Balance Sheet at 31 December 2010 of BBVA

Deposits from customers
Redeemable cash balances received by the entity, with the exception of debt
certificates, money market operations through counterparties and subordinated
liabilities, that are not received from either central banks or credit entities. This category
also includes cash deposits and consignments received that can be readily withdrawn.
Diluted earnings per share
Early retirements
Economic capital
Effective interest rate
Equity
Equity instruments
Equity method
This calculation is similar to that used to measure basic earnings per share, except that
the weighted average number of shares outstanding is adjusted to reflect the potential
dilutive effect of any stock options, warrants and convertible debt instruments
outstanding the year. For the purpose of calculating diluted earnings per share, an
entity shall assume the exercise of dilutive warrants of the entity. The assumed
proceeds from these instruments shall be regarded as having been received from the
issue of ordinary shares at the average market price of ordinary shares during the
period. The difference between the number of ordinary shares issued and the number
of ordinary shares that would have been issued at the average market price of ordinary
shares during the period shall be treated as an issue of ordinary shares for no
consideration. Such shares are dilutive and are added to the number of ordinary shares
outstanding in the calculation of diluted earnings per share.
Employees that no longer render their services to the entity but which, without being
legally retired, remain entitled to make economic claims on the entity until they formally
retire.
Eligible capital for regulatory capital adequacy calculations.
Discount rate that exactly equals the value of a financial instrument with the cash flows
estimated over the expected life of the instrument based on its contractual period as
well as its anticipated amortization, but without taking the future losses of credit risk into
consideration.
The residual interest in an entity's assets after deducting its liabilities. It includes owner
or venturer contributions to the entity, at incorporation and subsequently, unless they
meet the definition of liabilities, and accumulated net profits or losses, fair value
adjustments affecting equity and, if warranted, minority interests.
An equity instrument is any contract that evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
The equity method is a method of accounting whereby the investment is initially
recognized at cost and adjusted thereafter for the post-acquisition change in the
Group's share of net assets of the investee, adjusted for dividends received and other
equity eliminations.
Exchange/translation differences
Fair value
Fair value hedges
Fees
Financial guarantees
Financial instrument
Financial liabilities at amortized cost
Full consolidation
Gains and losses generated by currency trading and the differences arising on
translating monetary items denominated in foreign currency to the functional currency,
exchange differences on foreign currency non-monetary assets accumulated in equity
and taken to profit or loss when the assets are sold and gains and losses realized on
the disposal of assets at entities with a functional currency other than the euro.
The amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm's length transaction.
Derivatives that hedge the exposure of the fair value of assets and liabilities to
movements in interest rates and/or exchange rates designated as a hedged risk.
See Commissions, fees and similar items
A financial guarantee contract is a contract that requires the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to
make payment when due in accordance with the original or modified terms of a debt
instrument, irrespective of its instrumentation. These guarantees may take the form of
deposits, technical or financial guarantees, irrevocable letters of credit issued or
confirmed by the entity, insurance contracts or credit derivatives in which the entity sells
credit protection, among others.
A financial instrument is any contract that gives rise to a financial asset of one entity
and to a financial liability or equity instrument of another entity.
Financial liabilities that do not meet the definition of financial liabilities designated at fair
value through profit or loss and arise from the financial entities' ordinary activities to
capture funds, regardless of their instrumentation or maturity.
• Ιn preparing consolidated financial statements, an entity combines the balance
sheets of the parent and its subsidiaries line by line by adding together like items of
assets, liabilities and equity. Intragroup balances and transactions, including amounts
payable and receivable, are eliminated in full.
• Group entity income statement income and expense headings are similarly combined
line by line into the consolidated income statement, having made the following
consolidation eliminations: a) income and expenses in respect of intragroup
transactions are eliminated in full. b) profits and losses resulting from intragroup
transactions are similarly eliminated.
• The carrying amount of the parent's investment and the parent's share of equity in
each subsidiary are eliminated.
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