Consolidating balance sheets accounting

The financial statements of the subsidiaries are consolidated with those of the Bank using the global integration method.

The share of non-controlling interests from subsidiaries in the Group’s consolidated equity is presented under the heading “Non-controlling interests” in the consolidated balance sheet.

The accounting standards and policies and valuation criteria used in preparing the accompanying consolidated financial statements are as follows: All financial instruments are initially accounted for at fair value which, unless there is evidence to the contrary, shall be the transaction price.

All the changes in the fair value of the financial instruments, except in trading derivatives, arising from the accrual of interests and similar items are recognized under the headings “Interest and similar income” or “Interest and similar expenses”, as appropriate, in the accompanying consolidated income statement for the year in which the accrual took place (see Note 39).

The assets and liabilities recognized under these headings of the consolidated balance sheets are measured at fair value and changes in the fair value (gains or losses) are recognized as their net value under the heading “Net gains (losses) on financial assets and liabilities” in the accompanying consolidated income statements (see Note 44).

No additional information is presented with respect to the other entities as the holdings in these cases are not significant.

Assets recognized under this heading in the consolidated balance sheets are measured at their fair value.

Subsequent changes in fair value (gains or losses) are recognized temporarily for their amount net of tax effect, under the heading “Valuation adjustments - Available-for-sale financial assets” in the consolidated balance sheets.

The Bank uses the cost method to account in its financial statements for investment in subsidiaries, jointly controlled companies and associates, as permitted by IAS 27. The accounting standards and policies and the valuation criteria applied in preparing these consolidated financial statements may differ from those used by some of the entities within the BBVA Group.

Appendix I shows the individual financial statements of BBVA, S. For this reason, necessary adjustments and reclassifications have been introduced in the consolidation process to standardize these principles and criteria and comply with the EU-IFRS, as required under the Bank of Spain Circular 4/2004.

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  1. To subscribe, simply provide us with your email address. About Blog Lisa has written extensively about topics related to marriage, relationship and emotional health. About Blog Tips, advice, and other fun resources to help you grow closer together, even while you're in a long distance relationship. Blog modernlovelongdistance.com/blog Facebook fans 2,110.