Reuters News & Media Limited

Directors' Report for the Year Ended 31 December 2024 (continued)

Checks on the data and procedures were completed using a risk-based approach for a selection of representative data sources that form a significant percentage of the overall emissions and energy use. A materiality threshold of +/-5% (of overall emissions) was used for this exercise and is deemed appropriate for providing a limited level of assurance.

Energy Efficiency
In 2020, Thomson Reuters joined the Science Based Targets initiative, committing to reduce Scope 1 & 2 greenhouse gas (GHG) emissions by 50% by 2030 from 2018 baseline levels, as well as reducing absolute Scope 3 GHG emissions from fuel and energy-related activities, business travel, and employee commuting by 25% by 2025 from 2019 baseline levels. Additionally, Thomson Reuters aims to require 65% of suppliers by spend to have Science Based Targets by 2025. Since 2021, we have sourced renewable energy for 100% of our operations. We have achieved this largely through the purchase of renewable power by matching our electricity usage with renewable energy credits acquired around the world. In addition to the switch to renewable energy, Thomson Reuters remains carbon neutral through offsetting the remaining portion of its GHG footprint through carbon offsets.

Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law).

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

Reuters News & Media Limited

Directors' Report for the Year Ended 31 December 2024 (continued)

Directors’ confirmations

Approved by the board on 16 December 2025 and signed on its behalf by:
 

Reuters News & Media Limited

Independent Auditor's Report to the Members of Reuters News & Media Limited

Report on the audit of the financial statements

Opinion

We have audited the financial statements, included within the Annual Report and Financial Statements (the "Annual Report"), which comprise: the Balance Sheet as at 31 December 2024; the Profit and Loss Account, the Statement of Comprehensive Income and the Statement of Changes in Equity for the year then ended; and the notes to the financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence
We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the Company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.

Reuters News & Media Limited

Independent Auditor's Report to the Members of Reuters News & Media Limited (continued)

Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic Report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
 

Strategic Report and Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and Directors' Report for the year ended 31 December 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic Report and Directors' Report.

Responsibilities for the financial statements and the audit

Reuters News & Media Limited

Independent Auditor's Report to the Members of Reuters News & Media Limited (continued)

Auditors’ responsibilities for the audit of the financial statements

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to data security and protection, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and relevant tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manage the Company's financial performance, manipulation of revenue recognition, management bias in accounting estimates within the financial statements. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Reuters News & Media Limited

Independent Auditor's Report to the Members of Reuters News & Media Limited (continued)

Other required reporting

Companies Act 2006 exception reporting

We have no exceptions to report arising from this responsibility.

......................................
Adri Loubser (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditor
London

16 December 2025

Reuters News & Media Limited

Profit and Loss Account for the Year Ended 31 December 2024

*These have been restated. Please refer Note 4 for more details.

The above results were derived from continuing operations.

Reuters News & Media Limited

Statement of Comprehensive Income for the Year Ended 31 December 2024

Reuters News & Media Limited

(Registration number: 02505735)
Balance Sheet as at 31 December 2024

Reuters News & Media Limited

(Registration number: 02505735)
Balance Sheet as at 31 December 2024 (continued)

*These have been restated. Please refer Note 4 for more details.

The financial statements on pages 14 to 58 were approved by the board on 16 December 2025 and signed on its behalf by:

.........................................
K. Major
Director

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

The Company is a private company limited by share capital, incorporated in the United Kingdom in England and domiciled in England.

The address of its registered office is:
Five Canada Square
Canary Wharf
London
E14 5AQ
United Kingdom

Reuters News & Media Limited supplies news and editorial content to the world’s media organizations, professionals & news consumers.

The financial statements and notes have been rounded off to nearest thousand GBP (£) as the majority of the Company's transactions are undertaken in GBP (£).

Basis of preparation

Summary of material accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

These financial statements are prepared in accordance with Financial Reporting Standard 101, ‘Reduced Disclosure Framework’ (FRS 101) and the Companies Act 2006, as applicable to companies using FRS 101, except for the departure from the companies act, explained in the Goodwill section of this note.

In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK (UK-adopted international
accounting standards), but makes amendments where necessary in order to comply with the Companies Act 2006 and to take advantage of FRS 101 disclosure exemptions. The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

Summary of disclosure exemptions
In these financial statements, the Company has applied the exemptions available under FRS 101 in respect of the following disclosures:

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

The consolidated financial statements of Thomson Reuters include the equivalent disclosures. The Company has also taken the exemptions under FRS 101 available in respect of the following disclosures;

The disclosures required by IFRS 7 and IFRS 13 regarding financial instrument disclosures have not been provided apart from those which are relevant for the financial instruments which are held at fair value and are not either held as part of trading portfolio or derivatives.

