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.
Similarly, if there is any indication that the value of a tangible asset has been recovered, the Bank will
estimate the recoverable amounts of the asset and recognize it in the income statement, recording the
reversal of the impairment loss recorded in previous periods and, consequently, adjust the future
depreciation charges. Under no circumstances may the reversal of an impairment loss on an asset raise its
carrying amount above that which it would have if no impairment losses had been recognized in prior years.
Upkeep and maintenance expenses relating to tangible assets held for own use are recognized as an
expense in the year they are incurred and recognized in the accompanying income statements under the
heading "General and administrative expenses - Property, fixtures and equipment " (see Note 40.2).
Property, plants and equipment - Leased out under an operating lease
The criteria used to recognize the acquisition cost of assets leased out under operating leases, to calculate
their depreciation and their respective estimated useful lives and to record the impairment losses on them,
are the same as those described in relation to tangible assets for own use.
Investment properties
The heading “Tangible assets - Investment properties” in the accompanying balance sheets reflects the net
values of the land (purchase cost minus the corresponding accumulated repayment and, if appropriate,
estimated impairment losses), buildings and other structures held either to earn rentals or for capital
appreciation through sale, and are neither expected to be sold off in the ordinary course of business nor are
intended for own use (Note 16).
The criteria used to recognize the acquisition cost of investment properties, calculate their depreciation and
their respective estimated useful lives and record the impairment losses on them, are the same as those
described in relation to tangible assets held for own use.
The criteria used by the Bank to determine their recoverable value is based on updated independent
appraisals performed in the last year at most, in the absence of other indications of impairment.
2.6. INTANGIBLE ASSETS
These assets can have an “indefinite useful life” –when, based on an analysis of all relevant factors, it is
concluded that there is no foreseeable limit to the period over which the asset is expected to generate net
cash flows for the Bank– or a “finite useful life”, in all other cases.
The Bank has not recognized any intangible assets with an indefinite useful life.
Intangible assets with a finite useful life are amortized according to this useful life, using methods similar to
those used to depreciate tangible assets. The period’s tangible asset depreciation charge is recognized in
the income statement under the heading "Amortization" (Note 41).
The Bank recognizes any impairment loss on the carrying amount of these assets with charge to the heading
“Impairment losses of other assets (net) – Goodwill and other intangible asset” in the income statement. The
criteria used to recognize the impairment losses on these assets and, where applicable, the recovery of
impairment losses recognized in prior periods are similar to those used for tangible assets.
2.7. TAX ASSETS AND LIABILITIES
The Spanish corporation tax expense is recognized in the income statement, except when it results from
transactions in which the effects are recognized directly in equity; in this case the related tax effect is also
recognized in equity.
The current income tax expense is calculated by aggregating the current tax arising from the application of
the related tax rate to the taxable profit (or tax loss) for the year (after deducting the tax credits allowable for
tax purposes) and the change in deferred tax assets and liabilities recognized in the income statement.
Deferred tax assets and liabilities include temporary differences, valued at the amount expected to be
payable or recoverable for the differences between the book values of assets and liabilities and their tax
bases, and tax loss and tax credit carry forwards. These amounts are measured applying to the temporary
difference the tax rates that are expected to apply in the year when the asset is realized or the liability settled
(Note 18).
Deferred tax assets are recognized to the extent that it is considered likely that the Bank will have sufficient
taxable profits in the future against which the deferred tax assets can be utilized.
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