Balance Sheet at 31 December 2010 of BBVA

Translation of financial statements originally issued in Spanish and prepared in accordance with generally accounting principles Spain
(See Note 1 and 54). In the event of a discrepancy, the Spanish-language version prevails.
Symmetrically, the heading “Liabilities associated with non-current assets held for sale” in the accompanying
balance sheets reflects the balances payable arising on disposal groups and discontinued operations.
Non-current assets held for sale are generally measured at fair value less sale costs or their carrying amount
upon classification within this category, whichever is the lower. Non-current assets held for sale are not
depreciated while included under this heading.
The fair value of non-current assets held for sale from foreclosures or recoveries is determined taking as a
reference valuations performed by appraisal companies in each of the geographical areas in which the
assets are located. The Bank requires that these valuations be no older than one year, or less if there are
other signs of impairment losses. The main independent valuation and appraisal companies authorized by
the Bank of Spain and entrusted with the appraisal of these assets are: Sociedad de Tasación, S.A.,
Valtecnic, S.A., Krata, S.A., Gesvalt, S.A., Alia Tasaciones, S.A., Tasvalor, S.A., Tinsa, S.A., Ibertasa, S.A.,
Valmesa, S.A., Arco Valoraciones, S.A and Tecnicasa, S.A.
The gains and losses generated on the disposal of assets and liabilities classified as held for sale, and
related impairment losses and subsequent recoveries, where pertinent, are recognized in “Gains and losses
on non-current assets held for sale not classified as discontinued operations” (see Note 46). The remaining
income and expense items associated with these assets and liabilities are classified within the corresponding
income statement headings.
2.5. TANGIBLE ASSETS
Tangible assets - Property, plants and equipment for own use
The heading “Tangible assets – Property, plants and equipment – For own use” relates to the assets under
ownership or acquired under lease finance, intended for future or current use by the Bank and that it expects
to hold for more than one year. It also includes tangible assets that the Bank receives in full or part
settlement of financial assets representing receivables from third parties and those assets expected to be
held for continuing use.
“Tangible assets – Property, plants and equipment – For own use” are presented in the balance sheets at
acquisition cost less any accumulated depreciation and, where appropriate, any estimated impairment losses
resulting from comparing this net value of each item with its corresponding recoverable value.
If there are foreclosed assets for own use, their acquisition cost is equal to the book value of the financial
assets delivered in exchange for their foreclosure.
Depreciation is calculated using the straight-line method on the basis of the acquisition cost of the assets
less their residual value; the land on which the buildings and other structures stand is considered to have an
indefinite life and is therefore not depreciated.
The period’s tangible asset depreciation charge is recognized in the income statements under the heading
"Amortization" (Note 41) and is based on the application of the following depreciation rates (determined on
the basis of the average years of estimated useful life of the various assets):
Amortization Rates for Tangible Assets
Type of Assets
Annual Percentage
Buildings for own use 1.33% - 4.00%
Furniture 8% - 10%
Fixtures 6% - 12%
Office supplies and hardware 8% - 25%
The criteria used by the Bank to determine their recoverable value is based on updated independent
appraisals performed in the last 3-5 years at most, in the absence of other signs of impairment.
At each accounting close, the Bank analyzes whether there are internal or external indicators that a tangible
asset may be impaired. When there is evidence of impairment, the Bank then analyzes whether this
impairment actually exists by comparing the asset’s carrying amount with its recoverable amount. When the
carrying amount exceeds the recoverable amount, the carrying amount is written down to the recoverable
amount and depreciation charges going forward are adjusted to reflect the asset’s remaining useful life.
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