COMMERZBANK AKTIENGESELLSCHAFT

To our Shareholders Corporate Responsibility Management Report Risk Report Group Financial Statements Further Information 211 267
258 202 Statement of comprehensive income
260 204 Balance sheet
262 206 Statement of changes in equity
264 208 Cash flow statement
266 210 Notes
409 353 Auditors’ report
Commission for services which are performed over a certain
period are recognised over the period in which the service is
performed. Fees which are associated with the completion of a
particular service are recognised at the time of completion of the
service. Performance-related fees are recognised when the
performance criteria are met. Commission on trading transactions
is reported in net trading income.
Borrowing costs that are directly attributable to the
acquisition, construction or production of a significant tangible
or intangible asset are capitalised in the balance sheet, provided
that a period of at least 12 months is required to prepare the
asset for its intended use.
Financial assets and liabilities relating to the same business
partner are netted and shown in the balance sheet on a net basis
if there is a legally enforceable right to net the amounts and the
transactions are fulfilled on a net basis or the asset is realised
simultaneously with the settlement of the liability. In addition to
the netting of positive and negative fair values attributable to
derivatives and any variation margins payable on them, this also
applies to the netting of claims and liabilities in reverse repo and
repo transactions.
Uniform accounting and measurement methods explained in
the notes below are used throughout the Commerzbank Group in
preparing the financial statements.
For fully consolidated companies and holdings in companies
accounted for using the equity method in the Group financial
statements we have generally used financial statements prepared
as at December 31, 2011. In the case of companies accounted
for using the equity method in some cases we use the most
recent audited financial statements if the company’s financial
statements for the last financial year are not yet available at the
date the Group financial statements are being prepared.
Where there is an intention to sell subsidiaries and
companies accounted for using the equity method, and their sale
is highly probable within one year, they are reported separately
in the relevant balance sheet items and notes (see Notes 59 and
69) and in the statement of changes in equity in accordance with
IFRS 5 until transfer of the shares is completed.
Note 79 contains a breakdown of all balance sheet items into
short-term and long-term. Moreover, residual maturities are
reported in the Commerzbank Group for all financial instruments
with contractual maturity dates (see Notes 77 and 79).
The consolidated financial statements include values which
are determined, as permitted, on the basis of estimates and
judgements. The estimates and judgements used are based on
past experience and other factors, such as planning and
expectations or forecasts of future events that are considered
likely as far as we know today.
The estimates and judgements themselves and the
underlying estimation methods and judgement factors are
reviewed regularly and compared with actual results. In our view
the parameters we have used are reasonable and appropriate.
Estimates of pension obligations, goodwill and the market value
of investment properties among other items are subject to
uncertainty.
Pension obligations are measured based on the projectedunit-credit
method for defined benefit pension plans. In
measuring such obligations, assumptions have to be made
regarding long-term trends for salaries, pensions and average
life expectancy in particular. Changes in the underlying
assumptions from year to year and divergences from the actual
effects each year are reported under actuarial gains and losses
(see Note 67 Provisions on the impact of changes in
parameters).
The impairment test for goodwill, which must be carried out
at least once a year, uses the recognised discounted cash flow
method. This is based on the future cash flows projected in
management’s latest planning figures. An analysis of the
uncertainties surrounding the estimation of goodwill and fair
value of financial instruments is set out in Notes 15 and 81.
For uncertainties relating to the market value of real estate
held as an investment property we carry out analyses based on
the parameters of the property yield and the land value (see
Note 58).
Estimates of deferred taxes, loan loss provisions and the
measurement of the fair value of financial instruments on the
basis of valuation models are to a large extent also subject to
uncertainty.
For loan loss provisions please refer to the Group Risk
Report.
Group Financial Statements