Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 311

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 311
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 in its main estimates and the sensitivity of financial asset impairment allowances to changes in the main variables considered in the macroeconomic scenarios are described in Note 4.4.2.5 “Calculation of credit loss allowances”. A-106

1.3 Accounting principles and policies and measurement criteria The accounting principles and policies, as well as the most significant measurement criteria applied when preparing these consolidated annual financial statements, are described below. There are no cases in which accounting principles or measurement criteria have not been applied because of a significant effect on the Group’s consolidated annual financial statements for 2024. 1.3.1 Consolidation principles In the consolidation process, a distinction is drawn between subsidiaries, joint ventures, associates and structured entities. Subsidiaries Subsidiaries are entities over which the Group has control. This occurs when the Group is exposed, or has rights, to variable returns from its involvement with the investee and when it has the ability to affect those returns through its power over the investee. For control to exist, the following criteria must be met:

| – | Power: an investor has power over an investee when the investor has existing rights that give it the current ability 
 to direct the relevant activities, i.e. the activities that significantly affect the investee’s returns.             |

| – | Returns: an investor is exposed, or has rights, to variable returns from its involvement with the investee when the                                                                                      
 investor’s returns from its involvement have the potential to vary as a result of the investee’s performance. The investor’s returns can be only positive, only negative, or both positive and negative. |

| – | Relationship between power and returns: an investor controls an investee if the investor not only has power over the                                                                                           
 investee and exposure or rights to variable returns from its involvement with the investee, but also has the ability to use its power to affect the investor’s returns from its involvement with the investee. |

When the Group takes control of a subsidiary, it applies the acquisition method provided for in the regulations governing business combinations (see Note 1.3.2) except in the case of acquisitions of an asset or a group of assets. The financial statements of subsidiaries are consolidated with the Bank’s financial statements using the full consolidation method. The third-party ownership of the Group’s consolidated equity is shown under the heading “Minority interests [non-controllinginterests]” of the consolidated balance sheet and the portion of the profit or loss for the year attributable to those interests