286,369 273,457Advisory 652,918 623,588939,287 897,045 DKK’000 2022/23 2021/223 : Fees to auditor appointed at the general meetingStatutory audit 196 169Tax/VAT and other services 548 516Other assurance engagements 11 0Total fees to Redmark 755 685 DKK’000 2022/23 2021/224 : Staff costsWages, salaries and partner remuneration 590,725 572,293Pensions 38,923 33,699Other social security costs 5,618 5,264635,266 611, 256 The Board of Directors did not receive remuneration for provision of board-related services in 2022/23 (2021/22 : DKK 0). Staff costs include remuneration of the Company’s ExecutiveBoard of DKK 7,559 thousand. Remuneration of the Executive Board comprises the shareattributable to the performance of duties in the Executive Board. Pursuant to the exemption clause for reporting class C entities under section 98b(3) of the Danish Financial Statements Act, the Company has chosen to omit disclosure of executive board remuneration for 2021/22 as it would lead to disclosing the remuneration of a single person. Equip-Completed ment and devel-leasehold opment improve-DKK’000projects Goodwill Softwarements5 : Goodwill, software, equipment and leasehold improvementsCost at 1 October 2022 0 2,239 0 26,644Additions 1,388 0 233 4,249Disposals 0 -890 0 0Cost at 30 September 2023 1,388 1,349 233 30,893Depreciation and amortisation at 1 October 2022 0 -672 0 -16,031Depreciation and amortisation -120 -1,197 -52 -5,451Depreciation on disposals 0 890 0 0Depreciation and amortisation losses at 30 September 2023 -120 -979 -52 -21,482Carrying amount at 30 September 2023 1,268 370 181 9,411Completed development projectsCompleted development projects relate to development and test of new software. The projects were complet-ed in 2022/23 and is amortised over 3–5 years. The development is primarily used internally and has entailed greater productivity. DKK’000 2022/23 2021/226 : Financial incomeInterest income 225 812Net foreign exchange gains 149 0374 812 DKK’000 2022/23 2021/227 : Financial expensesInterest expense to banks 110 1,097Net foreign exchange losses 0 676110 1,773 1070000 9548000 Participating DKK’000interest9 : Participating interestsCost at 1 October 2022 149Cost at 30 September 2023 149Carrying amount at 30 September 2023 149Name/legal form Registered Equity Equity Profit for officeinterestthe yearKPMG Nordic Services OÜ (Associate) Estonia 2 0 % 1,156 140 DKK’000 Deposits10 : De pos it sCost at 1 October 2022 16,524Additions 1,16 6Repayment -110Cost at 30 September 2023 17,5 80Carrying amount at 30 September 2023 17,580 DKK’000 2022/23 2021/2211 : Services in progressSelling price of work performed 530,230 507,039Progress billings -543,811 -524,885-13,581 -17,846Recognised as follows :Contract work-in-progress (assets) 58,139 52,826Contract work-in-progress (liabilities) -71,720 -70,672-13,581 -17,846DKK’000 2022/23 2021/2212 : Other receivablesContributed capital receivables 22,500 20,250Other receivables 296 37122,796 20,62113 : Pre pay men t sPrepayments consist of prepaid expenses concerning IT licences, parking, rent, insurance, etc. DKK’000 Other provisions15 : Other provisionsOther provisions at 1 October 2022 7,682Used during the year -2,086Provisions for the year 139Other provisions at 30 September 2023 5,735The provisions are expected to be activated as follows :0–1 years 01–5 years 0>5 years 5,735Other provisions at 30 September 2023 5,735Provisions comprise anticipated restoration costs in connection with the Company’s premises leases to the extent that the Company is obliged to dismantle an asset or restore premises upon lease termination. Provisions include liability cases where provisions are made to cover losses on known and possible claims for compensation. 16 : Contractual obligations, contingencies, etc.Remaining operating lease obligations at the balance sheet date amount to DKK 34,868 thousand falling due within 6 years (2021/22 : DKK 40,032 thousand). In 2022/23, operating lease payments incurred amounted to DKK 28,408 thousand (2021/22 : DKK 25,136 thousand).KPMG P/S is part in a few pending disputes, and provisions have been made for estimated costs related to these. In Management’s opinion, the outcome of these disputes will not affect the Company’s financial position in excess of what has been recognised as provision at 30 September 2023.KPMG P/S has a credit facility in place with the Company’s bank. An asset pledge (virksomhedspant) of DKK 20,000 thousand has been granted to the Company’s bank in relation to the bank credit facility. As of 30 September 2023 and 2022 the credit facility was not utilised. 14 : Contributed capitalChanges in contributed capital since the Company’s establishment are specified as follows :DKK’000 2022/23 2021/22 2020/21 2019/20 2018/19Balance at 1 October 57,160 46,082 51,400 49,627 627Cash capital increase at par 8,468 11,078 0 1,773 49,000Cash capital decrease -2,117 0 -5,318 0 063,511 57,160 46,082 51,400 49,627The share capital is specified as follows :A shares, 27,521,429 of nom. DKK 1 each 27,521B shares, 35,989,561 of nom. DKK 1 each 35,99063,511All shares rank financially equally, however, A-shares – which are owned by state authorised public account-ants only – will at all times constitute not less than 51 % of the total amount of voting rights in the Company.At an extraordinary general meeting on 30 September 2023, the shareholders have decided to decrease the share capital by 4,234,066 nominal A-shares by cash distribution of DKK 2,734 thousand to retired partners. The decrease will be effected following the expiry of notice to creditors.The nominal contributed capital increased in FY23 by DKK 8,468 thousand of which DKK 6,218 thousand is paid in cash. 17 : Related party disclosuresKPMG P/S’ related party disclosures comprise the following :Control :KPMG P/S is owned by the partners. No parties exercise control. Other related parties :• Leadership team and Board of Directors and their close family members • KPMG Komplementarselskab ApS • KPMG Nordic Services OÜ (Associate)• KPMG International Limited, UKRelated party transactions :In accordance with section 98c(7) of the Danish Financial Statements Act, the Company has chosen only to disclose transactions that are not carried out on an arm’s length basis. There are no such transactions. 18 : Events after the balance sheet dateExcept as disclosed in note 14, no events materially affecting the assessment of the annual report have occurred after the balance sheet date. DKK’000 2022/23 2021/2219 : Other adjustmentsProvisions adjustments recognised during the year -1,947 -80-1,947 -80DKK’000 2022/23 2021/2220 : Changes in working capitalChange in receivables 4,289 -25,996Change in current liabilities other than provisions 10,908 7,65615,197 -18,340 Annual report Auditor's report on audited financial statements ParsePort XBRL Converter 2022-10-01 2023-09-30 2021-10-01 2022-09-30 2024-01-25 Reporting class C, large enterprise 2013-12-11 2024-01-10 25578198 KPMG P/S Dampfærgevej 28 2100 København Ø Opinion Basis for Opinion 2024-01-10 Total cash flow Total cash flow Total cash flow Total cash flow Total cash flow