liability in the amount of €125 million.
3064 Chapter 37
4.3.4
Acquisition and disposal of property, plant and equipment
In Extract 37.5 below, Emeco Holdings gives a narrative description to meet the
requirement to disclose additions and disposals of items of property, plant and
equipment in the interim period. [IAS 34.15B(d)].
Extract 37.5: Emeco Holdings Limited (half year ended 31 December 2017)
Notes to the Condensed Consolidated Interim Financial Report [extract]
7.
Property, plant and equipment
During the period, the Group acquired Force Equipment Pty Ltd further increasing its fleet by $62,528,000. Refer to
note 12 for further information.
During the six months ended 31 December 2017, the Group recognised a total impairment expense of $5,187,000
(six months ended 31 December 2016 impairment expense: $1,359,000). This related to the transfer of assets from
the rental fleet to non-current assets held for sale under the fair value less costs of disposal methodology. In
determining if any further impairment adjustments are required at 31 December 2017, management have considered
various factors including the Group’s performance compared to budget and have determined there are no impairment
triggers noted at this time.
The Company continues to monitor the appropriate componentisation, estimated useful life and residual value of the
fleet, which has been impacted by improved market conditions. The financial effect of this reassessment decreases
depreciation by $9,725,000 in the current half year.
4.3.5 Capital
commitments
In a brief descriptive note, Deutsche Lufthansa discloses its commitments for capital
expenditure. [IAS 34.15B(e)].
Extract 37.6: Deutsche Lufthansa AG (2nd interim report January - June 2018)
Interim financial statements [extract]
Notes [extract]
4)
Contingencies and events after the balance sheet date [extract]
At the end of June 2018, there were order commitments of EUR 12.6bn for capital expenditure on property, plant
and equipment, including repairable spare parts, and for intangible assets. As of 31 December 2017, the order
commitments came to EUR 13.0bn.
Interim financial reporting 3065
4.3.6 Litigation
settlements
UBS provides details about significant litigation in its interim report. The extract below
illustrates its disclosure about related settlements. [IAS 34.15B(f)].
Extract 37.7: UBS Group AG (interim ended June 2016)
Notes to the UBS AG interim consolidated financial statements [extract]
Note 16
Provisions and contingent liabilities [extract]
b)
Litigation, regulatory and similar matters [extract]
5.
Foreign exchange, LIBOR, and benchmark rates and other trading practices
LIBOR and other benchmark-related civil litigation:
A number of putative class actions and other actions are pending in, or expected to be transferred to, the federal courts in New York against UBS and numerous other banks on behalf of parties who transacted in certain interest rate benchmark-based
derivatives. Also pending are actions asserting losses related to various products whose interest rate was linked to USD LIBOR, including adjustable rate mortgages, preferred and debt securities, bonds pledged as collateral, loans, depository accounts, investments and other interest-bearing instruments. All of the complaints allege manipulation, through various means, of
various benchmark interest rates including USD LIBOR, Euroyen TIBOR, Yen LIBOR, EURIBOR, CHF LIBOR, GBP
LIBOR or USD ISDAFIX rates, and seek unspecified compensatory and other damages under varying legal theories. [...]
With respect to additional matters and jurisdictions not encompassed by the settlements and order referred to above,
our balance sheet at 31 March 2016 reflected a provision in an amount that UBS believes to be appropriate under the
applicable accounting standard.
4.3.7
Changes in circumstances affecting fair values
In their half-yearly interim report for 2016, Rolls-Royce Holdings plc describes the
effect of changes in financial markets following the result of the UK Referendum on its
membership of the European Union. [IAS 34.15B(h)].
