Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 620

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 620
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 lessee in each period reduce the lease liability and accrue an interest expense that is recognised in the consolidated income statement over the lease term. The right-of-useasset, which is classified as a fixed asset based on the type of leased property, is initially measured at cost, which comprises the following amounts:

| – | The amount of the initial measurement of the lease liability, as described above. |

| – | Any lease payments made at or before the lease commencement date, less any incentives received. |

| – | Any initial direct costs. |

| – | An estimate of costs to be incurred in dismantling and removing the leased asset, restoring the site on which it is 
 located or restoring the asset to the condition required by the terms and conditions of the lease.                  |

The right-of-useasset is depreciated on a straight-line basis at the shorter of the useful life of the asset or the lease term. The criteria for impairing these assets are similar to those used for tangible assets (see Note 1.3.10). The Group exercises the option to recognise, as an expense during the year, the payments made on short-term leases (those that, at the commencement date, have a lease term of 12 months or less) and leases in which the leased asset has a low value. Sale and leaseback If the Group does not retain control over the asset, (i) the asset sold is derecognised from the balance sheet and the right-of-useasset arising from the leaseback is recognised at the proportion of the previous carrying amount that relates to the right of use retained, and (ii) a lease liability is recognised. If the Group retains control over the asset, (i) the asset sold is not derecognised from the balance sheet and (ii) a financial liability is recognised for the amount of consideration received. The profit or loss generated in the transaction is immediately recognised in the consolidated income statement, if a sale is determined to exist (only for the amount of the gain or loss relating to the rights over the transferred asset), as the buyer-lessor has acquired control over the asset. Leases in which the Group acts as lessor Finance leases Where the Group is the lessor of an asset, the sum of the present values of payments receivable from the lessee is recorded as financing provided to a third party and is therefore included under the heading “Financial assets at amortised cost” on the consolidated balance sheet. This financing includes the exercise price of the purchase option payable to the lessee