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 changes in the six months ended June 30, 2010 in the balance of Level 3 financial assets and liabilities<br />
were as follows:<br />
Millions of Euros<br />
June 2010<br />
Financial Assets Level 3<br />
Changes in the Period<br />
Assets<br />
Liabilities<br />
Balance at beginning 1,707 96<br />
Valuation adjustments recognized in the income statement (69) 2<br />
Valuation adjustments not recognized in the income statement (2) -<br />
Acquisitions, disposals and liquidations (220) -<br />
Transfers to/from Level 3 24 -<br />
Exchange differences 3 -<br />
Balance at the end 1,442 98<br />
As of June 30, 2010, the potential effect on the valuation of Level 3 financial instruments of a change in the<br />
main assumptions if other reasonable models, more or less favorable, were used, taking the highest or<br />
lowest value of the range deemed probable, would have the following effect:<br />
Financial Assets Level 3<br />
Sensitivity Analysis<br />
Potential Impact on<br />
Consolidated Income<br />
Most<br />
Favorable<br />
Hypotheses<br />
Millons of Euros<br />
June 2010<br />
Least<br />
Favorable<br />
Hypotheses<br />
Potential Impact on Total<br />
Equity<br />
Most<br />
Favorable<br />
Hypotheses<br />
Least<br />
Favorable<br />
Hypotheses<br />
ASSETS<br />
Financial assets held for trading 36 (95) - -<br />
Available-for-sale financial assets - - 26 (46)<br />
Hedging derivatives - - - -<br />
LIABILITIES-<br />
Financial liabilities held for trading 6 (6) - -<br />
Total 42 (101) 26 (46)<br />
Loans and financial liabilities at fair value through profit or loss<br />
As of June 30, 2010 and December 31, 2009, there were no loans or financial liabilities at fair value other<br />
than those recognized in the headings "Other financial assets designated at fair value through profit and<br />
loss" and "Other financial liabilities designated at fair value through profit and loss" in the accompanying<br />
consolidated balance sheets.<br />
Financial instruments at cost<br />
The Group had equity instruments, derivatives with equity instruments as underlyings and certain<br />
discretionary profit sharing arrangements that were recognized at cost in Group’s consolidated balance<br />
sheet, as their fair value could not be reliably determined. As of June 30, 2010 and December 31, 2009, the<br />
balance of these financial instruments amounted to €609 million and €589 million, respectively. These<br />
instruments are recorded for both dates in the available-for-sale financial assets portfolio.<br />
The fair value of these instruments could not be reliably estimated because it corresponds to shares in<br />
companies not quoted on organized exchanges, and any valuation technique that could be used would<br />
contain significant unobservable inputs.<br />
The breakdown of the sales of financial instruments at cost for the six months ended 30, 2010 is as follows:<br />
Millons of Euros<br />
June 2010<br />
Carrying Amount at<br />
Amount of Sale<br />
Gains/Losses<br />
Sale Date<br />
Sales of financial instruments at cost 14 9 5<br />
68