Goodwill and intangible assets	12 Months Ended
Goodwill and intangible assets	Dec. 31, 2022
Entity [Table]
Disclosure Of Intangible Assets And Goodwill Explanatory	Note 12 Goodwill and intangible assets Introduction UBS performs an impairment test on its goodwill assets on an annual basis or when indicators of impairment exist. UBS considers Asset Management , as it is reported in Note 2a, as a separate cash-generating unit (a CGU), as that is the level at which the performance of investment (and the related goodwill) is reviewed and assessed by management. Given that a significant amount of goodwill in Global Wealth Management relates to the PaineWebber acquisition in 2000, which mainly affected the Americas portion of the business, this goodwill remains separately monitored by the Americas, despite the formation of Global Wealth Management in 2018. Therefore, goodwill for Global Wealth Management is separately considered for impairment at the level of two CGUs: Americas; and Switzerland and International (consisting of EMEA, Asia Pacific and Global). The impairment test is performed for each CGU to which goodwill is allocated by comparing the recoverable amount with the carrying amount of the respective CGU. UBS determines the recoverable amount of the respective CGUs based on their value in use. An impairment charge is recognized if the carrying amount exceeds the recoverable amount. As of 31 December 2022, total goodwill recognized on the balance sheet was USD 6.0 bn, of which USD 3.7 bn was carried by the Global Wealth Management Americas CGU, USD 1.2 bn was carried by the Global Wealth Management Switzerland and International CGU, and USD 1.2 bn was carried by Asset Management. Based on the impairment testing methodology described below, UBS concluded that the goodwill balances as of 31 December 202 2 allocated to these CGUs were not impaired. Methodology for goodwill impairment testing The recoverable amounts are determined using a discounted cash flow model, which has been adapted to use inputs that consider features of the banking business and its regulatory environment. The recoverable amount of a CGU is the sum of the discounted earnings attributable to shareholders from the first three forecast years and the terminal value, adjusted for the effect of the capital assumed to be needed over the next three years and to support growth beyond that period. The terminal value, which covers all periods beyond the third year, is calculated on the basis of the forecast of the third-year profit, the discount rate and the long -term growth rate, as well as the implied perpetual capital growth. The carrying amount for each CGU is determined by reference to the Group’s equity attribution framework. Within this framework, which is described in the “Capital, liquidity and funding, and balance sheet” section of this report, UBS attributes equity to the businesses on the basis of their risk-weighted assets and leverage ratio denominator (both metrics include resource allocations from Group Functions to the business divisions), their goodwill and their intangible assets, as well as attributed equity related to certain common equity tier 1 deduction items. The framework is primarily used for the purpose of measuring the performance of the businesses and includes certain management assumptions. Attributed equity is equal to the capital a CGU requires to conduct its business and is currently considered a reasonable approximation of the carrying amount of the CGUs. The attributed equity methodology is also applied in the business planning process, the inputs from which are used in calculating the recoverable amounts of the respective CGU. › Refer to the “Capital, liquidity and funding, and balance sheet” section of this report for more information about the equity attribution framework Assumptions Valuation parameters used within the Group’s impairment test model are linked to external market information, where applicable. The model used to determine the recoverable amount is most sensitive to changes in the forecast earnings available to shareholders in years one to three, to changes in the discount rates and to changes in the long-term growth rate. The applied long-term growth rate is based on long-term economic growth rates for different regions worldwide. Earnings available to shareholders are estimated on the basis of forecast results, which are part of the business plan approved by the Board of Directors. The discount rates are determined by applying a capital asset pricing model-based approach, as well as considering quantitative and qualitative inputs from both internal and external analysts and the view of management. They also take into account regional differences in risk-free rates at the level of the individual CGUs. In line with discount rates, long- term growth rates are determined at the regional level based on nominal GDP growth rate forecasts. Key assumptions used to determine the recoverable amounts of each CGU are tested for sensitivity by applying a reasonably possible change to those assumptions. Forecast earnings available to shareholders were changed by 20 %, the discount rates were changed by 1.5 percentage points , and the long - term growth rates