AmazonScience/document-haystack

1In the fourth quarter 2023, a refinement of the discount curve methodology for defined 2benefit plans was applied to the Eurozone curve in order to better align to market data which 3resulted in a benefit recognized in other comprehensive income of € 2 million.4Refer to note ‘19 – Employee Benefits’ for further information on the accounting for pension 5benefits and other post-employment benefits.6Termination Benefits7Termination benefits arise when employment is terminated by the Group before the normal 8retirement date or whenever an employee accepts voluntary redundancy in exchange for 9these benefits. The Group recognizes termination benefits as a liability and an expense if the 10Group is demonstrably committed to a detailed formal plan without realistic possibility of 11withdrawal. In the case of an offer made to encourage voluntary redundancy, termination 12benefits are measured based on the number of employees expected to accept the offer. 13Benefits falling due in more than twelve months after the end of the reporting period are 14discounted to their present value. The discount rate is determined by reference to market 15yields on high-quality corporate bonds.16Provisions and Contingent Liabilities17Provisions are recognized in accordance with IAS 37 and if the Group has a present legal or 18constructive obligation as a result of past events, if it is probable that an outflow of resources 19will be required to settle the obligation, and a reliable estimate can be made of the amount of 20the obligation. 21The amount recognized as a provision is the best estimate of the consideration required to 22settle the present obligation as of the balance sheet date, taking into account the risks and 23uncertainties surrounding the obligation.24If the effect of the time value of money is material, provisions are discounted and measured at 25the present value of the expenditure expected to be required to settle the obligation, using a 26pre-tax rate that reflects the current market assessments of the time value of money and the 27risks specific to the obligation. The increase in the provision due to the passage of time is 28recognized as interest expense. 29When some or all the economic benefits required to settle a provision are expected to be 30recovered from a third party (for example, because the obligation is covered by an insurance 31policy), an asset is recognized if it is virtually certain that reimbursement will be received.32Where an economic outflow from an obligation is probable, but a reliable estimate cannot be 33made, no provision is recognised and the obligation is deemed a contingent liability. 34Contingent liabilities also include possible obligations for which the possibility of future 35economic outflow is more than remote but less than probable. Where a provision has been 36taken for an obligation, no contingent liability is recorded.37Income Taxes38The Group recognizes the current and deferred tax consequences of transactions that have 39been included in the consolidated financial statements using the provisions of the respective 40jurisdictions’ tax laws. Current and deferred taxes are recognized in profit or loss except to the 41extent that the tax relates to items that are recognized directly in equity or other 42comprehensive income in which case the related tax is recognized directly in either equity or 43other comprehensive income accordingly.44Deferred tax assets and liabilities are recognized for future tax consequences attributable to 45temporary differences between the financial statement carrying amounts of existing assets 46and liabilities and their respective tax bases, unused tax losses and unused tax credits. 47Deferred tax assets are recognized only to the extent that it is probable that sufficient taxable 48profit will be available against which those unused tax losses, unused tax credits and 49deductible temporary differences can be utilized.50Deferred tax assets and liabilities are measured based on the tax rates that are expected to 51apply in the period that the asset is realised or the liability is settled, based on tax rates and 52tax laws that have been enacted or substantively enacted at the balance sheet date. 53Current tax assets and liabilities are offset when 541. they arise from the same tax reporting entity or tax group of reporting entities, 552. the legally enforceable right to offset exists and 563. they are intended to be settled net or realized simultaneously. 57Deferred tax assets and liabilities are offset when the legally enforceable right to offset 58current tax assets and liabilities exists and the deferred tax assets and liabilities relate to 59income taxes levied by the same taxing authority on either the same tax reporting entity or tax 60group of reporting entities.61Deferred tax liabilities are provided on taxable temporary differences arising from investments 62in subsidiaries, branches and associates and interests in joint ventures except when the 63timing of the reversal of the temporary difference is controlled by the Group and it is probable 64that the difference will not reverse in the foreseeable future. Deferred income tax assets are 65         66To our 67Shareholders68Summarised 69Management Report70Consolidated 71Financial Statements Compensation Report Corporate Govern-72ance Statement73Supplementary 74Information DWS 2023 Annual Report75 76Notes to the Consolidated Financial Statements7784 02 – Significant Accounting Policies and Critical Accounting Estimates