BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA
BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA
BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA
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The present values of the vested obligations for post-employment welfare benefits are quantified on a caseby-case<br />
basis. They are recognized in the heading “Provisions – Provision for pensions and similar<br />
obligations” in the accompanying consolidated balance sheets (see Note 25) and they are charged to the<br />
heading “Personnel expenses – Other personnel expenses” in the accompanying consolidated income<br />
statements (see Note 46).<br />
Other long-term commitments to employees<br />
Some of the Group’s companies are obliged to deliver goods and services. The most significant, in terms of<br />
the type of compensation and the event giving rise to the commitments are as follows: loans to employees,<br />
life insurance, study assistance and long-service bonuses.<br />
Some of these commitments are measured according to actuarial studies, so that the present values of the<br />
vested obligations for commitments with personnel are quantified on a case-by-case basis. They are<br />
recognized in the heading “Provisions – Other provisions” in the accompanying consolidated balance sheets<br />
(see Note 25).<br />
The welfare benefits delivered by the Spanish companies to active employees are recognized in the heading<br />
“Personnel expenses - Other personnel expenses” in the accompanying income statements (see Note 46).<br />
Other commitments for current employees accrue and are settled on a yearly basis, so it is not necessary to<br />
record a provision in this connection.<br />
2.2.13. EQUITY-SETTLED SHARE-BASED PAYMENT TRANSACTIONS<br />
Equity-settled share-based payment transactions, when the instruments granted do not vest until the<br />
counterparty completes a specified period of service, shall be accounted for those services as they are<br />
rendered by the counterparty during the vesting period, with a corresponding increase in equity. The entity<br />
measures the goods or services received and the corresponding increase in equity, directly, at the fair value<br />
of the goods or services received, unless that fair value cannot be estimated reliably. If the entity cannot<br />
estimate reliably the fair value of the goods or services received, the entity measures their value and the<br />
corresponding increase in equity indirectly, by reference to the fair value of the equity instruments granted, at<br />
grant date.<br />
When the initial compensation agreement includes what may be considered market conditions among its<br />
terms, any changes in these conditions will not be reflected on the profit and loss account, as these have<br />
already been accounted for in calculating their initial fair value. Non-market vesting conditions are not taken<br />
into account when estimating the initial fair value of instruments, but they are taken into account when<br />
determining the number of instruments to be granted. This will be recognized on the income statement with<br />
the corresponding increase in equity.<br />
2.2.14. TERMINATION BENEFITS<br />
Termination benefits must be recognized when the Group is committed to severing its contractual<br />
relationship with its employees and, to this end, has a formal detailed redundancy plan. There were no<br />
redundancy plans in the Group entities, so it is not necessary to recognize a provision for this item.<br />
2.2.15. TREASURY STOCK<br />
The amount of the equity instruments that the Group's entities own is recognized under “Stockholders’ funds<br />
- Treasury stock” in the accompanying consolidated balance sheets. The balance of this heading relates<br />
mainly to Bank shares held by some of its consolidated companies (see Note 30).<br />
These shares are recognized at acquisition cost, and the gains or losses arising on their disposal are<br />
credited or debited, as appropriate, to the heading “Stockholders’ funds - Reserves” in the accompanying<br />
consolidated balance sheets (see Note 29).<br />
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