Extract 37.8: Rolls-Royce Holdings plc (interim ended June 2016)
Chief Executive’s Review [extract]
Performance in the first six months of 2016 [extract]
Since the EU referendum vote at the end of June, the value of sterling relative to the US dollar fell significantly. As a result, we have recognised a £2.2bn non-cash mark-to-market valuation adjustment for our US dollar hedge book. Reported revenue
of £6,462m (2015: £6,370m) was unaffected by this; however the valuation adjustment was the principle reason for reported financing costs being £(2,386)m (2015: £(69)m) and reported loss before tax being £(2,150)m (2015: £310m profit).
3066 Chapter 37
4.3.8
Default or breach of loan covenants not remedied before the end of
interim period
In Extract 37.9 below, Hellenic Company for Telecommunications and Telematic
Applications S.A. (Forthnet S.A.) discusses breaches of loan covenants. [IAS 34.15B(i)]. The
existence of breaches or defaults that have not been remedied by the end of the
reporting period will merit disclosure about management’s assessment of the entity’s
ability to continue as a going concern. This is discussed at 4.7 below.
Extract 37.9: Forthnet S.A. (six-months period ended June 30, 2017)
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS [extract]
6. Going
concern [extract]
As of June 30, 2017 the Company and its subsidiary Forthnet Media S.A. (hereinafter FM) continued not to be in
compliance with certain financial covenants set out in their existing agreements for the ordinary bond loans issued
by the Company and FM amounting to €255 million (note 18) (hereinafter the Existing OBLs) and had not repaid
matured loan instalments of €255 million from the Existing OBLs by the date the financial statements were approved.
Consequently, on 30.06.2017 all Existing OBLs continued to be classified as short-term liabilities. As a result of
bond loans being presented as short-term liabilities on 30.06.2017, total short-term liabilities of the Group and
Company exceeded by about €343.6 million and about €11.7 million, respectively, the short-term assets.
4.3.9
Related party transactions
In Extract 37.10 below, Deutsche Bank discloses related party transactions. [IAS 34.15B(j)].
Extract 37.10: Deutsche Bank Aktiengesellschaft (interim ended March 2016)
Other Financial Information (unaudited) [extract]
Related Party Transactions
Parties are considered to be related if one party has the ability to directly or indirectly control the other party or
exercise significant influence over the other party in making financial or operational decisions. The Group’s related
parties include:
• key management personnel, close family members of key management personnel and entities which are
controlled, significantly influenced by, or for which significant voting power is held by key management
personnel or their close family members,
• subsidiaries, joint ventures and associates and their respective subsidiaries, and
• post-employment benefit plans for the
benefit of Deutsche Bank employees.
Transactions with Key Management Personnel
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of Deutsche Bank Group, directly or indirectly. The Group considers the members of the
Management Board as currently mandated and the Supervisory Board of the parent company to constitute key
management personnel for purposes of IAS 24. Among the Group’s transactions with key management personnel as
of March 31, 2016, were loans and commitments of €11 million and deposits of €8 million. As of December 31,
2015, there were loans and commitments of €11 million and deposits of €8 million among the Group’s transactions
with key management personnel. In addition, the Group provides banking services, such as payment and account
services as well as investment advice, to key management personnel and their close family members.
Interim financial reporting 3067
Transactions with Subsidiaries, Associates and Joint Ventures
Transactions between Deutsche Bank AG and its subsidiaries meet the definition of related party transactions. If
these transactions are eliminated on consolidation, they are not disclosed as related party transactions. Transactions
between the Group and its associated companies and joint ventures and their respective subsidiaries also qualify as
related party transactions.
Loans issued and guarantees granted
Associated companies and other
related parties
in € m.
Mar 31, 2016
Dec 31, 2015
Loans outstanding, beginning of period
396
321
Loans issued during the period
92
464
Loan repayments during the period
64
376
Changes in the group of consolidated companies
0 (31)
Exchange rate changes/other
0
18
Loans outstanding, end of period1 425
396
Other credit risk related transactions:
Allowance for loan losses
1
1
Provision for loan losses
0
0
Guarantees and commitments
263
263
1
Loans past due were €8 million as of March 31, 2016, and €4 million as of December 31, 2015. For the above loans,
the Group held collateral of €78 million and €69 million as of March 31, 2016 and December 31, 2015, respectively.
