COMMERZBANK AKTIENGESELLSCHAFT

Provisions for pensions are calculated on the basis of an expert
opinion at the end of the year. The projected unit credit method
is used for the calculation. The calculation parameters can be
found in the note on provisions.
Plan assets to cover pension and part-time working
obligations for older employees are measured at fair value and
are netted against the provisions created for this purpose in
accordance with Art. 246 (2) sentence 2 HGB. The same applies
to the associated expenses and income. If an asset surplus arises
from offsetting plan assets against the provisions created for this
purpose for pensions and part-time working obligations for older
employees, this is shown in the item excess of plan assets over
liabilities. The contribution required under Art. 67 (1) EGHGB
will be provided no later than December 31, 2024.
Provisions for taxes and other provisions are recognised at
the settlement amount estimated as necessary using reasonable
commercial judgement; provisions with a residual term of more
than one year are discounted to their present value.
Derivative financial instruments are used both to hedge
balance sheet items and for trading purposes, and are measured
individually as of the reporting date. Hedge relationships
including derivative hedging transactions are recognised in
accordance with the principles of Art. 254 HGB. The gross
hedge presentation method is used for the hedge accounting of
micro hedges in the liquidity reserve. The underlying and
hedging transactions in micro hedges on the liabilities side are
recognised in accordance with the fixed valuation method.
Portfolio hedges are recognised using the net hedge
presentation method. If there is an excess liability when
checking interest rate-based financial instruments in the
banking book (using the net present value method),
Commerzbank Aktiengesellschaft will create a provision.
Variation margins payable and due are offset against other
assets and other liabilities. Internal transactions are accounted
for using the arm’s length principle.
Deferred taxes are recognised for all temporary differences
between the accounting values of all assets, debts and accrued
Financial Statements and Management Report 2011 83
and deferred items and their tax values. Deferred taxes are
measured using the individual company tax rates (and tax
regulations) in force on the reporting date or which have been
essentially approved by law, and are expected to be in force at
the time the deferred tax asset will be realised or the deferred
tax liability will be settled. The breakdown of overall tax rate of
Commerzbank Aktiengesellschaft for Germany was as follows:
Corporation
tax rate
15%
Solidarity
surcharge
Trade tax
rate
Overall tax
rate
5.5% of
corporation tax 15.3% 31.2%
The measurement of deferred taxes for foreign branches takes
place based on the tax rates applicable in the relevant countries,
which range from 0% to 46%.
Because Commerzbank Aktiengesellschaft includes selected
subsidiaries for income tax purposes, deferred tax assets and
liabilities arising from temporary differences at these companies
are recognised at the level of Commerzbank Aktiengesellschaft.
For foreign branches of subsidiaries, they are recognised at the
level of the individual subsidiaries.
Deferred tax assets are recognised where it is likely that a
taxable profit will be available to be offset against the temporary
difference. Tax loss carryforwards and interest carryforwards are
taken into account when calculating deferred tax assets where
they are expected to be realised within the next five years.
Deferred tax assets and liabilities are stated net.
The underlying differences are mainly due to different
valuation methods for provisions, other liabilities, claims on
banks and fixed assets, and result in a deferred tax asset.
Deferred tax assets have also been recognised on tax losscarryforwards
where there are sufficient grounds to expect they
can be realised within the next five financial years following the
reporting date. The net result in the financial year was a
deferred tax asset, which we have opted to report.