Consolidating balance sheet definition Chatbot sandy
Significant influence is deemed to exist when the Group owns 20% or more of the voting rights of an investee directly or indirectly.However, certain entities in which the Group owns 20% or more of the voting rights are not included as Group associates, since the Group does not have the ability to exercise significant influence over these entities.Investments in these entities, which do not represent material amounts for the Group, are classified as “Available-for-sale financial assets.” In contrast, some investments in entities in which the Group holds less than 20% of the voting rights are accounted for as Group associates, as the Group is considered to have the ability to exercise significant influence over these entities.Appendix IV shows the most significant information related to the associates (see Note 17), which are accounted for using the equity method.The financial statements of the subsidiaries are consolidated with those of the Bank using the global integration method.
All the changes in the fair value of the financial instruments, except in trading derivatives, arising from the accrual of interests and similar items are recognized under the headings “Interest and similar income” or “Interest and similar expenses”, as appropriate, in the accompanying consolidated income statement for the year in which the accrual took place (see Note 39).
The Bank uses the cost method to account in its financial statements for investment in subsidiaries, jointly controlled companies and associates, as permitted by IAS 27. The accounting standards and policies and the valuation criteria applied in preparing these consolidated financial statements may differ from those used by some of the entities within the BBVA Group.
Appendix I shows the individual financial statements of BBVA, S. For this reason, necessary adjustments and reclassifications have been introduced in the consolidation process to standardize these principles and criteria and comply with the EU-IFRS, as required under the Bank of Spain Circular 4/2004.
In all cases, results of equity method investees acquired by the BBVA Group in a particular period are included taking into account only the period from the date of acquisition to the financial statements date.
Similarly, the results of companies disposed of during any year are included taking into account only the period from the start of the year to the date of disposal.