entire - Deutsche Bank Annual Report 2012

Deutsche Bank 02 – Consolidated Financial Statements 161
Financial Report 2010 Notes to the Consolidated Financial Statements
01 – Significant Accounting Policies
The Group reassesses its treatment of SPEs for consolidation when there is an overall change in the SPE’s
arrangements or when there has been a substantive change in the relationship between the Group and an
SPE. The circumstances that would indicate that a reassessment for consolidation is necessary include, but
are not limited to, the following:
— substantive changes in ownership of the SPE, such as the purchase of more than an insignificant additional
interest or disposal of more than an insignificant interest in the SPE;
— changes in contractual or governance arrangements of the SPE;
— additional activities undertaken in the structure, such as providing a liquidity facility beyond the terms
established originally or entering into a transaction with an SPE that was not contemplated originally; and
— changes in the financing structure of the entity.
In addition, when the Group concludes that the SPE might require additional support to continue in business,
and such support was not contemplated originally, and, if required, the Group would provide such support for
reputational or other reasons, the Group reassesses the need to consolidate the SPE.
The reassessment of control over the existing SPEs does not automatically lead to consolidation or deconsolidation.
In making such a reassessment, the Group may need to change its assumptions with respect to
loss probabilities, the likelihood of additional liquidity facilities being drawn in the future and the likelihood of
future actions being taken for reputational or other purposes. All currently available information, including
current market parameters and expectations (such as loss expectations on assets), which would incorporate
any market changes since inception of the SPE, is used in the reassessment of consolidation conclusions.
All intercompany transactions, balances and unrealized gains on transactions between Group companies are
eliminated on consolidation. Consistent accounting policies are applied throughout the Group for the purposes
of consolidation. Issuances of a subsidiary’s stock to third parties are treated as noncontrolling interests.
At the date that control of a subsidiary is lost, the Group a) derecognizes the assets (including any goodwill) and
liabilities of the subsidiary at their carrying amounts, b) derecognizes the carrying amount of any noncontrolling
interests in the former subsidiary (including any components in accumulated other comprehensive income
attributable to the subsidiary), c) recognizes the fair value of the consideration received and any distribution of
the shares of the subsidiary, d) recognizes any investment retained in the former subsidiary at its fair value and
e) recognizes any resulting difference of the above items as a gain or loss in the income statement. Any amounts
recognized in prior periods in other comprehensive income in relation to that subsidiary would be reclassified to
the consolidated statement of income at the date that control is lost.
Assets held in an agency or fiduciary capacity are not assets of the Group and are not included in the Group’s
consolidated balance sheet.