SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Balance Sheet F-88
Annual Report 2010 on Form 20-F 13 – Amendments to IAS 39 and IFRS 7, “Reclassification of Financial Assets”
The majority of the difference between the fair value of financial liabilities designated at fair value through profit
or loss and the contractual cash flows which will occur at maturity is attributable to undrawn loan commitments
where the contractual cash flow at maturity assumes full drawdown of the facility. The difference between the
fair value and the contractual amount repayable at maturity excluding the amount of undrawn loan commitments
designated at fair value through profit or loss was € 0.6 billion and € 0.6 billion as of December 31, 2010, and
2009, respectively.
13 –
Amendments to IAS 39 and IFRS 7, “Reclassification of Financial Assets”
Under the amendments to IAS 39 and IFRS 7 certain financial assets were reclassified in the second half of
2008 and the first quarter of 2009 from the financial assets at fair value through profit or loss and the available
for sale classifications into the loans classification. Assets were reclassified at the fair value as of the effective
date of their reclassification. No reclassifications were made during 2010. The reclassifications were made in
instances where management believed that the expected repayment of the assets exceeded their estimated
fair values, which reflected the significantly reduced liquidity in the financial markets, and that returns on these
assets would be optimized by holding them for the foreseeable future. Where this clear change of intent existed
and was supported by an ability to hold and fund the underlying positions, the Group concluded that the reclassifications
aligned the accounting more closely with the business intent.
The following table details the carrying values, unrealized fair value losses in accumulated other comprehensive
income, ranges of effective interest rates based on weighted average rates by business and expected recoverable
cash flows estimated at reclassification date.
in € bn.
(unless stated otherwise)
Trading assets
reclassified to
loans
Financial assets
available for sale
reclassified to
loans
Carrying value at reclassification date 26.6 11.4
Unrealized fair value losses in accumulated other comprehensive income – (1.1)
Effective interest rates at reclassification date:
upper range 13.1 % 9.9 %
lower range 2.8 % 3.9 %
Expected recoverable cash flows at reclassification date 39.6 17.6