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Deutsche Bank German regulator BaFin said on Tuesday that deferred tax assets were incorrectly disclosed in its 2019 financial statements and did not comply with international accounting standards.
“The declaration of deferred tax assets in the consolidated financial statements is incomplete,” the regulator, formally known as the Federal Financial Supervisory Authority, said in a statement. statement Translated by CNBC.
It said deferred tax assets worth 2.076 billion euros ($2.26 billion) were not disclosed separately in a note to Deutsche Bank’s U.S. operations. The bank said it should have disclosed the information because it had been losing money for several years.
Additionally, BaFin said the bank should have explained why it was confident it would make sufficient profits in the future, but it also failed to do so.
this Disclosure error BaFin said in a second statement that this violated rules set by international accounting standards.
The regulator noted that the findings were the result of random spot checks initially initiated by Germany’s now-defunct Financial Reporting Enforcement Group.
Deutsche Bank said in a statement to CNBC that the financial statements still comply with international reporting standards.
“BaFin has not suggested that there are any inaccuracies in Deutsche Bank’s 2019 accounts, and no restatement or other action is required. Deutsche Bank today believes that, as of the time of publication, its 2019 financial statements and other disclosures are in full compliance with IFRS ( International Financial Reporting Standards) requirements,” a spokesman for the bank said in emailed comments.
Deferred tax assets are figures on a company’s financial statements that effectively reduce future taxable income, such as figures related to previous overpayments or prepayments of taxes.
The German Federal Financial Supervisory Authority points out that disclosing this information is important for the transparency of expected future tax consequences.
Deutsche Bank’s shares traded in Europe were last down 0.9% on Tuesday morning.
