SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Financial Statements F-11
Annual Report 2010 on Form 20-F 01 – Significant Accounting Policies
Notes to the Consolidated Financial Statements
01 –
Significant Accounting Policies
Basis of Accounting
Deutsche Bank Aktiengesellschaft (“Deutsche Bank” or the “Parent”) is a stock corporation organized under the
laws of the Federal Republic of Germany. Deutsche Bank together with all entities in which Deutsche Bank has
a controlling financial interest (the “Group”) is a global provider of a full range of corporate and investment banking,
private clients and asset management products and services. For a discussion of the Group’s business
segment information, see Note 05 “Business Segments and Related Information”.
The accompanying consolidated financial statements are stated in euros, the presentation currency of the Group.
All financial information presented in million euros has been rounded to the nearest million. The consolidated
financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”)
as issued by the International Accounting Standards Board (“IASB”) and endorsed by the European Union (“EU”).
The Group’s application of IFRS results in no differences between IFRS as issued by the IASB and IFRS as
endorsed by the EU.
Risk disclosures under IFRS 7, “Financial Instruments: Disclosures” about the nature and extent of risks arising
from financial instruments are incorporated herein by reference to the portions marked by a bracket in the margins
of the Risk Report.
The preparation of financial statements under IFRS requires management to make estimates and assumptions
for certain categories of assets and liabilities. Areas where this is required include the fair value of certain financial
assets and liabilities, the allowance for loan losses, the impairment of assets other than loans, goodwill and
other intangibles, the recognition and measurement of deferred tax assets, provisions for uncertain income tax
positions, legal and regulatory contingencies, reserves for insurance and investment contracts, reserves for
pensions and similar obligations. These estimates and assumptions affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts
of revenue and expenses during the reporting period. Actual results could differ from management’s estimates.
Refer to Note 02 “Critical Accounting Estimates” for a description of the critical accounting estimates and judgments
used in the preparation of the financial statements.
Financial Guarantees
In the second quarter 2009, retrospective adjustments were made in the consolidated statement of income to
present premiums paid for financial guarantees as expenses, instead of offsetting them against revenues,
because they are not directly related to a revenue generating activity. The adjustment did not have an impact
on net income or shareholders’ equity but resulted in an increase in both Other income and General and
administrative expenses of € 36 million and € 131 million in 2009 and 2008, respectively.
Assignment of Revenue Components in CIB
The presentation of prior period CIB revenues was adjusted during the first half of 2010 following a review of
the assignment of specific revenue components to the product categories. The review resulted in a transfer of
negative revenues of € 325 million and revenues of € 97 million from Loan Products to Sales & Trading (debt
and other products) in 2009 and 2008, respectively. In addition, Sales & Trading (equity) revenues were reduced
by € 83 million in 2009 and € 105 million in 2008, respectively, with corresponding offsetting effects in Sales &
Trading (debt and other products). These adjustments had no impact on CIB’s total revenues.