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

Other financial assets/liabilities at fair value through profit or
loss
Own/treasury shares
Personnel expenses
Post-employment benefits
Property, plant and equipment/tangible assets
Proportionate consolidation method
Provisions
Provision expenses
Provisions for contingent exposures and commitments
Provisions for pensions and similar obligation
Reserves
Securitization fund
Share premium
Short positions
Subordinated liabilities
Subsidiaries
Tax liabilities
Trading derivatives
Value at Risk (VaR)
• Assets and liabilities that are deemed hybrid financial assets and liabilities and for
which the fair value of the embedded derivatives cannot be reliably determined.
• These are financial assets managed jointly with “Liabilities under insurance
contracts” valued at fair value, in combination with derivatives written with a view to
significantly mitigating exposure to changes in these contracts' fair value, or in
combination with financial liabilities and derivatives designed to significantly reduce
global exposure to interest rate risk.
These headings include customer loans and deposits effected via so-called unit-linked
life insurance contracts, in which the policyholder assumes the investment risk.
The amount of own equity instruments held by the entity.
All compensation accrued during the year in respect of personnel on the payroll, under
permanent or temporary contracts, irrespective of their jobs or functions, irrespective of
the concept, including the current costs of servicing pension plans, own share based
compensation schemes and capitalized personnel expenses. Amounts reimbursed by
the state Social Security or other welfare entities in respect of employee illness are
deducted from personnel expenses.
Retirement benefit plans are arrangements whereby an enterprise provides benefits for
its employees on or after termination of service.
Buildings, land, fixtures, vehicles, computer equipment and other facilities owned by the
entity or acquired under finance leases.
The venturer combines and subsequently eliminates its interests in jointly controlled
entities' balances and transactions in proportion to its ownership stake in these entities.
The venturer combines its interest in the assets and liabilities assigned to the jointly
controlled operations and the assets that are jointly controlled together with other joint
venturers line by line in the consolidated balance sheet. Similarly, it combines its
interest in the income and expenses originating in jointly controlled businesses line by
line in the consolidated income statement.
Provisions include amounts recognized to cover the Group’s current obligations arising
as a result of past events, certain in terms of nature but uncertain in terms of amount
and/or cancellation date.
Provisions recognized during the year, net of recoveries on amounts provisioned in
prior years, with the exception of provisions for pensions and contributions to pension
funds which constitute current or interest expense.
Provisions recorded to cover exposures arising as a result of transactions through
which the entity guarantees commitments assumed by third parties in respect of
financial guarantees granted or other types of contracts, and provisions for contingent
commitments, i.e., irrevocable commitments which may arise upon recognition of
financial assets.
Constitutes all provisions recognized to cover retirement benefits, including
commitments assumed vis-à-vis beneficiaries of early retirement and analogous
schemes.
Accumulated net profits or losses recognized in the income statement in prior years
and retained in equity upon distribution. Reserves also include the cumulative effect of
adjustments recognized directly in equity as a result of the retroactive restatement of
the financial statements due to changes in accounting policy and the correction of
errors.
A fund that is configured as a separate equity and administered by a management
company. An entity that would like funding sells certain assets to the securitization fund,
which, in turn, issues securities backed by said assets.
The amount paid in by owners for issued equity at a premium to the shares' nominal
value.
Financial liabilities arising as a result of the final sale of financial assets acquired under
repurchase agreements or received on loan.
Financing received, regardless of its instrumentation, which ranks after the common
creditors in the event of a liquidation.
Companies which the Group has the power to control. Control is presumed to exist
when the parent owns, directly or indirectly through subsidiaries, more than one half of
an entity's voting power, unless, exceptionally, it can be clearly demonstrated that
ownership of more than one half of an entity's voting rights does not constitute control
of it. Control also exists when the parent owns half or less of the voting power of an
entity when there is:
· an agreement that gives the parent the right to control the votes of other
shareholders;
· power to govern the financial and operating policies of the entity under a statute or an
agreement; power to appoint or remove the majority of the members of the board of
directors or equivalent governing body and control of the entity is by that board or body;
· power to cast the majority of votes at meetings of the board of directors or equivalent
governing body and control of the entity is by that board or body.
All tax related liabilities except for provisions for taxes.
The fair value in favor of the entity of derivatives not designated as accounting hedges.
Value at Risk (VaR ) is the basic variable for measuring and controlling the Group’s
market risk. This risk metric estimates the maximum loss that may occur in a portfolio’s
market positions for a particular time horizon and given confidence level
VaR figures are estimated following two methodologies:
- VaR without smoothing, which awards equal weight to the daily information for the
immediately preceding last two years. This is currently the official methodology for
measuring market risks vis-à-vis limits compliance of the risk.
- VaR with smoothing, which weights more recent market information more heavily.
This is a metric which supplements the previous one.
VaR with smoothing adapts itself more swiftly to the changes in financial market
conditions, whereas VaR without smoothing is, in general, a more stable metric that will
tend to exceed VaR with smoothing when the markets show less volatile trends, while it
will tend to be lower when they present upturns in uncertainty.
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