entire - Deutsche Bank Annual Report 2012

Deutsche Bank 01 – Management Report 21
Financial Report 2010 Operating and Financial Review
Amendments to IAS 39 and IFRS 7, “Reclassification of Financial Assets”
Under the amendments to IAS 39 and IFRS 7 issued in October 2008, 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. 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, we concluded that the reclassifications
aligned the accounting more closely with the business intent.
The tables below show the incremental impact of the reclassification for CB&S. The tables show that the
reclassifications resulted in a € 753 million incremental loss to the income statement and a € 325 million
incremental loss to other comprehensive income for 2010. For the full year 2009, the reclassifications resulted
in a € 273 million incremental loss to the income statement and a € 1.2 billion incremental loss to other comprehensive
income. The consequential effect on credit market risk disclosures is provided in “Update on Key
Credit Market Exposures”.
Carrying value Fair value
Dec 31, 2010 Year ended Dec 31, 2010
Impact on
income before
income taxes
Impact on other
comprehensive
income
2010 impact of the reclassification
Sales & Trading – Debt
in € bn. in € bn. in € m. in € m.
Trading assets reclassified to loans 16.6 14.7 (582) –
Financial assets available for sale reclassified to loans
Origination and Advisory
8.7 7.8 2 (325)
Trading assets reclassified to loans 1 Loan products
1.4 1.2 (173) –
Financial assets available for sale reclassified to loans – – – –
Total 26.7 23.7 (753) 2
(325)
1 The significant decrease in carrying value and fair value of reclassified assets in Origination and Advisory since December 2009 is mainly due to the restructuring of
loans to Actavis Group hF in 2010 with a carrying amount of € 4.2 billion. There was no gain or loss recognized as a result of the restructuring. The restructuring is
detailed further in Note 17 “Equity Method Investments”.
2 In addition to the impact in CB&S, income before income taxes decreased by € 3 million in PBC.