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Exemption from preparing group financial statements

The financial statements contain information about Reuters News & Media Limited as an individual company and do not contain consolidated financial information as the parent of a group. The Company has taken advantage of the exemption under Section 401 of the Companies Act 2006, from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of Thomson Reuters Corporation ("Thomson Reuters"). The consolidated financial statements of Thomson Reuters are prepared in accordance with International Financial Reporting Standards. Thomson Reuters Corporation is incorporated under the laws of the Province of Ontario, Canada.

Copies of Thomson Reuters' annual reports are available to the public at www.thomsonreuters.com and may be obtained from Five Canada Square, Canary Wharf, London, E14 5AQ, United Kingdom.

Measurement convention
The financial statements are prepared on a going concern basis, under the historical cost convention basis except that the following assets and liabilities are stated at their fair value: liabilities for defined benefit pension plans and share based payments measured at fair value.

Going concern
The Company is in a net current asset position and the current economic conditions are not having an adverse impact on the Company’s forecasts and projections. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash reserves and borrowings. The Company therefore continues to adopt the going concern basis in preparing its financial statements.



New standards, amendments, IFRIC interpretations and new relevant disclosure requirements
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 December 2024 that have a material impact on the Company’s financial statements.

Prior period errors
Prior period errors are omissions from, and misstatements in, an entity's financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that was available and could reasonably be expected to have been obtained and taken into account in preparing those statements. Such errors results from mathematic mistakes, mistakes by applying accounting policies, oversights or misinterpretations of facts, and fraud. The Company corrects all material prior period errors retrospectively, if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Revenue recognition

Revenues are recognized when control of the Company’s products or services are transferred to customers. The amount of revenues recognized reflects the consideration to which the Company expects to be entitled. Such
consideration is net of estimated returns, discounts, value-added and other sales taxes.

The Company derives its revenues from selling information, software and services. Revenues are generally recognized as follows:

Recurring revenues are generally recognized on a rateable basis over the contract term. Recurring revenues primarily consist of fees to access products or services delivered electronically over time. All the products are generally provided under subscription arrangements, which most customers renew at the end of each subscription term. Most subscription arrangements have multiple year terms that range from one to five years. Recurring revenues also include fees from software maintenance arrangements that are recognized over the maintenance period. Arrangements may be billed in advance or in arrears.

Transactions revenues are recognized primarily at a point in time and based on their type. Volume-based fees related to online searches are recognized based on usage.

Intragroup billing is the revenue on services provided to its group companies and is recognised based on certain marked up expenses incurred by the Company.

Deferred Revenue
Deferred revenue, a contract liability, is recorded when cash payments are received or due in advance of the transfer of the related products or services.

Contract costs
The Company applied the practical expedient in IFRS 15 to recognize the incremental cost of obtaining a contract as an expense when incurred, if the amortization period is one year or less.

Finance income and costs policy

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Foreign currency transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and Loss Account, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within ‘finance income or costs’. All other foreign exchange gains and losses are presented in the Profit and Loss Account within‘ operating expenses'.

The Company's functional and presentation currency is GBP. The results and financial position of all foreign operations (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency ("GBP") as follows:

(a) assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;
(b) income and expenses for each Profit and Loss Account are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of each transaction); and
(c) all resulting exchange differences are recognised in other comprehensive income.

When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified into profit or loss, as part of the gain or loss on sale.

Current and deferred tax

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Tangible assets

Depreciation

Intangible assets

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Goodwill

Goodwill represents the excess of the cost of the investment in acquired business over values attributed to underlying net tangible assets and publishing rights.

The Company evaluates the carrying value of goodwill in each financial year to determine if there has been impairment in value, which would result in the inability to recover the carrying amount. When it is determined that the carrying value exceeds the recoverable amount, the excess is written off to the Profit and Loss Account.

The Company does not amortise goodwill in accordance with the requirements of IFRS as applied under FRS 101. Instead an annual impairment test is performed and any impairment that is identified is recognised in the income statement. The non-amortisation of goodwill conflicts with paragraph 22 of Schedule 1 to ‘The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410), which requires acquired goodwill to be written off over its useful economic life. As such, the non-amortisation of goodwill is a departure, for the overriding purpose of giving a true and fair view, from the requirement of paragraph 22 of Schedule 1 to the Regulations.

