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Basis of accounting
 6 Months Ended
Jun. 30, 2024
Disclosure Of Material Accounting Policy Information [Line Items]  
Basis of preparation
 
Note 1
 
Basis of accounting
Basis of preparation
The consolidated financial statements (the financial statements) of UBS AG and its subsidiaries (together, UBS AG)
are prepared in
 
accordance with IFRS Accounting Standards,
 
as issued by
 
the International Accounting Standards
Board (the IASB),
 
and are
 
presented in
 
US dollars. These
 
interim financial statements
 
are prepared in
 
accordance
with IAS 34,
Interim Financial Reporting
.
In preparing
 
these interim financial
 
statements, the same
 
accounting policies and
 
methods of
 
computation have
been applied as in the UBS AG consolidated annual
 
financial statements for the period ended 31 December
 
2023,
except for the changes described in this
 
Note and changes in segment reporting as set out in
 
Note 3. Note 2 sets
out
 
the
 
accounting
 
for
 
the
 
merger
 
of
 
UBS AG
 
and
 
Credit
 
Suisse AG.
 
These
 
interim
 
financial
 
statements
 
are
unaudited
 
and
 
should
 
be
 
read
 
in
 
conjunction
 
with
 
UBS AG’s
 
audited
 
consolidated
 
financial
 
statements
 
in
 
the
UBS AG Annual
 
Report 2023
 
and the
 
“Management report”
 
sections of
 
this report,
 
including the
 
disclosures in
“Integration of Credit
 
Suisse” in the “Recent
 
developments” section of
 
this report. In
 
the opinion of management,
all
 
necessary
 
adjustments
 
have
 
been
 
made
 
for
 
a
 
fair
 
presentation
 
of
 
UBS AG’s
 
financial
 
position,
 
results
 
of
operations and cash flows.
Preparation of these interim financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and
liabilities. These estimates and assumptions are based on the best available information. Actual results in the future
could differ from such estimates and differences may be material to the financial statements. Revisions to estimates,
based on regular reviews, are recognized in the period in which they occur. For more information about areas of
estimation uncertainty that are considered to require critical judgment, refer to this Note and Note 2, as well as
“Note 1a Material accounting policies” in the “Consolidated financial statements” section of the UBS AG Annual
Report 2023.
Incremental accounting policies related
 
to the transactions and activities associated
 
with the merger of
UBS AG and Credit Suisse AG
Business combinations under common control
UBS AG’s
 
material
 
accounting
 
policies
 
in
 
respect
 
of
 
business
 
combinations
 
are
 
set
 
out
 
in
 
“Note
 
1a
 
Material
accounting
 
policies,
 
item
 
1
 
Consolidation”
 
in
 
the
 
“Consolidated
 
financial
 
statements”
 
section
 
of
 
the
 
UBS AG
Annual
 
Report
 
2023.
 
The
 
merger
 
of
 
UBS AG
 
and
 
Credit
 
Suisse AG
 
on
 
31 May
 
2024
 
constitutes
 
a
 
business
combination under common
 
control as
 
defined in
 
IFRS 3,
Business Combinations
, i.e.,
 
a business combination
 
in
which the combining entities or businesses are ultimately
 
controlled by the same entity both
 
before and after the
business combination and where
 
that control is
 
not transitory.
 
Business combinations under common control
 
are
outside
 
the
 
scope
 
of
 
IFRS
 
3.
 
In
 
the
 
absence
 
of
 
specific
 
accounting
 
requirements
 
in
 
IFRS
 
Accounting Standards,
UBS AG has
 
adopted an
 
accounting policy
 
that provides
 
relevant information
 
for the
 
economic decision-making
needs of users and is reflective of the economic substance
 
of the transaction.
UBS AG accounts for business
 
combinations under common
 
control using the historic
 
carrying values of
 
assets and
liabilities of
 
the transferred
 
entity
 
or business
 
as of
 
the date
 
of the
 
transfer,
 
determined under
 
IFRS Accounting
Standards.
 
The
 
balances
 
of
 
each
 
of
 
the
 
equity
 
reserves
 
of
 
the
 
transferred
 
entity,
 
accumulated
 
after
 
that
 
entity
becomes part of the
 
UBS Group, are combined with
 
the corresponding equity reserves (
Share premium
,
Retained
earnings
 
and
Other
 
comprehensive income
 
recognized directly
 
in
 
equity,
 
net
 
of
 
tax
)
 
of
 
UBS AG.
 
The
 
difference
between the
 
aggregate carrying
 
value of
 
the assets
 
and liabilities
 
and equity
 
reserves is
 
recognized as
 
an adjustment
to
Share premium
, net
 
of any
 
consideration that
 
may be
 
payable. Comparative
 
periods prior
 
to the
 
dates of
 
business
combinations under common control are not restated,
 
because such transactions are accounted for
 
prospectively.
 
Allowances and provisions for expected credit
 
losses
UBS AG’s material accounting
 
policies in respect of
 
allowances and provisions for
 
expected credit losses are
 
set out
in
 
“Note
 
1a
 
Material
 
accounting policies,
 
item
 
2g
 
Allowances and
 
provisions
 
for
 
expected credit
 
losses”
 
in
 
the
“Consolidated financial statements” section
 
of the UBS AG
 
Annual Report 2023.
 
Financial instruments, acquired
through
 
a business
 
combination under
 
common control
 
that are
 
not classified
 
by UBS AG
 
at fair
 
value through
profit or loss, are subject to IFRS 9 expected credit loss (ECL) requirements.
Goodwill and other intangible assets
UBS AG’s
 
material accounting
 
policies
 
regarding
 
goodwill are
 
set
 
out
 
in
 
“Note 1a
 
Material accounting
 
policies,
item 9 Goodwill”
 
in the “Consolidated
 
financial statements”
 
section of the
 
UBS AG Annual Report
 
2023. Goodwill
recognized
 
in
 
the
 
transferred
 
entity
 
prior
 
to
 
the
 
date
 
of
 
the
 
business
 
combination
 
under
 
common
 
control
 
is
recognized in
 
these financial
 
statements at
 
the historic
 
carrying value,
 
subsequently allocated
 
to respective
 
cash
generating units and tested for impairment.
 
Business
 
combinations
 
under
 
common
 
control
 
do
 
not
 
result
 
in
 
a
 
recognition
 
of
 
incremental
 
goodwill
 
or
 
other
intangible assets,
 
in addition
 
to those
 
already recognized
 
by the
 
transferred entity
 
prior to
 
the date
 
of business
combination under common control.