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

The BBVA Group ICFR Model is summarized in the following chart:
BBVA’s INTERNAL CONTROL OVER FINANCIAL REPORTING MODEL
Companies
Processes
Risks
Controls
1. 2. 3. 4. 5.
Evaluation of
Review of ICFR
scope
Formalisation /
documentation
of process
models
Formalisation /
documentation
of risks
models
Formalisation /
documentation of
control model
the design and
effectiveness of
the controls.
Selection of
companies and
relevant
information to be
covered.
Definition nad
documentation of
the processes’
map.
Identification of
risks linked to
processes.
Identification of
key mitigating
controls.
Periodic review of
the model.
ICFR Model is implemented in the Group's main entities using a common and uniform methodology.
To determine the scope of the ICFR Model annual evaluation, the main companies, headings and most
significant processes are identified based on quantitative criteria (probability of occurrence, economic impact
and materiality) and qualitative criteria (related to typology, complexity, nature of risks and the business
structure), ensuring coverage of critical risks for the BBVA Group consolidated financial statements. As well
as the evaluation that the Internal Control Units performs, ICFR Model is subject to regular evaluations by
the Internal Audit Department and is supervised by the Group's Audit and Compliance Committee.
2. PRINCIPLES OF CONSOLIDATION, ACCOUNTING POLICIES AND MEASUREMENT BASES
APPLIED AND IFRS RECENT PRONOUNCEMENTS
The Glossary (see Appendix X) includes the definition of financial and economic terms used in this Note 2
and subsequent explanatory notes.
2.1. PRINCIPLES OF CONSOLIDATION
The accounting principles and valuation criteria used to prepare the Group’s interim consolidated financial
statements may differ from those used by certain companies in the Group. For this reason, the required
adjustments and reclassifications were made on consolidation to harmonize the principles and criteria used
and to make them compliant with IFRS-EUs.
The results of subsidiaries acquired during the period are included taking into account only the period from
the date of acquisition to the end of the period. The results of companies disposed of during any year are
included only taking into account the period from the start of the year to the date of disposal.
The Group consolidated companies are classified into three types, according to the method of consolidation:
subsidiaries, jointly controlled entities and associates entities.
Subsidiaries
Subsidiaries (see the Glossary) are those companies which the Group has the capacity to control. Control is
presumed to exist when the parent owns, either directly or indirectly through other subsidiaries, more than
one half of an entity's voting power, unless, in exceptional cases, it can be clearly demonstrated that
ownership of more than one half of an entity's voting rights does not constitute control of it.
The financial statements of the subsidiaries are consolidated with those of the Bank using the global
integration method.
The share of minority interests from subsidiaries in the Group’s consolidated equity is presented under the
heading “Non-controlling interest” in the accompanying consolidated balance sheets and their share in the
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