It is not possible to quantify the effect of the departure from the Companies Act, because a finite life for the goodwill has not been identified. However, the effect of amortising over a useful life of 20 years would be a charge of 2024: £6,899,000 (2023: £5,235,000) against operating profit, and a reduction of 2024: £25,223,000 (2023: £18,323,000) in the carrying value of goodwill in the balance sheet.

Research and development

Costs incurred in the initial development of a software product prior to the establishment of commercial feasibility are written off as research costs. Once the commercial feasibility of a software product has been established, development costs are capitalised to the extent to which the product is expected to yield economic benefits.

Amortisation

The intangible assets acquired as part of a business combination are recognised at their fair value at the date of acquisition and are subsequently amortised on a straight-line based on the timing of projected cash flows of the contracts over their estimated useful life.

Investments in subsidiaries

The Company holds investments in other companies. These are recognised as fixed asset investments and are stated at cost less any impairment.

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Cash and cash equivalents

Trade debtors

Doubtful debts

The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. The Company estimates credit losses for trade receivables by aggregating similar customer types together, because they tend to share similar credit risk characteristics, taking into consideration the number of days the receivable is past due. Provision rates for the allowance for doubtful accounts are based on historical credit loss experience and calibrated, based on management’s judgment, with forward looking information about a debtor’s ability to pay. Trade and other receivables are written off when there is no reasonable expectation of recovery.

Trade creditors

Provisions

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Leases
A contract is or contains a lease if it conveys the right to control the use of an identified asset for a specified period in exchange for consideration. When the Company leases assets from third parties, the Company is the lessee. When the Company leases assets to third parties, the Company is the lessor.

At the lease commencement date, a right-of-use asset for the underlying leased asset and corresponding lease liability are recognized in the Balance Sheet measured on a present value basis. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the Company uses its incremental borrowing rate, which is the interest rate that the Company would pay to borrow funds to obtain an asset of a similar value to the right-of-use asset with a comparable security, economic environment and term.

The right-of-use asset is separately disclosed as "Right of use assets" , the current lease liability is included in “Creditors: Amounts falling due within one year” and the long-term liability is included in “Creditors: Amounts falling due after more than one year” within the Balance Sheet.

Right-of-use assets are measured on a number of factors including:
- The initial amount of the lease liability;
- Lease payments made at or before the commencement date; and
- Initial direct costs and expected restoration costs.

Lease liabilities are measured as the present value of non-cancellable payments over the lease term, which may include :
- Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
- Variable lease payments that are based on an index or a rate (including inflation-linked payments);
- Amounts expected to be payable by the lessee under residual value guarantee;
- Exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
- Penalty payments for terminating the lease, if the lease term reflects the lessee exercising that option.

Where exercise of renewal or termination options is deemed reasonably certain, such assumptions are reflected in the valuation of the lease right-of-use asset and liability. The reasonably certain assessment is made at the lease commencement date and re-assessed if there is a material change in circumstances supporting the assessment.

Lease payments are apportioned between the liability and a finance charge, which is reported within “Other finance gains/(losses)” in the Profit and Loss Account. The right-of-use asset is depreciated over the shorter of the asset’s useful life or the lease term on a straight-line basis and presented within “Operating expenses” in the Profit and Loss Account. Most of the Company’s leases are comprised of property leases, for which fixed payments covering lease and non-lease components are included in the value of the right-of-use assets and lease liabilities.

Payments for leases with a term of 12 months or less and certain low-value leases are recognized on a straight-line basis within “Operating expenses” in the Profit and Loss Account and are not recognized in the Balance Sheet.

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Impairment of non-financial assets

An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the Profit and Loss Account. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.

In respect of the other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Share capital

Defined contribution pension and defined benefit obligations

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

A defined benefit pension scheme is a plan other than a defined contribution plan. The Company’s net obligation in respect of defined benefit pension plans is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets (at bid price) are deducted. The Company determines the net interest on the net defined benefit liability/(asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability/(asset).

The discount rate is the yield at the reporting date on bonds that have a credit rating of at least AA that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the currency.

Remeasurements arising from defined benefit plans comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest). The Company recognises them immediately in other comprehensive income and all other expenses related to defined benefit plans in employee benefit expenses in profit or loss.

The calculation of the defined benefit obligations is performed by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognised asset is limited to the present value of benefits available in the form of any future refunds from the plan or reductions in future contributions and takes into account the adverse effect of any minimum funding requirements.

