Deutsche Bank General Meeting
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Deutsche Bank misdisclosed deferred tax assets in its 2019 financial statements and failed to meet international accounting standards, Germany’s financial supervisory authority (BaFin) said on Tuesday.
“The declaration of deferred tax assets in the consolidated financial statements was incomplete,” the regulator, known as the Federal Financial Supervisory Authority, said in a statement. statement Translated by CNBC.
The bank said deferred tax assets worth 2.076 billion euros ($2.26 billion) had not been separately disclosed in notes on Deutsche Bank’s U.S. operations and should have been disclosed because the bank had been making losses for several years.
BaFin also said the bank should have explained why it was confident it would make sufficient profits in the future, but failed to do so.
of Disclosure Error In a second statement, BaFin said this violated rules set out in international accounting standards.
The regulator noted that the findings were the result of a random sampling survey initially launched by Germany’s now-disbanded Financial Reporting Executive Board.
In a statement to CNBC, Deutsche Bank said its financial statements still comply with international reporting standards.
“There is no indication from BaFin that there are any inaccuracies in Deutsche Bank’s accounts for 2019 and no amendments or other measures are necessary. Deutsche Bank’s view is that, at the time of this publication, its financial statements and other disclosures for the year 2019 are in full compliance with IFRS. [International Financial Reporting Standards] “It does not meet the requirements,” a bank spokesman said in emailed comments.
Deferred tax assets are figures on a company’s financial statements that effectively reduce future taxable income, for example, relating to past overpayments or prepayments of tax.
BaFin noted that those disclosures are important for transparency about expected future tax consequences.
Deutsche Bank’s European-traded shares were down 0.9% on Tuesday morning.