Deposits received
Associated companies and other
related parties
in € m.
Mar 31, 2016
Dec 31, 2015
Deposits, beginning of period
162
128
Deposits received during the period
75
326
Deposits repaid during the period
119
295
Changes in the group of consolidated companies
0
(0)
Exchange rate changes/other
(1)
2
Deposits, end of period
115
162
Other transactions
Trading assets and positive market values from derivative financial transactions with associated companies amounted
to €39 million as of March 31, 2016, and €32 million as of December 31, 2015. Trading liabilities and negative
market values from derivative financial transactions with associated companies were €0 million as of March 31,
2016, and €0 million as of December 31, 2015.
Transactions with Pension Plans
The Group has business relationships with a number of its pension plans pursuant to which it provides financial
services to these plans, including investment management. Pension funds may hold or trade Deutsche Bank AG
shares or securities. As of March 31, 2016, transactions with these plans were not material for the Group.
3068 Chapter 37
4.3.10
Transfers between different levels of fair value hierarchy
Detailed reconciliation is provided by HSBC in the extract below relating to fair value
measurements in level 3 of the fair value hierarchy. The reconciliation, among other
items, includes transfer of items in and out of level 3. [IAS 34.15B(k)]. The same level of
detail is provided for the comparative periods from 1 July 2016 to December 2016 and
1 January 2016 to 30 June 2016, but for reasons of space is not reproduced below.
Extract 37.11: HSBC Holdings plc (interim ended June 2017)
Notes on the Financial Statements (unaudited) [extract]
4 – Fair values of financial instruments carried at fair value [extract]
Movement in Level 3 financial instruments
Assets Liabilities
Designated
Designated
at fair value
at fair value
Available
Held for
through
Held for
through
for sale
trading profit or loss
Derivatives
trading profit or loss
Derivatives
$m $m $m $m $m $m $m
At 1 Jan 2017
3,476
6,489
730
2,752
3,582
37
2,300
Total
gains/(losses)
recognised in
profit or loss
329
(78)
43
(50)
103
(4)
39
– trading income
/(expense)
excluding net
interest income
–
(78)
–
(50)
103
–
39
– net income/
(expense) from
other financial
instruments
designated at fair
value
–
–
43
–
–
(4)
–
– gains less losses
from financial
investments
306
–
–
–
–
–
–
– loan impairment
charges and other
credit risk
provisions
23
–
–
–
–
–
–
Total
gains/(losses)
recognised in
other
comprehensive
income1
(84)
62
4
99
82
1
62
Interim financial reporting 3069
Assets Liabilities
Designated
Designated
at fair value
at fair value
Available
Held for
through
Held for
through
for sale
trading profit or loss
Derivatives
trading profit or loss
Derivatives
$m $m $m $m $m $m $m
– available for
sale investments:
fair value gains
(150)
–
–
–
–
–
–
– cash flow
hedges: fair value
gains/(losses)
–
–
–
(30)
–
–
(38)
– exchange
differences
66
62
4
129
82
1
100
Purchases
50
635
321
–
–
–
–
New issuances
–
–
–
–
977
–
–
Sales
(536) (2,161)
(1)
–
(12)
–
–
Settlements
(10) (297)
(28)
(53) (433)
–
67
Transfers out
(470) (35)
(2) (164)
(271) (33) (425)
Transfers in
694
189
–
85
22
–
20
At 30 Jun 2017
3,449
4,804
1,067
2,669
4,050
1
2,063
Unrealised
gains/(losses)
recognised in
profit or loss
relating to assets
and liabilities
held at 30 Jun
2016
23
28
23
(48)
228
–
106
– trading
income/(expense)
excluding net
interest income
–
28
–
(48)
228
–
106
– net
income/(expense)
from other
financial
instruments
designated at fair
International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards Page 607
