BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA

APPENDIX X. Glossary
Adjusted acquisition cost
Amortized cost
Assets leased out under operating lease
Associates
Available-for-sale financial assets
Basic earnings per share
Business combination
Cash flow hedges
Commissions and fees
Contingencies
Contingent commitments
Contingent risks
Current tax assets
Current tax liabilities
Debt obligations/certificates
Deferred tax assets
Deferred tax liabilities
The acquisition cost of the securities less accumulated amortizations, plus interest
accrued, but not net of any other valuation adjustments.
The amortized cost of a financial asset is the amount at which it was measured at initial
recognition minus principal repayments, plus or minus, as warranted, the cumulative
amount taken to profit or loss using the effective interest rate method of any difference
between the initial amount and the maturity amount, and minus any reduction for
impairment or change in measured value.
Lease arrangements that are not finance leases are designated operating leases.
Companies in which the Group is able to exercise significant influence, without having
control. Significant influence is deemed to exist when the Group owns 20% or more of
the voting rights of an investee directly or indirectly.
Available-for-sale (AFS) financial assets are debt securities that are not classified as
held-to-maturity investments or as financial assets designated at fair value through
profit or loss (FVTPL) and equity instruments that are not subsidiaries, associates or
jointly controlled entities and have not been designated as at FVTPL.
Calculated by dividing profit or loss attributable to ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the period
The merger of two or more entities or independent businesses into a single entity or
group of entities.
Derivatives that hedge the exposure to variability in cash flows attributable to a
particular risk associated with a recognized asset or liability or a highly probable
forecast transaction and could effect profit or loss.
Income and expenses relating to commissions and similar fees are recognized in the
consolidated income statement using criteria that vary according to their nature. The
most significant income and expense items in this connection are:
• Feed and commissions relating linked to financial assets and liabilities measured
at fair value through profit or loss, which are recognized when collected.
• Fees and commissions arising from transactions or services that are provided over
a period of time, which are recognized over the life of these transactions or services.
• Fees and commissions generated by a single act are accrued upon execution of
that act.
Current obligations arising as a result of past events, certain in terms of nature at the
balance sheet date but uncertain in terms of amount and/or cancellation date,
settlement of which is deemed likely to entail an outflow of resources embodying
economic benefits.
Possible obligations that arise from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the entity.
Transactions through which the entity guarantees commitments assumed by third
parties in respect of financial guarantees granted or other types of contracts.
Taxes recoverable over the next twelve months.
Corporate income tax payable on taxable profit for the year and other taxes payable in
the next twelve months.
Obligations and other interest-bearing securities that create or evidence a debt on the
part of their issuer, including debt securities issued for trading among an open group of
investors, that accrue interest, implied or explicit, whose rate, fixed or benchmarked to
other rates, is established contractually, and take the form of securities or book-entries,
irrespective of the issuer.
Taxes recoverable in future years, including loss carryforwards or tax credits for
deductions and tax rebates pending application.
Income taxes payable in subsequent years.
Defined benefit commitments
Defined contribution commitments
Deposits from central banks
Deposits from credit institutions
Deposits from customers
Post-employment obligation under which the entity, directly or indirectly via the plan,
retains the contractual or implicit obligation to pay remuneration directly to employees
when required or to pay additional amounts if the insurer, or other entity required to pay,
does not cover all the benefits relating to the services rendered by the employees when
insurance policies do not cover all of the corresponding post-employees benefits.
Defined contribution plans are retirement benefit plans under which amounts to be paid
as retirement benefits are determined by contributions to a fund together with
investment earnings thereon. The employer's obligations in respect of its employees
current and prior years' employment service are discharged by contributions to the
fund.
Deposits of all classes, including loans and money market operations, received from
the Bank of Spain and other central banks.
Deposits of all classes, including loans and money market operations received, from
credit entities.
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.
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