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.
- Other long-term commitments to employees
The Bank is obliged to deliver partially or fully subsidized goods and services. The most significant employee
welfare benefits granted, in terms of the type of compensation and the event giving rise to the commitment,
are: loans to employees, life insurance, study assistance and long-service awards.
Part of these commitments is quantified based on actuarial studies, so that the present values of the vested
obligations for other commitments to personnel are quantified on a case-by-case basis. They are recognized
under the heading “Provisions - Pension funds and similar obligations” in the accompanying balance sheets
(see Note 21). The post-employment welfare benefits that the Bank gives to active employees are
recognized under the heading “Personnel expenses – Other personnel expenses” in the accompanying
income statements (see Note 40).
Other commitments for current employees accrue and are settled on a yearly basis, so it is not necessary to
record a provision in this connection.
2.10. EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS
Equity-settled share-based payment transactions, when the instruments granted do not vest until the
counterparty completes a specified period of service, shall be accounted for those services as they are
rendered by the counterparty during the vesting period, with a corresponding increase in equity. The entity
measures the goods or services received and the corresponding increase in equity, directly, at the fair value
of the goods or services received, unless that fair value cannot be estimated reliably. If the entity cannot
estimate reliably the fair value of the goods or services received, the entity measures their value and the
corresponding increase in equity indirectly, by reference to the fair value of the equity instruments granted, at
grant date.
When the initial compensation agreement includes what may be considered market conditions among its
terms, any changes in these conditions will not be reflected on the income statement, as these have already
been accounted for in calculating their initial fair value. Non-market vesting conditions are not taken into
account when estimating the initial fair value of instruments, but they are taken into account when
determining the number of instruments to be granted. This will be recognized on the income statement with
the corresponding increase in equity.
2.11. TERMINATION BENEFITS
Termination benefits must be recognized when the company is committed to severing its contractual
relationship with its employees and, to this end, has a formal detailed redundancy plan. As of the date these
financial statements were prepared, there was no plan to reduce staff in the Bank that would make it
necessary to set aside provisions for this item.
2.12. TREASURY STOCK
The amount of the equity instruments that the Bank owns are recognized under “Shareholders' funds -
Treasury shares” in the accompanying balance sheets. The balance of this heading relates mainly to Bank
shares and share derivatives that the Bank itself holds as of December 31, 2010 and 2009 (see Note 26).
These financial assets are recognized at acquisition cost, and the gains or losses arising on their disposal
are credited or debited, as appropriate, to the heading “Stockholders’ funds - Reserves” of equity in the
accompanying balance sheets (see Note 25).
2.13. FOREIGN CURRENCY TRANSACTIONS AND EXCHANGE DIFFERENCES
Assets, liabilities and futures transactions
The assets and liabilities in foreign currencies, including those of branches abroad, and the unmatured
hedging forward foreign currency purchase and sale transactions, were translated to euros at the average
exchange rates on the Spanish spot currency market (or based on the price of the U.S. dollar on local
markets for the currencies not listed on this market) at the end of each period, with the exception of:
I. non-current investments in securities denominated in foreign currencies and financed in euros or in a
currency other than the investment currency, which were translated at historical exchange rates.
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