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

IFRIC 17 – Distributions of non-cash assets to owners
This new interpretation stipulates that all distributions of non-cash assets to owners must be valued at fair
value, clarifying that:
• The dividend payable should be recognized when the dividend is appropriately authorized and is no
longer at the discretion of the entity.
• An entity should recognize the difference between the dividend paid and the carrying amount of the
net assets distributed in profit or loss.
IFRIC 18 –Transfer of assets from customers
This clarifies the requirements for agreements in which an entity receives an item of property, plant, and
equipment from a customer which the entity must then use either to connect the customer to a network or to
provide the customer with ongoing access to a supply of goods or services, or both.
The basic principle of IFRIC 18 is that when the item of property, plant and equipment meets the definition of
an asset from the perspective of the recipient, the recipient must recognize the asset at its fair value on the
date of the transfer with a balancing entry in ordinary income in accordance with IAS 18.
b) STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE FOR THE GROUP AS
OF JUNE 30, 2010
New International Financial Reporting Standards together with their interpretations (IFRIC) had been
published at the date of close of these consolidated financial statements. These were not obligatory as of
June 30, 2010. Although in some cases the IASB permits early adoption before they enter into force, the
Group has not done so as of this date.
The future impacts that the adoption of these standards could have not been analyzed to date.
IAS 24 Revised – Related party disclosures
This amendment to IAS 24 refers to the disclosures of related parties in the financial statements. There are
two main new features. One of them introduces a partial exemption for some disclosures when the
relationship is with companies that depend on or are related to the State (or an equivalent governmental
institution) and the definition of related party is revised, establishing some relations that were not previously
explicit in the standard.
This amendment will apply for years beginning after January 1, 2011. Early adoption is permitted.
IAS 32 - Classification of preferred subscription rights
The amendment to IAS 32 clarifies the classification of preferred subscription rights (instruments that entitle
the holder to acquire instruments from the entity at a fixed price) when they are in a currency other than the
issuer's functional currency. The proposed amendment establishes that the rights to acquire a fixed number
of own equity instruments for a fixed amount will be classified as equity regardless of the currency of the
exercise price and whether the entity gives the tag-along rights to all of the existing shareholders (in
accordance with current standards they must be posted as liability derivatives).
This amendment will apply for years beginning after February 1, 2010. Early adoption is permitted.
IFRIC 14 Amended – Prepayment of Minimum Funding Contributions
The IASB issued an amendment to IFRIC 14 to correct the fact that, under the current IFRIC 14, in certain
circumstances it is not permitted to recognize some prepayments of minimum funding contributions as
assets.
This amendment will apply for years beginning after January 1, 2011. Early adoption is permitted.
IFRIC 19- Settlement of financial liabilities through equity instruments
In the current market situation, some entities are renegotiating conditions regarding financial liabilities with
their creditors. There are cases in which creditors agree to receive equity instruments that the debtor has
issued to cancel part or all of the financial liabilities. IFRIC 19 has issued an interpretation that clarifies the
posting of these transactions from the perspective of the instruments issuer, and states that these securities
must be valued at fair value. If this value cannot be calculated, they will be valued at the fair value of the
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