entire - Deutsche Bank Annual Report 2012

Deutsche Bank 02 – Consolidated Financial Statements 201
Financial Report 2010 Notes to the Consolidated Financial Statements
04 – Acquisitions and Dispositions
During the third quarter 2010, the carrying amount of the equity method investment had been adjusted for a
charge of approximately € 2.3 billion recognized in the Group’s income statement within the line item “Net income
(loss) from equity method investments”. Since the Group had a clearly documented intention to gain control over
Postbank and to commence consolidation in the fourth quarter 2010, this had to be reflected in the determination
of the value in use of the equity method investment. Therefore, the charge had been determined based on the
carrying amount of the Group’s equity method investment in Postbank as of September 30, 2010 and an assumed
fair value of the Postbank shares equal to the price of € 25.00 offered by Deutsche Bank in the PTO. This charge
was allocated to the Corporate Investments Group Division.
On December 3, 2010, the date when control over Postbank was obtained, the Group remeasured to fair value
its existing equity method investment in Postbank in accordance with IFRS 3 R. The fair value of the equity
method investment was determined on the basis of the offer price of € 25.00, totaling an acquisition-date fair
value of € 3,139 million. Considering the net share of profits attributable to the existing Postbank investment in
the fourth quarter 2010, the balance of the equity method investment had increased by approximately € 22 million.
Accordingly, as of the closing date the remeasurement resulted in a corresponding loss of € 22 million recognized
in the Group’s income statement of the fourth quarter 2010 within the line item “Net income (loss) from equity
method investments”. In accordance with IFRS 3 R, net losses recognized in other comprehensive income of
€ 6 million attributable to the Group’s equity method investment in Postbank up to the closing date have been
reclassified to the Group’s income statement of the fourth quarter 2010. These effects were allocated to the
Corporate Investments Group Division.
Along with the MEB, Deutsche Bank and Deutsche Post had also entered into put and call options for another
26.4 million Postbank shares held by Deutsche Post (12.07 % stake) which are exercisable between February
2012 and February 2013. The put and call options were reported as a derivative financial instrument measured
at fair value through profit or loss.
Upon consolidation, the put and call option structure with Deutsche Post on Postbank shares was reclassified
to an equity instrument due to the fact that it became a physically settled derivative on shares in a consolidated
subsidiary settled for a fixed amount of cash. Therefore, its fair value of € 560 million (derivative liability) was
reclassified into equity (additional paid-in capital). Correspondingly, for the respective shares under the put and
call option structure, a liability was recognized at the present value of the expected purchase price, due to the
requirement to purchase these shares under the put option agreement. The liability to purchase of € 1,286 million
was recognized with a corresponding debt to equity (additional paid-in capital).