SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Balance Sheet F-102
Annual Report 2010 on Form 20-F 15 – Fair Value of Financial Instruments not carried at Fair Value
in € m. 2010 2009
Balance, beginning of year 822 697
New trades during the period 268 467
Amortization (243) (182)
Matured trades (135) (138)
Subsequent move to observability (117) (41)
Exchange rate changes 27 19
Balance, end of year 622 822
15 –
Fair Value of Financial Instruments not carried at Fair Value
The valuation techniques used to establish fair value for the Group’s financial instruments which are not carried
at fair value in the balance sheet are consistent with those outlined in Note 14 “Financial Instruments carried at
Fair Value”.
As described in Note 13 “Amendments to IAS 39 and IFRS 7, Reclassification of Financial Assets”, the Group
reclassified certain eligible assets from the trading and available for sale classifications to loans. The Group
continues to apply the relevant valuation techniques set out in Note 14 “Financial Instruments carried at Fair
Value”, to the reclassified assets.
Other financial instruments not carried at fair value are not managed on a fair value basis, for example, retail
loans and deposits and credit facilities extended to corporate clients. For these instruments fair values are
calculated for disclosure purposes only and do not impact the balance sheet or income statement. Additionally,
since the instruments generally do not trade there is significant management judgment required to determine
these fair values.
The valuation techniques the Group applies are as follows:
Short-term financial instruments: The carrying value represents a reasonable estimate of fair value for the
following financial instruments which are predominantly short-term.
Assets Liabilities
Cash and due from banks Deposits
Interest-earning deposits with banks Central bank funds purchased and securities sold under
repurchase agreements
Central bank funds sold and securities purchased under resale
agreements
Securities loaned
Securities borrowed Other short-term borrowings
Other assets Other liabilities
For longer-term financial instruments within these categories, fair value is determined by discounting contractual
cash flows using rates which could be earned for assets with similar remaining maturities and credit risks and,
in the case of liabilities, rates at which the liabilities with similar remaining maturities could be issued, at the
balance sheet date.