were changed by 0.75 percentage points. Under all scenarios, reasonably possible changes in key assumptions did not result in an impairment of goodwill or intangible assets reported by Global Wealth Management Americas, Global Wealth Management Switzerland and International, and Asset Management. If the estimated earnings and other assumptions in future periods deviate from the current outlook, the value of goodwill attributable to Global Wealth Management Americas, Global Wealth Management Switzerland and International, and Asset Management may become impaired in the future, giving rise to losses in the income statement. Recognition of any impairment of goodwill would reduce International Financial R eporting Standards equity and net profit. It would not affect cash flows and, as goodwill is required to be deducted from capital under the Basel III capital framework, no effect would be expected on the Group’s capital ratios. Discount and growth rates Discount rates Growth rates In % 31.12.22 31.12.21 31.12.22 31.12.21 Global Wealth Management Americas 10.5 9.5 3.8 4.0 Global Wealth Management Switzerland and International 9.4 8.5 3.6 3.1 Asset Management 9.5 8.5 3.4 2.9 USD m Goodwill Intangible assets 1 2022 2021 Historical cost Balance at the beginning of the year 6,126 1,612 7,739 7,865 Additions 0 0 0 1 Disposals 2 (22) 0 (22) (3) Write-offs 0 0 0 (41) Foreign currency translation (61) (14) (76) (83) Balance at the end of the year 6,043 1,598 7,641 7,739 Accumulated amortization and impairment Balance at the beginning of the year 1,360 1,360 1,385 Amortization 26 26 31 Impairment / (reversal of impairment) (1) (1) (1) Write-offs 0 0 (41) Foreign currency translation (11) (11) (13) Balance at the end of the year 1,374 1,374 1,360 Net book value at the end of the year 6,043 224 6,267 6,378 of which: Global Wealth Management Americas 3,709 31 3,740 3,760 of which: Global Wealth Management Switzerland and International 1,166 59 1,225 1,276 of which: Asset Management 1,167 0 1,167 1,202 of which: Investment Bank 0 135 135 139 1 Intangible assets mainly include customer relationships, contractual rights and the fully amortized branch network intangible asset recognized in connection with the acquisition of PaineWebber Group, Inc. 2 Reflects the derecognition of goodwill allocated to businesses that have been disposed of, in accordance with IAS 36 requirements. The table below presents estimated aggregated amortization expenses for intangible assets. USD m Intangible assets Estimated aggregated amortization expenses for: 2023 26 2024 24 2025 23 2026 23 2027 22 Thereafter 104 Not amortized due to indefinite useful life 2 Total 224
UBS AG
Entity [Table]
Disclosure Of Intangible Assets And Goodwill Explanatory	Note 12 Goodwill and intangible assets Introduction UBS AG performs an impairment test on its goodwill assets on an annual basis or when indicators of impairment exist. UBS AG considers Asset Management , as it is reported in Note 2a, as a separate cash-generating unit (a CGU), as that is the level at which the performance of investment (and the related goodwill) is reviewed and assessed by management. Given that a significant amount of goodwill in Global Wealth Management relates to the PaineWebber acquisition in 2000, which mainly affected the Americas portion of the business, this goodwill remains separately monitored by the Americas, despite the formation of Global Wealth Management in 2018. Therefore, goodwill for Global Wealth Management is separately considered for impairment at the level of two CGUs: Americas; and Switzerland and International (consisting of EMEA, Asia Pacific and Global). The impairment test is performed for each CGU to which goodwill is allocated by comparing the recoverable amount with the carrying amount of the respective CGU. UBS AG determines the recoverable amount of the respective CGUs based on their value in use. An impairment charge is recognized if the carrying amount exceeds the recoverable amount. As of 31 December 2022, total goodwill recognized on the balance sheet was USD 6.0 bn, of which USD 3.7 bn was carried by the Global Wealth Management Americas CGU, USD 1.2 bn was carried by the Global Wealth Management Switzerland and International CGU, and USD 1.2 bn was carried by Asset Management. Based on the impairment testing methodology described below, UBS AG concluded that the goodwill balances as of 31 December 2022 allocated to these CGUs were not impaired. Methodology for goodwill impairment testing The recoverable amounts are determined using a discounted cash flow model, which has been adapted to use inputs that consider features of the banking business and its regulatory environment. The recoverable amount of a CGU is the sum of the discounted earnings attributable to shareholders from the first three forecast years and the terminal value, adjusted for the effect of the capital assumed to be needed over the next three years and to support growth beyond that period. The terminal value, which covers all periods beyond the third year, is calculated on the basis of the forecast of the third-year profit, the discount rate and the long -term growth rate, as well as the implied perpetual capital growth. The carrying amount