AmazonScience/document-haystack

1life are amortized on a straight-line basis based on their expected useful life. These assets are 2tested for impairment and their useful lives reaffirmed at least annually. 3Other intangible assets that have an indefinite useful life are not amortized. Their indefinite 4useful lives are reaffirmed at least annually and these assets are reviewed for impairment 5annually or more frequently if there are indications that the carrying value may be impaired. 6Leases 7The Group assesses at contract inception whether a contract is, or contains, a lease. That is, 8if the contract conveys the right to control the use of an identified asset for a period of time in 9exchange for consideration. These contracts will mainly relate to office buildings and other 10leases for vehicles.11The Group applies a single recognition and measurement approach for all leases, except for 12short-term leases and leases of low-value assets. The Group applies the short-term lease 13recognition exemption for short-term leases (i. e. those leases that have a lease term of 12 14months or less from the commencement date and do not contain a purchase option). Lease 15payments on short-term leases and leases of low-value assets are recognised as expense on a 16straight-line basis over the lease term. 17Right-of-Use Assets18As a lessee the Group recognises right-of-use assets at the date the underlying asset is 19available for use (commencement date). Right-of-use assets are measured at cost, less any 20accumulated depreciation and impairment losses, and adjusted for any remeasurement of 21lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities 22recognised, initial direct costs incurred, and lease payments made at or before the 23commencement date less any lease incentives received. Right-of-use assets are depreciated 24on a straight-line basis over the shorter of the lease term and the estimated useful lives of the 25assets. The right-of-use assets are also subject to an annual impairment review.26Lease Liabilities 27At the commencement date of the lease, the Group recognises lease liabilities measured at 28the present value of lease payments to be made over the lease term. 29In calculating the present value of lease payments, the Group uses its incremental borrowing 30rate at the lease commencement date if the interest rate implicit in the lease is not readily 31determinable. After the commencement date, the amount of lease liabilities is increased to 32reflect the accretion of interest and reduced for the lease payments made. In addition, the 33carrying amount of lease liabilities is remeasured if there is a modification, a change in the 34lease term, a change in the lease payments (e. g. changes to future payments resulting from a 35change in an index or rate used to determine such lease payments) or a change in the 36assessment of an option to purchase the underlying asset.37Employee Benefits38Share-Based Compensation Plans39In DWS Group there are two main categories of share-based compensation plans, which are 40described below: 41DWS Share-Based Plans (Cash-settled)42The Group made grants of share-based compensation under the DWS Equity Plan. This plan 43represents a contingent right to receive a cash payment by referencing to the value of DWS 44shares during a specified time period. 45In September 2018 and January 2019, one-off IPO related Awards were granted to employees 46within the Group. Both Awards (DWS Equity Plan and DWS Stock Appreciation Rights Plan) 47are considered as share-based cash-settled awards. 48All employees who are offered DWS Equity Plan Awards are subject to performance condition 49and forfeiture provision which need to be met for each tranche to be capable of settlement. In 50case such performance conditions are not met, the tranche will lapse.51Employees who are offered DWS Stock Appreciation Rights Plan awards are also subject to 52specific performance and forfeiture provisions, as applicable under the plan.53Compensation expense is recorded on a straight-line basis over the period in which 54employees perform services to which the awards relate to, or over the period of the tranches 55for those awards delivered in tranches. Estimates of expected forfeitures are periodically 56adjusted in the event of actual forfeitures or for changes in expectations. The timing of 57expense recognition relating to grants which, due to early retirement provisions, include a 58nominal but non-substantive service period is accelerated by shortening the amortization 59period of the expense from the grant date to the date when the employee meets the eligibility 60criteria for the award, and not the vesting date. For awards that are delivered in tranches, 61each tranche is considered a separate award and amortized separately.62The principal inputs for the fair value of the awards are the market value on reporting date, 63discounted for any dividends foregone over the holding periods of the award. 64         65To our 66Shareholders67Summarised 68Management Report69Consolidated 70Financial Statements Compensation Report Corporate Govern-71ance Statement72Supplementary 73Information DWS 2023 Annual Report74 75Notes to the Consolidated Financial Statements7682 02 – Significant Accounting Policies and Critical Accounting Estimates