Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 576

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 576
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 current or non-current                        |     |                                |
|                                                    |     | - Non-current liabilities with covenants                                         |     |                                |
| Amendments to IFRS 16                              |     | Lease liabilities in sale and leaseback transactions                             |     | 1 January 2024                 |

The Group has carried out an assessment of the impacts resulting from these standards and decided not to exercise its option to adopt early, where possible. Unless otherwise indicated, management estimates that their adoption would not have a material impact on the Group. Approved for implementation in the EU IFRS 17 “Insurance contracts” IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts. The objective of IFRS 17 is to ensure that entities provide relevant information in a way that faithfully represents those contracts. In accordance with this standard, insurance contracts combine components of financial instruments and service contracts. Furthermore, many insurance contracts generate cash flows that vary substantially and have a long duration. In order to provide useful information on these aspects, IFRS 17:

| – | combines the current measurement of future cash flows with the revenue recognised throughout the period during which 
 the services established in the contracts are provided.                                                              |

| – | presents results for services provided separately from the financial expenses and income relating to these contracts. |

| – | requires entities to decide whether to recognise the entirety of their financial income and expenses relating to 
 insurance contracts in profit and loss, or whether to recognise part of these results in equity.                 |

Furthermore, in 2020 some amendments to IFRS 17 were incorporated, designed to reduce implementation costs by simplifying some requirements of this Standard, make financial performance easier to explain and ease transition by deferring the effective date of the Standard to 1 January 2023 and by reducing the requirements to apply the Standard for the first time. A-472

The initial application of this standard basically affects, at consolidated level, the amount at
which insurance undertakings associated with the Group that are controlled by Zürich Seguros (i.e., BanSabadell Vida, S.A. de Seguros y Reaseguros, BanSabadell Seguros Generales, S.A. de Seguros y Reaseguros, y BanSabadell Pensiones, E.G.F.P.,
S.A.) are recognised.

The impact at the date of entry into force of this regulation (1 January 2023) entails, in approximate terms, a reduction of