for each CGU is determined by reference to UBS’s equity attribution framework. Within this framework, which is described in the “Capital, liquidity and funding, and balance sheet” section of this report, UBS attributes equity to the businesses on the basis of their risk-weighted assets and leverage ratio denominator (both metrics include resource allocations from Group Functions to the business divisions), their goodwill and their intangible assets, as well as attributed equity related to certain common equity tier 1 deduction items. The framework is primarily used for the purpose of measuring the performance of the businesses and includes certain management assumptions. Attributed equity is equal to the capital a CGU requires to conduct its business and is currently considered a reasonable approximation of the carrying amount of the CGUs. The attributed equity methodology is also applied in the business planning process, the inputs from which are used in calculating the recoverable amounts of the respective CGU. › Refer to the “Capital, liquidity and funding, and balance sheet” section of this report for more information about the equity attribution framework Assumptions Valuation parameters used within UBS AG’s impairment test model are linked to external market information, where applicable. The model used to determine the recoverable amount is most sensitive to changes in the forecast earnings available to shareholders in years one to three, to changes in the discount rates and to changes in the long-term growth rate. The applied long-term growth rate is based on long-term economic growth rates for different regions worldwide. Earnings available to shareholders are estimated on the basis of forecast results, which are part of the business plan approved by the Board of Directors. The discount rates are determined by applying a capital asset pricing model-based approach, as well as considering quantitative and qualitative inputs from both internal and external analysts and the view of management. They also take into account regional differences in risk-free rates at the level of the individual CGUs. In line with discount rates, long- term growth rates are determined at the regional level based on nominal GDP growth rate forecasts. Key assumptions used to determine the recoverable amounts of each CGU are tested for sensitivity by applying a reasonably possible change to those assumptions. Forecast earnings available to shareholders were changed by 20 %, the discount rates were changed by 1.5 percentage points , and the long - term growth rates were changed by 0.75 percentage points. Under all scenarios, reasonably possible changes in key assumptions did not result in an impairment of goodwill or intangible assets reported by Global Wealth Management Americas, Global Wealth Management Switzerland and International, and Asset Management. If the estimated earnings and other assumptions in future periods deviate from the current outlook, the value of goodwill attributable to Global Wealth Management Americas, Global Wealth Management Switzerland and International, and Asset Management may become impaired in the future, giving rise to losses in the income statement. Recognition of any impairment of goodwill would reduce International Financial R eporting Standards equity and net profit. It would not affect cash flows and, as goodwill is required to be deducted from capital under the Basel III capital framework, no effect would be expected on UBS AG’s capital ratios. Discount and growth rates Discount rates Growth rates In % 31.12.22 31.12.21 31.12.22 31.12.21 Global Wealth Management Americas 10.5 9.5 3.8 4.0 Global Wealth Management Switzerland and International 9.4 8.5 3.6 3.1 Asset Management 9.5 8.5 3.4 2.9 USD m Goodwill Intangible assets 1 2022 2021 Historical cost Balance at the beginning of the year 6,126 1,612 7,739 7,865 Additions 0 0 0 1 Disposals 2 (22) 0 (22) (3) Write-offs 0 0 0 (41) Foreign currency translation (61) (14) (76) (83) Balance at the end of the year 6,043 1,598 7,641 7,739 Accumulated amortization and impairment Balance at the beginning of the year 1,360 1,360 1,385 Amortization 26 26 31 Impairment / (reversal of impairment) (1) (1) (1) Write-offs 0 0 (41) Foreign currency translation (11) (11) (13) Balance at the end of the year 1,374 1,374 1,360 Net book value at the end of the year 6,043 224 6,267 6,378 of which: Global Wealth Management Americas 3,709 31 3,740 3,760 of which: Global Wealth Management Switzerland and International 1,166 59 1,225 1,276 of which: Asset Management 1,167 0 1,167 1,202 of which: Investment Bank 0 135 135 139 1 Intangible assets mainly include customer relationships, contractual rights and the fully amortized branch network intangible asset recognized in connection with the acquisition of PaineWebber Group, Inc. 2 Reflects the derecognition of goodwill allocated to businesses that have been disposed of, in accordance with IAS 36 requirements. The table below presents estimated aggregated amortization expenses for intangible assets. USD m Intangible assets Estimated aggregated amortization expenses for: 2023 26 2024 24 2025 23 2026 23 2027 22 Thereafter 104 Not amortized due to indefinite useful life 2 Total 224