Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 674

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 674
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 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-561

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
between 0.9% and 1.2% of the Group’s consolidated equity and of between 12 and 16 basis points in the Group’s fully-loaded Common Equity Tier 1 (CET1) ratio.

This narrow-scope amendment aims to provide insurance undertakings with an option relating to the presentation of comparative information about
financial assets in order to avoid accounting mismatches between financial assets and insurance contract liabilities in the aforesaid comparative information upon initial application of IFRS 9 and IFRS 17.

In the event this option is used, the application of this amendment will be simultaneous with the application of IFRS 17.

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.

The
amendments to IAS 1 will be applied prospectively, with early application permitted.

These amendments define “accounting estimates” as monetary amounts in financial statements that