Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 229

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 229
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 decrease in the value of the asset or through an allowance or offsetting item of the same value. The effective interest rate is the rate that exactly discounts the value of a financial instrument to the estimated cash flows over the expected life of the instrument, on the basis of its contractual terms, such as early repayment options, but without taking into account expected credit losses. For fixed-rate financial instruments, the effective interest rate coincides with the contractual interest rate set at the time of their acquisition, considering, where appropriate, the fees, transaction costs, premiums or discounts which, because of their nature, may be likened to an interest rate. In the case of floating-rate financial instruments, the effective interest rate coincides with the rate of return in respect of all applicable concepts until the date of the first scheduled benchmark rate revision. Financial assets at fair value through other comprehensive income This category includes financial assets that meet the following two conditions:

| – | They are managed with a business model whose objective is achieved by both collecting contractual cash flows and 
 selling financial assets; and                                                                                    |

| – | The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest 
 on the principal amount outstanding.                                                                                |

A-23

These financial assets primarily correspond to debt securities. Furthermore, the Group may opt, at initial recognition and irrevocably, to include in the portfolio of financial assets at fair value through other comprehensive income investments in equity instruments that should not be classified as held for trading and which would otherwise be classified as financial assets mandatorily at fair value through profit or loss. This option is exercised on an instrument-by-instrumentbasis. Income and expenses from financial assets at fair value through other comprehensive income are recognised in accordance with the following criteria:

| – | Interest accrued or, where applicable, dividends accrued are recognised in the consolidated income statement. |

| – | Exchange differences are recognised in the consolidated income statement when they relate to monetary financial 
 assets, or through other comprehensive income when they relate to non-monetary financial assets.                |

| – | Losses due to impairment of debt instruments, or gains due to their subsequent recovery, are recognised in the 
 consolidated income statement.                                                                                 |

| – | Other changes in value are recognised through other comprehensive income. |

When a debt instrument measured at fair value through other comprehensive income is derecognised from the balance sheet, the amount corresponding to the fair value change recognised under the heading “Accumulated other comprehensive income” of the consolidated statement of equity is reclassified