Company: BBVXF
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001628280-25-047437
Chunk: 83

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-10-30
Form: 6-K
Chunk 83
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 the consolidated balance sheet, depending on the nature of the hedged item.

<div align='center'>F-14</div>

– In cash flow hedges, the valuation differences arising in the effective hedge portion of the hedging items are temporarily recorded heading “Accumulated other comprehensive income (loss) - Items that may be reclassified to profit or loss - Hedging derivatives. Cash flow hedges (effective portion)” in the consolidated balance sheet, with an offsetting entry made in the “Derivatives - Hedge accounting” headings of the asset or liability sections in the consolidated balance sheet, as appropriate. These differences are recognized in the consolidated income statement when the gain or loss on the hedged item is recorded in profit or loss, when the forecast transactions are executed, or on the maturity date of the hedged item. Almost all of the Group's cash flow hedges are interest rate and inflation hedges for financial instruments, so the amount recorded in other accumulated comprehensive income will be reclassified in results under the heading "Interest and other income" or under the heading "Interest expense" in the consolidated income statement (see Note 29).

– The differences in the value of the hedging instrument corresponding to the ineffective portion of cash flow hedging transactions are recorded directly under heading “Gains (losses) from hedge accounting, net” in the consolidated income statement (see Note 32).

– In hedges of net investments in foreign businesses, valuation differences arising in the effective portion of the hedging items are temporarily recorded under heading “Accumulated other comprehensive income (loss) - Items that may be reclassified to profit or loss - Hedge of net investments in foreign operations (effective portion)” in the consolidated balance sheet, with an offsetting entry made under “Derivatives - Hedge accounting” in the asset or liability sections of the consolidated balance sheet, as applicable. Such valuation differences are recognized in the consolidated income statement when the foreign investment is disposed of or removed from the consolidated balance sheet (see Note 32).

The other relevant new features introduced by IFRS 9 and applicable from January 1, 2025, are as follows:

– It provides flexibility in the items that can be hedged (for example, it enables the hedging of net positions, aggregate positions, and specific risk components in non-financial items).

– It introduces the accounting treatment of "hedge cost," allowing components of hedging instruments such as forward points, the time value of options, or the base spread to be excluded from the