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

Deferred collections and payments
These are recognized for accounting purposes at the amount resulting from discounting the expected cash
flows at market rates.
2.2.18. SALES AND INCOME FROM THE PROVISION OF NON-FINANCIAL SERVICES
The heading “Other operating income - Financial income from non-financial services” in the accompanying
consolidated income statements includes the carrying amount of the sales of assets and income from the
services provided by the consolidated Group companies that are not financial institutions. In the case of the
Group, these companies are mainly real estate and services companies (see Note 45).
2.2.19. LEASES
Lease contracts are classified as finance from the start of the transaction, if they transfer substantially all the
risks and rewards incidental to ownership of the asset forming the subject-matter of the contract. Leases
other than finance leases are classified as operating leases.
When the consolidated entities act as the lessor of an asset in finance leases, the aggregate present values
of the lease payments receivable from the lessee plus the guaranteed residual value (normally the exercise
price of the lessee’s purchase option on expiration of the lease agreement) are recognized as financing
provided to third parties and, therefore, are included under the heading “Loans and receivables” in the
accompanying consolidated balance sheets.
When the consolidated entities act as lessors of an asset in operating leases, the acquisition cost of the
leased assets is recognized under "Tangible assets – Property, plants and equipment – Other assets leased
out under an operating lease" in the accompanying consolidated balance sheets (see Note 19). These
assets are depreciated in line with the criteria adopted for items of tangible assets for own use, while the
income arising from the lease arrangements is recognized in the accompanying consolidated income
statements on a straight line basis within "Other operating income - Rest of other operating income ” (see
Note 45).
If a fair value sale and leaseback results in an operating lease, the profit or loss generated is recognized at
the time of sale. If such a transaction gives rise to a finance lease, the corresponding gains or losses are
amortized over the lease period.
The assets leased out under operating lease contracts to other entities in the Group are treated in the
consolidated financial statements as for own use, and thus rental expense and income is eliminated and the
corresponding depreciation is registered.
2.2.20. CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSES
The consolidated statements of recognized income and expenses reflect the income and expenses
generated each year. It distinguishes between those recognized as results in the consolidated income
statements from “Other recognized income (expenses)” recognized directly in the total equity.
“Other recognized income (expenses)” include the changes that have taken place in the year in the
“Valuation adjustments” broken down by item.
The sum of the changes to the heading “Valuation adjustments” of the total equity and the income of the year
forms the “Total recognized income/expenses”.
2.2.21. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
The consolidated statements of changes in equity reflect all the movements generated in each year in each
of the headings of the consolidated equity, including those from transactions undertaken with shareholders
when they act as such, and those due to changes in accounting criteria or corrections of errors, if any.
The applicable regulations establish that certain categories of assets and liabilities are recognized at their
fair value with a charge to equity. These charges, known as “Valuation adjustments” (see Note 31), are
included in the Group’s total consolidated equity net of tax effect, which has been recognized as deferred tax
assets or liabilities, as appropriate.
35