SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Financial Statements F-45
Annual Report 2010 on Form 20-F 02 – Critical Accounting Estimates
Impairment of Non-financial Assets
Certain non-financial assets, including goodwill and other intangible assets, are subject to impairment review.
The Group records impairment losses on assets in this category when the Group believes that their carrying
value may not be recoverable. A reversal of an impairment loss (excluding goodwill) is recognized immediately.
Goodwill and other intangible assets are tested for impairment on an annual basis, or more frequently if events
or changes in circumstances, such as an adverse change in business climate, indicate that these assets may
be impaired. The determination of the recoverable amount in the impairment assessment requires estimates
based on quoted market prices, prices of comparable businesses, present value or other valuation techniques,
or a combination thereof, necessitating management to make subjective judgments and assumptions. Because
these estimates and assumptions could result in significant differences to the amounts reported if underlying
circumstances were to change, the Group considers this estimate to be critical. As of December 31, 2010 and
2009, goodwill had carrying amounts of € 10.8 billion and € 7.4 billion, respectively, and other intangible assets
had carrying amounts of € 4.8 billion and € 2.7 billion, respectively. Evaluation of impairment of these assets is
a significant estimate for multiple businesses.
In 2010, other intangible assets impairment losses of € 41 million were recorded, of which € 29 million related
to customer-related intangible assets recorded in GTB and a loss of € 12 million recorded on the write-down
of purchased software included in AWM. In 2009, goodwill and other intangible assets impairment losses of
€ 157 million were recorded, of which € 151 million related to investments in Corporate Investments. In addition,
€ 291 million were recorded as reversals of impairment losses of other intangible assets in Asset and Wealth
Management, which had been taken in the fourth quarter of 2008. In 2008, goodwill and other intangible assets
impairment losses of € 586 million were recorded, of which € 580 million related to investments in Asset and
Wealth Management. For further discussion on goodwill and other intangible assets, see Note 24 “Goodwill
and Other Intangible Assets”.
Deferred Tax Assets
The Group recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary
differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases, unused tax losses and unused tax credits. Deferred tax assets are recognized only to the extent
that it is probable that sufficient taxable profit will be available against which those unused tax losses, unused
tax credits or deductible temporary differences can be utilized. This assessment requires significant management
judgments and assumptions. In determining the amount of deferred tax assets, the Group uses historical tax
capacity and profitability information and, if relevant, forecasted operating results, based upon approved business
plans, including a review of the eligible carry-forward periods, available tax planning opportunities and other
relevant considerations. Each quarter, the Group re-evaluates its estimate related to deferred tax assets,
including its assumptions about future profitability. As of December 31, 2010 and December 31, 2009 the
amount of unrecognized deferred tax assets was € 2.6 billion and € 1.3 billion, respectively and the amount of
recognized deferred tax assets was € 8.3 billion and € 7.2 billion, respectively.