Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 220

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 220
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1.3.10, 1.3.13 and 6). |

| – | The recoverability of non-monetisable deferred tax assets and tax credits 
 (see Notes 1.3.20 and 39).                                                |

The estimates are based on the best knowledge to hand about current and foreseeable circumstances, taking into account the uncertainties stemming from the existing economic and geopolitical environment and, consequently, the final results could differ from these estimates, particularly in relation to impairment losses on certain financial assets and off-balancesheet exposures. Future events may therefore make it necessary to modify these estimates, which would involve recording the effects of such estimation changes, if any, in the Group’s consolidated financial statements on a forward-looking basis, in accordance with applicable regulations. The macroeconomic scenarios considered by the Group 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-17

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