Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 502

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 502
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Disclosure of accounting policies”

These amendments aim to help institutions to improve accounting policy disclosures so that they provide more useful information in their annual
financial statements.

On one hand, the amendments to IAS 1 require institutions to disclose their material accounting policy information rather
than their significant accounting policies, clarifying that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. On the other hand, the amendments to Practice
Statement 2, on making materiality judgements, provide guidance on how to apply the concept of materiality to accounting policy disclosures.

Amendments to IAS 8 “Definition of accounting estimates”

These amendments define “accounting estimates” as monetary amounts in financial
statements that are subject to measurement uncertainty; they also provide guidance on how to distinguish between changes in accounting estimates and changes in accounting policies. That distinction is important because changes in accounting
estimates are applied prospectively, whereas changes in accounting policies are generally applied retrospectively. In particular, the amendments clarify that a change in accounting estimates that results from new information or new developments is
not the correction of a prior period error.

Amendments to IAS 12 “Deferred tax related to assets and liabilities arising from a single transaction”

These amendments introduce an exception to the initial recognition exemption provided in IAS 12 for situations in which a single transaction
gives rise to equal deductible and taxable temporary differences. These amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented.

Amendments to IAS 12 “International tax reform – Pillar Two Model Rules”

These amendments aim to respond the concerns raised by various stakeholders regarding the potential implications for the accounting of deferred taxes
arising from the international tax reform of the Organisation for Economic Co-operation and Development (OECD). The OECD published the Pillar Two Model Rules in December 2021 to ensure that large multinational
enterprises would be subject to a minimum tax rate of 15%.

Council Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum
level of taxation for multinational enterprise groups and large-scale domestic groups in the Union establishes a top-up tax through a system of two interlocked rules, together referred to as the GloBE or
Pillar Two rules, promoted by the OECD and designed to ensure that where the effective tax rate of a multinational enterprise in a given jurisdiction is below 15%, an additional top-up tax will be collected.
Member States should