Share based payments

Business combination

Predecessor accounting is used to account for business combinations under common control. Assets and liabilities of the acquired entity are stated at predecessor carrying values at the acquisition date. The book values used are those from the highest set of consolidated financial statements available or those from the financial statements of the acquired entity. No new goodwill arises in predecessor accounting. Any difference between the consideration given and the aggregate carrying value of the assets and liabilities of the acquired entity at the date of the transaction is included in equity in retained earnings.

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

General description

The preparation of financial statements requires management to make estimates and judgments about the future. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates will, by definition, seldom equal the actual results. The following discussion sets forth management’s most critical estimates and judgments in applying accounting policies.

Doubtful debts
The Company must make an assessment of whether accounts receivable are collectible from customers. Accordingly, the Company establish an allowance for estimated losses arising from non-payment and other sales adjustments, taking into consideration customer creditworthiness, current economic trends, past experience and expected credit losses. Determining the amount of a provision for impairment is inherently challenging and in a
given year if there is a risk this estimate may materially change in the following year, either due to successful, unforeseen collections or sudden deterioration or failures of customers. This is therefore deemed to be a critical
accounting estimate. As of 31 December 2024, the combined allowances were £112,000, or 1.5% of the gross trade accounts receivable balance of £7,677,000. An increase to the reserve based on 1% of accounts receivable would have decreased profit before tax by approximately £76,770 for the year ended December 31, 2024.See note 17 for the net carrying amount of the trade debtors net of provision for impairment of receivables.

Employee future benefits
The Company sponsor defined benefit plans providing pension benefits to covered employees. The determination of benefit expense associated with employee future benefits requires assumptions such as the discount rate, which is used to measure service cost, benefit plan obligations and the net interest income (expense) on the net benefit plan assets (obligations). Other significant assumptions include increase in life expectancy and rates of inflation and increase in salaries. Because the determination of the cost and obligations associated with employee future benefits requires the use of various assumptions, there is measurement uncertainty inherent in the actuarial valuation process. Actual results will differ from results which are estimated based on assumptions. See the disclosure related to sensitivity analysis inside paragraph "Rates of inflation and increase in salaries" under note 18 of defined benefit plans.

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

Impairment test of goodwill and investment
Goodwill and some other intangible assets arise out of business combinations. Business combinations that are under common control are accounted for under the predecessor method and external acquisitions are accounted for under the acquisition method. The goodwill and other intangibles for the business combinations, which are under common control but it is as a part of the Group's third party acquisition, are recognised in proportion to the amount booked in the Group financial statements attributable to the Company. The determination of the value of the goodwill and other intangible assets involves significant estimates and assumptions regarding cash flow projections, economic risk and weighted-average cost of capital of the Group.

Subsequent to acquisition, we test other identifiable intangible assets and goodwill for impairment as required. The discount rate, tax rate and EBITDA multiples used in various impairment tests are based on those for comparable companies, which are driven by market conditions and prevailing tax laws.

The Company performed its annual test for goodwill and investment impairment in the fourth quarter of 2024. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit ("CGU") exceeds its estimated recoverable amount. Impairment losses are recognised in the Profit and Loss Account. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill or investment allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro-rata basis.

Valuation techniques
The recoverable amount of an asset or CGU is the higher of its fair value less costs to sell or value in use. In assessing value in use, the future earnings of a CGU are estimated by following an income approach, the income approach is predicated upon the value of the future cash flows that a business will generate. We used the discounted cash flow (DCF) method, which involves projecting cash flows and converting them into a present value equivalent through discounting. The discounting process uses a rate of return that is commensurate with the risk associated with the business and the time value of money. This approach requires assumptions about revenue growth rates, operating margins, capital expenditures, tax rates and discount rates. As determining such assumptions is inherently uncertain and subject to future factors, there is the potential that these may differ in subsequent periods. See note 12 for further details.

During the year, the Company reported the restatement of the balances of Debtors: amounts falling within one year and Profit and Loss account. The impact and explanation about the error is outlined below;

An error in the transfer pricing calculation required restatement of balances from 2021. Costs directly supporting the Reuters Events business acquired on 1 July 2020 were incorrectly treated as indirect and charged to Thomson Reuters Enterprise GmbH (TREC). These costs should have been classified as direct and allocated to Reuters Events. As a result, Turnover (outcharges to TREC), Debtors: amounts falling due within one year, and the Profit and Loss account for 2021, 2022, and 2023 were corrected.

The restatement for each of the affected financial statement line items for the prior periods is as follows:

 

Reuters News & Media Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

The analysis of the Company's revenue for the year from continuing operations is as follows: