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Royal Decree 1317 / 2008, Of 24 July, Which Approves The Plan Of Accounting Of Insurance Companies.

Original Language Title: Real Decreto 1317/2008, de 24 de julio, por el que se aprueba el Plan de contabilidad de las entidades aseguradoras.

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TEXT

The second final provision of the consolidated text of the Law on the Management and Supervision of Private Insurance, approved by the Royal Decree of Law 6/2004 of 29 October, enables the Government, on a proposal from the Minister of Economy and Finance and after hearing the Advisory Board of Insurance and Pension Funds, to develop the aforementioned recast text in those matters that are expressly attributed to the regulatory authority. This regulatory power in accounting matters is expressly referred to in Article 20 of the recast text, where it is required for the exercise of the prior report of the Accounting and Audit Institute.

By virtue of the foregoing, this royal decree aims at the adequacy of the accounting framework applicable to insurance institutions, as referred to in Article 2 thereof, to the regulatory environment of the International Financial Reporting Standards applicable in the European Union, in accordance with the provisions of Regulation 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of International Accounting Standards, replacing the 1997 Financial Institution Accounting Plan, approved by the Royal Decree 2014/1997 of 26 December 1997, which incorporated into national law the accounting rules laid down in Council Directive 91 /674/EEC of 19 December on the annual accounts and consolidated accounts of insurance undertakings. This is in line with the recommendations made by the Committee of Experts which drew up the report on the current situation of accounting in Spain and basic lines for dealing with its reform, which was presented in July 2002; the process of harmonisation of accounting standards in the European Union; and the new accounting framework provided for in Law 16/2007 of 4 July, on the reform and adaptation of trade legislation in accounting matters for international harmonisation on the basis of European Union legislation.

The Accounting Plan for Insurance Entities is structured, as does its predecessor and taking as a reference to the General Accounting Plan, approved by Royal Decree 1514/2007 of 16 November, in five parts, relating to the Conceptual Framework of Accounting, the rules of registration and valuation, the annual accounts, the table of accounts and the accounting definitions and relationships.

The first part, the Accounting Conceptual Framework, collects the documents that make up the annual accounts as well as the requirements, principles and accounting criteria for recognition and valuation, which must lead to the annual accounts showing the true image of the assets, the financial situation and the results of the entity. The elements of the annual accounts are also defined.

The second part, rules of registration and valuation, develops the accounting principles and other provisions contained in the Conceptual Framework. It sets out the criteria for recording and assessing the various transactions and assets of insurance companies from a general perspective. It is necessary to make an express reference to the activated purchasing commissions and costs referred to in the 9th registration and valuation standard, since they do not comply with the definition of the asset collected in the Conceptual Framework, which would prevent their recognition in the annual accounts. Notwithstanding the above, the particular situation of this aspect in the area of insurance institutions, recognised even in the International Financial Reporting Standard relating to insurance contracts, should be considered, which will cover its maintenance on a transitional basis until an International Accounting Standard is issued and approved which provides for the valuation of the commitments made under the subscribed insurance contracts (technical provisions). Therefore, the recognition of commissions and activated acquisition costs should be understood, in this perspective, as a transitional accounting standard that cannot be applied analogically to other accounting subjects or other activities.

The third part, relating to the annual accounts, first includes the rules for drawing up the annual accounts, where the documents in the accounts are drawn up and the requirements to be observed in their preparation. In addition, the income and expenditure distribution criteria, the balance sheet structure, the profit and loss account structure, the cash flow statement and the state of changes in the net worth are collected.

The fourth part, table of accounts, contains the necessary groups, subgroups and accounts, duly coded in decimal form and with an expressive title of their content.

Part five, definitions and accounting relationships, includes definitions of the various items to be incorporated in the balance sheet, in the profit and loss account and in the state that reflects the changes in equity, as well as those in each of the accounts that are collected in those items, including the principal reasons for the charge and the payment of the accounts.

In addition, the present royal decree contains the transitional regime for the implementation for the first time of the Plan, which contemplates the retroactive application of the criteria contained in it, with certain exceptions, the possibility that the entities value the buildings for their fair value at the date of transition to the Plan, and a series of particularities related to the business combinations. Without prejudice to the date of transit for the implementation for the first time of the Plan, which will depend on the option for which the entity chooses from those provided for in the fourth and sixth transitional provisions, the Plan enters into force on 31 December 2008.

Finally, an additional provision relating to the system of the stabilisation reserve for the purposes of the distribution of dividends to account, a derogation provision and three final provisions, relating to the basic character of this rule and to the title of competence under which it is issued, to the regulatory clearance for its subsequent development and its entry into force, are included.

In its virtue, on the proposal of the Minister of Economy and Finance, according to the State Council, and after deliberation by the Council of Ministers at its meeting on 24 July 2008.

DISPONGO:

Article 1. Approval of the accounting plan of the insurance institutions.

The accounting plan of the insurance companies, the text of which is inserted below, is approved.

Article 2. Scope and enforcement of the Plan.

The accounting plan of the insurance companies shall be mandatory for all Spanish insurance companies included in Title II of the recast of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October, whatever form they adopt in accordance with Article 7, as well as for branches of insurance and reinsurance entities domiciled in third countries, not members of the European Economic Area, established in Spain.

By way of derogation from the preceding paragraph, the fourth and fifth part shall be binding only in relation to the development of groups, sub-groups and three-digit accounts, as well as their definitions and accounting relationships.

In the event that the entity needs to use three-digit accounts not provided for in this Plan, they will be used, if any, in the General Accounting Plan. Social welfare insurance funds which grant social benefits must enable the necessary accounts and sub-accounts within the 65 sub-group to record the movement of the operations to which these social benefits are to be paid. Both the costs incurred in the granting of these social benefits, which will not be reclassified, as well as the income, must be charged to the non-technical account.

Article 3. Short memory.

Eligible for the abbreviated memory in the third part of this Plan, those insurance entities whose volume of premiums issued does not exceed in each financial year 5,000,000 euros and does not operate in any of the branches of life, civil liability, credit or caution or exclusively develop the reinsurer activity, nor have they issued securities admitted to trading on a regulated market of any Member State of the European Union.

Article 4. Separate accounts for the life class and the different classes of life.

The accounting of insurance institutions which are authorised to carry out operations in the life field and in classes other than life must be taken separately for both types of activity.

For these purposes, the contingencies provided for in Article 65 of the recused text of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October, for mutual social welfare insurance, shall be treated as the activities referred to in the previous paragraph, in accordance with the provisions of Articles 15, 16 and 19 of the Social Welfare Mutual Regulation, approved by Royal Decree 1430/2002 of 27 December.

Article 5. Extra application.

In all the provisions of this Plan, the provisions of the General Accounting Plan will apply.

Additional disposition first. Reserve for stabilisation.

For the purposes of the limitations that the commercial law has on the distribution of dividends to account, in accordance with the provisions of Article 216 of the Recast Text of the Law on Limited Companies, the stabilization reserve shall be considered as a compulsory reserve established by law.

First transient disposition. General rules for the first application of the accounting plan of the insurance institutions.

1. The criteria contained in the accounting plan of the insurance companies should be applied retroactively with the exceptions indicated in the second and third transitional provisions of this royal decree.

To this end, the opening balance sheet at the date of entry into force of the Plan (the opening balance sheet) will be drawn up in accordance with the following rules:

(a) All assets and liabilities whose recognition requires the Accounting Plan of the insurance institutions shall be recorded.

(b) All assets and liabilities whose recognition is not permitted by the accounting plan of the insurance institutions shall be reduced.

(c) The property assets shall be reclassified according to the definitions and criteria included in the accounting plan of the insurance institutions.

(d) The entity may choose to assess all the assets to be included in the opening balance sheet in accordance with the principles and rules in force prior to the entry into force of Law 16/2007 of 4 July of reform and adaptation of the accounting law for international harmonisation on the basis of the European Union's rules, with the exception of financial instruments which, after their initial recognition, are valued at fair value.

If the entity decides not to make use of the above option, it will value all its assets in accordance with the new rules.

Notwithstanding the foregoing, insurance entities may assess the real estate, whatever its use or destination, at its fair value on the date of the transition to this Plan. For these purposes, the valuation determined by the fair value must be within the existing legal framework. The value in revalued books shall be used as the cost attributed on that date. The amortisation accumulated at the revaluation date can be treated in any of the following ways: (i) reexpressed proportionally to the change in the gross book amount of the asset, so that the net book amount of the asset after the revaluation is equal to the fair value; (ii) eliminated against the gross carrying amount of the asset, so that what is reexpressed is the resulting net value, up to the fair value of the asset. The resulting adjustments shall be debited or paid out in net worth under heading B. 1.III.3 'Other reserves', of which information shall be provided in the memory. These reserves shall be unavailable. Its available character shall be based on the depreciation, impairment, disposal or disposal of the property by another means of the buildings, in the proportion corresponding to the revaluation. If the deterioration is subsequently reversed, the amount of the reserve that would have been considered available as a result of the impairment will again become unavailable. The exercise of the option set out in this paragraph shall be applied uniformly over all the buildings of the entity.

2. The counterpart of the adjustments to be made in order to comply with the first application shall be a reserve item, with the exceptions provided for in the transitional provisions of this royal decree and unless, in accordance with the criteria laid down in the second part of the accounting plan of the insurance institutions, another item is to be used.

Second transient disposition. Exceptions to the general rule included in the first transitional provision of this royal decree.

1. The entity may apply the following exceptions to the general rule contained in the first transitional provision of this royal decree:

(a) The cumulative conversion differences arising in the first application of the standard of registration and valuation 10th 2 "Conversion of annual accounts to the currency of presentation" may be directly and definitively counted against voluntary reserves.

(b) The retroactive application of the standard of registration and valuation 16 "Transactions with payments based on equity instruments" shall not be mandatory.

(c) The institution may designate on the date the opening balance sheet corresponds to a financial instrument in the 'Fair value with changes in profit and loss account' category provided that it meets the requirements of paragraphs 2.4 or 3.3 of the 'Financial Instruments' registration and valuation standard. Financial assets which, on the date of the opening balance sheet, meet the requirements set out in paragraph 2.2 of that standard, may also be included in the category of 'Investments held to maturity'.

(d) Provisions corresponding to assumed obligations arising from the decommissioning or withdrawal and other associated with the fixed assets, such as the rehabilitation costs of the place on which it is based, may be calculated and accounted for by the current value of the opening balance sheet date.

Additionally, the amount that would have been included in the cost of the asset must be estimated when the liability first arose, calculating the accumulated depreciation on that amount.

(e) The entity may choose not to apply with retroactive effect the financial expense capitalization criterion included in the 2nd 1 record and valuation standard.

2. The retroactive application of the new criteria is prohibited in the following cases:

(a) If an entity has given low-asset or non-derivative financial liabilities, in accordance with previous accounting rules, it shall not be recognised even if required by the "Financial Instruments" registration and valuation standard, unless it is to be collected as a result of a subsequent transaction or event.

(b) hedges that do not meet the conditions for such coverage may not be counted as such, except if the institution has identified a net position as a covered item and, before the date of the opening balance sheet, has designated as a cover an individual item of such net position. If, before that date, the entity has designated an operation as a cover, but the entity does not satisfy the conditions set out in the record and valuation standard 8ª 6 to be considered highly effective, it shall apply the provisions of this rule for hedges that cease to be effective.

c) Estimates. In the opening balance sheet, with the exception of objective evidence that an error occurred, the estimates shall be consistent with those made in the day.

(d) Assets and groups of items, held for sale and discontinued operations. The entity shall apply the new criteria in a forward-looking manner and on the basis of the information available at the date of the opening balance sheet.

Transitional provision third. Specific rules regarding business combinations.

In the preparation of the opening balance, the following rules shall be taken into consideration in relation to the business combinations made prior to that date:

1. All acquired assets and liabilities assumed in those combinations shall be recognised, with the following caveats:

(a) Assets, including goodwill, and liabilities, not recognised in the balance sheet of the acquiring institution in accordance with the preceding accounting rules, and which also do not meet all the conditions for that in the individual accounts of the entity acquired under the rules of the Plan.

In the event of the recognition, the assets (other than the goodwill) and the previously unrecognised liabilities shall be valued according to the criteria contained in this Plan that would have resulted in the individual balance sheet of the acquired entity at that time.

(b) Notwithstanding the foregoing, the financial assets and financial liabilities that were discharged in accordance with the preceding rules shall not be recognised as referred to in paragraph 2.a) of the second transitional provision.

(c) As a result of the foregoing, any resulting change shall be charged or paid against reserves, unless it proceeds from the recognition of an intangible fixed asset previously included in the goodwill, in which case, the adjustment that proceeds, net of the tax effect, shall be reduced.

2. Items that do not meet the conditions for recognition as an asset or liability according to the rules of the Plan shall not be included, making adjustments as follows:

(a) The previously recognised intangible assets which do not meet the conditions for recognition of the registration and valuation standard for intangible fixed assets shall be adjusted in the opening balance against the goodwill.

b) All other adjustments will be made against reservations.

3. The valuation of the assets and liabilities of the participating entities in the business combination shall not be modified, unless the rules included in this paragraph apply the recognition or discharge of any assets.

In particular, the book value of intangible fixed assets which, according to the new criteria, have an indefinite shelf-life, shall be their value in books at the closing date of the last balance sheet in which the accounting plan of the insurance institutions of 1997 is applied, the provisions of paragraph 4 (f) of this provision being equally mandatory.

4. The amount of the goodwill shall be its amount in books on the date of the opening balance sheet, in accordance with the preceding rules, after making the following adjustments:

(a) Its value in books shall be reduced or eliminated, if required by paragraph 1 above.

(b) Its value in books shall be increased when required by paragraph 2 above.

(c) Where the event or the conditions under which any additional consideration in a business combination is dependent has been settled before the opening balance sheet date, the goodwill shall be adjusted for that amount.

(d) Where an additional consideration previously recognised as a liability cannot be reliably valued on the date of the opening balance sheet, or if its payment is not already likely, the book value of the goodwill shall be adjusted.

(e) The entity shall apply the registration and valuation rule relating to intangible fixed assets from the date of the opening balance sheet, irrespective of whether, where appropriate, the resulting impairment loss is recognised by an adjustment to the reserves and without adjusting the amortisation of the trading fund previously made.

f) The accumulated amortisation of the goodwill will be debased against the goodwill itself. However, in the case of the annual accounts, the amount recorded by the institution at the time the business combination was recorded shall be indicated.

5. Previous adjustments for recognised assets and liabilities will affect deferred taxes.

Transitional disposition fourth. Information to be included in the annual accounts of the first financial year in which the accounting plan of the insurance institutions is applied.

In the first annual accounts that are formulated in the application of this Accounting Plan of the insurance institutions, the following should be considered:

1. Without prejudice to Article 35.6 of the Trade Code, and for the purposes of applying the principle of uniformity and the requirement of comparability, the inclusion of comparative figures in those accounts shall not be required.

Notwithstanding the above and for information purposes, in the memory of the first annual accounts formulated under this Plan: (i) a paragraph with the name "Aspects derived from the transition to the new accounting rules" will be created, including an explanation of the main differences between the accounting criteria set out in Royal Decree 2014/1997 and the current ones, as well as the quantification of the impact that this variation of accounting criteria produces on the company's net worth at the date of transit and (ii) the balance sheet and the account will be reflected of losses and gains included in the annual accounts for the previous financial year.

Without prejudice to the foregoing, the entity may present comparative information from the previous financial year adapted to this Plan, for which it will prepare an opening balance for the preceding financial year in accordance with the new criteria and in accordance with the transitional provisions of this royal decree. In this case, in addition to including an explanation in memory of the main differences between the accounting criteria applied in the previous year and the current ones, the impact that this variation of accounting criteria produces on the net worth and on the results of the entity will be quantified. In particular, it shall be included:

(a) A reconciliation of equity at the date of the opening balance of the preceding financial year.

(b) A reconciliation of the equity and the results referred to the closing date of the last full year in which the above criteria were applied.

The reconciliations referred to in this paragraph will be performed in sufficient detail to allow users to understand the significant adjustments as a result of the transition.

2. In either case, the following information should be provided:

(a) The fair value of the financial assets or financial liabilities designated in the 'Fair value with changes in profit and loss account' category referred to in paragraph 1 (c) of the second transitional provision, as well as their classification and book value in the annual accounts closed at the date of transition.

(b) If, as a consequence of the adjustments to be made at the date of transition, a impairment loss of the value of the assets is recognised or reversed, the entity shall provide in the memory the information required on this aspect in the Plan.

3. Date of transition is the date of the opening balance of the financial year in which this Plan is applied for the first time, unless the institution includes comparative information from the previous adjusted financial year, in which case it shall be the date of the opening balance of that previous financial year.

Transient disposition fifth. Rules for the formulation of accounts of the consolidable groups of insurance institutions.

The rules for the formulation of accounts of the consolidated groups of insurance companies, approved by Royal Decree 2014/1997 of 26 December, will remain in force as long as they are not subject to further review.

Transitional disposition sixth. Entities that have been included in consolidated annual accounts in accordance with international financial reporting standards adopted in the European Union.

Entities whose assets have been integrated, prior to the first application of this Plan, in consolidated annual accounts in which the International Financial Reporting Standards adopted by the European Commission Regulations have been applied, may assess their assets in accordance with the amounts included in the consolidated accounts, excluding technical provisions, adjustments and removals inherent in the consolidation and the effects of the combination of business derivatives. acquisition, as long as:

1. The valuation criteria applied are equivalent to those set out in the present accounting plan of the insurance institutions and in the provisions of this royal decree.

2. The date of transition is the balance sheet date of the year preceding the first year in which the present royal decree applies.

3. This option is applied in a uniform manner for all the assets of the entity.

Single repeal provision. Regulatory repeal.

Without prejudice to the provisions of the fifth transitional provision of this royal decree, the accounting plan of the insurance institutions, approved by Royal Decree 2014/1997 of 26 December 1997, as well as the other rules of equal or lower rank applicable to the insurance companies that oppose the provisions of this royal decree, is repealed.

Final disposition first. Basic character.

This rule is of a basic nature and is dictated by the jurisdiction that the State recognizes in Article 149.1.11a of the Constitution.

Final disposition second. Regulatory enablement.

The Minister of Economy and Finance is empowered, on a proposal from the Directorate General for Insurance and Pension Funds, and after reporting by the Accounting and Audit Institute of Accounts and the Advisory Board of Insurance and Pension Funds, to carry out the regulatory development of the provisions contained in the accounting plan of the insurance companies.

Final disposition third. Entry into force.

This royal decree will enter into force on December 31, 2008.

Given in Palma de Mallorca, on July 24, 2008.

JOHN CARLOS R.

The Second Vice President of the Government and Minister of Economy and Finance,

PEDRO SOLBES MIRA

FIRST PART. CONCEPTUAL FRAMEWORK OF ACCOUNTING

1. Annual Accounts. True image.

An entity's annual accounts comprise the balance sheet, the profit and loss account, the state of changes in equity, the state of cash flows and the memory. These documents form a unit.

Annual accounts should be clearly worded so that the information provided is understandable and useful for users when making their economic decisions, and should show the true and fair view of the assets, financial situation and the results of the entity, in accordance with the legal provisions.

The systematic and regular application of the accounting requirements, principles and criteria included in the following paragraphs shall lead to the annual accounts showing the fair value of the assets, the financial situation and the results of the institution. To this end, the accounting of transactions will be in keeping with their economic reality and not only in their legal form.

When it is considered that compliance with the requirements, principles and accounting criteria included in this Plan is not sufficient to show the aforementioned faithful image, the additional information needed to achieve this objective will be provided in the memory.

In those exceptional cases where such compliance is incompatible with the true and fair image to be provided by the annual accounts, that application shall be deemed to be inappropriate. In such cases, this circumstance shall be sufficiently motivated and its influence on the entity's assets, financial position and results shall be explained.

The accounting officer who reports as an individual legal person, within the framework of this Plan, will do so independently of the group of entities to which he may belong, without prejudice to the particular rules contained in the second part of this Plan and the information breakdowns to be incorporated in the annual accounts.

2. º Requirements of the information to be included in the annual accounts.

The information included in the annual accounts must be relevant and reliable.

Information is relevant when it is useful for economic decision-making, that is, when it helps to evaluate past, present, or future events, or to confirm or correct assessments previously made. In particular, in order to comply with this requirement, annual accounts should adequately show the risks to which the institution is facing.

Information is reliable when it is free of material errors and is neutral, that is, it is free of bias, and users can trust that it is the true image of what it intends to represent.

A quality derived from reliability is integrity, which is achieved when financial information contains, in a complete way, all data that can influence decision-making, without any omission of meaningful information.

Additionally, financial information must meet the qualities of comparability and clarity. Comparability, which should be extended to both the annual accounts of an entity in time and those of different entities at the same time and for the same period of time, should enable the situation and profitability of institutions to be contrasted, and implies a similar treatment for transactions and other economic events occurring in similar circumstances. For its part, clarity implies that, on the basis of a reasonable knowledge of economic activities, accounting and business finance, users of the annual accounts, by means of a diligent examination of the information provided, can form judgments that facilitate decision-making.

3. "Accounting Principles".

The accounting of the entity and, in particular, the recording and valuation of the elements of the annual accounts, shall be developed by obligatorily applying the accounting principles set out below:

1. Company in operation. Unless otherwise proved, the management of the entity shall be considered to continue for the foreseeable future, and the application of the accounting principles and criteria does not have the purpose of determining the value of the net worth for the purposes of its overall or partial transmission, nor the resulting amount in the event of liquidation.

In those cases where this principle does not apply, in terms to be determined in the implementing rules to be issued, the entity shall apply the valuation rules that are best suited to reflect the true image of the operations intended to carry out the asset, to cancel the debts and, where appropriate, to distribute the resulting net worth, and to provide in the memory of the annual accounts all significant information on the criteria applied.

2. Accrual. The effects of transactions or economic events shall be recorded when they occur, with the result of the year to which the annual accounts relate, the expenditure and the revenue affecting the financial year, irrespective of the date of their payment or recovery.

3. Uniformity. Adopted a criterion within the alternatives that, if necessary, will be allowed, should be maintained in time and applied uniformly for transactions, other events and conditions that are similar, as long as the assumptions that motivated their choice are not altered. If these circumstances are altered, the criterion adopted may be modified; in such a case, these circumstances shall be recorded in the memory, indicating the quantitative and qualitative impact of the variation on the annual accounts.

4. Prudence. It should be prudent in the estimates and valuations to be carried out under conditions of uncertainty. Prudence does not justify the fact that the valuation of the assets does not correspond to the true image that must reflect the annual accounts.

Likewise, without prejudice to the provisions of Article 38a of the Trade Code, only the benefits obtained up to the date of the end of the financial year shall be counted. On the other hand, account must be taken of all risks, with origin in the financial year or in the previous year, as soon as they are known, even if they were only known between the date of closure of the annual accounts and the date on which they were issued. In such cases, information shall be given in the memory, without prejudice to its reflection, when a liability and expenditure have been generated, in other documents belonging to the annual accounts. Exceptionally, if the risks were known between the formulation and prior to the approval of the annual accounts and will significantly affect the true image, the annual accounts must be reformulated.

The depreciation and impairment of asset impairment should be taken into account, whether the exercise is paid off with profit or loss.

5. Not compensation. Unless otherwise expressly provided for in a rule, the items of assets and liabilities or expenditure and revenue items shall not be offset, and the members of the annual accounts shall be assessed separately.

6. Relative importance. The strict non-application of some of the accounting principles and criteria shall be permitted where the relative importance in quantitative or qualitative terms of the variation that is produced is scarcely significant and, consequently, does not alter the expression of the true image. Items or amounts whose relative importance is scarcely significant may be grouped together with other items of a similar nature or function.

In cases of conflict between accounting principles, the one that best leads to the annual accounts expressing the faithful image of the patrimony, the financial situation and the results of the entity should prevail.

4. º Elements of annual accounts.

The elements that, when they meet the recognition criteria that are subsequently set, are recorded in the balance sheet, are:

1. Assets: assets, rights and other resources controlled economically by the entity, resulting from past events, of which the entity is expected to obtain economic returns or returns in the future.

2. Liabilities: Current obligations arising from past events, for which the institution expects to divest resources that may produce profits or economic returns in the future. For these purposes, provisions are understood to be included.

3. Net worth: is the residual part of the assets of the institution, after deduction of all liabilities. It includes the contributions made, either at the time of its constitution or in subsequent ones, by its members or mutualists, who do not have the consideration of liabilities, as well as the accumulated results or other variations affecting it.

Items that, when they meet the recognition criteria that are subsequently set, are recorded in the profit and loss account or, if applicable, directly in the state of changes in net worth, are:

4. Income: increases in the entity's net worth during the financial year, either in the form of inflows or increases in the value of the assets, or in the form of a decrease in liabilities, provided that they do not originate in contributions, whether monetary or not, by the partners or mutualists.

5. Expenditure: decreases in the net worth of the institution during the financial year, either in the form of outflows or decreases in the value of the assets, or in the form of recognition or increase in the value of the liabilities, provided that they do not originate in distributions, whether monetary or not, to the partners or mutualists, as such.

The income and expenses of the financial year shall be charged to the profit and loss account and shall form part of the profit or loss, except where appropriate direct imputation to the net worth, in which case they shall be presented in the statement of changes in net worth, in accordance with the provisions of the second part of this Plan or in a rule that develops it.

5. Registration criteria or accounting recognition of the elements of the annual accounts.

Accounting record or recognition is the process by which the balance sheet, profit and loss account or the status of changes in net worth are incorporated, the different elements of the annual accounts, in accordance with the provisions of the rules of record relating to each of them, included in the second part of this Plan.

The record of the items shall be recorded when, in compliance with the definition of the items included in the previous paragraph, the probability criteria are met in obtaining or disposing of resources that incorporate benefits or economic returns and their value can be determined with an adequate degree of reliability. Where the value is to be estimated, the use of reasonable estimates does not detract from its reliability. In particular:

1. Assets should be recognised in the balance sheet where the acquisition is likely to be made from the same profit or economic returns for the entity in the future, and provided that they can be reliably assessed. The accounting recognition of an asset also implies the simultaneous recognition of a liability, the reduction of another asset or the recognition of income or other increases in net worth.

2. Liabilities should be recognised in the balance sheet where it is likely that, at maturity and for the settlement of the obligation, resources that incorporate future economic returns or returns are to be delivered or transferred, and provided that they can be reliably assessed. The accounting recognition of a liability involves the simultaneous recognition of an asset, the reduction of another liability or the recognition of an expense or other decreases in net worth.

3. The recognition of an income takes place as a result of an increase in the resources of the institution, and whenever its value can be determined reliably. It therefore entails the simultaneous recognition or increase of an asset, or the disappearance or decrease of a liability and, at times, the recognition of an expense.

4. The recognition of an expense takes place as a result of a decrease in the resources of the institution, and whenever its value can be measured or estimated reliably. It therefore entails the simultaneous recognition or increase of a liability, or the disappearance or decrease of an asset and, at times, the recognition of an income or a net worth item.

The period referred to in the annual accounts shall be recorded, the revenue and expenditure incurred in the year, in the case where it is relevant, a correlation between the two, which in no case may lead to the registration of assets or liabilities which do not satisfy the definition of such assets or liabilities.

6. No Valuation Criteria.

The valuation is the process by which a monetary value is assigned to each of the members of the annual accounts, in accordance with the provisions of the valuation rules relating to each of them, included in the second part of this Plan.

For this purpose, the following value criteria and related definitions will be considered:

1. Historical cost or cost.

The historical cost or cost of an asset is its purchase price or production cost.

The purchase price is the cash amount and other equivalent items paid, or outstanding, plus, where applicable, and where applicable, the fair value of the other committed consideration arising from the acquisition, all of which must be directly related to the acquisition and be necessary for the asset to be placed in operating conditions.

The cost of production includes the purchase price of the raw materials and other consumable materials, the price of the factors of production directly attributable to the asset, and the fraction that reasonably corresponds to the production costs indirectly related to the asset, to the extent that they relate to the production, construction or manufacturing period, based on the level of utilization of the normal working capacity of the means of production and are necessary for the putting of the asset under operational conditions.

The historical cost or cost of a liability is the value corresponding to the counterparty received in exchange for incurring the debt or, in some cases, the amount of cash and other equivalent liquid assets that is expected to be delivered to settle a debt in the normal course of the business.

2. Fair value.

It is the amount by which an asset or a liability can be exchanged, between interested parties and duly informed parties, that perform a transaction in conditions of mutual independence. The fair value shall be determined without deducting the transaction costs incurred in its disposal. It shall in no case have the character of fair value which is the result of a forced, urgent transaction or as a result of an involuntary liquidation situation.

On a general basis, fair value shall be calculated by reference to a reliable market value. In this regard, the price quoted on an active market shall be the best fair value benchmark, on the basis of the active market where the following conditions are met:

a) Goods or services exchanged on the market are homogeneous;

b) They can be virtually at any time buyers or sellers for a certain good or service; and

c) Prices are known and easily accessible to the public. These prices additionally reflect actual, current and regularly produced market transactions.

For those elements for which there is no active market, the fair value shall be obtained, where appropriate, by the application of valuation models and techniques. Models and valuation techniques include the use of references to recent transactions under conditions of mutual independence between stakeholders and duly informed, if available, as well as references to the fair value of other assets that are substantially equal, estimated future cash flow discount methods and models generally used to assess options. In any event, the valuation techniques used must be consistent with the methodologies accepted and used by the market for pricing, and should be used, if any, the valuation technique used by the market which has proved to be the one that obtains more realistic estimates of prices.

The valuation techniques used should maximize the use of observable market data and other factors that market participants would consider when setting the price, limiting the use of subjective and non-observable or verifiable data as far as possible.

The entity shall assess the effectiveness of the valuation techniques it uses on a regular basis, using as a reference the observable prices of recent transactions in the same asset that is valued or used by the prices based on available and applicable data or observable market indices.

The fair value of an asset for which there are no comparable transactions on the market, can be reliably assessed if the variability in the range of estimates of the fair value of the asset is not significant or the probabilities of the different estimates, within that range, can be reasonably assessed and used in the fair value estimate.

Where the fair value valuation is applicable, items that cannot be reliably valued, either by reference to a market value or by the application of the valuation models and techniques referred to above, shall be valued, as appropriate, for their amortised cost or for their purchase price or production cost, which is, where appropriate, undermined by the corrective items of their value that may correspond, making mention in the memory of this fact and of the circumstances that motivate it.

3. Net realizable value.

The net realizable value of an asset is the amount that the entity can obtain for its disposal on the market, in the normal course of the business, deducting the estimated costs necessary to carry it out, as well as, in the case of the raw materials and the products in progress, the estimated costs necessary to complete its production, construction or manufacturing.

4. Current value.

The current value is the amount of cash flows to be received or paid in the normal course of the business, as it is an asset or liability, respectively, updated at a suitable discount rate.

5. Value in use.

The value in use of an asset or a cash-generating unit is the current value of expected future cash flows, through its use in the normal course of the business and, where applicable, its disposal or other form of disposal, taking into account its current and updated status at a risk-free market rate, adjusted for the specific risks of the asset that have not adjusted the estimates of future cash flows. Cash flow projections shall be based on reasonable and substantiated assumptions; normally the quantification or distribution of cash flows is subject to uncertainty, considering that it is assigning probabilities to different estimates of cash flows. In any event, these estimates should take into account any other assumption that market participants would consider, such as the degree of liquidity inherent in the asset.

6. Selling costs.

These are the incremental costs directly attributable to the sale of an asset in which the entity would not have incurred the decision to sell, excluding financial expenses and profit taxes. The legal expenses necessary to transfer ownership of the asset and the sales commissions are included.

7. Amortised cost.

The amortised cost of a financial instrument is the amount to which a financial asset or a financial liability was initially valued, minus the principal repayments that would have occurred, more or less, as appropriate, the share held in the profit and loss account, by using the cash interest rate method, from the difference between the initial amount and the repayment value on maturity and, for the case of the financial assets, less any impairment reduction that would have been recognised, either directly as a decrease in the amount of the asset or by a corrective account of its value.

The effective interest rate is the type of update that matches the book value of a financial instrument with the estimated cash flows over the expected life of the instrument, on the basis of its contractual terms and without considering future credit risk losses; in its calculation will include the financial fees charged in advance in the grant of financing.

8. Transaction costs attributable to an asset or financial liability.

These are the incremental costs directly attributable to the purchase, issuance, disposal or other form of disposal of a financial asset, or to the issuance or assumption of a financial liability, in which the entity would not have incurred the transaction. These include fees and commissions paid to agents, advisers, and intermediaries, such as brokerage, intervention expenses for public and other securities, as well as taxes and other rights that fall on the transaction, and exclude premiums or discounts earned on purchase or issuance, financial expenses, internal administrative maintenance costs.

9. Book value or in books.

The book value or in books is the net amount by which an asset or liability is recorded on balance sheet after deduction, in the case of assets, on its accumulated amortisation and any cumulative impairment of cumulative impairment that has been recorded.

10. Residual value.

The residual value of an asset is the amount that the entity estimates it could obtain at the current time for its sale or other form of disposal, after deduction of the selling costs, taking into account that the asset would have reached the age and other conditions that it is expected to have at the end of its useful life.

Useful life is the period during which the entity expects to use the depreciable asset or the number of production units it expects to obtain from it. In particular, in the case of assets subject to reversion, their useful life is the concession period when the latter is lower than the economic life of the asset.

Economic life is the period during which the asset is expected to be usable by one or more users or the number of production units expected to be obtained from the asset by one or more users.

7. Principles and generally accepted accounting standards.

Generally accepted accounting principles and rules will be considered in:

(a) The Trade Code and the remaining commercial law.

b) The Accounting Plan of the Insurance Entities.

c) The General Accounting Plan and its sectoral adaptations.

(d) The rules of development that, in accounting matters, establish in its case the Institute of Accounts and Audit of Accounts, and other Spanish legislation that is specifically applicable.

PART TWO. RULES FOR REGISTRATION AND VALUATION

First Development of the Accounting Framework.

1. The rules of registration and valuation develop the accounting principles and other provisions contained in the first part of this text, relating to the Conceptual Framework of Accounting. They include criteria and rules applicable to different transactions or economic facts, as well as to various heritage elements.

2. The rules for registration and valuation which are subsequently formulated are of compulsory application.

2nd Real Estate and Real Estate Investments.

1. Initial assessment.

The assets included in the tangible fixed assets and real estate investments will be valued at their cost, whether this is the purchase price or the cost of production.

Indirect taxes on the assets of tangible fixed assets and real estate investments will only be included in the purchase price or cost of production when they are not directly recoverable from the Public Finance.

It shall also form part of the value of tangible fixed assets and real estate investments, the initial estimate of the current value of the assumed liabilities arising from the decommissioning or withdrawal and other associated with such assets, such as the rehabilitation costs of the place on which they settle, provided that these obligations result in the registration of provisions in accordance with the provisions of the applicable law.

For immobilized persons who need a period of more than one year to be in conditions of use, they shall include in their purchase price or cost of production the financial expenses that have been incurred prior to the putting into operation of the fixed assets and investment property and which have been rotated by the supplier or correspond to loans or other foreign financing, specific or generic, directly attributable to the acquisition, manufacture or construction.

1.1. Purchase price.

The purchase price includes, in addition to the amount invoiced by the seller after deducting any discounts or discounts on the price, all additional and directly related expenses that occur until its being put into operation, including the location on site and any other conditions necessary for it to operate in the intended manner; among others: expenses of esplanation and takedown, transportation, tariff duties, insurance, installation, assembly and other similar.

Debts for purchase of tangible fixed assets and real estate investments shall be valued in accordance with the provisions of the Financial Instruments Standard.

1.2. Production cost.

In the event that the entity is responsible for the manufacture or construction of real estate assets or immobilized materials to third parties, the cost of production shall be obtained by adding to the purchase price of the raw materials and other consumable materials, the other costs directly attributable to those goods. The part that reasonably corresponds to the costs indirectly attributable to the goods in question shall also be added to the extent that such costs correspond to the manufacturing or construction period and are necessary for the putting of the asset under operational conditions.

1.3. Permutas.

For the purposes of this Plan, it is understood that an item of tangible fixed assets or real estate investment is acquired by permuse when it is received in exchange for the delivery of non-cash assets or a combination of these with monetary assets.

In commercial swap transactions, tangible fixed assets or real estate investments received shall be valued at the fair value of the asset delivered more, where applicable, the monetary compensatory amounts that would have been delivered in return, unless there is more clear evidence of the fair value of the asset received and the limit of the asset received. The valuation differences that may arise when the item is discharged in return shall be recognised in the profit and loss account.

A permuse will be considered to have a commercial character if:

(a) The configuration (risk, timing and amount) of the cash flows of the fixed assets or real estate investment differs from the configuration of the cash flows of the delivered asset; or

(b) The current value of the cash flows after tax of the activities of the entity affected by the swap is modified as a result of the transaction.

In addition, it is necessary that any of the differences arising from previous causes (a) or (b) be significant when compared to the fair value of the assets exchanged.

Where the swap is not commercial or where a reliable estimate of the fair value of the items involved in the transaction cannot be obtained, the tangible fixed assets or investment property received shall be valued at the book value of the goods delivered more, where applicable, the monetary compensatory amounts that would have been delivered in return, with the limit, where available, of the fair value of the tangible fixed assets or the real estate investment received if the latter was less.

1.4. Non-cash capital injections.

Assets of fixed assets and real estate investments received as a non-cash contribution of capital shall be valued at fair value at the time of the contribution as indicated in the standard on transactions with payments based on equity instruments, as in this case it is presumed that the fair value of such assets can always be reliably estimated.

The provisions of the Financial Instruments Standard shall apply to the contributor of such goods.

2. Further valuation.

After initial recognition, the elements of the tangible fixed assets or the real estate investments shall be valued for their purchase price or cost of production minus the accumulated depreciation and, where applicable, the cumulative amount of the recognised impairment valuation corrections.

2.1. Depreciation.

The depreciation must be established in a systematic and rational manner according to the useful life of the goods and their residual value, taking into account the depreciation they normally suffer for their operation, use and enjoyment, without prejudice to the technical or commercial obsolescence that might affect them.

Each part of an item of tangible fixed assets or real estate investment that has a significant cost in relation to the total cost of the item and a useful life other than the rest of the item shall be depreciated independently.

Changes that may arise in the residual value, the useful life and the method of amortisation of an asset, shall be accounted for as changes in the accounting estimates, except in the case of an error.

When, in accordance with the provisions of the following paragraph, it is appropriate to recognise impairment valuation corrections, the amortisation of the following exercises of the impaired asset shall be adjusted, taking into account the new book value. The same shall apply in the case of a reversal of the impairment valuation corrections.

2.2. Impairment of value.

A impairment loss on the value of an item of fixed assets and real estate investments shall occur where its book value exceeds its recoverable amount, which is understood to be the largest amount between its fair value minus the selling costs and its value in use.

For these purposes, at least at the end of the financial year, the institution shall assess whether there are any indications that any real estate or investment property or, where applicable, any cash generating unit may be impaired, in which case it shall estimate its recoverable amounts by making the relevant valuation corrections. Cash-generating unit is defined as the smallest identifiable group of assets that generates cash flows that are, to a large extent, independent of derivatives of other assets or groups of assets.

The calculations of the deterioration of the elements of the immobilized material and the real estate investments will be carried out individually. If it is not possible to estimate the recoverable amount of each individual asset, the entity shall determine the recoverable amount of the cash generating unit to which each item of the fixed asset belongs.

In the event that the entity is required to recognise a impairment loss of a cash-generating unit to which all or part of a goodwill has been allocated, it shall first reduce the book value of the goodwill corresponding to that unit. If the impairment exceeds the amount of the impairment, second, it shall reduce in proportion to its accounting value that of the other assets of the cash-generating unit, up to the limit of the highest value among the following: its fair value minus the selling costs, its value in use and zero.

The valuation corrections for the deterioration of the elements of the fixed assets or real estate investments, as well as their reversal when the circumstances that motivated them would have ceased to exist, will be recognized as an expense or income, respectively, in the profit and loss account. The reversion of the impairment shall be limited to the book value of the fixed asset which would be recognised at the date of the reversal if the impairment of the value had not been recorded.

3. Low.

The elements of tangible fixed assets and real estate investments will be discharged at the time of their disposal or disposal by another means or when no future economic returns or benefits are expected.

The difference between the amount that, if any, is obtained from an item of tangible fixed assets or real estate investment, net of the selling costs, and its book value, shall determine the profit or loss arising from the loss of that item, which shall be charged to the profit and loss account of the financial year in which it is produced.

Credit for the sale of fixed assets shall be valued in accordance with the provisions of the Financial Instruments Standard.

4. Fair value of the buildings.

For the purposes of this and subsequent rules, it is understood that the fair value of the real estate shall be the value of the valuation granted by an approved valuation entity for the valuation of assets in the mortgage market, in accordance with the specific rules for the valuation of properties eligible for the coverage of the technical provisions of the insurance institutions approved by the Ministry of Economy and Finance.

3rd Special rules on tangible fixed assets and real estate investments.

In particular, the following rules will apply to the goods that are listed in each case:

a) Unbuilt Solares. The purchase price shall include the costs of conditioning, such as closures, movement of land, drainage and drainage works, the demolition of buildings where necessary in order to be able to carry out works of a new plant, the costs of inspection and lifting of plans when they are carried out prior to their acquisition, as well as, where appropriate, the initial estimate of the present value of the present obligations arising from the costs of the rehabilitation of the site.

The grounds normally have an unlimited life and therefore do not depreciate. However, where rehabilitation costs are included in the initial value, because the conditions laid down in paragraph 1 of the standard on tangible fixed assets and real estate investments are met, that portion of the land shall be amortised over the period in which the profits or economic returns are derived from having incurred those costs.

b) Constructions. -Its purchase price or cost of production shall be formed, in addition to all those installations and elements that have a permanent character, due to the fees inherent in the construction and the optional project and management fees. The value of the land and buildings and other buildings shall be assessed separately.

c) Technical installations, machinery and tools. -Your valuation will include all acquisition or manufacturing and construction expenses until you are placed in operating conditions.

(d) The expenditure incurred during the financial year in the works and works which the institution carries out for itself shall be charged to the corresponding expenditure accounts. The accounts of investments in real estate and fixed assets shall be charged for the amount of such expenditure, with credit to the revenue item which collects the work carried out by the institution for itself.

(e) The costs of renovation, extension or improvement of real estate investments and tangible fixed assets shall be incorporated into the asset as the greatest value of the asset as it assumes an increase in its capacity, productivity or lengthening of its useful life, with the accounting value of the items being replaced as low.

(f) The impact of costs related to major repairs shall be taken into account in determining the amount of the fixed assets. In this respect, the amount equivalent to these costs will be amortised differently from the rest of the item, during the period up to the great repair. If these costs are not specified in the acquisition or construction, for the purpose of identification, the current market price for a similar repair may be used.

When the great repair is performed, its cost will be recognized in the book value of the immobilized as a replacement, as long as the conditions for its recognition are met. In addition, any amount associated with the repair which may remain in the book value of the fixed assets shall be reduced.

(g) In agreements which, in accordance with the rule relating to leases and other similar transactions, are to be classified as operating leases, investments made by the lessee that are not separable from the leased or transferred asset shall be accounted for as tangible assets or real estate investments when they meet the definition of the asset. The depreciation of these investments will be made on the basis of their useful life, which will be the duration of the lease or lease-including the renewal period when there is evidence to bear that it will be produced-when it is less than the economic life of the asset.

4th Intangible Fixed Assets.

The criteria contained in the rules relating to tangible fixed assets and real estate investments shall apply to the elements of intangible fixed assets, without prejudice to the following provisions, as provided for in the special rules on intangible fixed assets, as well as from the provisions of the trade fund in the business combinations standard.

1. Recognition.

For the initial recognition of a fixed asset of an intangible nature, it is necessary that, in addition to fulfilling the definition of the asset and the criteria for the recording or accounting recognition contained in the Conceptual Framework of the Accounting, it meets the criterion of identiability.

The cited identiability criterion implies that the immobilized will meet either of the following two requirements:

a) Be separable, that is, liable to be separated from the entity and sold, transferred, delivered for exploitation, leased or exchanged.

b) Surges legal or contractual rights, irrespective of whether such rights are transferable or separable from the entity or from other rights or obligations.

In no case shall the expenses incurred for the purpose of the establishment, the marks, the headers of newspapers or magazines, the stamps or the editorial names, the lists of clients or other similar items, which have been generated internally, be recognised as intangible immobilized.

2. Further valuation.

The entity will appreciate if the useful life of an intangible fixed asset is defined or indefinite. An intangible fixed asset will have an indefinite shelf life when, on the basis of an analysis of all relevant factors, there is no foreseeable limit to the period during which the asset is expected to generate inflows of net cash flows for the entity.

An intangible fixed asset with an indefinite shelf-life shall not be amortised, even if its eventual deterioration is to be considered whenever there are indications of it and at least annually. The useful life of an intangible fixed asset that is not being amortised will be reviewed every year to determine if there are facts and circumstances that allow an indefinite life for that asset to continue to be maintained. Otherwise, the life of the indefinite period shall be changed to a defined life, proceeding as determined in relation to changes in the accounting estimate, unless it is a mistake.

5th Special Rules on intangible fixed assets.

In particular, the rules that are expressed with respect to the goods and rights that are indicated in each case shall apply:

a) Research and development. The research expenditure shall be expenditure for the financial year in which it is carried out. However, they may be activated as intangible fixed assets from the moment they meet the following conditions:

-Be specifically individualized by projects and their cost clearly established so that it can be distributed over time.

-Have good reasons for the technical success and the economic-commercial profitability of the project or projects concerned.

The research costs that appear in the asset must be amortized during their useful life, and always within the five-year period; in the event that there are reasonable doubts about the technical success or the economic-commercial profitability of the project, the amounts recorded in the asset must be directly imputed to the loss of the financial year.

Development expenses, when the conditions indicated for the activation of the research expenditure are met, shall be recognised in the asset and must be amortised during their useful life, which, in principle, is presumed, unless proof to the contrary, is presumed to be no more than five years; in the event that there are reasonable doubts about the technical success or the economic-commercial profitability of the project, the amounts recorded in the asset must be directly imputed to loss of the financial year.

b) Industrial property. In this respect, the capitalised development costs shall be accounted for when the corresponding patent or similar, including the cost of registration and formalisation of the industrial property, is obtained, without prejudice to the amounts which may also be accounted for by the acquisition of the corresponding rights to third parties. They should be the subject of amortisation and valuation correction for impairment as specified in general for intangible immobilized.

c) Trade Fund. It may only be included in the asset, where its value is evidenced by an onerous acquisition, in the context of a business combination.

Your amount shall be determined in accordance with the business combinations standard and shall be assigned from the date of acquisition between each of the entity's cash-generating units or groups of cash-generating units, on which the benefits of the synergies of the business combination are expected to fall.

The goodwill will not be written off. Instead, the cash-generating units or groups of cash-generating units to which the goodwill has been allocated shall, at least annually, be subject to the verification of the impairment of the value, where appropriate, to the record of the impairment valuation correction, in accordance with paragraph 2.2 of the standard relating to tangible fixed assets and real estate investments.

The impairment valuation corrections recognised in the goodwill shall not be reversed in subsequent years.

In the case of a portfolio assignment, the acquiring insurer shall measure, for its fair value, the assets it has acquired and, in accordance with the insurance contract rule, the liabilities assumed. The excess of the agreed price on the difference between the value of those assets and liabilities, as defined in the standard of registration and valuation 18 relating to 'business combinations', shall be recognised as a goodwill.

d) Economic rights derived from portfolios of policies acquired from a mediator. The amount satisfied in the acquisition shall be activated as intangible fixed assets, being amortised in a systematic manner, depending on the maintenance of the contracts in that portfolio and the expected consumption pattern of the future economic benefits derived therefrom. The assumptions used at the time of activation shall be adequately justified and sufficiently contrasted. The amount activated shall be subject to the general scheme of deterioration intended for intangible fixed assets, without the amount of which may be reversed.

e) Transfer rights. They may be included in the asset only where the value of the asset is disclosed by reason of an onerous acquisition, which shall be the subject of depreciation and valuation of the impairment as specified in general for intangible fixed assets.

(f) Computer programmes which meet the criteria for recognition of paragraph 1 of the standard relating to intangible fixed assets shall be included in the asset, both those acquired from third parties and those made by the institution itself, using the own means available to them, including the costs of development of the websites.

In no case may the maintenance costs of the IT application or the training of the staff working with the application be included in the asset.

The same registration and amortisation criteria as those established for development expenses shall apply, applying in respect of the valuation correction for impairment the criteria specified in general for intangible immobilized.

g) Other intangible immobilized. In addition to the intangible elements mentioned above, there are others that will be recognized as such on balance, provided that they meet the criteria contained in the Conceptual Framework of Accounting and the requirements specified in these standards of registration and valuation. Such elements may include the following: administrative concessions, trade rights, intellectual property or licences.

The above elements should be the object of depreciation and valuation correction for impairment as specified in general for intangible immobilized.

6th Assets and groups of items, held for sale.

1. Assets held for sale.

The entity shall classify an asset as held for sale if its book value is recovered primarily through its sale, rather than for its continued use, and provided that the following requirements are met:

a) The asset must be available in its current conditions for immediate sale, subject to the usual and customary terms for sale; and

b) Your sale must be highly likely, because the following circumstances are present:

b1) The entity must be committed to a plan to sell the asset and have started a program to find a buyer and complete the plan.

b2) The asset sale must be actively traded at an appropriate price relative to its current fair value.

b3) It is expected to complete the sale within the year following the date of classification of the asset as held for sale, unless, by facts or circumstances beyond the control of the entity, the sales period has to be extended and there is sufficient evidence that the entity remains committed to the plan of disposal of the asset.

b4) Actions to complete the plan indicate that significant changes are unlikely to be in the plan or that it will be withdrawn.

Assets held for sale shall be valued at the time of their classification in this category, at the lower of the following two amounts: their book value and their fair value minus the selling costs.

For the determination of the book value at the time of the reclassification, the impairment of the value shall be determined at that time and a valuation correction for that asset shall be recorded, if applicable.

As long as an asset is classified as held for sale, it shall not be amortised, and the appropriate valuation corrections shall be made in such a way that the book value does not exceed the fair value minus the selling costs.

When an asset no longer meets the requirements to be classified as held for sale, it shall be reclassified in the balance sheet item corresponding to its nature and shall be valued at the lowest amount, as of the date on which the reclassification proceeds, between its accounting value prior to its rating as an asset for sale, adjusted, if applicable, for the amortisation and value adjustments that would have been recognised as having not been classified as held for sale, and its recoverable amount, recording any difference in the loss account item and earnings that correspond to your nature.

The valuation criterion provided above shall not apply to the following assets which, although classified for the purposes of their presentation in this category, are governed by their specific rules:

(a) Deferred tax assets, to which the profit tax rule applies.

(b) Assets accruing from remuneration to employees, which are governed by the rule on liabilities for long-term remuneration to staff.

(c) Financial assets, except investments in the assets of group, multi-group and associated entities that are within the scope of the financial instruments rule.

The valuation corrections for the impairment of assets held for sale, as well as their reversal when the circumstances that motivated them would have ceased to exist, shall be recognised in the profit and loss account, except where appropriate to record them directly in equity in accordance with the general criteria applicable to the assets in their specific rules.

2. Inajable groups of items held for sale.

A set of items held for sale, the set of assets and liabilities directly associated with which it is to be jointly arranged, as a group, in a single transaction. Any assets and liabilities associated with the institution may be part of a group where they are to be jointly used.

For your assessment, the same rules apply as in the previous section. Consequently, the assets and their associated liabilities that are excluded from their scope are valued in accordance with the specific rule applicable to them. Once this valuation has been carried out, the group of elements together shall be valued at the lowest amount between their book value and their fair value minus the selling costs. In the case of a joint recording of a value impairment valuation correction in this group of items, the accounting value of the group's assets shall be reduced by following the allocation criterion set out in paragraph 2.2 of the standard on tangible fixed assets and real estate investments.

7th Leases and other operations of a similar nature.

It is understood by lease, for the purposes of this rule, any agreement, regardless of its legal instrument, whereby the lessor yields to the lessee, in exchange for a single sum of money or a series of payments or quotas, the right to use an asset for a specified period of time, regardless of whether the landlord is obliged to provide services in connection with the holding or maintenance of such an asset.

The rating of contracts as financial or operating leases depends on the circumstances of each of the parties to the contract so they may be rated differently by the lessee and the landlord.

1. Financial leasing.

1.1. Concept.

When of the economic conditions of a lease agreement, it is deduced that substantially all the risks and benefits inherent in the property of the asset subject to the contract are transferred, such an agreement must be qualified as a financial lease, and shall be recorded in accordance with the terms set out in the following paragraphs.

In a lease agreement for an asset with an option to purchase, it shall be presumed that all risks and benefits inherent in the property are transferred substantially, where there is no reasonable doubt that such an option is to be exercised. This transfer shall also be presumed, unless otherwise proved, even if there is no option to purchase, inter alia, in the following cases:

(a) Lease contracts where the ownership of the asset is transferred, or its conditions are deducted to be transferred, to the tenant at the end of the lease term.

(b) Contracts where the term of the lease coincides or covers the majority of the economic life of the asset, and provided that the economic rationality of the maintenance of the transfer of use is provided under the agreed conditions.

The lease term is the non-revocable period for which the lessee has contracted the lease of the asset, along with any additional period in which the tenant has the right to continue the lease, with or without additional payment, provided that at the beginning of the lease there is reasonable certainty that the tenant will exercise such an option.

(c) In those cases where, at the beginning of the lease, the current value of the minimum payments agreed by the lease assumes the full fair value of the leased asset.

d) When the special characteristics of the assets that are the object of the lease make their usefulness restricted to the tenant.

e) The lessee may cancel the lease and the losses incurred by the lessor on account of such cancellation are assumed by the tenant.

(f) The results of fluctuations in the fair value of the residual amount shall be borne by the lessee.

g) The lessee has the possibility to extend the lease for a second period, with lease payments that are substantially lower than market regulars.

1.2. Tenant's accounting.

The lessee shall, at the initial time, register an asset in accordance with its nature, in the case of an item of tangible or intangible fixed assets, and a financial liability for the same amount, which shall be the least between the fair value of the leased asset and the current value at the beginning of the lease of the agreed minimum payments, including the payment for the option of purchase where there are no reasonable doubts about its financial year and any amount that has been guaranteed, directly or indirectly, and the quota shares are excluded, the cost of services and taxes passed on by the lessor. For these purposes, it is understood by quota quotas that the lease payments the amount of which is not fixed but depends on the future evolution of a variable. In addition, the initial direct costs inherent in the operation in which the lessee incurs are to be considered as the higher value of the asset. For the calculation of the current value the implicit interest rate of the contract will be used and if this cannot be determined, the tenant's interest rate for similar transactions.

The total financial burden shall be distributed over the term of the lease and shall be charged to the profit and loss account of the financial year in which the cash interest rate method is established. Quota shares shall be the expenditure of the year in which they are incurred.

The lessee shall apply to assets that have to recognise in the balance sheet as a result of the lease the depreciation, impairment and discharge criteria that correspond to their nature and to the reduction of financial liabilities as set out in paragraph 3.5 of the Financial Instruments Standard.

1.3. Lessor's accounts.

The lessor, at the initial time, will recognize a credit for the current value of the minimum payments to receive for the lease plus the residual value of the asset even if it is not guaranteed, discounted to the implied interest rate of the contract.

The lessor shall recognize the result of the lease operation as provided for in paragraph 3 of the standard on tangible fixed assets and real estate investments, except where the property is the manufacturer of the well-leased property, in which case commercial traffic operations shall be considered and the criteria contained in the standard on sales revenue and service delivery shall apply.

The difference between the credit entered in the balance sheet asset and the amount receivable, corresponding to non-accrual interest, shall be charged to the profit and loss account of the financial year in which the interest is due, in accordance with the method of the effective interest rate.

Value adjustments for impairment and the reduction of credits recorded as a result of the lease shall be treated in accordance with the criteria set out in paragraphs 2.1.3 and 2.9 of the Financial Instruments Standard.

2. Operating lease.

This is an agreement whereby the landlord agrees with the lessee to the right to use an asset for a specified period of time, in exchange for a single amount or a series of payments or quotas, without the lease of a financial character.

The income and expenses, corresponding to the lessor and the lessee, arising from the operating lease agreements shall be considered, respectively, as income and expense of the year in which they are due, imputed to the profit and loss account.

The lessor will continue to present and value the assets transferred to the lease in accordance with its nature, increasing its accounting value in the amount of the direct costs of the contract that are imputable to it, which will be recognized as expenditure during the contract period applying the same criterion used for the recognition of the income of the lease.

Any collection or payment that could be made when hiring a qualified lease right as operational, shall be treated as an early payment or payment for the lease that will be charged to results over the lease period as the economic benefits of the leased asset are transferred or received.

3. Sale with subsequent financial lease.

When, due to the economic conditions of a disposal, connected to the subsequent lease of the assets, it is disclosed that this is a method of financing and, consequently, a financial lease, the lessee will not vary the rating of the asset, nor will it recognize any profits or losses arising from this transaction. In addition, it shall record the amount received by credit to a consignment showing the corresponding financial liability.

The total financial burden shall be distributed over the term of the lease and shall be charged to the profit and loss account of the financial year in which the cash interest rate method is established. Quota shares shall be the expenditure of the year in which they are incurred.

The lessor shall account for the corresponding financial asset in accordance with paragraph 1.3 of this Standard.

4. Leases of land and buildings.

The land and building joint leases will be classified as operational or financial with the same criteria as the leases of another asset type.

However, as the land normally has an indefinite economic life, in a joint financial lease, the land and building components shall be considered separately, where the land is classified as an operating lease, unless the lessee is expected to acquire the property at the end of the lease period.

For these purposes, the minimum lease payments shall be distributed between the land and the building in proportion to the relative reasonable values representing the lease rights of both components, unless such distribution is not reliable, in which case the entire lease shall be classified as financial, unless it is evident that it is operational.

8th Financial Instruments.

A financial instrument is a contract that gives rise to a financial asset in an entity and, at the same time, to a financial liability or equity instrument in another entity.

This rule applies to the following financial instruments:

a) Financial assets:

-Cash and other equivalent liquid assets, as defined in the 8th annual accounts compilation standard;

-Credits for commercial transactions: receipts on premiums, balances with mediators, with co-insurers or reinsurers, among others;

-Third-party credits: such as loans and loans granted, including those arising from the sale of assets;

-Representative debt securities of other acquired entities: such as bonds, bonds and promissory notes;

-Equity instruments of other acquired entities: shares, shares in collective investment institutions and other equity instruments;

-Derivatives with favorable valuation for the entity: among them, futures, options, financial swaps, and foreign currency trading in time, and

-Other financial assets: such as deposits in credit institutions, advances and loans to staff, bonds and deposits constituted, dividends to be paid and disbursements required on equity instruments.

b) Financial liabilities:

-Debites by business operations: balances with mediators, with co-insurers or reinsurers, among others;

-Debts with credit institutions;

-Obligations and other marketable securities issued: such as bonds and promissory notes;

-Derivatives with unfavorable valuation for the entity: including futures, options, financial swaps, and foreign currency trading in time;

-Debts with special features, and

-Other financial liabilities: debts to third parties, such as loans and financial loans received from persons or entities other than credit institutions included in the purchase of assets, bonds and deposits received and disbursements required by third parties on holdings.

(c) Own equity instruments: all financial instruments that are included within own funds, such as the ordinary shares issued.

A financial derivative is a financial instrument that meets the following characteristics:

1. Its value changes in response to changes in variables such as interest rates, prices of financial instruments and listed commodities, exchange rates, credit ratings and indices on them, and which in the case of non-financial variables are not to be specific to one of the parties to the contract.

2. It does not require an initial investment or requires a lower investment than is required by other types of contracts where a similar response could be expected in the face of changes in market conditions.

3. It is settled at a future date.

Also, this rule is applicable in the treatment of accounting coverages and transfers of financial assets, such as commercial discounts and temporary disposals and securitisations of financial assets.

1. Recognition.

The entity shall recognise a financial instrument on its balance sheet when it becomes a required party to the contract or legal business in accordance with its provisions.

Claims for claims for claims can only be recognised when their performance is sufficiently secured to the date of the formulation of the annual accounts and is therefore expected to derive from the same economic benefits. In no case shall financial assets be recognised for claims for claims on the basis of estimates made on the basis of the institution's experience, except as provided for in specific rules.

The operations of buying or selling financial assets instrumented by conventional contracts, understood by those in which the parties ' reciprocal obligations are to be consumed within a time frame established by the regulation or by the market conventions and which cannot be settled by differences, shall be recognised on the date of recruitment or liquidation. A contract that can be settled by differences shall be counted as a derivative instrument.

In particular, transactions made on the foreign exchange market shall be recorded on the settlement date, while the financial assets traded on secondary markets of Spanish securities, if they are equity instruments, shall be rebooked on the date of the contract, and in the case of debt securities, on the settlement date.

The hiring date is the commit date. The recording of the transactions in the balance sheet on that date assumes: (i) for the acquirer, to recognise a financial asset and at the same time the corresponding payment obligation vis-à-vis the seller and, (ii) for the seller, to give the balance sheet the asset and to recognise the right of recovery against the acquirer, as well as any results obtained from the sale.

The date of settlement or delivery is the date on which the acquirer pays and the seller delivers the asset, and from which, generally, the returns of the asset begin to accrue. The recording of transactions with this criterion shall mean: (i) for the seller, to give the balance sheet the asset and to acknowledge any results obtained from the sale on that date and, (ii) for the acquirer, to recognise a financial asset on that date and to record, where appropriate, any changes that may be made to the fair value between the dates of the hiring and settlement under the following rules:

(a) If the financial assets are valued at fair value: The results shall be recognised in the profit and loss account for assets that are classified in the categories of assets that are classified in the categories of financial assets held for trading and other fair value financial assets with changes in profit and loss, and in equity for which they are classified as financial assets available for sale.

b) If the financial assets are valued at amortised cost: No result will be recognised.

2. Financial assets.

A financial asset is any asset that is: cash, an equity instrument of another entity, or assumes a contractual right to receive cash or other financial asset, or to exchange financial assets or liabilities with third parties on potentially favourable terms.

It shall also be classified as a financial asset, any contract that may or may be, settled with the entity's own equity instruments, provided that:

a) If you are not a derivative, force or be able to compel, to receive a variable amount of your own equity instruments.

(b) If it is a derivative, it may be or shall be settled by way of a form other than the exchange of a fixed amount of cash or other financial asset by a fixed amount of equity instruments of the institution; for these purposes they shall not be included among the equity instruments themselves, those that are, in themselves, contracts for the future receipt or delivery of equity instruments of the entity.

Financial assets, for the purpose of their valuation, shall be classified in one of the following categories:

1. Loans and receivables.

2. Investments held to maturity.

3. Financial assets held to trade.

4. Other financial assets at fair value with changes in profit and loss account.

5. Investments in the assets of group, multi-group and associated entities.

6. Financial assets available for sale.

2.1. Loans and receivables.

In this category, the following items shall be classified, unless the provisions of paragraphs 2.3 and 2.4 below are applicable, or that the representative debt securities and flows of certain or predetermined flows are allocated at the time of their initial recognition in the category of financial assets available for sale, the following assets:

(a) Commercial transaction credits: are those financial assets that originate from insurance, co-insurance and reinsurance operations, and

(b) Credit for non-commercial transactions: are those financial assets which, not being equity instruments or derivatives, have no commercial origin, the charges of which are determined or determinable and are not traded on an active market. Those financial assets for which the holder may not substantially recover all initial investment, due to circumstances other than credit impairment, shall not be included.

2.1.1. Initial assessment.

The financial assets included in this category will initially be valued at fair value which, unless otherwise evidenced, will be the price of the transaction, which shall be equal to the fair value of the consideration delivered plus the transaction costs that are directly attributable to them.

Notwithstanding the above paragraph, claims for commercial transactions with maturity of not more than one year and which do not have a contractual interest rate, as well as advances and loans to staff, dividends to be paid and disbursements required on equity instruments, the amount of which is expected to be received in the short term, may be valued at face value if the effect of not updating cash flows is not significant.

2.1.2. Further valuation.

The financial assets included in this category will be valued for their amortised cost. Accrued interest shall be accounted for in the profit and loss account, applying the effective interest rate method.

notwithstanding the foregoing, the maturity of the claims not exceeding one year which, in accordance with the provisions of the previous paragraph, is initially valued at their nominal value, shall continue to be valued for that amount, unless they have deteriorated.

2.1.3. Impairment of value.

At least at the end of the financial year, the necessary valuation corrections shall be made whenever there is objective evidence that the value of a credit or group of credits with similar risk characteristics collectively assessed has deteriorated as a result of one or more events that occurred after their initial recognition and that result in a reduction or delay in future estimated cash flows, which may be motivated by the insolvency of the debtor.

The impairment loss of these financial assets will be the difference between their book value and the current value of future cash flows that are estimated to generate, discounted to the effective interest rate calculated at the time of their initial recognition. For financial assets at the variable interest rate, the effective interest rate corresponding to the closing date of the annual accounts shall be used in accordance with the contractual conditions. In the calculation of the impairment losses of a group of financial assets, models based on statistical formulas or methods may be used.

Impairment valuation corrections, as well as their reversal when the amount of such loss decreases for causes related to a subsequent event, will be recognized as an expense or income, respectively, in the profit and loss account. The reversion of the impairment shall be limited to the book value of the credit which would be recognised at the date of the reversal if the impairment of the value had not been recorded.

2.1.4. Particular rules concerning impairment of value.

The valuation corrections to be made in the profit and loss account shall be made, with the allocation, where appropriate, of the corresponding corrections for the deterioration of the premiums outstanding, in the light of the deterioration of the credit with policy holders.

Such deterioration shall be calculated separately for each class or risk in which the eventual loss resulting from the default of the receipt is not recoverable according to other economic rights recognized in favor of the taker and shall be constituted by the part of the fee premiums written in the net exercise of the security surcharge that, predictably and according to the experience of previous years of the institution itself, will not be charged. For the purposes of this impairment correction, the premiums written and not issued corresponding to estimated policies (floating policies) shall not be considered.

The amount of the impairment correction shall be determined by minorating the premiums to be considered in the amount of the provision for unconsumed premiums constituted on them taking into account, where appropriate, the impact of the reinsurance.

In those case of receipts whose payment has been split and where there has been a recovery of some of the fractions and the rest are pending, the basis for calculating the impairment correction of the premiums outstanding shall be constituted only by the corresponding premiums written, whether issued or not, that have not been charged. This amount shall be deducted from the provision for unearned premiums that corresponds solely to these last non-charged fractions.

The calculation of the impairment correction of outstanding premiums shall be made at the close of the financial year on the basis of the information available on the status of the premium receipts receivable at the closing date of the financial year. If the entity does not have statistical methods that approximate the value of the impairment according to its experience, it shall estimate it according to the following criteria:

(a) Primes with an age equal to or greater than six months unclaimed judicially: they shall be subject to correction for their full amount.

(b) Primes aged three months or more and less than six months old, not legally claimed: they shall be corrected by applying a coefficient of 50 per cent.

(c) Primes with seniority less than three months, not legally claimed: they will be corrected according to the average rate of cancellations recorded in the premiums that were in this situation in the last three years, conferring on the historical series the greatest possible homogeneity.

In the event that the entity does not have sufficient information for the calculation of the average rate of cancellations due to new modalities, it will be estimated at 25 percent of the fee premiums outstanding.

However, the deterioration correction may be calculated individually in those receipts which, due to their special characteristics, deserve to be treated differently.

d) judicially claimed Primas: they will be corrected individually according to the circumstances of each case.

(e) In the case of the fractionation of premiums with experience of default, the situation for these effects of all outstanding fractions of premiums, whether issued or not, shall be considered to be the situation of the oldest unpaid fraction.

(f) In the case of the fractionation of premiums with no default experience, it shall be used as a coefficient of cancellations for the purpose of the calculation of the impairment correction, the average coefficient of the exercise of the company.

(g) In the case of premiums from co-insurance and reinsurance accepted, institutions may extend the periods referred to in the preceding letters by three months.

This same systematic will be considered to reflect in accounts the effect that the valuation corrections on the receipts pending collection could have on the commissions.

2.2. Investments held to maturity.

The representative debt securities may be included in this category, with a fixed maturity date, determined or determinable amount receivable, that are traded on an active market and that the entity has the effective intent and the ability to retain them until maturity.

The effects of this rule are understood to be that an entity has no effective intention to hold an investment in a financial asset with a fixed maturity to maturity if:

(a) The entity is prepared to sell the financial asset (for reasons other than an overcome situation that is not recurring and could not be reasonably anticipated by the entity) in response to changes in market interest rates or risks, liquidity needs, changes in the availability or profitability of alternative investments, changes in timing and sources of financing or changes in exchange rate risk.

(b) The issuer has the right to liquidate the financial asset for a significantly lower amount than its amortised cost.

2.2.1. Initial assessment.

Investments held to maturity shall be initially valued at fair value, which, unless otherwise evidenced, shall be the price of the transaction, which shall be equal to the fair value of the consideration delivered plus the transaction costs that are directly attributable to them.

2.2.2. Further valuation.

Investments held to maturity will be valued for their amortized cost. Accrued interest shall be accounted for in the profit and loss account, applying the effective interest rate method.

2.2.3. Impairment of value.

At least at the end of the financial year, the valuation corrections shall be made using the criteria set out in paragraph 2.1.3 above.

However, as a substitute for the current value of future cash flows, the market value of the instrument may be used, provided that the instrument is sufficiently reliable to be representative of the value that the entity could recover.

2.3. Financial assets held to trade.

The financial assets to be traded shall be valued in accordance with the provisions of this paragraph.

A financial asset is considered to be owned for trading when:

a) It originates or acquires for the purpose of selling it in the short term (for example, debt securities, whatever its maturity, or equity instruments, listed, which are acquired to sell in the short term).

b) Forme part of a portfolio of jointly identified and managed financial instruments of which there is evidence of recent performances for short-term gains, or

(c) Be a derivative financial instrument, provided that it is not a financial collateral contract or has been designated as a hedging instrument.

With the exception of derivative instruments, financial assets assigned to policies that determine the provision of life insurance by means of the immunization techniques provided for in Article 33.2 of the Insurance Management and Supervision Regulation may not be classified in this category.

2.3.1. Initial assessment.

The financial assets held to be traded shall initially be valued at fair value, which, unless otherwise evidenced, shall be the price of the transaction, which shall be equal to the fair value of the consideration delivered. The transaction costs that are directly attributable to them shall be recognised in the profit and loss account for the financial year.

In the case of equity instruments, the amount of the preferential subscription rights and the like, which, if any, would have been acquired, will be part of the initial valuation.

2.3.2. Further valuation.

The financial assets held for trading shall be valued at fair value, without deducting the transaction costs incurred in their disposal. Changes that occur in fair value shall be attributed to the profit and loss account of the financial year.

2.4. Other financial assets at fair value with changes in profit and loss account.

This category shall include the hybrid financial assets referred to in the last paragraph of paragraph 5.1 of this Standard.

You may also include the financial assets that the entity designates at the time of initial recognition for inclusion in this category. Such a designation can only be performed if it is more relevant information, because:

(a) Significant inconsistencies in the recognition or valuation, also referred to as accounting asymmetries, are eliminated or significantly reduced, which would otherwise arise from the valuation of assets or liabilities or the recognition of the losses or profits thereof with different criteria.

(b) A group of financial assets or financial assets and liabilities is managed and its performance is assessed on the basis of its fair value in accordance with a documented risk or investment management strategy and group information is provided also on the basis of fair value to key management personnel as defined in the 14th standard of drawing up annual accounts.

The memory will report the use of this option.

Initial and later assessment.

In the valuation of the financial assets included in this category, the criteria set out in paragraph 2.3 of this standard shall apply.

2.5. Investments in the assets of group, multi-group and associated entities.

Investments in the assets of group, multi-group and associated entities, as defined in the 12th standard for the compilation of annual accounts, have to be assessed using the criteria of this paragraph, and cannot be included in other categories for the purposes of their valuation.

2.5.1. Initial assessment.

Investments in the assets of group, multi-group and associated entities shall initially be valued at cost, which shall be equal to the fair value of the consideration delivered plus the transaction costs that are directly attributable to them, with the criterion included in paragraph 2.1 contained in the 20th rule relating to transactions between undertakings in the group.

However, if there is an investment prior to its rating as an entity of the group, multigroup or associate, the cost of such investment shall be considered to be the book value that should have the same immediately before the institution becomes such a rating. Where applicable, the ex-ante valuation adjustments associated with that investment directly accounted for in the net worth shall be maintained in the net worth until one of the circumstances described in paragraph 2.5.3 below occurs.

It will form part of the initial valuation of the amount of the preferred subscription rights and the like, which, if any, would have been acquired.

2.5.2. Further valuation.

Investments in the assets of group, multi-group and associated entities shall be valued at their cost, minus, where applicable, the cumulative amount of impairment valuation corrections.

When value is to be assigned to these assets on the basis of the balance sheet or other reason, the weighted average cost method shall be applied by homogeneous groups, the values having equal rights being understood by these groups.

In the case of the sale of preferential subscription rights and the like or segregation thereof to exercise them, the amount of the cost of the rights will decrease the book value of the respective assets. This cost shall be determined by applying a general acceptance value formula.

2.5.3. Impairment of value.

At least at the end of the financial year, the necessary valuation corrections shall be made whenever there is objective evidence that the carrying value of an investment shall not be recoverable.

The amount of the valuation correction shall be the difference between its value in books and the recoverable amount, which is understood to be the largest amount between its fair value minus the selling costs and the current value of the future cash flows derived from the investment, calculated either by the estimate of those expected to be received as a result of the dividend distribution made by the investee entity and by the disposal or reduction in investment accounts in that entity, either by estimating its share in the cash flows expected to be generated by the investee entity from its ordinary activities as well as from its disposal or discharge into accounts. Except for better evidence of the recoverable amount of investments, the estimate of the impairment of this asset class shall take into account the equity of the investee corrected by the tacit capital gains on the date of the valuation. In the determination of that value, and provided that the participating entity participates in another, the net worth that is derived from the consolidated annual accounts shall be taken into account in accordance with the criteria included in the Trade Code and its implementing rules.

When the participating entity has its domicile outside the Spanish territory, the net worth to be taken into consideration shall be expressed in the rules contained in this provision. However, if they measure high inflation rates, the values to be considered shall be those resulting from the adjusted financial statements in the sense set out in the foreign currency rule.

Impairment valuation corrections and, if applicable, their reversal, shall be recorded as an expense or income, respectively, in the profit and loss account. The reversal of the impairment shall be limited to the book value of the investment which would be recognised at the date of reversal if the impairment of the value had not been recorded.

However, in the event that an investment in the entity has occurred, prior to its rating as an entity of the group, multigroup or associate, and prior to that credit rating, any valuation adjustments attributed directly to the net worth arising from such investment would have been made, such adjustments shall be maintained after the rating to the disposal or loss of the investment, at which time they are recorded in the profit and loss account, or until the following circumstances occur:

(a) In the case of prior value adjustments for value increases, the impairment valuation corrections shall be recorded against the item of net worth that collects the value adjustments previously practiced up to the amount of the same and the excess, where applicable, shall be recorded in the profit and loss account. The impairment valuation correction directly attributed to the net worth shall not reverse.

(b) In the case of prior value adjustments for value reductions, where the recoverable amount is later higher than the accounting value of the investments, the latter shall be increased, up to the limit of the indicated reduction of value, against the item that has collected the previous valuation adjustments and from that time the new amount arising shall be considered as the cost of the investment. However, where there is objective evidence of impairment in the value of the investment, losses accumulated directly in equity shall be recognised in the profit and loss account.

2.6. Financial assets available for sale.

This category shall include the debt securities, the default or certain flow swaps and the equity instruments of other entities that have not been classified in any of the above categories.

2.6.1. Initial assessment.

The financial assets available for sale will be initially valued at fair value which, unless otherwise evidenced, will be the price of the transaction, which shall be equal to the fair value of the given consideration, plus the transaction costs that are directly attributable to them.

It will form part of the initial valuation of the amount of the preferred subscription rights and the like, which, if any, would have been acquired.

2.6.2. Further valuation.

The financial assets available for sale shall be valued at fair value, without deducting the transaction costs incurred in their disposal. Changes that occur in fair value shall be recorded directly in equity, until the financial asset causes a loss of the balance sheet or is impaired, when the amount thus recognised shall be charged to the profit and loss account.

Notwithstanding the foregoing, the valuation corrections for the impairment of the value and the losses and gains resulting from differences in foreign currency exchange in foreign currency financial assets, in accordance with the rule relating to foreign currency, shall be recorded in the profit and loss account.

The profit and loss account shall be the amount of interest, calculated on the basis of the method of the effective interest rate, and on accrued dividends.

Investments in equity instruments whose fair value cannot be reliably determined shall be valued at their cost, minus, where applicable, the cumulative amount of the value impairment valuation corrections.

When value is to be assigned to these assets on the basis of the balance sheet or other reason, the weighted average value method shall be applied by homogeneous groups. A homogeneous group shall mean those financial instruments which have the same rights.

In the exceptional case that the fair value of an equity instrument ceases to be reliable, prior adjustments recognised directly in equity shall be treated in the same way as set out in paragraph 2.5.3 of this Standard.

In the case of the sale of preferential subscription rights and the like or segregation thereof to exercise them, the amount of the rights will decrease the book value of the respective assets. This amount shall correspond to the fair value or the cost of the rights, in a manner consistent with the valuation of the associated financial assets, and shall be determined by applying a general acceptance value formula.

2.6.3. Impairment of value.

At least at the end of the financial year, the necessary valuation corrections shall be made whenever there is objective evidence that the value of a financial asset available for sale, or group of financial assets available for sale with similar risk characteristics collectively valued, has deteriorated as a result of one or more events that have occurred after initial recognition, and that cause:

(a) In the case of acquired debt instruments, a reduction or delay in future estimated cash flows, which may be motivated by the insolvency of the debtor; or.

(b) In the case of investments in equity instruments, the lack of recoverability of the value in books of the asset, evidenced, for example, by a prolonged or significant decline in fair value. In any event, the instrument shall be presumed to have deteriorated in the event of a fall of one and a half years and 40% in its contribution, without the recovery of its value, without prejudice to the fact that it may be necessary to recognise a loss due to deterioration before that period has elapsed or the contribution has fallen by that percentage.

The valuation correction of the value of these financial assets shall be the difference between their cost or amortised cost less, where applicable, any impairment of a previously recognised impairment in the profit and loss account and the fair value at the time the valuation is carried out.

The accumulated losses recognised in the net worth by a decrease in fair value, provided that there is objective evidence of impairment in the value of the asset, shall be recognised in the profit and loss account.

If in subsequent years the fair value is increased, the valuation correction recognised in previous years shall revert to the profit and loss account of the financial year. However, where the fair value of an equity instrument is increased, the valuation correction recognised in previous years shall not revert to the profit and loss account and the fair value increase shall be recorded directly against the net worth.

In the case of equity instruments that are valued for their cost, because their fair value cannot be reliably determined, the impairment valuation correction shall be calculated in accordance with the provisions of paragraph 2.5.3 of this Standard, relating to investments in the assets of group, multi-group and associated entities, and the reversal of the valuation correction recognised in previous years shall not be possible.

2.7. Reclassification of financial assets.

The entity may not reclassify any financial assets initially included in the category of held for trading or fair value with changes in the profit and loss account to other categories, or from those to those categories, except where appropriate to qualify the asset as an investment in the equity of group, multi-group or associated entities.

No financial asset may be classified or classified in the category of investments held to maturity if in the financial year referred to in the annual accounts or in the preceding two years, assets included in this category have been sold or reclassified for an amount that is not insignificant in relation to the total amount of the investment category held to maturity, except those corresponding to sales or reclassifications:

a) Very close to expiration, or

b) That have occurred when the entity has taken the whole principal practice, or

c) Attributable to an isolated event, outside the control of the entity, not recurring and reasonably could not have been anticipated by the entity.

An isolated event outside the control of the entity is understood, among others, the following events:

a) A significant deterioration in the issuer's creditworthiness.

b) Changes in the requirements of economic capital or in the limits of diversification and dispersion of assets.

c) Policy rescues that exceed the estimates of bailouts made by the institution based on projections that contemplate their experience in the last 5 years and the reality of financial variables observable in the markets.

When the classification of a financial asset as an investment held to maturity, as a result of a change in the intention or financial capacity of the entity or by the sale or reclassification of an amount that is not insignificant in accordance with the above, is no longer appropriate, that asset, together with the remaining financial assets of the investment category held to maturity, shall be reclassified to the category of available for sale and shall be valued at fair value. The difference between the amount by which it is registered and its fair value shall be recognised directly in the entity's net worth and the rules relating to the assets available for sale shall apply.

If as a result of a change in the entity's intention or financial capacity, or if two full exercises since the reclassification of a financial asset from the investment category held to the maturity of available for sale, a financial asset is reclassified in the investment category held to maturity, the accounting value of the financial asset at that date shall be converted into its new amortised cost. Any loss or gain arising from that asset which has previously been recognised directly in equity shall be maintained in the net worth and shall be recognised in the profit and loss account over the residual life of the investment held to maturity, using the effective interest rate method.

When the investment in the equity of a group, multigroup or associated entity ceases to have such a rating, the investment that, if any, is maintained in that entity shall be valued in accordance with the rules applicable to the financial assets available for sale.

2.8. Interest and dividends received from financial assets.

The interest and dividends of financial assets accrued after the time of the acquisition will be recognized as income in the profit and loss account. Interest should be recognised using the effective interest rate method and dividends when the partner's right to receive it is declared.

For these purposes, the initial valuation of the financial assets shall be independently recorded, taking into account their maturity, the amount of the explicit interest accrued and not due at that time as well as the amount of dividends agreed by the competent body at the time of the acquisition. For these purposes, 'explicit interests' means those that are obtained from applying the contractual interest rate of the financial instrument.

Also, if the distributed dividends are unambiguously derived from results generated prior to the acquisition date because amounts higher than the profit generated by the investee have been distributed from the acquisition, they will not be recognized as income, and will result in the accounting value of the investment being reduced.

2.9. Low financial assets.

As stated in the Conceptual Framework, in the analysis of transfers of financial assets, the economic reality must be taken into account, not only in its legal form nor in the name of contracts.

The entity shall provide a financial asset, or part thereof, when the contractual rights on the cash flows of the financial asset expire or have been transferred, with the need for a substantial transfer of the risks and benefits inherent in its ownership, in circumstances that will be assessed by comparing the exposure of the entity, both before and after the transfer, to the change in the amounts and the timing of the net cash flows of the transferred asset. It is understood that the risks and benefits inherent in the ownership of the financial asset have been substantially divested when their exposure to such variation ceases to be significant in relation to the total change in the current value of the net future cash flows associated with the financial asset (such as the firm sales of financial assets, the sales of financial assets with a repurchase agreement for its fair value, and the securitisations of financial assets in which the transferor does not withhold subordinated financing or grant any guarantee or assume any collateral. other type of risk).

If the entity has not transferred or substantially retained the risks and benefits, the financial asset will be discharged when it has not retained control of the entity, a situation that will be determined depending on the ability of the transferee to transmit the asset. If the entity does not maintain control of the asset, it shall continue to recognise it for the amount to which the entity is exposed to changes in the value of the transferred asset, i.e. for its continued involvement, and shall recognise an associated liability.

When the financial asset is lowered, the difference between the net received consideration of the attributable transaction costs, considering any new assets obtained less any liabilities assumed, and the book value of the financial asset, plus any accumulated amount that has been directly recognised in the net worth, shall determine the gain or loss arising from the discharge of such asset, and shall form part of the result of the exercise in which it occurs.

The above criteria will also apply to transfers from or part of a group of financial assets.

The entity shall not discharge the financial assets and shall recognise a financial liability for an amount equal to the consideration received, which shall be treated subsequently in accordance with paragraph 3 of this standard, in the disposals of financial assets in which it has substantially retained the risks and benefits inherent in its ownership, such as in the effects discount, the sales of financial assets with a repurchase agreement at a fixed price or the selling price plus an interest and the securitisations of financial assets in which the transferor subordinated financing or other guarantees that will substantially absorb all expected losses.

3. Financial liabilities.

Financial instruments issued, incurred or assumed shall be classified as financial liabilities, in whole or in one of their parts, provided that, in accordance with their economic reality, a contractual obligation, direct or indirect, to deliver cash or other financial assets, or to exchange financial assets or liabilities with third parties under potentially unfavourable conditions, such as a financial instrument providing for its mandatory repurchase by the issuer, or giving the holder the right to require the issuer to ransom, shall be classified as a financial instrument. on a date and for a given or determinable amount, or to receive a default remuneration provided that there are distributable benefits. In particular, certain rescue actions and silent actions.

It shall also be classified as a financial liability, any contract that may or may be, settled with the entity's own equity instruments, provided that:

a) If you are not a derivative, force or be able to compel, to deliver a variable amount of your own equity instruments.

(b) If it is a derivative, it may be or shall be settled by way of a form other than the exchange of a fixed amount of cash or other financial asset by a fixed amount of the entity's own equity instruments; for these purposes they shall not be included among the equity instruments themselves, those that are, in themselves, contracts for the future receipt or delivery of equity instruments of the entity.

Financial liabilities, for the purpose of their valuation, shall be classified in one of the following categories:

1. Debits and items to be paid.

2. Financial liabilities held to trade.

3. Other financial liabilities at fair value with changes in profit and loss account.

Additionally, financial liabilities arising as a result of transfers of assets, in which the institution has not transferred or substantially retained its risks and benefits, shall be measured in a manner consistent with the transferred asset.

3.1. Debits and items to be paid.

This category shall be classified, unless the following paragraphs 3.2 and 3.3 apply:

(a) Debites for commercial transactions: are those financial liabilities, other than derivative instruments, that originate in insurance and reinsurance operations, and;

(b) Debates for non-commercial transactions: these are financial liabilities, other than derivative instruments, which have no commercial origin.

3.1.1. Initial assessment.

The financial liabilities included in this category will initially be valued at fair value, which, unless otherwise evidenced, will be the price of the transaction, which shall be equal to the fair value of the consideration received adjusted for the transaction costs that are directly attributable to them.

Notwithstanding the above paragraph, debits for commercial transactions with a maturity of not more than one year and which do not have a contractual interest rate, as well as the disbursements required by third parties on holdings, the amount of which is expected to be paid in the short term, may be valued at face value, where the effect of not updating cash flows is not significant.

3.1.2. Further valuation.

The financial liabilities included in this category will be valued for their amortised cost. Accrued interest shall be accounted for in the profit and loss account, applying the effective interest rate method.

notwithstanding the foregoing, debits with a maturity of not more than one year which, in accordance with the provisions of the previous paragraph, are initially valued at their nominal value, shall continue to be valued for that amount.

3.2. Financial liabilities held to trade.

The financial liabilities to be traded shall be valued in accordance with the provisions of this paragraph.

A financial liability is considered to be held for trading when:

(a) It is primarily issued for the purpose of reacquiring it in the short term (e.g. obligations and other negotiable securities issued listed that the entity may purchase in the short term based on changes in value).

b) Forme part of a portfolio of jointly identified and managed financial instruments of which there is evidence of recent performances for short-term gains, or

(c) Be a derivative financial instrument, provided that it is not a financial collateral contract or has been designated as a hedging instrument.

The fact that a financial liability is used to finance trading activities does not in itself imply its inclusion in this category.

Initial and later assessment.

In the assessment of the financial liabilities included in this category, the criteria set out in paragraph 2.3 of this standard shall apply.

3.3. Other financial liabilities at fair value with changes in profit and loss account.

This category shall include the hybrid financial liabilities referred to in the last subparagraph of paragraph 5.1 of this Standard.

You may also include financial liabilities that the entity designates at the time of initial recognition for inclusion in this category. Such a designation can only be performed if it is more relevant information, because:

(a) Significant inconsistencies in the recognition or valuation, also referred to as accounting asymmetries, are eliminated or significantly reduced, which would otherwise arise from the valuation of assets or liabilities or the recognition of the losses or profits thereof with different criteria.

(b) A group of financial liabilities or financial assets and liabilities is managed and its performance is assessed on the basis of its fair value in accordance with a documented risk or investment management strategy and group information is provided also on the basis of fair value to the key management personnel as defined in the 14th rule of holding the annual accounts.

The memory will report the use of this option.

Initial and later assessment.

In the assessment of the financial liabilities included in this category, the criteria set out in paragraph 2.3 of this standard shall apply.

3.4. Reclassification of financial liabilities.

The entity may not reclassify any financial liabilities initially included in the category of held for trading or fair value with changes in the profit and loss account to other categories or to those categories.

3.5. Low financial liabilities.

The entity will degenerate a financial liability when the obligation has been extinguished. It will also lower the own financial liabilities it acquires, even if it is intended to recolocate them in the future.

If an exchange of debt instruments between a lender and a borrower is produced, provided that they have substantially different conditions, the original financial liability will be lowered and the new financial liability arising. In the same way, a substantial modification of the current conditions of a financial liability will be recorded.

The difference between the book value of the financial liability or the part of the financial liability that has been discharged and the paid consideration including the attributable transaction costs and in which any transferred asset other than the assumed cash or liability is also collected shall be recognised in the profit and loss account of the financial year in which it takes place.

In the case of an exchange of debt instruments that do not have substantially different conditions, the original financial liability shall not be reduced from the balance sheet by recording the amount of fees paid as an adjustment of its accounting value. The amortised cost of the financial liability shall be determined by applying the effective interest rate, which shall be that which equals the book value of the financial liability at the date of modification with the cash flows to be paid under the new conditions.

For these purposes, the terms of the contracts will be considered substantially different when the current value of the cash flows of the new financial liability, including the net fees charged or paid, is different, at least ten percent of the current value of the remaining cash flows from the original financial liability, both updated at the effective interest rate of the original financial liability.

4. Own equity instruments.

A equity instrument is any legal business that evidence, or reflects, a residual interest in the assets of the entity that issues them after deduction of all liabilities.

In the event that the institution carries out any type of transaction with its own equity instruments, the amount of these instruments shall be recorded in the net worth, correcting the own funds, and in no case may be recognised as financial assets of the entity and no result shall be recorded in the profit and loss account.

The expenses arising from these transactions, including the costs of issuing these instruments, such as fees of lawyers, notaries, and registrars; printing of memories, newsletters and titles; taxes; advertising; commissions and other placement expenses, will be recorded directly against net worth as lower reserves.

Expenses arising from a proprietary equity transaction, which has been abandoned or abandoned, will be recognised in the profit and loss account.

5. Special cases.

5.1. Hybrid financial instruments.

Hybrid financial instruments are those that combine a non-derivative principal contract and a financial derivative, referred to as an implicit derivative, that cannot be transferred independently and whose effect is that some of the cash flows of the hybrid instrument vary in a similar manner to the cash flows of the derivative considered independently (e.g. bonds referenced at the price of a stock or the evolution of a stock index).

The entity will recognize, value, and separately present the principal contract and the implied derivative, when the following circumstances are simultaneously given:

(a) The economic characteristics and risks inherent in the implicit derivative are not closely related to those of the main contract.

b) An independent instrument with the same conditions as those of the implicit derivative would meet the definition of a derivative instrument.

c) The hybrid instrument is not valued at fair value with changes in profit and loss account.

Implicit derivative will be treated contably as a derivative financial instrument and the main contract will be accounted for by its nature. This assessment shall only be carried out at the time of initial recognition, unless there has been a change in the terms of the contract that significantly changes the cash flows that will occur, in which case a new assessment shall be made.

If the entity is unable to reliably determine the fair value of the embedded derivative, this will be the difference between the fair value of the hybrid instrument and that of the main contract, if both could be reliably determined.

If the entity is not able to value the embedded derivative separately or cannot reliably determine its fair value, either at the time of its acquisition or at a later date, it shall treat the hybrid financial instrument as a whole as a financial asset or a financial liability included in the category of other financial assets (or liabilities) at fair value through profit and loss account changes. This same criterion shall apply when the institution chooses, at the time of its initial recognition, to assess the hybrid financial instrument at fair value.

5.2. Composite financial instruments.

A composite financial instrument is a non-derivative financial instrument that includes liabilities and equity components simultaneously.

If the entity has issued a compound financial instrument, it shall recognise, value and separately present its components.

The entity will distribute the value in initial books according to the following criteria that, except for error, will not be reviewed later:

a) The liability component shall be assigned the fair value of a similar liability that does not carry the equity component associated with it.

(b) The equity component shall be assigned the difference between the initial amount and the value assigned to the liability component.

c) The same proportion will distribute transaction costs.

5.3. Derivatives having as their underlying investments in non-listed equity instruments whose fair value cannot be reliably determined.

Derivatives that are linked and settled by the delivery of non-listed equity instruments whose fair value cannot be reliably determined shall be valued at their cost less, where applicable, the cumulative amount of the impairment valuation corrections.

5.4. Contracts that are maintained for the purpose of receiving or delivering a non-financial asset.

Contracts that are maintained for the purpose of receiving or delivering a non-financial asset in accordance with the needs of the entity's purchase, sale or use of such assets shall be treated as advances to account or commitments, purchases or sales, as applicable.

However, those contracts that may be settled for differences, in cash or in another financial instrument, or through the exchange of financial instruments or, even where they are settled by the delivery of a non-financial asset, shall be recognised and valued in accordance with the provisions of this standard for derivative financial instruments, the entity having the practice of selling it in a short period of time and less than the normal period of the sector in which the institution operates with the intention of obtaining a profit on its intermediation or the fluctuations of its price, or the non-financial asset is easily convertible into cash.

5.5. Financial collateral contracts.

A financial collateral contract is the one that requires the issuer to make specific payments to reimburse the holder for the loss in which he incurs when a specific debtor fails to fulfil his or her obligation to pay in accordance with the original or amended terms of a debt instrument, such as a security or a guarantee. In no case will the commitments made by the insurance companies be included in this paragraph.

These contracts will initially be valued at fair value, which, except for evidence to the contrary, will be equal to the premium received plus, where applicable, the current value of the premiums to be received.

After initial recognition, and unless at that time it has been classified as other financial liabilities at fair value with changes in the profit and loss account or the provisions of paragraph 2.9 of this rule are applied to arise in the disposal of financial assets that do not meet the requirements for their balance sheet, they shall be valued at the highest of the following amounts:

(a) The one that results in accordance with the provisions of the provisions and contingencies.

(b) The initially recognised less, where applicable, the share of the same imputed to the profit and loss account because it corresponds to accrued income.

5.6. Bonds delivered and received.

In bonds delivered or received by operating leases or service provision, the difference between their fair value and the amount disbursed (due, for example, to the fact that the bond is long-term and not remunerated) shall be considered as an advance payment or payment for the lease or service, which shall be charged to the profit and loss account during the lease period, as referred to in paragraph 2 of the lease rule and other similar transactions, or during the period in which the lease is provided. service, in accordance with the standard on sales revenue and service delivery.

When estimating the fair value of the bonds, the minimum committed contractual period during which the amount cannot be repaid shall be taken as the remaining period, without taking into account the statistical return behaviour.

When the bond is short-term, the cash flow discount will not be required if its effect is not significant.

6. Accounting hedges.

When the risks associated with financial instruments that may have an impact on the profit and loss account as a result of changes in fair value or cash flows of one or more specific items are covered, and provided that the specific requirements that are due are met, both the hedging instrument and the cover item shall be accounted for in accordance with paragraph 6.5 of this Standard.

6.1. Hedging instruments.

As a general rule, derivatives whose fair value or future cash flows compensate for changes in fair value or cash flows of items that meet the requirements to qualify as covered items may be designated as hedging instruments. However, the above, and only for hedge-risk hedges, may also be described as financial assets and financial liabilities other than derivatives.

The hedging instruments will have to meet the following requirements:

-To be qualified in full or in a percentage of its total amount as hedging instruments for the whole of its remaining term, except in the case of options, in which case the change in its intrinsic value may be designated as a hedging instrument, excluding the change in its time value, or from time to time contracts, which may be the difference between spot and forward prices.

-In the case of coverage of more than one risk, the different risks covered should be clearly identified, each part of the instrument being designated as a cover for the individual covered items and demonstrating their effectiveness.

Likewise, two or more derivatives, or ratios thereof, or, in the case of exchange rate coverage, two or more financial instruments or ratios thereof, or a combination of each other, may be jointly designated as hedging instruments, even in the event that the risks of derivatives offset those from others. However, they may not be designated as hedging instruments:

-The options issued, unless they are designed to compensate for purchased options, including those implied in a hybrid financial instrument.

-Options that combine an issued option and another purchased option when its net effect is an option issued.

-Equity instruments valued at their cost and derivatives that have as their underlying those securities and are settled by the physical delivery of those securities.

-The equity instruments issued by the entity.

6.2. Items covered.

Covered items may be recognised assets and liabilities, unrecognised firm commitments, highly likely expected transactions in execution, and net investments in foreign business which, considered individually or in groups with similar risk characteristics, expose the institution to specifically identified risks of changes in fair value or cash flows. If the item covered is a group of assets and liabilities with similar risk characteristics, the change in fair value attributable to the risk covered for each individual item shall be approximately proportional to the total change in the fair value of the group of items due to the risk covered. Without prejudice to the foregoing, a net position of assets and liabilities shall not be considered as a cover.

Life insurance provisions may be covered, provided that the changes in their cash flows or their fair value associated with their different financial and biometric risks are isolated and measurable; failing that, they may be covered by all the risks they bear.

Expected transactions can only be covered when they assume an exposure to changes in cash flows that could affect the profit and loss account.

In any case, the following rules should be addressed:

-Financial assets included in the category of investments held to maturity may be covered by credit and exchange risk, but not by interest rate risk or in advance payment risk, without prejudice to the risk of reinvestment of their cash flows.

-Financial assets and financial liabilities may be partially covered, in a given amount or percentage of their cash flows or fair value, provided that the effectiveness of the coverage can be measured. This would be the case for a cover only for exposure to the risk-free interest rate or to a component of a reference interest rate.

-Non-financial assets and liabilities may only be designated as covered items:

a) to cover the exchange rate risk, and

b) to cover the set of all risks.

-A firm commitment to acquire a business in a business combination can only be covered by hedging of exchange rate risk.

-Investments in the equity of group, multi-group and associated entities cannot be designated as covered items in fair value hedges, except for changes in exchange rates.

6.3. Effectiveness of coverage.

The effectiveness of an accounting hedge, which must be reliably estimated, will be determined by its ability to offset changes in fair value or cash flows attributable to the covered risk during the period for which the coverage has been designated. The coverage ratio shall be duly documented at the initial time, with the indication of:

-The identification of the hedging instrument, the cover item, the nature of the risk covered, its objective and strategy.

-The criterion and method for assessing its effectiveness during the life of the hedging instrument, which will be the one that best fits the risk management strategy by the institution, it being possible to adopt different methods for the different hedges.

A hedge shall be considered effective if, at the beginning and during its lifetime, (i) it is reasonably expected that the changes in fair value or the cash flows of the hedged item attributable to the covered risk will be reasonably expected to be offset almost entirely by changes in fair value or cash flows from the hedging instrument and (ii) retrospectively, the results of the coverage have ranged within a range of variation from 80% to 125% of the result of the covered item.

6.4. Types of coverage.

For the purposes of this rule, accounting coverages are classified as:

-Fair value coverage: covers exposure to changes in the fair value of recognised assets or liabilities or unrecognised firm commitments, or a particular part thereof, attributable to a particular risk that may affect the profit and loss account (e.g. the hiring of a financial swap to cover the risk of a fixed interest rate).

-Coverage of cash flows: covers the exposure to the variation of cash flows that is attributed to a particular risk associated with recognised assets or liabilities or a highly likely expected transaction, provided that it may affect the profit and loss account (e.g. the hedging of the exchange rate risk related to purchases and sales of assets, goods and services in foreign currency or the hiring of a financial swap to cover the risk of variable interest rate financing).

-Coverage of net investment in a foreign business: covers the exchange rate risk on investments or units in dependent, associated, joint ventures and branches whose activities are based on or are carried out in a different country or in a functional currency other than that of the entity that produces the annual accounts.

6.5. Accounting for hedges.

a) Fair value coverage.

The loss or gain arising from changes in the value of the hedging instrument (for a derivative that is a hedging instrument) or the exchange rate component of the amount in books valued in accordance with the foreign currency standard (for a hedging instrument other than a derivative) shall be recognised in the result of the financial year.

The loss or gain of the covered item attributable to the covered risk shall adjust the carrying amount of the cover item and shall be recognised in the result of the exercise regardless of its valuation regime. Changes in the fair value of the cover item not related to the covered risk shall be recognised in accordance with the relevant valuation regime in the category in which it is classified in accordance with the provisions of this registration and valuation standard.

Where the cash interest rate method is applied to the covered item and its accounting value is adjusted for changes arising from the risk covered, once this item is no longer covered by changes in its fair value, the amount of such adjustment shall be recognised in the profit and loss account for the period until its maturity, using the method of the recalculated effective interest rate at the date of the end of the hedging relationship.

When an unrecognized firm commitment is designated as a covered item, the change in the fair value of the same, which is attributable to the covered risk, shall be recognised as an asset or liability with or credit to the profit or loss account of the financial year. The cumulative change in changes in fair value recognised shall, where appropriate, adjust the initial carrying amount of the asset or liability resulting from compliance by the institution of the commitment.

The exchange rate risk coverage of a firm commitment may be accounted for as a fair value hedge or a cash flow hedge.

In any event, the entity shall discontinue the fair value hedge accounting on a forward-looking basis when any of the following conditions are met: (i) the hedging instrument atone, was sold, resolved or exercised; in this respect, the replacement or successive renewal of one hedging instrument by another is not an expiration or resolution if such replacement or renewal is part of the entity's documented hedging strategy; (ii) the coverage ceases to meet the requirements set forth in this standard; or (iii) the entity revokes the designation.

b) Coverage of cash flows.

The gain or loss attributable to the part of the hedging instrument rated as effective hedging shall be recognised transiently in equity. Its amount shall be the smallest in absolute terms between: (i) the gain or loss accumulated by the hedging instrument from the start of the hedge and (ii) the cumulative change in the current value of the expected future cash flows from the cover item from the start of the coverage. The remainder of the gain or loss of the hedging instrument shall be recognised, taking into account the nature of the hedging instrument as provided for in paragraphs 1 to 5 of this Standard of Registration and Valuation.

The cumulative amount of losses and gains recognised in net worth shall not be charged to the profit and loss account until the covered items affect that profit and loss account, except that: (i) the institution expects that all or part of the losses and gains shall not be recovered in the future, in which case the amount not expected to be recovered shall be reclassified as a result of the financial year and (ii) unless the cover corresponds to an expected transaction ending in the recognition of an asset or non-financial liability, in which case the amounts recorded in net worth shall be included in the cost of the asset or liability where it is acquired or assumed.

Where cash flow coverage is interrupted by any of the assumptions listed above for fair value coverage, the cumulative amount of the hedging instrument recognised in equity while the coverage was effective will continue to be recognised in that item until the covered transaction occurs, at which time the criteria provided for in the preceding paragraph are applied, unless the transaction is expected to be performed, in which case it will be recognised in the profit and loss account for the financial year.

c) Coverage of net investment in a foreign business.

In the case of net investment coverage transactions in joint ventures that lack independent legal personality and branches abroad, changes in the value of the hedging instruments attributable to the covered risk shall be recognised as a transience in the net worth, imputed to the profit and loss account in the financial year or exercises in which the disposal or disposal is produced by another means of net investment in the foreign business.

Net investment hedging operations in foreign businesses in dependent, multi-group and associated companies shall be treated as fair value hedges by the exchange rate component.

Net investment in a foreign business is made up of, in addition to equity participation, by any monetary item receivable or payable, the liquidation of which is not contemplated or likely to occur in the foreseeable future, excluding commercial items.

The hedging instruments shall be valued and recorded in accordance with their nature to the extent that they are not, or are no longer, effective hedges.

9th Insurance Contracts.

1. General framework for insurance contracts.

Any contract qualified as a contract of insurance under the recast of the Law on the Management and Supervision of Private Insurance, the Insurance Contract Law and other development provisions, shall be accounted for in accordance with the provisions of the fifth part of this Plan for insurance contracts.

2. Technical provisions.

The valuation of the technical provisions shall be made in accordance with the applicable rules for the management and supervision of private insurance. This amount shall not be modified by the different valuation criteria applicable to financial instruments.

Taking into account the fifth part of this Plan, the stabilization reserve will be recognized in the net worth. The amount shall be increased annually, in the amount required by the rules for the management and supervision of private insurance, from the net worth. Its amount may be provided only to compensate for deviations from the claims of the exercise of its own retention. The security surcharge shall not be the subject of an accounting period.

3. Correction of accounting asymmetries.

In the following insurance operations:

-life-insurance operations using the financial immunization techniques provided for in the regulatory and supervisory rules for private insurance;

-insurance operations that reference their rescue value to the value of the assets assigned to them;

-insurance operations that recognise participation in profits, provided that there is a clear identification of the assets to which they are linked, in the amount recognised to the policyholders; and,

-insurance operations in which the taker assumes the risk of the investment or assimilated,

when the financial instruments allocated to such transactions are valued, as provided for in the standard of registration and valuation of financial instruments at fair value and their changes are recorded in net worth or in the profit and loss account, to reflect the true and fair value of the net worth and the results of the institution, it shall be recognised symmetrically through the net worth or profit and loss account, as appropriate, in:

-the provision of life insurance, where required by applicable regulations for the management and supervision of private insurance; or,

-in a liability account, even if its balance is negative, by the variation in value attributable to the non-registered insurance policyholders as a life insurance provision.

The correction of the accounting asymmetries referred to above shall be applied in a uniform manner to the financial instruments assigned to the various insurance operations.

The criterion set out in this paragraph will also apply to accounting asymmetries that may be derived from the different recognition criteria for differences in exchange of financial instruments and commitments arising from insurance contracts.

When the entity applies the accounting of hedges to life insurance provisions, in accordance with paragraph 6 of the standard of registration and valuation of financial instruments, changes in value in the hedging instrument recognised in profit or loss or net worth shall apply, where appropriate, to the accounting system for the correction of accounting asymmetries referred to in the preceding paragraphs.

4. Deferred acquisition costs.

4.1. Advance commissions and activated acquisition costs of the life class.

Advance fees and the cost of acquiring the life class may be triggered by the amount of the commission and the costs of acquisition technically outstanding to write down. The assets shall include the direct insurance or reinsurance commissions accepted and, where appropriate, the liabilities recovered from the transferred reinsurance. The acquisition costs that are activated must have a future economic projection to be related to the future generation of the business volume. In no case can costs be activated that have a recurring character to occur in the entity normally in all the exercises or if the entity did not produce the entity, however, generating a turnover, concluding that there is no direct relationship between those and the latter.

Activated acquisition fees and charges should be amortised in the premium payment period, in particular with a financial-actuarial criterion for activated commissions, reporting in memory and without it being able to vary from year to year. If the contract is cancelled or is totally or partially released from the premium payment, before the commission and costs are fully amortised, they must be amortised in advance in the exercise of their cancellation or release, even if this is partly taken into account.

4.2. Advance commissions and activated acquisition costs of the non-life classes.

Advance fees and acquisition costs for classes other than life may be triggered by the amount of the commission and acquisition costs technically outstanding to amortise. The acquisition costs that are activated must have a future economic projection to be related to the future generation of the business volume, in no case can costs be activated that have a recurring character to occur in the entity normally in all the exercises or when in the event that these have not been produced the entity will follow, however, generating volume of business, concluding that there is no direct relationship between those and this one.

Activated acquisition fees and charges shall be amortised in the premium payment period, and in any case, in a period not exceeding 5 years for acquisition costs. If the contract is cancelled before the commission and costs are fully amortised, they must be amortised in advance in the course of their cancellation, even if this is partly taken into account.

10th Foreign Currency.

1. Transactions in foreign currency.

A foreign currency transaction is a transaction whose amount is denominated or required to be settled in a currency other than the functional currency.

The functional currency is the currency of the main economic environment in which the entity operates. Unless proof to the contrary, the functional currency of the entities domiciled in Spain is presumed to be the euro.

For the purposes of this rule, the heritage elements shall be differentiated, according to their consideration, in:

(a) Currency items: cash as well as assets and liabilities to be received or paid with a certain or determinable amount of monetary units. This includes, inter alia, loans and receivables, debits and items to be paid and investments in debt securities that meet the above requirements. In general, technical provisions shall be considered as monetary items, unless their value is determined by reference to non-monetary items.

(b) Non-monetary items: are assets and liabilities that are not considered monetary items, that is, that they are to be received or paid with an undetermined or determinable amount of monetary units. This includes, among others, the tangible assets, real estate investments, goodwill and other intangible assets, investments in the assets of other entities that meet the above requirements, advances on account of purchases or sales, as well as liabilities to be settled by the delivery of a non-cash asset.

1.1. Initial assessment.

Any transaction in foreign currency shall be converted into a functional currency, by application of the foreign currency amount, of the spot exchange rate, that is, of the exchange rate used in transactions with immediate delivery, between both currencies, at the date of the transaction, understood as the one in which the requirements for recognition are met.

An average exchange rate of the period (as a monthly maximum) may be used for all transactions taking place during that interval, in each of the foreign currency classes in which they were held, except that such type has undergone significant variations during the time interval considered.

1.2. Further valuation.

1.2.1. Monetary items.

At the end of the financial year, the exchange rate, understood as the average spot exchange rate, existing on that date, shall be valued.

Exchange differences, both positive and negative, originating in this process, as well as those arising from the settlement of such assets, shall be recognised in the profit and loss account of the financial year in which they arise.

In the particular case of monetary financial assets classified as available for sale, the determination of the exchange differences produced by the change in the exchange rate between the date of the transaction and the date of the close of the financial year shall be carried out as if those assets are valued at the amortised cost in the foreign currency, so that the exchange differences will result from changes in such amortised cost as a result of changes in exchange rates, regardless of their fair value. The exchange differences thus calculated shall be recognised in the profit and loss account of the year in which they arise, while the other changes in the carrying amount of these financial assets shall be recognised directly in equity in accordance with the provisions of paragraph 2.6.2 of the Financial Instruments Standard.

1.2.2. Non-monetary items.

1.2.2.1. Non-cash items valued at historical cost.

They will be valued by applying the exchange rate of the transaction date.

When an asset denominated in foreign currency is amortized, the amortisation shall be calculated on the amount in functional currency by applying the exchange rate of the date on which it was initially recorded.

The valuation thus obtained may not exceed, at each subsequent closing, the amount recoverable at that time, applying to this value, if necessary, the exchange rate of the closing; that is, of the date to which the annual accounts relate.

When, in accordance with the provisions of the Financial Instruments Standard, the net worth of an investable entity, as the case may be, is to be determined by the tacit capital gains at the valuation date, the exchange rate shall be applied to the net worth and the tacit capital gains existing at that date.

However, if it were foreign entities that are affected by high inflation rates, the aforementioned securities to be considered should result from tight financial statements, prior to their conversion. The adjustments will be made in accordance with the criteria included in the "Adjustments for High Inflation Rates" in the Rules for the Formulation of the Consolidated Annual Accounts, which are developed by the Trade Code.

It is considered that there are high inflation rates when certain characteristics are given in the economic environment of a country, including, in a non-exhaustive way, the following:

(a) The cumulative rate of inflation in three years is approximately 100%.

b) The general population prefers to preserve its wealth in non-cash assets or in another stable foreign currency.

c) Monetary amounts are to be applied in terms of another stable foreign currency, and even prices can be established in another currency.

d) Sales and purchases on credit take place at prices that offset the expected loss of purchasing power during the deferral, even when the period is short, or

e) Interest rates, wages and prices are linked to the evolution of a price index.

1.2.2.2. Non-cash items valued at fair value.

The exchange rate of the date of determination of fair value shall be assessed.

When losses or gains arising from changes in the valuation of a non-monetary item, such as investments in equity instruments classified as financial assets available for sale, are recognised directly in the equity, any difference in exchange, including such losses or gains, shall also be directly recognised in equity. Conversely, where losses or gains arising from changes in the valuation of a non-monetary item are recognised in the profit and loss account of the financial year, such as investments in equity instruments classified as financial assets held to be traded or in other financial assets at fair value with changes in the profit and loss account, any difference in exchange, including such losses or gains, shall also be recognised in the result of the financial year.

2. Conversion of annual accounts to the currency of presentation.

The currency of presentation is the currency in which the annual accounts are formulated, i.e. the euro.

Exceptionally, when the currency or the functional currencies of a Spanish entity are different from the euro, the conversion of their annual accounts to the currency of presentation shall be carried out by applying the criteria established on "Conversion of financial statements in functional currency other than the currency of presentation" in the Rules for the Form of the Consolidated Annual Accounts developed by the Code of Commerce.

Conversion differences will be recorded directly in net worth.

When a Spanish entity is a participant in jointly controlled foreign assets or holdings as defined in the standard on joint ventures and the functional currency of those businesses is not the euro, the conversion procedures to the presentation currency indicated above shall be followed. For joint ventures that are integrated into the annual accounts of the participant, foreign currency transactions made by such businesses shall be converted into functional currency by applying the rules contained in the first paragraph of this same rule. These same criteria shall apply to branches of the institution abroad.

11th Value Added Tax (VAT), Indirect General Tax (IGIC) and other indirect taxes.

The non-deductible input VAT will be part of the purchase price of the assets as well as the services, which are the subject of the transactions taxed. In the case of internal self-consumption, that is, own production for the fixed assets of the entity, the non-deductible VAT will be added to the cost of the respective assets.

They shall not alter the initial valuations of the corrections in the amount of the non-deductible input VAT, as a result of the regularization arising from the definitive pro rata, including the adjustment for investment goods.

The VAT passed on will not be part of the income derived from the transactions taxed by the tax or the net amount obtained in the disposal or disposal by another way in the case of a loss in assets accounts.

The rules on the non-deductible input VAT will be applicable, if any, to the IGIC and any other indirect taxes incurred in the acquisition of assets or services, which are not directly recoverable from the Public Finance.

The rules on VAT passed on will be applicable, if any, to the IGIC and any other indirect taxes that will be imposed by the entity and which is received on behalf of the Public Finance. However, they shall be counted as expenses, those taxes which, in order to determine the fee to be entered, take as a reference the turnover or other related magnitude, but whose taxable event is not the transaction for which the assets are transmitted or the services are provided.

12th Tax on Benefits.

The benefit taxes referred to in this standard are those direct taxes, whether domestic or foreign, which are settled on the basis of a business result calculated in accordance with the applicable tax rules.

Where such calculation is not carried out on the basis of actual economic transactions, but through the use of objective signs, indices and modules, the part of this rule that corresponds to the deferred tax shall not apply, without prejudice to the fact that when these procedures are applied only partially in the calculation of the tax or in the determination of the income, assets or liabilities may arise from deferred tax.

1. Current tax assets and liabilities.

The current tax is the amount that the entity satisfies as a result of tax settlements or tax on profit related to an exercise.

Deductions and other tax advantages in the tax quota, excluding withholding and payment on account, as well as compensable tax losses from previous years and effectively applied in this, will result in a lower amount of current tax. However, those deductions and other tax advantages in the tax quota which have an economic nature equivalent to the subsidies may be registered in accordance with the provisions of paragraph 4 of this standard and in the standard on grants, donations and legacies received.

The current tax for the current financial year and the preceding financial year shall be recognised as a liability to the extent that it is outstanding. Otherwise, if the amount already paid, corresponding to the current financial year and the preceding financial year, exceeds the current tax for those financial years, the excess shall be recognised as an asset.

In those jurisdictions that allow the return of fees paid in previous years because of a tax loss in the current financial year, the current tax will be the share of previous years that the entity recovers as a result of tax settlements or tax on profit related to the financial year. In such cases, the amount to be charged for the return of quotas paid in previous years shall be recognised as an asset for current tax.

2. Deferred tax assets and liabilities.

2.1. Temporary differences.

The temporary differences are those arising from the different valuation, accounting and fiscal, attributed to the assets, liabilities and certain equity instruments of the entity, in so far as they have an impact on the future tax burden.

The tax valuation of an asset, liability or equity instrument, denominated as a tax base, is the amount attributed to that item in accordance with applicable tax law. There may be an element which has a tax base even if it lacks the accounting value and is therefore not recognised in the balance sheet.

The temporary differences occur:

(a) Normally, due to the existence of temporary differences between the tax base and the accounting result before tax, the origin of which is found in the different temporary criteria for imputation used to determine both quantities and which, therefore, revert to subsequent periods.

b) In other cases, such as:

-In income and expenses directly recorded in equity that are not computed in the tax base, including changes in the value of assets and liabilities, provided that such variations differ from those attributed for tax purposes;

-In a business combination, when the assets are recorded by an accounting value that differs from the value attributed for tax purposes; and

-In the initial recognition of an item, which does not come from a business combination, if its book value differs from that attributed for tax purposes.

The temporary differences are sorted in:

(a) taxable temporary differences, which are those that will result in higher amounts payable or lower amounts to be returned for taxes in future years, normally as assets are recovered or the liabilities to which they are derived are settled.

(b) Deductible Temporary Differences, which are those that will give rise to lower amounts to be paid or higher amounts to be returned for taxes in future exercises, usually as assets are recovered or the liabilities of which they are derived are settled.

2.2. Deferred tax liabilities.

In general, a deferred tax liability will be recognised for all taxable temporary differences, unless they have arisen from:

a) The initial recognition of a goodwill. However, deferred tax liabilities related to a goodwill shall be recorded as long as they have not arisen from their initial recognition.

b) The initial recognition of an asset or liability in a transaction that is not a combination of business and also did not affect either the accounting result or the tax base.

c) Investments in dependent, associated and joint ventures, if the investor can control the timing of the reversal of the difference and it is also likely that such a difference will not be reversed for the foreseeable future.

2.3. Deferred tax assets.

In accordance with the principle of prudence only deferred tax assets will be recognised in so far as it is likely that the entity will have future tax gains that allow the application of these assets.

Whenever the above condition is met, a deferred tax asset will be recognized in the following assumptions:

a) For deductible temporary differences;

b) For the right to compensate in subsequent years for tax losses;

c) For deductions and other unused tax advantages, which are pending tax enforcement.

Without prejudice to the above, the following exceptions will be considered:

(a) Where the deductible temporary difference has arisen from the initial recognition of an asset or liability in a transaction other than a combination of business and in addition it did not affect either the accounting result or the tax base, a deferred tax asset shall not be recognised.

(b) Where the deductible temporary difference has arisen from investments in dependent, associated or joint ventures, only one deferred tax asset shall be recognised if that difference is expected to be reversed for the foreseeable future and the entity is likely to have future tax gains in sufficient amount.

On the closing date of each financial year, the entity will reconsider the recognised deferred tax assets and those that it has not previously recognised. At that time, the entity will degenerate an asset previously recognised if its recovery is no longer likely, or will record any assets of this unrecognised nature previously, provided that the entity is likely to have future tax gains in sufficient amount to allow for its implementation.

3. Valuation of current and deferred tax assets and liabilities.

Current tax assets and liabilities will be valued for the amounts expected to be paid or recovered from the tax authorities, in accordance with current or approved regulations and pending publication at the end of the financial year.

Deferred tax assets and liabilities will be valued according to the expected tax rates at the time of their reversal, according to the rules that are in force or approved and pending publication at the end of the financial year, and in accordance with the way in which the asset or liability is reasonably expected to be recovered or paid.

Where appropriate, the modification of the tax legislation-in particular the modification of the tax rates and the evolution of the economic situation of the entity will result in the corresponding variation in the amount of the liabilities and assets by deferred tax.

Deferred tax assets and liabilities should not be discounted.

4. Income tax (income).

The income tax (income) of the financial year will include the share of the income tax (income) and the share of the income tax (income) of the deferred tax.

Spending or income from current tax will be the result of the cancellation of withholding taxes and payments on account, as well as the recognition of current tax assets and liabilities. The deferred tax expense or income shall be the recognition and cancellation of the deferred tax assets and liabilities, as well as, where applicable, the recognition and imputation to the income and loss account of the income directly imputed to the net worth that may result from the accounting of those deductions and other tax advantages that have the economic nature of the grant.

Both the expense or income from current tax as deferred, will be entered into the profit and loss account. However, in the following cases the current and deferred tax assets and liabilities shall have as their counterpart the following:

(a) If they relate to a transaction or event that has been directly recognised in a net worth item, it shall be recognised as a charge or a credit to that item.

(b) If they have arisen because of a combination of business, they shall be recognised as a charge or a credit to the goodwill or as an adjustment to the excess that would involve the acquiring institution in the net fair value of the assets and identifiable liabilities of the acquired entity, over the cost of the combination.

When the modification of the tax legislation or the evolution of the economic situation of the entity has resulted in a variation in the amount of the liabilities and assets by deferred tax, such adjustments shall constitute an income or expense, as applicable, by deferred tax, in the profit and loss account, except to the extent that they relate to items that, by application of the rules of this Plan, were previously charged or paid directly to equity, in which case they will be directly imputed to the latter.

In the case of business combinations, where the initial accounting for the combination was not recognised separately by deferred tax assets of the acquired entity, because it does not meet the recognition criteria, and subsequently it is appropriate to recognise such assets, in addition to the adjustments referred to in the previous paragraph, the amount in the books of the goodwill shall be reduced, where appropriate, to the amount that would have been accounted for having been recognised at the date of acquisition of the said asset by deferred tax. The reduction in the book amount of the goodwill will look like an expense in the profit and loss account.

In the particular case of an entity in which all temporary differences at the beginning and close of the financial year have been caused by temporary differences between the tax base and the accounting result before tax, the deferred tax income may be directly assessed by the algebraic sum of the following amounts, each with the corresponding sign:

(a) The amounts resulting from the application of the appropriate rate of charge to the amount of each of the differences indicated, recognised or applied in the financial year, and to the negative taxable bases to be offset in subsequent years, recognised or applied in the financial year;

(b) The amounts of deductions and other tax advantages to be applied in subsequent years, recognised or applied in the financial year, as well as, where applicable, the recognition and imputation to the profit and loss account of the income directly attributed to the net worth which may result from the accounting of those deductions and other tax advantages in the tax quota that have an economic nature equivalent to the grants;

(c) The amounts arising from any valuation of liabilities or assets by deferred tax, usually by changes in the tax rates or circumstances affecting the subsequent disposal or recognition of such liabilities or assets.

Also in this particular case, the total income tax expense (income) will comprise the part relative to the current tax and the part corresponding to the deferred tax calculated in accordance with what is expressed in this case.

13th Revenue from sales and service delivery.

1. Common aspects.

Revenue from the sale of goods and the provision of services shall be valued for the fair value of the counterparty, received or received, derived therefrom, which, unless otherwise evidenced, shall be the agreed price for such goods or services, deducted: the amount of any discount, price reduction or other similar items that the entity may grant, as well as the interest incorporated in the nominal amount of the claims. However, interest incorporated in commercial credits with a maturity of not more than one year that do not have a contractual interest rate may be included where the effect of not updating cash flows is not significant.

Taxes and other revenue from public law that tax the sale of goods and rights and the provision of services that the entity must pass on to third parties such as value added tax, insurance premium tax or surcharges in favour of the Insurance Compensation Consortium, as well as the amounts received on behalf of third parties, will not be part of the income.

Commercial transaction credits shall be valued in accordance with the provisions of the Financial Instruments Standard.

No income will be recognized for the swap of goods or services, for traffic operations, of similar nature and value.

In order to account for revenue on the basis of the economic background of transactions, it may be that the identifiable components of the same transaction are to be recognised by applying different criteria, such as a sale of goods and services; Conversely, different but linked transactions shall be treated in a joint manner.

When there are doubts regarding the collection of a previously recognised amount as income from sale or service provision, the amount whose collection is estimated to be unlikely will be recorded as a cost correction expense for impairment and not as a lower income.

2. Sales revenue.

Only revenue from the sale of goods shall be accounted for when all of the following conditions are met:

(a) The entity has transferred to the buyer the significant risks and benefits inherent in the ownership of the goods, irrespective of their legal transmission. It shall be presumed that the said transfer has not occurred, where the buyer has the right to sell the goods to the entity, and there is an obligation to repurchase them for the initial sale price plus the normal return that a creditor would obtain.

(b) The entity does not maintain the current management of the goods sold to a degree normally associated with its ownership, nor does it retain effective control of the goods.

c) The amount of revenue can be reliably valued.

d) The entity is likely to receive the economic returns or returns arising from the transaction, and

e) The costs incurred or incurred in the transaction can be reliably assessed.

3. Income from service provision.

Income from insurance contracts shall be recognised when they have been perfected or carried over in the financial year, in respect of which the right of insurer to the collection of premiums has become due, irrespective of whether the receipts have been issued.

The income of other services other than those referred to in the preceding paragraph shall be recognised when the result of the transaction can be reliably estimated, in view of the percentage of performance of the service at the end of the financial year.

Consequently, only revenue from service delivery will be accounted for when all of the following conditions are met:

a) The amount of revenue can be reliably valued.

(b) The entity is likely to receive the economic returns or returns arising from the transaction.

c) The degree of completion of the transaction, at the end of the financial year, can be reliably valued.

d) The costs already incurred in the provision, as well as those that remain to be incurred until completed, can be reliably assessed.

The entity will review and, if necessary, modify the income estimates to receive as the service is being provided. The need for such revisions does not necessarily indicate that the outcome or outcome of the service provision operation cannot be reliably estimated.

When the result of a transaction involving the provision of services cannot be reliably estimated, revenue shall be recognised only in the amount of the recognised expenses being considered recoverable.

14th Provisions and Contingencies.

1. Recognition.

The entity shall recognize as provisions the liabilities that, in compliance with the definition and the criteria for the recording or the accounting recognition contained in the Conceptual Framework of Accounting, are indeterminate in respect of their amount or the date on which they are cancelled. Provisions may be determined by a legal, contractual or implicit or tacit obligation. In the latter case, its birth is situated in the valid expectation created by the entity against third parties, assuming an obligation on the part of the entity.

In the memory of the annual accounts, it should be reported on the contingencies that the entity has related to obligations other than those mentioned in the previous paragraph.

2. Valuation.

According to the information available at any time, the provisions shall be valued at the end of the financial year, at the current value of the best estimate possible of the amount necessary to cancel or transfer to a third party the obligation, registering any adjustments arising from the update of the provision as a financial expense as they become due. In the case of provisions with a maturity of less than or equal to one year, and the financial effect is not significant, no discount shall be required.

The compensation to be received from a third party at the time of the settlement of the obligation shall not imply a minoron of the amount of the debt, without prejudice to the recognition in the entity's asset of the corresponding collection right, provided that there is no doubt that such reimbursement will be received. The amount by which the said asset is registered shall not exceed the amount of the obligation on record. Only where there is a legal or contractual link, for which part of the risk has been externalised, and under which the institution is not required to respond, shall be taken into account to estimate the amount by which, where appropriate, the provision shall be included.

15th Liabilities for long-term remuneration to staff.

They will be given the consideration of long-term remuneration to staff, post-employment benefits, such as pensions and other retirement or retirement benefits, as well as any other long-term benefit that would be an economic compensation to be met on a deferred basis, in respect of the time the service is provided. Remuneration based on equity instruments referred to in the following standard shall not be the subject of this rule.

1. Long-term remuneration for defined contribution.

Long-term remuneration to staff will have the input character defined when they consist of default contributions to a separate entity-such as an insurance institution or pension scheme-provided that the entity does not have a legal, contractual or implicit obligation to make additional contributions if the separate entity is unable to meet the commitments made.

The contributions to be made by defined contribution remuneration will result in a liability for long-term remuneration to staff when, at the end of the financial year, unpaid contributions are included.

2. Long-term benefits of defined benefit.

Long-term remuneration to staff who do not have the defined contribution character shall be considered as a defined benefit. In this case, the amount to be recognised as a provision for long-term staff remuneration shall be the difference between the current value of the committed remuneration and the fair value of any assets affected by the commitments to which the obligations are settled. It shall also, where appropriate, be reduced in the amount of costs for past services not yet recognised in the terms set out in this standard. All changes in the previous amounts that occur in the financial year shall be recognised in the profit and loss account, except for those which, as set out in the following paragraphs, are to be directly imputed to the equity.

If an asset arises from the application of the preceding paragraph, its valuation may not exceed the current value of the economic benefits that may return to the entity in the form of direct repayments or in the form of lower future contributions, plus, where applicable, the outstanding portion of the costs for past services. Any adjustment to be made by this limit in the valuation of the asset, linked to post-employment remuneration, shall be directly attributed to equity, being recognised as a reserve.

To estimate the amount of the current value of the defined benefit committed remuneration, actuarial methods of calculation and financial assumptions and actuarial assumptions and compatible with each other shall be used.

They shall be understood as assets, including insurance policies, those that are not owned by the entity but are legally separate from a third party and are only available for the settlement of remuneration to employees. Such assets cannot return to the entity except where the remaining assets to meet all obligations are sufficient. In the case of insurance policies, the insurance undertaking should not be a related party of the entity as defined in the 14th annual accounts rule. Where assets have a long-term benefit fund for employees, they cannot be non-transferable financial instruments issued by the institution.

The change in the calculation of the current value of the committed post-employment remuneration or, where applicable, of the asset affected, on the date of the close of the financial year, due to actuarial losses and gains, shall be charged in the year in which it arises, directly in the net worth, being recognised as reserves. To these effects, actuarial losses and gains are exclusively the variations that occur as a result of changes in actuarial assumptions or differences between previous calculations based on the actuarial assumptions used and the events actually occurred.

If the entity may require an insurance institution, the payment of a part or all of the disbursement required to cancel a defined benefit obligation, it is practically true that the insurance institution is to repay any or all of the disbursements required to cancel that obligation, but the insurance policy does not meet the conditions to be an asset, the entity will recognize its right to reimbursement in the asset that, in all other aspects, will be treated as an asset. In particular, this right shall be valued at fair value.

Costs for past services arising from the establishment of a long-term post-employment benefit plan or an improvement in the terms of the plan shall be recognised as expenditure and shall be charged to the profit and loss account as follows:

(a) If these are irrevocable rights, the expense shall be charged to the profit and loss account immediately.

(b) If these rights are revocable, the expense shall be charged to the profit and loss account in a linear manner in the remaining average period until the rights for past services are irrevocable. However, if an asset is to arise in accordance with this rule, the revocable rights shall be charged to the profit and loss account immediately, unless there is a reduction in the current value of the economic benefits which may be returned to the entity in the form of direct repayments or in the form of lower future contributions, in which case the profit and loss account shall be charged immediately over such a reduction.

Costs for past services arising out of any other type of long-term remuneration to staff shall be immediately recognised as expenses in the profit and loss account for their current value.

16th Transactions with payments based on equity instruments.

They will have the consideration of transactions with payments based on equity instruments that, in exchange for receiving goods or services, including services provided by employees, are settled by the entity with equity instruments or with an amount that is based on the value of equity instruments, such as options on shares or rights on the revaluation of the shares.

1. Recognition.

The entity shall recognise, on the one hand, the goods or services received as an asset or as an expense on the basis of its nature, at the time of its acquisition and, on the other hand, the corresponding increase in equity if the transaction is settled with equity instruments, or the corresponding liability if the transaction is settled with an amount that is based on the value of equity instruments.

If the entity has the option of making the payment with equity or cash instruments, it shall recognise a liability to the extent that the entity has incurred a present obligation to settle cash or other assets; otherwise, it shall recognise a net worth item. If the option corresponds to the provider or supplier of goods or services, the entity shall register a composite financial instrument, which shall include a liability component, for the right of the other party to require payment in cash, and a net worth component, for the right to receive remuneration with equity instruments.

In transactions where it is necessary to complete a certain period of services, the recognition shall be carried out as such services are provided throughout the said period.

2. Valuation.

In transactions with employees who are settled with equity instruments, both the services provided and the increase in equity to be recognised shall be valued for the fair value of the assets transferred, referred to the date of the concession agreement.

Those transactions settled with equity instruments that have as their counterpart goods or services other than those provided by employees shall be valued, if they can be reliably estimated, by the fair value of the goods or services on the date on which they are received. If the fair value of the goods or services received cannot be reliably estimated, the goods or services received and the increase in net worth shall be valued at the fair value of the assets transferred, referred to the date on which the entity obtains the goods or the other party provides the services.

Once the goods and services received have been recognized, in accordance with the above paragraphs, as well as the corresponding increase in net worth, no additional adjustments to net worth shall be made after the date of irrevocability.

In transactions that are settled in cash, the goods or services received and the liability to be recognised shall be valued at the fair value of the liability, referred to the date on which the requirements for recognition are met.

Subsequently, and until its liquidation, the corresponding liability shall be assessed, at its fair value at the closing date of each financial year, against the profit and loss account for any change in valuation during the financial year.

17th Grants, donations and legacies received.

1. Grants, donations and legacies awarded by third parties other than partners or mutualists.

1.1. Recognition.

Non-reintegrable grants, grants and legacies will initially be generally accounted for as income directly imputed to equity and will be recognised in the profit and loss account as income on a systematic and rational basis in a manner correlated to the expenses arising from the grant, grant or legacy, in accordance with the criteria set out in paragraph 1.3 of this standard.

Grants, donations and legacies that have a reintegrable character will be recorded as liabilities of the entity until they acquire the condition of non-reintegrables. For these purposes, it shall be considered non-reintegrable when there is an individual agreement to grant the grant, donation or legacy in favor of the entity, the conditions established for its grant have been met and there are no reasonable doubts regarding the receipt of the grant, donation or legacy.

1.2. Valuation.

Grants, donations and legacies of a monetary nature shall be valued for the fair value of the amount granted, and those of a non-monetary or in-kind nature shall be valued for the fair value of the good received, both securities referenced at the time of their recognition.

1.3. Criteria for imputation to results.

The imputation to the results of the grants, donations and legacies that have the character of non-reintegrables will be carried out according to their purpose.

In this sense, the criterion of imputation to the results of a grant, donation or legacy of a monetary character must be the same as that applied to another grant, donation or legacy received in kind, when they relate to the acquisition of the same type of asset or to the cancellation of the same type of liability.

For the purposes of their imputation on the profit and loss account, the following types of grants, donations and legacies must be distinguished:

(a) Where they are granted to ensure a minimum return or to compensate for the operating deficit: they shall be charged as income from the financial year in which they are granted, except where they are intended to finance the operating deficit for future financial years, in which case they shall be charged in those financial years.

(b) Where they are granted to finance specific expenditure: they shall be charged as revenue in the same financial year in which the expenditure they are financing is due.

c) When granted to acquire assets or cancel liabilities, the following cases can be distinguished:

-Assets of intangible fixed assets, material and real estate investments: shall be charged as income for the year in proportion to the allocation to the amortisation made during that period for the aforementioned items or, where applicable, when their disposal occurs, valuation correction for impairment or low balance sheet.

-Financial assets: shall be charged as income from the year in which their disposal occurs, valuation correction for impairment or balance sheet.

-Cancellation of debts: will be charged as income from the year in which such cancellation occurs, except when granted in relation to a specific financing, in which case the imputation will be carried out according to the element financed.

(d) Monetary amounts that are received without allocation for a specific purpose shall be charged as income from the financial year in which they are recognised.

In any event of an irreversible nature, the valuation corrections for the deterioration of the elements in the part in which they have been financed free of charge shall be considered irreversible.

2. Grants, donations and legacies awarded by partners or mutualists.

Grants, donations and non-reintegrable legacies received from partners or mutualists do not constitute income, and should be recorded directly in own funds, regardless of the type of grant, donation or legacy. The valuation of these grants, donations and legacies is the one set out in paragraph 1.2 of this standard.

However, in the case of entities belonging to the public sector receiving grants, donations or legacies of the dominant public entity to finance the performance of activities of public or general interest, the accounting of such public aid shall be carried out in accordance with the criteria set out in the previous paragraph of this standard.

18 Business combinations.

1. Scope and rules of application.

This rule regulates how entities should account for the business combinations in which they participate, understood as those transactions in which an entity acquires control of one or more businesses.

For the purposes of this rule, a business is a set of assets constituting a managed and managed economic unit for the purpose of obtaining a return, lower costs or other economic benefits to its owners or members; and control is the power to direct the financial and operating policy of a business in order to obtain economic benefits from its activities.

Business combinations, depending on the legal form used, may originate as a result of:

a) The merger or division of multiple entities.

(b) The acquisition of all the assets of an entity or of a party that constitutes one or more businesses.

(c) The acquisition of shares or holdings in the capital of an entity, including those received pursuant to a non-cash contribution in the formation of a company or subsequent capital increase.

(d) Other operations or events whose result is that an entity, which has or has not previously held a stake in a company's capital, acquires control over the latter without making an investment.

In the business combinations referred to in (a) and (b) above, the acquisition method described in the following paragraph of this standard shall apply. For their part, the merger, division and non-cash contribution of a business, between entities of the group in the terms set out in the rule relating to transactions between entities in the group, shall be recorded in accordance with the terms set out therein.

In the business combinations referred to in points (c) and (d) above, the investment entity shall, in its individual annual accounts, assess the investment in the assets of other entities in the group as provided for in paragraph 2.5 of the financial instruments rule. In the consolidated annual accounts, these business combinations shall be accounted for in accordance with the applicable consolidation rules.

Entities that are extinged in the business combination shall record the transfer of assets and liabilities, cancelling the corresponding asset and liability items as well as the net worth items.

2. Method of acquisition.

The acquisition method assumes that the acquiring institution will account, at the date of acquisition, the acquired assets and liabilities assumed in a business combination, as well as, where applicable, the difference between the value of such assets and liabilities and the cost of the business combination in accordance with the following paragraphs. From that date, the revenue and expenditure shall be recorded and the corresponding cash flows shall be recorded.

Consequently, the application of the acquisition method requires:

a) Identify the acquiring entity;

b) Determine the date of acquisition;

c) Quantifying the cost of the business combination;

d) Rate the identifiable assets acquired and the liabilities assumed; and

e) Determine the amount of the goodwill or the negative difference.

The valuation of the assets and liabilities of the acquiring institution shall not be affected by the combination and shall not be recognised as assets or liabilities as a result of the combination.

2.1. Acquiring institution.

acquiring entity is the entity that obtains control over the acquired business or business. For the purposes of this Standard, an entity shall also be considered an entity that is acquiring a business, which as a result of the combination is spun off from the entity in which it was integrated and obtains control over another business or other business.

When a new entity is established, it shall be identified as an entity acquiring one of the entities or businesses participating in the combination and that existed prior to that combination.

In order to identify the acquiring entity, the economic reality and not only the legal form of the business combination will be taken into account. As a general rule, the acquiring entity shall be deemed to deliver a consideration in exchange for the acquired business or business. However, in order to determine which entity is actually in control, the following criteria shall also be taken into account, inter alia:

(a) If the fair value of one of the entities or businesses is significantly higher than that of the other or other entities involved in the transaction, in which case the acquiring institution is normally the most reasonable value.

(b) If the combination results in the management of one of the merging institutions having the power to appoint the combined business management team, in which case the entity designated by the management team shall normally be the acquirer.

(c) If more than two entities or businesses participate in the business combination, other factors are considered, such as the entity that initiated the combination or whether the volume of assets, revenues or results of one of the entities or businesses that are combined is significantly greater than that of the other.

Therefore, it can happen that, as a result of the application of the above criteria, the business acquired is that of the acquiring company, the beneficiary or the one performing the capital increase.

2.2. Date of acquisition.

The date of acquisition is the date on which the acquiring entity acquires control of the acquired business or businesses.

2.3. Cost of the business combination.

The cost of a business combination will be determined by the sum of:

(a) The fair value, at the date of acquisition, of the assets delivered, of the liabilities incurred or assumed and of the equity instruments issued in exchange for the acquired business.

(b) The fair value of any additional consideration that depends on future events or compliance with certain conditions, provided that such consideration is considered likely and its fair value can be reliably estimated.

c) Any cost directly attributable to the combination, such as fees paid to legal advisors or other professionals involved in the transaction.

In no case shall they be part of the cost of the business combination, the costs related to the issuance of the equity instruments or the financial liabilities delivered in exchange for the acquired assets, which shall be accounted for in accordance with the provisions of the Financial Instruments Standard.

The fair value of the additional consideration that depends on future events or compliance with certain conditions shall be adjusted when, as a consequence of oversold circumstances, it is appropriate to modify the estimates of the amounts, to alter the probability of occurrence of the consideration or when a reliable estimate of the fair value can be made, not having been possible to perform prior.

As a general rule and unless there is a more reliable valuation, the fair value of the equity instruments or the financial liabilities issued that are delivered as consideration in a business combination shall be their quoted price, if such instruments are admitted to trading on an active market.

2.4. Recognition and valuation of acquired identifiable assets and liabilities assumed.

At the date of acquisition, the identifiable assets acquired and the liabilities assumed shall, in general, be recorded at fair value as long as such fair value can be measured with sufficient reliability.

However, in the assessment and registration of the acquired assets and liabilities assumed below, the following rules shall be followed:

1. Assets that are classified as held for sale in accordance with the provisions of the standard for these assets shall be recognised for their fair value less than the selling costs.

2. Deferred tax assets and liabilities shall be valued for the amount that is expected to be recovered or paid from the tax authority, depending on the tax rates to be applied for the periods in which the assets are expected to be made or the liabilities payable, as of the current or approved regulations and this publication pending, at the date of acquisition. Deferred tax assets and liabilities should not be uncounted, in accordance with the provisions of the profit tax rule.

3. If on the date of acquisition, the acquired business maintains an operating lease on favourable or unfavourable terms with respect to market conditions, the acquiring entity must recognise, respectively, an intangible fixed asset or a provision.

4. The assets and liabilities associated with defined benefit pension schemes shall be accounted for, at the date of acquisition, by the current value of the committed remuneration minus the fair value of the assets affected by the commitments to which the obligations are settled.

The current value of the obligations shall, in any case, include the costs of past services arising from changes in benefits or the introduction of a plan, before the date of acquisition.

5. In the event that the registration of an identified intangible fixed asset whose valuation cannot be calculated by reference to an active market, implies the accounting of an income in the profit and loss account, as provided for in paragraph 2.5 of this Standard, that asset shall be valued by deducting from the amount of its fair value the initially calculated negative difference. If the amount of such negative difference is greater than the total value of intangible fixed assets, that asset shall not be recorded.

The assets and liabilities recognised by the acquiring institution shall be those that are received and assumed as a result of the operation in which the combination consists and meet the definition of assets and liabilities established in the Accounting Framework, irrespective of whether some of these assets and liabilities had not previously been recognised in the annual accounts of the acquired entity or the business acquired for not meeting the recognition criteria in those annual accounts. In the event that the acquired business incorporates obligations as contingencies, the acquiring institution shall recognise as a liability the fair value of assuming such obligations, provided that such fair value can be measured with sufficient reliability.

2.5. Determination of the amount of the goodwill or the negative difference.

The excess, at the date of acquisition, of the cost of the business combination on the corresponding value of the identifiable assets acquired less that of the liabilities assumed in the terms listed in the previous paragraph, will be recognized as a goodwill. The trade fund shall be subject to the criteria laid down in the rule relating to special rules on intangible fixed assets.

In the exceptional assumption that the value of the identifiable assets acquired less than the liabilities assumed in the terms listed in the preceding paragraph, is higher than the cost of the business combination, the excess shall be accounted for in the profit and loss account as an income.

2.6. Provisional accounting.

If at the closing date of the year in which the business combination occurred, the valuation process required to apply the acquisition method could not be completed, the annual accounts shall be drawn up using provisional securities.

Provisional values will be adjusted in the period required to obtain the information required to complete the initial accounting. That period shall in no case be more than one year from the date of the acquisition.

In any event, the adjustments to the provisional securities will only incorporate information relating to the facts and circumstances that existed at the date of acquisition and which, if known, would have affected the amounts recognised on that date.

Adjustments that are recognized to complete the initial accounting will be performed retroactively, that is, in such a way that the resulting values are the ones that would derive from having initially had the information that is incorporated. Therefore:

-Adjustments to the initial value of the identifiable assets and liabilities will be considered to be made at the date of acquisition.

-The value of the goodwill or the negative difference shall be corrected, with effect from the date of acquisition, by an amount equal to the adjustment that is made to the initial value of the identifiable assets and liabilities.

-Comparative information will incorporate the settings.

Elapsed period mentioned in this section, only adjustments to initial valuations will be performed when:

-Proceed to adjust any additional consideration that depends on future events or compliance with certain conditions, as set forth in paragraph 2.3 of this standard.

-Deferred tax assets not previously accounted for in accordance with paragraph 4 of the profit tax rule are recognised.

-Proceed to correct errors as set out in the rule regarding changes in accounting criteria, errors and accounting estimates.

The remaining modifications that will occur later will be recognized as changes in the estimates as indicated in the standard regarding changes in accounting criteria, errors and accounting estimates.

2.7. Business combinations performed in stages.

The business combinations performed in stages are those in which the acquiring entity obtains control of the acquired through several independent transactions made on different dates.

These combinations will be accounted for by applying the acquisition method with the following clarifications:

a) In determining the cost of the business combination, the cost of each individual transaction will be considered.

(b) In each individual transaction, the goodwill or negative difference shall be determined in accordance with paragraph 2.5 of this Standard.

(c) The difference between the fair value of the acquirer's participation in the identifiable elements of the entity acquired in each of the dates of the individual transactions and its fair value at the date of acquisition shall be recognised directly in the net entity's reserves of the tax effect.

(d) If previously, the investment in the investee would have been valued at fair value, the valuation adjustments made previously to leave the participation valued for its historical cost will be undone.

19th Joint Business.

1. Scope of application.

A joint venture is an economic activity controlled jointly by two or more natural or legal persons. For these purposes, joint control is a statutory or contractual arrangement under which two or more persons, who shall be referred to in this standard "unit-holders", agree to share the power to direct financial and operating policies on an economic activity in order to obtain economic benefits, such that strategic decisions, both financial and operating, relating to the activity require the unanimous consent of all members.

2. Categories of joint ventures.

Joint businesses can be:

(a) Joint business that does not manifest itself through the constitution of an entity or the establishment of an independent financial structure of the unit-holders, such as the temporary unions of companies and the communities of goods, and among which are distinguished:

to1) Joint-controlled holdings: activities involving the use of assets and other resources owned by unit-holders.

to2) Joint-controlled assets: assets that are owned or controlled jointly by the unit-holders.

(b) Joint ventures that are manifested through the constitution of an independent legal person or jointly controlled entities.

2.1. Joint controlled holdings and assets.

The participating in a holding or in jointly controlled assets shall record on its balance sheet the proportional share corresponding to its share of the jointly controlled assets and liabilities incurred jointly, as well as the assets affected by the joint holding that are under its control and the liabilities incurred as a result of the joint venture.

You will also recognize in your profit and loss account the corresponding portion of the revenue generated and the expenses incurred by the joint venture, as well as the expenses incurred in connection with your participation in the joint venture, and that in accordance with the provisions of this Plan you must be charged to the profit and loss account.

In the state of changes in the net worth and cash flow status of the participant, the proportional portion of the amounts of the joint business items corresponding to it according to the percentage of participation established in the agreements reached shall also be integrated.

The unrealized results that could exist for transactions between the participant and the joint venture should be eliminated, in proportion to the participation that corresponds to that one. The amounts of assets, liabilities, income, expenses and reciprocal cash flows shall also be disposed of.

If the joint venture develops financial statements for the purpose of controlling its management, it may be operated by integrating the same into the individual annual accounts of the unit-holders according to the percentage of participation and without prejudice to the fact that it must be registered in accordance with Article 28 of the Trade Code. Such integration shall take place after the necessary temporary homogenisation, taking into account the date of closure and the financial year of the participant, the valuation homogenisation in the event that the joint venture has used valuation criteria other than the employees ' employees, and the reconciliations and reclassifications of necessary items.

2.2. Joint controlled enterprises.

The participant shall record its participation in a jointly controlled entity in accordance with the provisions for investments in the equity of group, multi-group and associated entities in paragraph 2.5 of the Financial Instruments Standard.

20th Operations between entities in the group.

1. Scope and general rule.

This rule shall apply to transactions between entities in the same group, as defined in the 12th annual accounts rule.

Operations between entities in the same group, irrespective of the degree of linkage between the participating group entities, shall be accounted for in accordance with the general rules.

Consequently, as a general rule, and without prejudice to the provisions of the following paragraph, the items covered by the transaction shall be accounted for at the initial time at their fair value. Where appropriate, if the price agreed in an operation differs from its fair value, the difference shall be recorded in the light of the economic reality of the transaction. The subsequent assessment shall be carried out in accordance with the provisions of the relevant rules.

2. Special rules.

2.1. Non-cash contributions from a business.

In non-cash contributions to an entity of the group in which the object is a business, as defined in the business combinations standard, the investment in the equity in the contributor will be valued by the book value of the assets that integrate the business.

2.2. Merger, division and non-cash contribution operations of a business.

In the non-cash merge, split, and input operations where the object is a business, as defined in the business combinations rule, the following criteria will be followed:

In transactions between entities of the group in which the dominant entity of the same or the dominant entity of a subgroup and its subsidiary intervenes, directly or indirectly, the constituent elements of the acquired business shall be valued for the amount that would correspond to them, once the transaction was performed, in the consolidated annual accounts of the group or sub-group according to the Rules for the Form of Consolidated Annual Accounts, which are developed by the Trade Code.

In the case of transactions among other entities in the group, the business assets shall be valued according to the accounting values existing before the transaction in the individual annual accounts. The difference which may be shown in the accounting record for the application of the above criteria shall be recorded in a reserve item.

For the purposes of this rule, the equity interests of other entities shall not be considered to constitute a business in themselves.

21th Changes in accounting criteria, errors and accounting estimates.

When a change of accounting criterion occurs, which shall only proceed in accordance with the principle of uniformity, it shall be applied retroactively and its effect shall be calculated from the earliest period for which information is available.

The income or expenditure corresponding to previous years arising from that application shall motivate, in the year in which the change of criterion occurs, the corresponding adjustment for the cumulative effect of the changes in assets and liabilities, which shall be directly attributed to the net worth, in particular, in a reserve item except that it will affect an expense or income that was imputed in the previous financial years directly on another item of net worth. The figures concerned shall also be modified in the comparative information of the financial years for which the change in the accounting criterion is affected.

In the correction of errors related to previous exercises, the same rules will apply as for changes in accounting criteria. For these purposes, errors or omissions in the annual accounts of previous financial years for failure to use, or not to have done properly, reliable information that was available when they were formulated and which the institution could have obtained and taken into account in the formulation of those accounts are understood to be errors.

However, adjustments in the book value of assets or liabilities, or in the amount of the future consumption of an asset, which are a consequence of obtaining additional information, greater experience or knowledge of new facts, shall be classified as changes in accounting estimates. The change in accounting estimates shall be applied in a forward-looking manner and its effect shall be charged, according to the nature of the transaction concerned, as income or expenditure in the profit and loss account for the financial year or, where applicable, directly to equity. The eventual effect on future exercises will be imputed in the course of the same.

Whenever changes in accounting criteria or errors related to previous exercises occur, the corresponding information should be incorporated into the annual accounts ' memory.

The changes in accounting estimates that have produced significant effects in the current financial year, or which are to be produced in subsequent years, shall also be reported in the memory.

22nd Facts after the close of the exercise.

Any subsequent events which show conditions which already existed at the end of the financial year shall be taken into account for the formulation of the annual accounts or, where appropriate, for reformulation, provided that they are approved by the competent body. These subsequent events will motivate the annual accounts, depending on their nature, an adjustment, information in the memory or both.

The events following the end of the financial year which show conditions which did not exist at the end of the financial year do not amount to an adjustment in the annual accounts. However, where the facts are of such importance that if no information is provided in this respect, the assessment capacity of the users of the annual accounts may be distorted, information on the nature of the subsequent event shall be included in the report together with an estimate of its effect or, where appropriate, a demonstration of the impossibility of making such an estimate.

In any case, all information that may affect the application of the operating company principle must be taken into account in the formulation of the annual accounts. Accordingly, the annual accounts shall not be drawn up on the basis of that principle if the managers, even after the end of the financial year, determine that they intend to liquidate the entity or cease their business or that there is no more realistic alternative than to do so.

23rd intermediate states.

Intermediate states shall be understood as a set of financial information that relates to an accounting period of less than the annual economic year of the institution. They shall be such as to be prepared for the exercise of financial supervision.

To the impairment valuation corrections: (i) of the trade fund, (ii) of the economic rights derived from policy portfolios acquired from a mediator, (iii) of investments in equity instruments included in the category of financial assets available for sale and (iv) of the financial assets valued at cost other than investments in the equity of group, multi-group and associated entities, which would have been recognised in the interim financial statements, shall be applied to the accounting regime that has the rules of the relevant registration and valuation for the purposes of its possible reversal.

THIRD PART. ANNUAL ACCOUNTS

Rules for drawing up annual accounts.

1st Documents that make up the annual accounts.

Annual accounts comprise the balance sheet, profit and loss account, changes in net worth, cash flow and memory status. These documents form a unit and must be drawn up in accordance with the provisions of Article 20 of the recast of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October, which approves the and in this Plan, in order to show the faithful image of the patrimony, the financial situation and the results of the entity.

2nd Annual Account Form.

1. The annual accounts shall be drawn up at intervals of 12 months, except in cases of incorporation, modification of the date of closure of the social exercise or dissolution.

2. The annual accounts shall be drawn up by the administrators, who shall be responsible for their veracity, within the maximum period of three months, from the end of the financial year. In the case of reinsurer entities operating in exclusive reinsurance operations, this period shall be extended to six months. For these purposes, the annual accounts shall express the date on which they were drawn up and must be signed by all the directors of the company; if any of them fail to be signed, an indication of the cause shall be given, in each of the documents in which it is missing.

3. The balance sheet, the profit and loss account, the state of changes in the net worth, the statement of cash flows and the memory shall be identified; the name, the entity to which they correspond and the financial year to which they relate are clearly indicated in each of those documents.

4. The annual accounts shall be drawn up by expressing their values in euro; however, the values may be expressed in thousands or millions of euro when the size of the figures so advises, and this should be reported in the annual accounts.

5 Entities that operate simultaneously in the life class and in the different classes of life must keep separate accounts for both types of activity, with reference to the following concepts:

a) Technical accounts of profit and loss.

(b) The elements of the solvency margin and the guarantee fund.

c) Technical provisions and their investment.

3rd Structure of annual accounts.

The annual accounts of the insurance institutions shall be adjusted to the non-detriment of the foregoing, if a transfer of an active model contained in this Accounting Plan is produced.

4th Balance Sheet Rules, the profit and loss account, the status of changes in equity and the statement of cash flows.

1. The balance sheet, the profit and loss account, the statement of changes in the net worth and the statement of cash flows shall be made taking into account that, in addition to the figures for the financial year ending, the figures for the financial year immediately preceding the preceding financial year. For these purposes, where some and other effects are not comparable, either because there has been a change in the structure, or because a change in the accounting criterion or the error of error occurs, the preceding financial year shall be adapted for the purposes of its presentation in the financial year to which the annual accounts relate, by reporting in detail in the report.

2. Unless the annual accounts and the table of accounts provide for headings or specific accounts for the associated and multi-group entities, the references to the associated entities shall also be understood as compressive of the multi-group entities.

3. Entities participating in one or more joint ventures that do not have legal personality (temporary unions of companies, communities of goods, etc.) shall submit this information, taking into account the provisions of the standard of registration and valuation relating to joint ventures, integrating in each item of the models of the different financial statements the amounts corresponding to the joint ventures in which they participate, and reporting on their breakdown in memory.

5th Balance.

The balance sheet, comprising, with due separation, the entity's assets, liabilities and net worth, shall be made taking into account that:

1. A financial asset and a financial liability may be presented in the balance sheet for the net amount provided that the following conditions are met:

a) That the entity has at that time, the required right to compensate for the recognized amounts, and

b) The entity intends to liquidate the amounts by net or to perform the asset and to cancel the liability simultaneously.

The same conditions must be met so that the entity can file for its net amount the assets for taxes and the liabilities for taxes.

Without prejudice to the foregoing, if a transfer of a financial asset that does not meet the conditions for its loss of the balance sheet as provided for in paragraph 2.9 of the standard of registration and valuation relating to financial instruments is produced, the associated financial liability that is recognised shall not be offset against the related financial asset.

In no case may advances on policies and related life insurance provisions be presented in the balance sheet.

2. The valuation corrections for deterioration and the accumulated write-downs shall include the asset item in which the relevant asset item is included.

3. The land or buildings which the entity is intended to obtain for lease income or have the purpose of obtaining capital gains through its disposal shall be included under heading A-9). "Real estate investments" of the asset.

4. The share capital, the mutual fund and, where applicable, the premium for the issuance of shares with a net worth shall be listed in the headings B-1.I 'Capital or mutual fund' and B-1.II 'Emission premium', provided that the registration in the Trade Register has occurred before the annual accounts are formulated. If, on the date of the formulation of the annual accounts, the registration in the Trade Register has not occurred, they shall be included in the consignment. 'Other debts' under the heading A. 3.IX 'Other liabilities' of the liability.

5. Shareholders by non-required disbursements shall be included in item B-1.I. 2 "Unrequired capital" or shall bear the amount of heading A-3.IX.3 "Rest of other debts", depending on the accounting status of their contributions.

6. Where the institution acquires its own equity instruments, without prejudice to reporting in memory, it shall be recorded in the following headings within the 'Net Heritage' grouping:

(a) If they are representative values of the capital, under heading B-1.IV. 'Own actions' to be displayed with a negative sign.

(b) In another case, they shall be under the heading B-1.IX "Other net worth instruments".

7. Where composite financial instruments are issued, they shall be classified in the amount corresponding to the provisions of paragraph 5.2 of the standard of registration and valuation of financial instruments in the corresponding pools of equity and liabilities.

8. Non-reintegrable grants, grants and legacies granted by third parties other than the partners or mutualists, which are pending against the results, shall form part of the entity's net worth by registering in the B-3 sub-pool. "Grants, donations and legacies received." For their part, grants, grants and non-reintegrable legacies awarded by partners or mutualists shall form part of the net worth, within own funds, by registering under the heading B-1.VI. "Other contributions from partners and mutualists".

9. The institution shall present on the balance sheet, separately from the rest of the assets and liabilities, the assets held for sale and the assets corresponding to an eligible group of items held for sale, which shall be listed under item A-14 of the asset and the liabilities that are part of an eligible group of items held for sale, which shall be listed under liability A-9. These assets and liabilities shall not be compensated or presented as a single amount.

10. The adjustments resulting from the correction of the accounting asymmetries referred to in the standard of registration and valuation 9th relating to insurance contracts, where it is not necessary to recognise them through the provision of life insurance, shall be set out under the heading A. 8.II 'Liabilities to accounting asymmetries' of the liability for their net amount.

11. Cash and other equivalent liquid assets, cash deposits deposited in the entity's cash, bank deposits in the view and financial instruments which are convertible into cash and which at the time of their acquisition, shall not exceed three months, provided that there is no significant risk of changes in value and are part of the normal management policy of the institution's treasury. In the case of the annual accounts, the criteria used to set the elements that qualify as cash and equivalents shall be reported.

6th Profit and Loss Account.

The profit and loss account, which comprises, appropriately separated, the revenue and expenditure of the financial year, except where appropriate, direct imputation to the net worth in accordance with the provisions of the registration and valuation rules and, by contrast, the result of the exercise, shall be made taking into account the following:

a) The profit and loss account consists of the following documents:

1. Non-life insurance technical account.

2. Technical account of life insurance.

3. Non-technical account.

(b) In principle, expenditure shall be recorded by nature in the relevant accounts of Group 6. However, those expenses which, initially classified by nature, are to be reclassified by destination, shall be transferred to the corresponding accounts of Group 0, with the periodicity determined by the institution, but which shall not exceed three months. Thus, at the margin of each of the items in the profit and loss account, the accounts that define the concept to which each item refers are indicated. The accounts which, appearing in Group 6 of the table of accounts are not included in the margin of each item, shall be those which must have been reclassified in Group 0. The items of expenditure to be reclassified upon activation shall be entered in the relevant profit and loss account, net, if any, of the account used for the activation. The imputation to the results of the activated amounts will subsequently be reclassified.

(c) The technical life and non-life accounts shall comprise, with due separation, the revenue and expenditure of the financial year which, corresponding to each activity, has the consideration of technicians. The result of each of these accounts shall be determined by the difference between the revenue and the expenditure covered by the accounts.

(d) The non-technical account shall comprise, appropriately separated, the income and expenses which, even if they are derived from the life or non-life activity and pursuant to the following paragraphs, are not to be included in the respective technical accounts of each activity. The result of the exercise shall be obtained by difference between the revenue and expenditure included in this account by adding the balance of the technical life and non-life accounts.

e) In principle, all income and expenses of insurance institutions, except as provided for in paragraph (f) below, for the income and expenditure of investments, shall be considered as technical, including in the technical life account or in the non-life account as appropriate. Derivatives of transactions that do not relate to the technical substrate of the insurance business shall not be considered as technical.

(f) For the allocation of revenue and expenditure to the technical life or non-life accounts and, where appropriate, to the non-technical account, the following shall be taken into account:

1. Revenue and expenditure arising directly from the practice of insurance operations shall be attributed to the technical account of life or non-life, depending on the nature of the operation.

2. The income and expenses arising from the activities of management of pension funds and other activities not directly related to the practice of insurance operations shall be charged, with the due separation established in the non-technical account model containing this Plan, in the non-technical account.

3. The revenue and expenditure of the investments shall be distributed in accordance with the following

:

3.a) The income and expenses attributable to life and non-life activities shall be, respectively, the derivatives of the assets previously allocated to each activity, in accordance with the criteria adopted by the institution to establish the separate management of each activity and collected in the investment register.

Within each activity, the related revenue and expenses will be charged to the corresponding technical account, as soon as they come from investments directly related to the practice of insurance operations.

The revenue and expenditure of investments in which own funds are realised, as well as other resources not directly related to the practice of insurance operations, such as the management of pension funds, shall be charged, within each activity, to the non-technical account.

By way of derogation from the preceding paragraph, and with reference to the life activity, income and expenditure of investments in which the own funds are realised, where the difference between such income and expenditure has been attributed to the insured in the contractually established terms, this amount shall be included in the relevant technical account.

3.b) The criteria used by the institution to establish the allocation of investments to the life and non-life activities, due to the separate management of both, as well as for the allocation of income and expenditure to the technical and non-technical accounts within each activity, shall be described in the memory. In relation to the allocation of revenue and expenditure to the technical or non-technical account, the criterion shall be explained, followed in order to consider the assets from which such income and expenditure are incurred as an investment of resources directly related to the performance of insurance, equity or non-equity operations directly related to the performance of such operations.

The criteria must be reasonable, objective and verifiable and must be maintained from one financial year to the next, unless they measure circumstances which, reasonably, advise them to be amended. In this case of the new imputation criteria, information must also be provided in the memory.

3.c) In the case of investments affecting life insurance preparatory operations, the corresponding income and expenditure shall be charged to the technical life account.

4. In order to comply with the above paragraphs, the institution shall establish the divisional accounts that are necessary to record the investments, as well as the income and expenses arising from them and any other income and expenses, corresponding to the life or non-life and non-technical activity.

5. The revenue and expenditure of buildings which have the consideration of fixed assets shall be included in the heading of expenditure and revenue of tangible fixed assets and of investments in the technical life, non-life or non-technical account, as appropriate.

6. In the item 'Result from net suspended tax transactions', within the non-technical account, the entity shall include a single amount comprising:

• The after-tax result of interrupted activities; and

• The result after tax recognised by the fair value valuation minus the selling costs, or by the disposal or disposal by other means of the assets or groups of items constituting the interrupted activity.

The entity shall present in this item the amount of the previous year corresponding to the activities that are interrupted by the date of the close of the financial year to which the annual accounts correspond.

An interrupted activity is any component of an entity that has been or has been disposed of by another path, or that has been classified as maintained for sale, and:

a) Represent a business line or geographical area of the holding, which is significant and can be considered separate from the rest;

(b) Form part of an individual and coordinated plan to dispose of or dispose of another line of business line or geographical area of the holding that is significant and can be considered separate from the rest; or

c) Be a dependent entity acquired exclusively for the purpose of selling it.

For these purposes, an entity's component is an entity's activities or cash flows that, because they are separate and independent in their operation or for the purposes of financial information, are clearly distinguished from the rest of the entity, such as a dependent entity or a business or geographic segment.

The income and expenses generated by assets and groups of assets held for sale, which do not meet the requirements to qualify them as discontinued operations, shall be recognised in the item of the profit and loss account that corresponds to their nature.

7. In the exceptional assumption that in a business combination the value of the identifiable assets acquired less that of the liabilities assumed is higher than the cost of the business combination, the difference in the heading 'Other income' of the non-technical profit and loss account shall be included.

8. Grants, grants and legacies awarded by third parties other than the partners or mutualists which fund assets or expenses of the normal cycle of the insurance business shall be recognised under the heading 'Other technical income'. The remaining grants, donations and legacies shall be recognised, where appropriate, in the non-technical account under the heading 'Other income'.

7th Status of Net Worth Changes.

The status of changes in net worth has two parts.

1. The first, entitled 'State of recognised revenue and expenditure', includes changes in net worth arising from:

a) The result of the profit and loss account exercise.

(b) The income and expenses which, as required by the rules of registration and valuation, are to be directly imputed to the entity's net worth.

c) Transfers made to the profit and loss account as provided by this Plan.

This document will be formulated considering that:

1.1 The amounts relating to revenue and expenditure directly attributed to the net worth and transfers to the profit and loss account shall be recorded in the gross amount, showing in a separate item their corresponding tax effect.

1.2 The items "Other reclassifications" include the amount of transfers made in the financial year between the different items for valuation adjustments.

1.3 The item "Other recognised income and expenditure" shall include changes in equity by other concepts other than those listed in other items in the statement of recognised revenue and expenditure.

2. The second, called 'Total State of Changes in Net Worth', informs of all changes in net worth derived from:

(a) The total balance of recognised revenue and expenditure.

(b) Changes in net worth by transactions with the entity's partners or mutualists when they act as such.

(c) The remaining changes in net worth.

d) The adjustments to the net worth due to changes in accounting criteria and corrections of errors shall also be reported.

When an error is made in the financial year to which the annual accounts corresponding to a previous financial year relate, the report shall be reported and shall include the corresponding adjustment under heading A. II of the total State of changes in net worth, so that the initial assets of that comparative exercise shall be amended in order to collect the correction of the error. Where the error corresponds to the comparative exercise, that adjustment shall be included in the heading C. II of the total State of changes in net worth.

The same rules apply to accounting criteria changes.

This document will be formulated considering that:

2.1 The result for an exercise will be transferred in the following year to the column of results from previous years.

2.2 The application that in an exercise is performed from the result of the previous exercise, will be reflected in:

-Item 4. 'Distribution of dividends' under heading B. II or D. II 'Operations with partners or mutualists'.

-item B. III or D. III "Other changes in net worth", for other applications involving reclassifications of net worth items.

8th Cash Flow Status.

The cash flow statement reports on the origin and use of cash representative cash assets and other equivalent liquid assets, classifying movements for operating, investment and financing activities, and indicating the net variation of such magnitude in the financial year.

Cash and other equivalent liquid assets shall be understood as the financial assets held in such consideration in accordance with the rule for the drawing up of the fifth annual accounts relating to the balance sheet.

Also, for the purposes of the cash flow statement, it may be included as a cash component, occasional overdrafts when they are an integral part of the entity's cash management.

This document will be formulated considering the following rules:

1. The information on the cash flows of the various activities shall be included in accordance with the breakdown required by the information.

2. The main categories of charges and payments for the various activities will be presented separately. The differentiation of the flows corresponding to each activity will not be specified for the entities operating in the branches of life and not life.

3. Cash flows from operating activities shall be those generated by the activity which constitutes the principal source of income of the insurance institutions, as well as in other activities other than investment or financing. The flows generated by the activities of the management of pension funds shall be included in this paragraph.

4. Cash flows for investment activities shall be those arising from the acquisition, disposal or disposal by other means, assets and other investments not included in the cash and other equivalent liquid assets, such as intangible assets, materials, real estate investments or financial investments, as well as charges arising from their disposal or redemption at maturity.

5. Cash flows by financing activities include those generated by activities that result in changes in the size and composition of equity and liabilities that are not part of the operating activities. Payments in favour of shareholders in respect of dividends shall also be included as cash flows for financing activities.

6. Flows from foreign currency transactions shall be converted into the functional currency at the exchange rate in force at the date of each flow in question, without prejudice to the use of a weighted average representative of the exchange rate for the period in cases where there is a high volume of transactions.

If cash and other equivalent liquid assets are included in foreign currency denominated assets that have produced unrealised gains and losses due to changes in exchange rates, without affecting cash flows, the cash flow statement shall be reported under the heading enabled for this purpose.

7. The institution shall report in the memory of the annual accounts of any significant amount of its cash balances and other equivalent liquid assets that are not available for use.

8. For transactions that lack monetary impact, the annual accounts shall report on significant investment and financing operations which, because they have not resulted in changes in cash, have not been included in the statement of cash flows, such as: conversion of debt into equity instruments or the acquisition of an asset through a financial lease, inter alia.

In the event of an investment transaction involving a cash or equivalent liquid assets consideration and part of other items, the non-monetary portion shall be reported in the memory of the non-monetary party regardless of the cash or equivalent activity information that has been included in the cash flow statement.

9. The change in cash and other equivalent liquid assets caused by the acquisition or disposal of a set of assets and liabilities forming a business or a portfolio of policies shall, where appropriate, be included as a single item in the investment activities under the heading 'Business Unit'.

9th Memory.

The memory, on the one hand, completes, expands and comments on the information contained in the other documents that make up the annual accounts and, on the other hand, includes the states of coverage of the technical provisions, solvency margin and guarantee fund, with due separation, if any, of the activities of life and non-life. It will be formulated taking into account that:

1. The model of the memory collects the minimum information to be completed; however, in those cases where the information requested is not significant, the corresponding paragraphs will not be completed.

2. Any other information not included in the model of the memory that is necessary to enable knowledge of the situation and activity of the institution in the financial year shall be indicated, facilitating the understanding of the annual accounts subject to presentation, in order for them to reflect the true image of the assets, the financial situation and the results of the institution. In particular, qualitative data relating to the situation of the previous financial year shall be included where this is significant. In addition, in memory, any information that other regulations require to include in this document will be incorporated in the annual accounts.

3. The quantitative information required in memory shall relate to the financial year to which the annual accounts correspond, as well as to the previous year for which comparative information is provided, unless specifically an accounting standard indicates otherwise.

4. What is established in the memory in relation to the associated entities should also be understood as referring to the multigroup entities.

5. Institutions shall carry out a description of the main risks of their activity and, in particular, those of a financial and actuarial nature, as well as policies implemented for the management, assumption, measurement and control of risks, including the strategies and processes, the structure and organisation of the relevant risk management unit, and the coverage policies.

10th Annual Business Figure.

It is understood by premiums written in the financial year, whether issued or not, those corresponding to contracts perfected or carried over in the financial year, in relation to which the insurer's right to recover the same arises during the said period.

The period premiums shall be the premiums written corrected for the change in the provision for unconsumed premiums.

The premiums acquired shall be the corrected periods in the variation of the impairment correction of premiums outstanding.

The premiums charged shall be those acquired corrected in the variation of the provision for ongoing risks.

For the purposes of this rule, the annual business figure shall be understood as the period of the period.

11th Average number of workers.

For the determination of the average number of workers, all persons who have or have had any employment relationship with the institution during the financial year, averaged according to the time during which they have provided their services, shall be considered.

12th Group, Multigroup, and Associated Entities.

For the purposes of the filing of the annual accounts of an insurance undertaking, another entity shall be understood to be part of the group where both are linked by a direct or indirect control relationship, analogous to that provided for in Article 42 of the Code of Commerce for the groups of companies or where the entities are controlled by any means by one or more natural or legal persons, acting jointly or under the sole direction of statutory agreements or clauses.

An entity shall be understood to be associated when, without a group entity, in the sense above, the entity or some or some of the entities in the group in case of existence, including the dominant entities or natural persons, exercise over such entity a significant influence by having a stake in it that, creating with this lasting linkage, is intended to contribute to its activity.

In this sense, it is understood that there is significant influence on the management of another entity, when the following two requirements are met:

a) The entity or one or more entities in the group, including the dominant entities or natural persons, participate in the entity, and

b) You have the power to intervene in the financial and operating policy decisions of the investee, without having control.

Also, the existence of significant influence can be evidenced through any of the following ways:

1. Representation on the management board or equivalent body of the management of the investee entity;

2. Participation in policy-setting processes;

3. Transactions of relative importance to the investee;

4. Exchange of management personnel; or

5. Provision of essential technical information.

It shall be presumed, unless proof to the contrary, that there is significant influence when the entity or one or more undertakings of the group, including the controlling entities or natural persons, hold at least 20 per 100 of the voting rights of another company.

A multi-group entity shall be understood to be a multi-group entity that is jointly managed by the entity or some or some of the companies in the group in the event of the latter, including the dominant entities or natural persons, and one or more third parties other than the group of entities.

13th intermediate financial statements.

Within the scope of this Plan, the principles and criteria contained in this Plan will be applied for the elaboration of the intermediate financial statements, and in particular the standard of registration and valuation number 23th contained in the second part of the Plan.

14th Related Parties.

1. One party is considered to be linked to another party when one or a group acting in concert, exercises or has the possibility to exercise directly or indirectly or under covenants or agreements between shareholders or members, control over another or a significant influence on the financial and exploitation decision-making of the other.

2. In any case, related parties shall be considered:

(a) Entities that have the company status of the group, associated or multigroup, in the sense indicated in the previous 13th standard of drawing up the annual accounts.

However, an entity shall be exempt from including the information collected in the section of memory relating to related party transactions, where the first is controlled or significantly influenced by a State, regional or local Public Administration and the other entity is also controlled or significantly influenced by the same Public Administration, provided that there is no indication of an influence between the two. Such influence shall be understood to exist, inter alia, where operations are not carried out under normal market conditions (unless such conditions are imposed by a specific regulation).

(b) natural persons who directly or indirectly hold a stake in the voting rights of the entity, or in the dominant entity thereof, in such a way as to enable them to exercise significant influence over one or the other. The next family members of the aforementioned natural persons are also included.

(c) The key personnel of the company or its parent, understanding by such individuals with authority and responsibility for the planning, management and control of the entity's activities, whether directly or indirectly, including administrators and managers. The next family members of the aforementioned natural persons are also included.

(d) Entities on which any of the persons referred to in points (b) and (c) may exercise significant influence.

e) Companies that share a counselor or manager with the entity, unless they do not have a significant influence on the financial and operating policies of both.

(f) Persons who have the consideration of next family members of the representative of the administrator of the institution, when he/she is a legal person.

g) Pension plans for employees of the entity itself or of any other party that is a related party to it.

3. For the purposes of this rule, family members close to those who may exercise influence on, or be influenced by, that person in their decisions related to the entity shall be understood. They will include:

(a) The spouse or person with a similar affectivity relationship;

(b) Ascendants, descendants and siblings and the respective spouses or persons with a similar affectivity relationship;

c) Ancestors, descendants and siblings of the spouse or person with a similar affectivity relationship; and

d) Persons in their care or in charge of the spouse or person with a similar relationship of affectivity.

15th Branches outside Spain.

The insurance companies shall record the transactions carried out by their branches located outside Spain, for which, in the case that the accounting is carried out on a decentralised basis, at the end of each period, the conversion and aggregation of the accounts corresponding to the branch shall be carried out, making the necessary eliminations to that effect. Where the insurance institution does not decentralise the accounting information referred to in the branch or branches, it shall break down each of the sub-groups or accounts referred to in this text in the accounts of as many figures as are necessary.

ANNUAL ACCOUNT MODELS

I) Balance

ACCOUNTS (*)

A) ACTIVE

553, 559, 570,571,572,573,574,575,576, (590)

A-1) Cash and other equivalent liquid

A-2) Financial assets held for

2405, (2495), 250, (259)

I. Heritage

241, 251

II. Debt representative

2550

III. Derivatives

IV. Other

A-3) Other financial assets at fair value with changes in profit and

2405, (2495), 250, (259)

I. Heritage

241, 251

II. Debt representative

, 242, 251, 252, 258

III. Hybrid instruments

2405, 241, 242, (2495), 250, 251, 252, 258, (259)

IV. Investments on behalf of life insurance policyholders who take the risk of

V. Other

A-4) Financial assets available for sale

2405, (2495), 250, (259)

I. Heritage

, 251, (294), (297)

II. Debt representative

2405, 241, 242, (2495), 250, 251, 252, 258, (259), (294), (297)

III. Investments on behalf of life insurance policyholders who take the risk of

IV. Other

A-5) Loans and items to be

, 251, (294), (297)

I. Debt representative

II. Loans

246, 256

1. Policy

2423, 2424, (2953), (2954), 5501, 5502, (590)

2. Loans to group entities and

2425, 551, 5509 (2955), (590)

3. Loans to other related

252, (298)

III. Deposits on credit

266, (298)

IV. Deposits constituted by accepted reinsurance

V. Credit for direct insurance

431, 432, (491)

1. Policyholders

, 435, (4903)

2. Mediators

400, 401, 4050, 4051, (4900), (4901)

VI. Credit for reinsurance

402, 4052, (4902)

VII. Credits for coinsurance

558

VIII. Required disbursements

IX. Other credits

, 471, 472, 478

1. Credits with Public Administrations

, 254, 258, 260, (298), 44, 460, (4904), 552

2. Remaining credits

241, 251, (294), (297)

A-6) Investments held to maturity

2553

A-7) Coverage

A-8) Reinsurance participation in technical provisions

380

I. Provision for unconsumed

390, 391

II. Life Insurance

384, 394

III. Provision for

387, 397

IV. Other technical provisions

A-9) Property and investment

2101, 2111, 212, 215, 216, 217, 218, 219, 23, (281), (291)

I. Immobilized material

2102, 2112, (282), (292)

II. Real Estate

A-10) Intangible fixed

204

I.

207

II. Economic rights derived from policy portfolios acquired to mediators

200,201,202,203,205,206, 209, (280), (290)

III. Another intangible

A-11) Group entities and associated

2404, (2494), (2934)

I. Shareholdings in associated companies

2404, (2494), (2934)

II. Multi-group

2403, (2493), (2933)

III. Group Business

A-12) Tax Assets

4709

I. Current Tax

474

II. Deferred tax

A-13) Other assets

257

I. Assets and repayment rights for long-term remuneration to staff

, 274

II. Advance commissions and other acquisition

, 481, 489, 560, 562, (590)

III Periods

555

IV. Other assets

, 581, 582, 583, (599)

A-14) Assets held for sale

TOTAL

(*) The account numbers included in each asset heading are indicative.

LIABILITIES AND NET WORTH

A)

1765

A-1) FINANCIAL LIABILITIES HELD FOR

A-2) OTHER FINANCIAL LIABILITIES TO VALUE reasonable with changes in profit and

A-3) Debits and items to be

178

I. Subordinate liabilities

186

II. Deposits received by transferred reinsurance

III. Insurance operations

434

1. Secured

2. Debt to mediators

45

3. Conditional

400, 401

IV. Reinsurance operations

402

V. Debts from coinsurance

177

VI. Obligations and other negotiable values

170

VII. Debt to credit

421

VIII. Debts for insurance contract preparatory

IX. Other debts:

4750, 4751, 4758, 478, 476, 477

1. Debts to Public Administrations

1603,1604,1633.1634

2. Other debts to group entities and

1034), (1044), 150, (153), (154), 1605, 1635, 171, 172, 173, 174, 175, 179, 180, 181, (190), (192), 194, (195), (197), 199, 41, 465, 466, 51, 556

3. Other debts

1768

A-4) Coverage Derivatives

A-5) Technical

300

I. Provision for unconsumed

301

II. Provision for ongoing

III. Life Insurance

310

1. Provision for unconsumed

311

2. Provision for ongoing

312

3. Mathematical provision

32

4. Provision of life insurance when investment risk is assumed by the

340, 341, 342, 343, 350, 351, 352, 353

IV. Provision for

360

V. Provision for profit participation and for extortionate

370,371

VI. Other technical provisions

A-6) Non-technical

141

I. Tax provisions and other legal contingencies

140

II. Provision for pensions and similar obligations

III. Provision for payment by settlement

, 143, 147, 148

IV. Other non-technical

A-7) Tax

4752

I. Current Tax

479

II. Deferred tax

A-8) Rest of liabilities

, 485, 561, 563

I.

188, (268)

II. Accounting asymmetries

182

III. Commissions and other costs of acquiring the transferred reinsurance

IV. Other liabilities

584, 585, 586, 587, 588, 589

A-9) Liabilities linked to assets held for sale

TOTAL

B) NET

B-1) Own funds

I. Capital or mutual

100, 101, 105

1. Written capital or mutual

(1030), (1040)

2. (Unrequired capital)

110

II. Emission

III. Reservations

112, 1141

1. Legal and statutory

1147

2. Stabilization

, 1140, 1142, 1143, 1144, 1148, 115, 119

3. Other

(108), (109)

IV. (Own actions)

V. Previous exercise

120

1.

(121)

2. (Negative results from previous exercises)

118

VI. Other partner and mutual

129

VII. Exercise

(554), (557)

VIII. (Dividend to account and stabilization reserve to account)

111

IX. Other net worth

B-2) Adjustments for value changes:

133

I. Financial assets available for sale

134

II. Coverage

135

III. Change and Conversion

138

IV. Accounting asymmetries

136, 137

V. Other

, 131, 132

B-3) Grants, donations, and legacy

TOTAL NET

TOTAL LIABILITIES AND NET WORTH

(*) The numbers of accounts included in each liability and net worth heading are indicative.

II) PROFIT AND LOSS ACCOUNT

accounts

(01)

investment risk is assumed by policyholders

PROFIT AND LOSS ACCOUNT

I. NON-LIFE TECHNICAL ACCOUNT

200X

200X-1

I. 1. Premiums Charged to Exercise, Reinsurance Nets

a) Accrued premiums

700

A1) Direct insurance

702

a2) Reassured accepted

7971, (6971)

a3) Variation of Impairment Correction of Outstanding (+ or-)

(704),

b) Reinsurance Premiums given (-)

7930, (6930)

c) Variation of provision for unconsumed premiums and for ongoing risks (+ or-)

c1) Direct insurance

c2) Reassured accepted

7938, (6938)

d) Variation of provision for unconsumed premiums, ceded reinsurance (+ or-)

I. 2. Income from material and investment assets

752

a) Income from real estate investments

, 761, 762, 768, 769

b) Income from investments financial

c) Applications for impairment of material and investments impairment

791,792

c1) Of material and investment assets property

796, 799

c2) Financial investments

d) Benefits in making tangible and investments immobilized

 

771,772

d1) Property and property assets and property assets

763, 766

d2) Financial investments

770, 779

I. 3. Other Technical Revenue

I. 4. Exercise Sinister, Reassure Neta

a) Benefits and expenses paid

(600).

A1) Direct insurance

(602).

a2) Accepted Reinsurance

604

a3) Reassured (-)

b) Variation of provision for capabilities (+ or-)

(6934), 7934

b1) Direct Insurance

(6934), 7934

b2) Accepted Reinsurance

b3) Reassured (-)

(00).

c) Imputable expenses to capabilities

6937), (6938), 7937, 7938

I. 5. Variation of other Technical Provisions, Reinsurance nettes (+ or-)

I. 6. Benefits and Extornos Participation

(606).

a) Benefits and expenses for participation in profits and extortions.

6936), 7936

b) Variation of provision for participation in benefits and extortions (+ or-)

I. 7. Net Operating Expenses

020), (610), 737

a) Acquisition expenses

(021).

b) Administration expenses

, 712

c) Commissions and participations in the transferred reinsurance and regressed

I. 8. Other Technical Expenses (+ or-)

(6970), 7970, (698), 798

a) Variation of the deuterium by insolvencies (+ or-)

(690), (691), 790, 791

b) Variation of immobilized impairment (+ or-)

607), 607

c) Variation of claims by claims settlement conventions (+ or-)

(670), (676), (06)

d) Other

I. 9. Expense of material and investment assets

(042), (043), (044), (660), (661), (662), (664), (665), (668), (669)

a) Investment management expenses

a1) Expenditure on the

b) Corrections of value of tangible and investment assets

b)

(048).

b1) Amortization of material and real estate assets and investments

691), (692)

b2) Impairment of tangible fixed assets and real estate investments

(696), (699)

b3) Impairment of financial investments

c) Losses from material and investment assets

(671), (672)

c1) From property and real estate assets

663), (666), (667)

c2) Of financial investments

I. 10 Subtotal (Result of the Insurance Technical Account No Life)

II. LIFE INSURANCE TECHNICAL ACCOUNT

II.1. Premiums Charged to Exercise, Reinsurance Nets

a) Accrued premiums

701

A1) Direct insurance

703

a2) Reassured accepted

7971, (6971)

a3) Variation of Impairment Correction of Outstanding (+ or-)

(705).

b) Reinsurance Premiums given (-)

7931, (6931)

c) Variation of provision for unconsumed premiums and for ongoing risks (+ or-)

c1) Direct insurance

c2) Reassured accepted

7939, (6939)

d) Variation of provision for unconsumed premiums, ceded reinsurance (+ or-)

 

II.2. Income from material and investment assets

752

a) Income from real estate investments

, 761, 762, 768, 769

b) Income from investments financial

c) Applications for impairment of material and investments impairment

791,792

c1) Of material and investment assets property

796,799

c2) Financial investments

d) Benefits in making tangible and investments immobilized

 

771,772

d1) Property and property assets and property assets

763,766

d2) Financial investments

752, 760, 761, 762, 763,766, 768, 769, 771, 772

II.3. Income from secure investments in which the taker assumes the risk of investment

770, 779

II.4. Other Technical Revenue

II.5. Exercise Sinister, Reinsurance Neta

a) Benefits and expenses paid

(601).

a1) Direct insurance (603).

a2) Accepted Reinsurance

605

a3) Reassured (-)

b) Variation of provision for capabilities (+ or-)

(6935), 7935

b1) Direct insurance

(6935), 7935

b2) Reinsurance accepted

6939), (7939)

b3) Reassured (-)

c) Imputable expenses to capabilities

II.6. Variation of Other Net Reinsurance (+ or-) Net Technical Provisions

a) Provisions for life insurance

(6931), 7931

a1) Direct insurance

 

6931), 7931

a2) Reassured accepted

6939), 7939

a3) Reassured (-)

)
for life insurance

(6937), (6938), 7937.7938

c) Other technical purposes

II.7. Participation in Benefits and Extornos.

(606)

a) Benefits and expenses for participation in benefits and extortions

(6936), 7936

b) Variation of the provision for profit participation and extortionate (+ or-)

II.8. Net Operating Expenses

(611), 737, (030).

a) Acquisition expenses

(031).

b) Administration expenses

711, 713

c) Commissions and units of reinsurance ceded and regressed

II.9. Other Technical Expenses

(6970), 7970, (698), 798

a) Variation of impairment by insolvencies (+ or-)

(690), (691), 790, 791

b) Variation of immobilized impairment (+ or-)

670), (676), (07)

c) Other

II.10 Material and investment assets expense

052), (053), (054), (660), (661), (662), (664), (665), (668), (669)

a) Material and investments management expenses

a1) Expenses of material and property assets

a2) Investment and financial account expenses

b) Value and investment value corrections

b1) Amortization of material and property assets

(691), (692)

b2) Impairment of property and real estate assets

b3) Impairment of financial investments

c) Losses from material and investments immobilized

(671), (672)

c1) Real Estate and Real Estate Investments

663), (666), (667)

c2) Of financial investments

II.11 Expenditure on Secure investments in which the taker assumes the risk of the investment

II.12 Subtotal. (Life Insurance Technical Account Result)

III. NON-TECHNICAL ACCOUNT

III.1. Income from material and investment assets

752

a) Income from real estate investments

, 761, 762, 767, 768, 769

b) Revenue from the financial investments

c) Applications for impairment of material and investments impairment

791,792

c1) Of the material and of the fixed assets property investments

796,799

c2) Financial investments

d) Benefits in making tangible and investments immobilized

771,772

d1) Property and Real Estate Investment

763,766

d2) Financial Investments

III.2. Expense of material and investment assets

082), (083), (660), (661), (662), (664), (665), (668), (669)

a) Investment management expenses

a1) Investment and investment expenses financial accounts

a2) Material investment expenses

b) Corrections of value of material and investments assets

 

(088).

b1) Amortization of material and real estate assets and investments

691), (692)

b2) Impairment of tangible fixed assets and real estate investments

(696), (699)

b3) Impairment of financial investments

c) Losses from material and investment assets

(671), (672)

c1) From property and real estate assets

663), (666), (667)

c2) Of financial investments

III.3. Other Revenue

751

a) Income from pension fund management

, 731, 732, 733, 750, 755, 759, 770, 771,774, 779, 795

b) Revenue Rest

III.4. Other Expenses

(08)

a) Expenses by pension fund management

615), (65), (670), (679), (690), (691), 790, 791, (6970), 7970, (698), 798, (08)

b) Spending Rest

III.5. Subtotal. (Non-Technical Account Result)

III.6. Result before taxes (I. 10 + II.12 + III.5)

(630 *), (633), 638

III.7. Benefit Tax

III.8. Result from continued operations (III .6 + III.7)

III.9. Result from net suspended tax operations (+ or-)

129

III.10 Exercise Result (III.8 + III.9)

* Your sign may be positive or negative.

III) STATUS OF CHANGES IN YOUR OWN HERITAGE

A) RECOGNIZED REVENUE AND EXPENSE STATUS

accounts

RECOGNIZED REVENUE AND EXPENSE STATUS

Notes in Memory

200X

200X-1

I) EXERCISE RESULT

II) OTHER RECOGNIZED REVENUE AND EXPENSES

II.1. Financial assets available for sale

, (800)

Earnings and losses by valuation

902, (802)

II.2. Cash flow hedges

910, (810)

Earnings and losses by valuation

912, (812)

Other reclassifications

II.3. Overseas business net investment coverage

911, (811)

Earnings and losses by valuation

913, (813)

Imports transferred to the profit and loss account

Other reclassifications

II.4. Change and conversion differences

920, (820)

Earnings and losses by valuation

921, (821)

II.5. Correcting accounting asymmetries

98, (88)

Earnings and losses by valuation

98, (88)

II.6. Assets held for sale

960, (860)

Earnings and losses by valuation

962, (862)

95, (85)

II.7. Actuarial gains/(losses) on long-term pay to staff

94, (84), 99, (89)

II.8. Other recognized revenue and expense

8300 (*), 8301 (*), (833), 834, 835, (836), (837), 838

II.9. Benefit Tax

III) TOTAL RECOGNIZED REVENUE AND EXPENSES

(*) Your sign can be positive and negative.

B) TOTAL STATUS OF CHANGES IN NET WORTH

TOTAL STATE OF CHANGES IN NET WORTH FOR THE YEAR ENDED ... FROM 200x

Unrequired

Capital or mutual fund

Issue premium

Reservations

(Own equity shares)

Previous exercise results

Other partner or mutual contributions

Exercise Result

Other Heritage Instruments

Settings for Value Changes

Donations and Legacy Grants Received

TOTAL

Unrequired

A. BALANCE, END OF YEAR 200X-2

I. Adjustments for changes of criteria 200X-2 and earlier.

. Adjustments for 200X-2 and earlier errors.

ADJUSTED BALANCE, START OF YEAR 200X-1

I. Total revenue and expenditure recognised.

. Operations with partners or mutualists

1. Capital increases or mutual fund

2. (-) Capital or mutual fund reductions

3. Conversion of financial liabilities into equity (conversion of bonds, debt relief).

. (-) Distribution of dividends or active derbranches

. Transactions in own shares (net).

. Increase (reduction) of net worth resulting from a business combination.

. Other operations with partners or mutualists

 

III. Other changes in net worth.

. Wealth-based payments

 

2. Transfers between net worth items

 

3. Other variations

C. BALANCE, END OF YEAR 200X-1

I. Adjustments for 200X-1 criteria changes.

. Adjustments for 200X-1 errors.

ADJUSTED BALANCE, START OF YEAR 200X

I. Total revenue and expenditure recognised.

. Operations with partners or mutualists

1. Capital increases or mutual fund

2. (-) Capital or mutual fund reductions

3. Conversion of financial liabilities into equity (conversion of bonds, debt relief).

. (-) Distribution of dividends or active derbranches

. Transactions in own shares (net).

. Increase (reduction) of net worth resulting from a business combination.

. Other operations with partners or mutualists

 

III. Other changes in net worth.

. Wealth-based payments

 

2. Transfers between net worth items

 

3. Other variations

E. BALANCE, END OF YEAR 200X

IV) CASH FLOW STATUS

CASH FLOWS STATUS

Notes in memory

Total

200X

200X-1

A) CASH FLOWS FROM OPERATING ACTIVITIES

A. 1) Insurance activity

1. Secure direct, coinsurance, and reinsurance charges accepted

2. Secure, coinsurance, and reinsurance accepted payments

3. Ceded Reinsurance Charges

4. Ceded Reinsurance Payments

5. Benefit Recro

6. Retributions to mediators

7. Other operating charges

8. Other operating payments

9. Total cash collections of insurance activity (1 + 3 + 5 + 7) = I

10. Total cash payments from the insurance activity (2 + 4 + 6 + 8) = II

2) Other operating activities

1. Collection of pension fund management activities

2. Pension fund management activities payments

3. Collection of other activities

4. Payments from other activities

5. Total cash collections from other operating activities (1 + 3) = III

6. Total cash payments from other operating activities (2 + 4) = IV

7. Benefits and benefits tax payments (V)

A. 3) Total net cash flows from operating activities (I-II + III-IV +-V)

B) CASH FLOWS FROM ACTIVITIES INVERSION

B. 1) Investment Activity Items

1. Immobilized material

2. Real Estate Investments

3. Intangible assets

4. Financial Instruments

5. Group, multigroup, and associated entity interests

6. Interest charged

7. Dividends collected

8. Business Unit

9. Other charges related to investment activities

10. Total cash collections of investment activities (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9) = VI

2) Payments of investment activities

1. Immobilized material

2. Real Estate Investments

3. Intangible assets

4. Financial Instruments

5. Group, multigroup, and associated entity interests

6. Business Unit

7. Other payments related to investment activities

8. Total cash payments from investment activities (1 + 2 + 3 + 4 + 5 + 6 + 7) = VII

3) Total cash flows from investment activities (VI-VII)

) CASH FLOWS FINANCING ACTIVITIES

1) Financing activity items

1. Subordinate liabilities

2. Capital increase and equity instrument issuance

3. Active derbranches and contributions from partners or mutualists

4. Disposal of own values

5. Other collections related to financing activities

6. Total cash collections of funding activities (1 + 2 + 3 + 4 + 5) = VIII

2) Financing activity payments

1. Dividends to shareholders

2. Interest paid

3. Subordinate liabilities

4. Shareholder return payments to shareholders

5. Passive derbranches and return of contributions to the mutualists

6. Acquiring own values

7. Other payments related to funding activities

8. Total cash payments from financing activities (1 + 2 + 3 + 4 + 5 + 6 + 7) = IX

3) Total net cash flows from financing activities (VIII-IX)

Effect of variations of exchange rates (X)

Total increase/decreases in cash and equivalents (A. 3 + B. 3 + C. 3 +-X)

and equivalent at the beginning of the period

and equivalent at the end of the period

Notes in memory

200X

200X-1

components and end-of-period equivalents

1. Box and Banks

2. Other financial assets

3.

Cash and Equivalent at End of Period (1 + 2-3)

V) MEMORY

A. CONTENT OF THE MEMORY

1. Activity of the entity.

This section will include the main elements that describe the activity of the entity. In particular:

1. Domicile and legal form of the entity, as well as the territorial scope of its activities.

2. A description of the insurance classes in which it operates, risks covered and ancillary activities it develops.

3. In the case of belonging to a group of companies, in the terms provided for in Article 42 of the Code of Commerce, even when the dominant company is domiciled outside the Spanish territory, it shall be reported on its name, as well as that of the direct dominant company and the ultimate parent of the group, the residence of these companies and the Commercial Registry where the consolidated annual accounts are deposited, the date of their formulation or, if applicable, the circumstances that exempt the obligation to consolidate.

4. Where there is a functional currency other than the euro, this circumstance shall be clearly stated, indicating the criteria taken into account for its determination.

2. Basis for the presentation of the annual accounts.

1. True image:

(a) The entity shall make an explicit statement that the annual accounts reflect the fair share of the assets, the financial situation and the results of the entity, as well as the veracity of the flows incorporated in the cash flow statement.

(b) Exceptional reasons why, in order to show the true image, no legal provisions have been applied in accounting matters, with an indication of the non-applied legal provision, and qualitative and quantitative influence for each financial year for which information is presented, such as the assets, the financial situation and the results of the entity.

(c) Complementary information, indicating its location in memory, that it is necessary to include when the application of the legal provisions is not sufficient to show the true image.

2. Non-compulsory accounting principles applied.

3. Critical aspects of the assessment and estimation of uncertainty.

(a) Without prejudice to the above mentioned in each specific note, this paragraph shall report on the key assumptions about the future as well as other relevant data on the estimate of the uncertainty at the end of the financial year, provided that they bear an important risk that significant changes in the value of the assets or liabilities in the following financial year may entail. For such assets and liabilities, information on their nature and book value shall be included on the closing date.

(b) The nature and amount of any change in an accounting estimate that is significant and which affects the current financial year or which is expected to affect future financial years shall be indicated. When an estimate of the effect is impracticable in future exercises, this fact will be revealed.

(c) Where management is aware of the existence of significant uncertainties, relating to events or conditions that may provide significant doubts as to whether the entity may continue to function normally, it shall disclose them in this paragraph. In the event that the annual accounts are not drawn up under the operating company principle, this fact shall be the subject of explicit disclosure, together with the alternative assumptions on which they have been drawn up, as well as the reasons why the entity cannot be regarded as a functioning undertaking.

4. Comparison of information.

Without prejudice to the following sections regarding changes in accounting criteria and error correction, the following information will be incorporated in this section:

a) Explanation of the causes that prevent the comparison of the annual accounts of the year with those of the previous one.

b) Explanation of the adjustment of the amounts of the preceding financial year in order to facilitate the comparison and, if not, the exceptional reasons which have rendered the reexpression of the comparative figures impracticable.

5. Items collected under various headings.

Identification of the assets, with their amount, that are recorded in two or more items of the balance sheet, with an indication of these and the amount included in each balance sheet.

6. Changes in accounting criteria.

Detailed explanation of adjustments for changes in accounting criteria made in the financial year. In particular, information should be provided on:

a) Nature and description of the change produced and the reasons why the change allows for more reliable and relevant information.

(b) Amount of correction for each of the items corresponding to the documents in the annual accounts, affected in each of the financial years presented for comparative purposes, and

(c) If the retroactive application is impracticable, the circumstances in which the change in the accounting criterion has been applied shall be reported.

When the change of criteria is due to the application of a new standard, it will be indicated and the provisions of the new standard will be indicated, informing of its effect on future exercises.

It will not be necessary to include comparative information in this section.

7. Error correction.

Detailed explanation of the error correction adjustments made in the exercise. In particular, information should be provided on:

a) Nature of the error and the exercise or exercises in which it occurred.

(b) Amount of the correction for each of the items corresponding to the documents that make up the annual accounts concerned in each of the financial years presented for comparative purposes

and

c) If the retroactive application is impracticable, the circumstances that explain it and from when the error has been corrected will be reported.

It will not be necessary to include comparative information in this section.

8. Criteria for imputation of expenditure and revenue.

In the event that the entity operates simultaneously in the life and non-life activities, an explanation of the criteria followed for the affectation of the investments to one or another activity, in order to impute to the same of the expenses and financial income and, in any case, explanation of the criteria used for the imputation of any income and expenses corresponding to the activity of not life to the various branches.

3. Application of results.

1. Information on the proposal to implement the result of the exercise, according to the following scheme:

Share Base

Amount

and Gains

Remover

Reservations

Other free disposition reservations

TOTAL ... ...

Application

A stabilization reserve for account

A legal reservation

special reservations:

-Other special reservations

voluntary reservations

A ...................

A dividends

A ...................

A compensation lost previous exercises

TOTAL ... ...

2. In the case of distribution of dividends for the financial year, the amount of the dividend shall be indicated and the pre-tax accounting statement shall be incorporated in a precept manner to show that sufficient liquidity is available. That accounting statement shall cover a period of one year from the time the dividend distribution is agreed to.

3. Limitations for dividend distribution.

4. If the institution has obtained a negative result in the financial year, it shall report the amount of the stabilisation reserve to the account that, together with the balance of the balance of the income statement of the institution, determines the amount of the final result to be included in account 121 of the fourth part of this Plan.

4. Rules for registration and valuation.

The accounting criteria applied for the following items shall be indicated:

1. Intangible fixed assets, indicating the criteria used for capitalisation or activation, amortisation and valuation corrections for impairment.

Justification of the circumstances that have led to the indefinite qualification of the useful life of an intangible fixed asset.

In particular, the valuation criterion followed to calculate the recoverable value of the goodwill and the expenses of the disposal of the portfolio, as well as the rest of intangible fixed assets with indefinite shelf life, should be specified in detail.

In any case, for the economic rights derived from portfolios of policies acquired from a mediator, the estimated depreciation period shall be adequately justified in accordance with the provisions of the standard of registration and valuation relating to intangible fixed assets.

2. Tangible fixed assets and real estate investments; indicating the criteria for depreciation, valuation corrections for deterioration and reversal of the same, capitalization of financial expenses, costs of extension, modernisation and improvements, decommissioning or retirement costs, as well as the costs of rehabilitation of the place where an asset is settled and the criteria for determining the cost of the work carried out by the institution for its fixed assets.

3. The criterion for qualifying the land and buildings as real estate investments will be indicated, specifying for these the criteria mentioned in the previous section.

4. Leases; indicating the criteria for accounting for leasing contracts and other similar operations.

5. Permutas; indicating the criterion followed and the justification for their application, in particular the circumstances which led to the qualification of a commercial swap.

6. Advance commissions and other acquisition expenses activated; indicating the criteria used for activation, amortization and, where applicable, sanitation. The criteria for the timing of commissions and other acquisition costs in the non-life classes will also be indicated.

7. Financial instruments; shall be indicated:

(a) Criteria used for the rating and valuation of the different categories of financial assets and financial liabilities, as well as for the recognition of fair value changes; in particular, the reasons why the securities issued by the institution which, in accordance with the legal instrument used, should in principle have been classified as equity instruments, have been accounted for as financial liabilities.

(b) The nature of the financial assets and financial liabilities initially designated as fair value with changes in the profit and loss account, as well as the criteria applied in that designation and an explanation of how the institution has met the requirements set out in the standard of registration and valuation relating to financial instruments.

(c) The criteria applied to determine the existence of objective evidence of deterioration, as well as the recording of the correction of value and its reversal and the definitive discharge of impaired financial assets. In particular, the criteria used to calculate the valuation corrections relating to commercial debtors and other receivables shall be highlighted. The accounting criteria applied to financial assets whose conditions have been renegotiated and which would otherwise be due or impaired shall also be indicated.

d) Criteria used for the registration of financial assets and financial liabilities.

(e) Hybrid financial instruments; indicating the criteria that have been followed in order to assess separately the instruments that integrate them, on the basis of their economic characteristics and risks or, where appropriate, the impossibility of such separation. In addition, the valuation criteria, with particular reference to the impairment valuation corrections, shall be detailed.

(f) Compound financial instruments; the valuation criterion used to quantify the component of these instruments to be classified as a financial liability shall be indicated.

g) Financial collateral contracts; indicating the criterion followed in both the initial and subsequent valuation.

h) Investments in group, multi-group and associated entities; the criterion followed in the valuation of these investments, as well as the one applied to record impairment valuation corrections, will be reported.

i) The criteria used in determining the income or expenses arising from the various categories of financial instruments: interest, premiums or discounts, dividends, etc.

j) Own equity instruments held by the institution; indicating the criteria for valuation and registration of employees.

8. Accounting covers; indicating the valuation criteria applied by the institution in its hedging operations, distinguishing between fair value hedges, cash flows and net investments in foreign business, as well as the valuation criteria applied for the recording of the accounting effects of its interruption and the reasons that have originated it.

9. Credit for insurance and reinsurance operations, distinguishing those for insurers, reinsurers, transferors and co-insurers, as well as mediators and policyholders, with an indication of the criteria applied for the performance of valuation corrections.

10. Foreign currency transactions; indicating:

(a) Criteria for the valuation of transactions and balances in foreign currency and criteria for the allocation of exchange differences.

(b) When a change in the functional currency has occurred, it shall be revealed as well as the reason for such change.

(c) For the items contained in the annual accounts which at present or at the origin of the accounts have been expressed in foreign currency, the procedure used to calculate the exchange rate shall be indicated in euro.

d) Criterion used for conversion to presentation currency.

11. Profit taxes; indicating the criteria used for the registration and valuation of assets and liabilities for deferred tax.

12. Revenue and expenditure, indicating in particular the criteria for the reclassification of expenditure by nature in expenditure by destination.

13. Technical provisions; indicating the assumptions and methods of calculation used for each of the provisions incorporated.

14. Provisions and contingencies; indicating the criterion of valuation, as well as, where appropriate, the treatment of compensation to be received from a third party at the time of the settlement of the obligation. In particular, a general description of the method of estimation and calculation of each of the risks shall be given in relation to the provisions.

15. Economic assets of an environmental nature, indicating, where appropriate, the description of the method of estimation and calculation of provisions arising from the environmental impact.

16. Criteria used for the recording and valuation of staff expenditure, in particular the criteria for pension commitments.

17. Stock-based payments; indicating the criteria used for accounting.

18. Grants, donations and legacies; indicating the criteria used for their classification and, where appropriate, their imputation to results.

19. Business combinations; indicating the criteria for registration and valuation of employees.

20. Joint ventures; indicating the criteria followed by the institution to integrate the balances corresponding to the joint venture into its annual accounts.

21. Criteria used in transactions between related parties.

22. Assets held for sale; the following criteria shall be indicated for qualifying and valuing such assets or groups of items as held for sale, including the associated liabilities.

23. Interrupted operations; criteria for identifying and qualifying an activity as interrupted, as well as the income and expenses that originate.

5. Fixed assets.

1. Movement analysis during the exercise of each balance sheet item included in this item and its corresponding cumulative write-downs and cumulative impairment valuation corrections, indicating the following:

a) Initial Balance.

(b) Inputs or endowments, specifying acquisitions made by business combinations and non-cash contributions, as well as those due to extensions or improvements.

c) Reversion of Impairment Valuation corrections.

d) Increases/decreases by transfers or transfers of other items; in particular to assets held for sale or discontinued operations.

e) Outputs, casualties, or reductions.

f) Impairment Valuation corrections, differentiating those recognized in the year, from the accumulated ones.

g) Amortiations, differentiating the ones recognized in the exercise, from the accumulated ones.

h) Final salt.

2. Information about:

(a) Estimated decommissioning, retirement or rehabilitation costs, including the higher value of assets, specifying the circumstances that have been taken into account for their valuation.

(b) Useful expenses or depreciation coefficients used by item classes, as well as the methods of amortisation used, reporting the depreciation of the financial year and the cumulative amount corresponding to each significant item under this heading.

(c) Whenever it has a significant impact on the present or future financial year, it shall be reported on changes in estimates affecting residual values, estimated costs of decommissioning, withdrawal or rehabilitation, useful lives and methods of depreciation.

(d) Characteristics of investments in tangible fixed assets acquired from group and associated entities, with an indication of their book value, amortisation and cumulative impairment valuation corrections.

(e) Characteristics of investments in tangible fixed assets located outside the Spanish territory, with an indication of their book value, amortisation and cumulative impairment valuation corrections.

f) Amount of the financial expenses capitalized on the financial year, as well as the criteria followed for their determination.

g) For each significant impairment valuation correction, recognised or reversed during the financial year for a fixed individual material, it shall be indicated:

-Nature of the immobilized material.

-Amount, events, and circumstances that have led to the recognition and reversal of impairment loss.

-Criteria used to determine the fair value minus the selling costs, if any, and

-With respect to the value in use, the type or types of update used in the current and previous estimates, a description of the key assumptions on which the cash flow projections have been based, and how their values have been determined, the period covered by the projection of the cash flows and the growth rate of the cash flows from the fifth year onwards.

h) In respect of aggregate impairment losses and reversions for which the information referred to in the above letter is not disclosed, the principal classes of immobilized affected by impairment losses and reversions and the principal events and circumstances that have led to the recognition and reversal of such impairment valuation corrections.

(i) The amount of third-party compensation that is included in the result of the exercise by items of tangible fixed assets whose value would have deteriorated, had been lost or withdrawn shall be reported.

(j) If the tangible fixed assets are included in a cash generating unit, the information on the impairment loss shall be given in accordance with paragraph 2 of Note 7.

k) Characteristics of the tangible fixed assets did not directly affect the holding, indicating their book value, amortisation and cumulative impairment valuation corrections.

l) Amount and characteristics of the fully amortized goods in use, distinguishing between constructions and other elements.

m) Goods affected by guarantees and reversion, as well as the existence and the amounts of restrictions on ownership.

n) Grants, donations and legacies received related to the fixed assets, also indicating the amount of such assets.

o) firm commitments to purchase and predictable sources of financing, as well as firm commitments to sell.

p) Any other substantive circumstance affecting property of the fixed assets such as: leases, insurance, litigation, liens and similar situations.

q) Financial leases and other transactions of a similar nature on assets of tangible fixed assets. Without prejudice to the information required in other parts of the memory.

r) In the case of buildings, the value of the construction and the land shall be reported separately.

s) The result of the exercise arising from the disposal or disposal by other means of elements of the material immobilized.

6. Real estate investments.

In addition to the information required in the above note, the properties classified as real estate investments will be described, and will be reported:

1. Types of real estate investments and their destination.

2. Income from these investments as well as the expenses for their exploitation; will differentiate the investments that generate income of those that do not.

3. The existence and the amount of the restrictions on the realization of real estate investments, the collection of the income derived from them or the resources obtained by their disposal or disposal by other means, and

4. Contractual obligations for acquisition, construction or development of real estate investments or for repairs, maintenance or improvements.

7. Intangible fixed assets.

7.1 General.

Except in relation to the goodwill and the costs of acquisition of portfolios and economic rights derived from portfolios of policies acquired from a mediator, for which the information referred to in paragraph 2 and 3 of this note shall be provided, the following information shall be included:

1. Movement analysis during the exercise of each balance sheet item included in this item and its corresponding cumulative write-downs and cumulative value impairment corrections; indicating the following:

a) Initial Balance.

b) Inputs or endowments, specifying internally generated assets and those acquired through business combinations and non-cash contributions.

c) Reversion of Impairment Valuation corrections.

d) Increases/decreases by transfers or transfers of another item, in particular to assets held for sale.

e) Outputs, casualties, or reductions.

f) Impairment Valuation corrections, differentiating those recognized in the year, from the accumulated ones.

g) Amortiations, differentiating the ones recognized in the exercise, from the accumulated ones.

h) Final salt.

2. Information about:

a) Assets affected by collateral and reversion, as well as the existence and amounts of restrictions on ownership.

(b) Useful expenses or depreciation coefficients used by item classes, as well as the methods of amortisation used, reporting the depreciation of the financial year and the cumulative amount corresponding to each significant item under this heading.

(c) Whenever it has a significant impact on the present or future financial years, it shall be reported on changes in estimates affecting residual values, useful lives and methods of depreciation.

(d) Characteristics of investments in intangible fixed assets acquired from group and associated entities, with an indication of their book value, amortisation and cumulative impairment valuation corrections.

e) Characteristics of investments in intangible fixed assets whose rights may be exercised outside the Spanish territory or are related to investments located outside the Spanish territory, indicating their book value, amortisation and cumulative impairment valuation corrections.

f) Amount of the financial expenses capitalized on the financial year, as well as the criteria followed for their determination.

g) For each significant impairment valuation correction, recognised or reversed during the financial year for an individual intangible fixed asset, it shall be indicated:

-Nature of intangible fixed assets.

-Amount, events, and circumstances that have led to the recognition and reversal of impairment loss.

-Criterion used to determine the fair value minus the selling expenses, if any, and

-If the method used were the value in use, the type or types of update used in the current and previous estimates, a description of the key assumptions on which the cash flow projections have been based and how their values have been determined, the period covered by the projection of the cash flows and the growth rate of the cash flows from the fifth year.

h) In respect of aggregate impairment losses and reversions for which the information referred to in the above letter is not disclosed, the principal classes of immobilized affected by impairment losses and reversions and the principal events and circumstances that have led to the recognition and reversal of such impairment valuation corrections.

(i) If intangible fixed assets are included in a cash generating unit, the information on impairment loss shall be given in accordance with paragraph 2 of this note.

(j) Characteristics of intangible fixed assets did not directly affect the holding, indicating their book value, amortisation and cumulative impairment valuation corrections.

k) Amount and characteristics of the fully amortized intangible immobilizes in use.

l) Grants, donations and legacies received related to intangible fixed assets, also indicating the amount of such assets.

m) firm commitments to purchase and predictable sources of financing, as well as firm commitments to sell.

n) The result of the exercise arising from the disposal or disposal by other means of elements of intangible fixed assets.

o) The aggregate amount of the research and development disbursements that have been recognized as expenses during the financial year, as well as the justification for the circumstances that support the capitalization of research and development expenses.

p) The immobilized with indefinite shelf life other than the goodwill and those referred to in item 7.3 of the memory shall be detailed, indicating their amount, nature and the reasons for supporting the estimate of such indefinite shelf life.

q) Any other substantive circumstances affecting intangible fixed assets such as: leases, insurance, litigation, liens and similar situations.

7.2 Trade Fund.

The following information will be included in this section:

1. For each business combination that has been carried out in the financial year, the figure of the goodwill shall be expressed, broken down by the different business combinations.

Dealing with business combinations that individually lack relative importance, the above information will be displayed in aggregate.

This information must also be expressed for the business combinations between the closing date of the annual accounts and the date of their formulation, unless it is not possible, in this case, the reasons why this information cannot be provided.

2. The institution shall make a reconciliation between the carrying amount of the goodwill at the beginning and end of the financial year, showing separately:

(a) The gross amount of the same and the cumulative impairment value adjustments at the beginning of the financial year.

(b) The additional goodwill recognised during the period, differentiating the trading fund included in a qualifying group of items that has been classified as held for sale, in accordance with the rules of registration and valuation. It shall also be reported on the low trading fund during the period without previously being included in any qualifying group of items classified as held for sale.

(c) Adjustments arising from the subsequent recognition of deferred tax assets carried out during the financial year.

(d) Impairment Valuation corrections recognised during the financial year.

e) Any other changes to the amount in books during the exercise, and

(f) The gross amount of the goodwill and the cumulative impairment value adjustments at the end of the financial year.

3. Description of the factors which have contributed to the trade fund register and shall be justified and shall indicate the amount of the goodwill and other intangible fixed life intangible assets attributed to each cash-generating unit.

4. For each significant impairment loss of the goodwill, the following shall be reported:

(a) Description of the cash-generating unit that includes the goodwill as well as other intangible or intangible assets and the way the pool is performed to identify a cash-generating unit where it is different from the one carried out in previous years.

b) Amount, events, and circumstances that have led to the recognition of a impairment valuation correction.

c) Criteria used to determine the fair value minus the selling expenses, if any, and

d) If the method used is the value in use, the type or types of update used in the current and previous estimates, a description of the key assumptions on which the cash flow projections have been based, and how their values have been determined, the period covered by the projection of the cash flows and the growth rate of the cash flows from the fifth year onwards.

5. With respect to aggregate impairment losses for which the information indicated in the preceding number is not disclosed, the main events and circumstances that have led to the recognition of such valuation corrections for impairment.

6. The assumptions used for the determination of the recoverable amount of the assets or the cash-generating units.

7.3 Costs of acquiring portfolios of economic rights derived from portfolios of policies acquired from a mediator.

In addition to the breakdowns of information contained in paragraph 7.2, a description of the assumptions about the average expected life of the portfolio policies, renewal options, redemption options, portfolio falls, and any other variables that have served as the basis for their estimation shall be included as the development of paragraph 7.2.4.d above.

8. Advance fees and other activated acquisition costs.

Analysis of the movement of this item during exercise, indicating the following:

• Initial Balance.

• Acquisition expenses for the year.

• Amount of incorporation to the asset of such costs made in the year.

• Depreciation made in the financial year.

• End Balance.

9. Leases and other operations of a similar nature.

The information that is required below for lease operations must also be provided when the entity performs other operations of a similar nature.

9.1 Financial leases.

1. The lessors shall report:

(a) A reconciliation between total gross investment in leases classified as financial (pointing out, where applicable, the purchase option) and its current value at the end of the financial year. The minimum charges to be received for such leases and their current value shall be reported in each of the following periods:

-Up to one year;

-Between one and five years;

-More than five years.

(b) A reconciliation between the total amount of the leasing contracts at the beginning and end of the financial year.

c) A general description of significant financial leasing agreements.

d) Non-accrual financial income and the distribution criterion of the financial component of the transaction.

(e) The amount of the quota shares recognised as revenue for the financial year.

(f) The correction of the impairment value covering the insolvencies by amounts derived from the lease outstanding.

2. Tenants shall report:

(a) For each asset class, the amount by which the asset was initially recognised, indicating whether it corresponds to the fair value of the asset or, where applicable, the current value of the minimum payments to be made.

(b) A reconciliation between the total amount of the minimum future lease payments (indicating, where applicable, the purchase option) and its current value at the end of the financial year. In addition, the minimum lease payments and their current value shall be reported in each of the following periods:

-Up to one year;

-Between one and five years;

-More than five years.

(c) The amount of the quota shares recognised as expenditure for the financial year.

(d) The total amount of the minimum future payments expected to be received at the end of the financial year for non-cancelable financial assets.

e) A general description of the significant financial lease agreements, where it will be reported:

-The basis for the determination of any quota of a contingent character that has been agreed.

-The existence and, where applicable, the terms of renewal of the contracts, as well as the purchase options and the update or price-staggering clauses, and

-The restrictions imposed on the entity under lease contracts, such as those relating to the distribution of dividends, to additional indebtedness or to new lease contracts.

(f) To the assets arising out of these contracts, the information to be included in memory corresponding to the nature of the contracts, as set out in the previous notes, relating to tangible fixed assets, intangible assets and real estate investments, shall apply to them.

9.2 Operating Leases.

1. The lessors shall report:

(a) The total amount of the minimum future lease charges for non-cancelable operating leases, as well as the amounts corresponding to the following instalments:

-Up to one year;

-Between one and five years;

-More than five years.

b) A general description of the assets and the significant lease agreements.

(c) The amount of the quota shares recognised as revenue for the financial year.

2. Tenants shall report:

(a) The total amount of the minimum future lease payments for non-cancelable operating leases, as well as the amounts corresponding to the following instalments:

-Up to one year;

-Between one and five years;

-More than five years.

(b) The total amount of the minimum future payments expected to be received at the end of the financial year by non-cancelable operating income.

(c) The shares of operating leases and sub-leases recognised as expenditure and revenue for the financial year, differentiating between: amounts of minimum lease payments, contingent quotas and sub-lease fees.

d) A general description of the significant lease agreements, where it will be reported:

-The basis for the determination of any quota of a contingent character that has been agreed.

-The existence and, where applicable, the terms of renewal of the contracts, as well as the purchase options and the update or price-staggering clauses, and

-The restrictions imposed on the entity under lease contracts, such as those relating to the distribution of dividends, to additional indebtedness or to new lease contracts.

10. Financial instruments.

10.1 General considerations.

The information required in the following paragraphs shall apply to the financial instruments included in the scope of the registration and valuation standard for financial instruments.

For the purposes of reporting in memory, certain information should be provided by classes of financial instruments. These shall be defined taking into account the nature of the financial instruments and the categories set out in the registration and valuation standard for financial instruments.

10.2 Information on the relevance of financial instruments to the financial situation and the results of the institution.

10.2.1 Balance Sheet Related Information.

a) Categories of financial assets and financial liabilities.

The book value shall be disclosed, with reference to each of the categories of financial assets and financial liabilities identified in the standard of record and valuation of financial instruments, of the various financial instruments in each of them included, grouped by typologies, reporting the variation from the previous financial year. The financial instruments whose investment risk is assumed by the policyholders, investments affecting the preparatory operations of insurance contracts and those linked to the participation of the policyholders shall be detailed.

a. 1) Financial assets.

FINANCIAL Assets

-Fixed Income Values

on account of investment risk takers

-Pending balances with mediators

Cash and other equivalent liquid assets

Financial assets held for trading

Other financial assets at fair value with changes in PyG

Financial assets available for sale

Loans and Receivable Items

Expiration Portfolio

Coverage Derivatives

Group and Partner Entity Participations

TOTAL

Financial Instruments

Accounting asymmetries correction

Managed Instruments according to fair value strategy

Fair value

Cost

instruments:

-Investment funds participations

Risk capital fund participations

Other heritage instruments

Debt Representative Values:

-Other debt representative values

 

Derivatives

instruments

:

Policies and advances on policies

-Loans to group entities

Mortgage loans

Repositories constituted by accepted reinsurance

for direct insurance operations:

 

-Insurance Tomators:

-

Receipts

-Provision for collections pending premiums

Mediators:

Provision for impairment balance with mediators

for reinsurance operations:

 

-Pending Saldos with Reinsurers

-Provision for balance impairment with reinsurance

-

balances with coinsurers

-Provision for balance impairment with coinsurance

disbursements

Other credits:

-Credit Rest

Other financial assets

TOTAL

a. 2) Financial liabilities.

FINANCIAL LIABILITIES

TOTAL

Financial Instruments

-Conditionated

-Other debts to credit entities

-Fiscal and Social Debts

Financial liabilities held for trading

Other financial liabilities at fair value with changes in PyG

Debits and receivables

Financial liabilities associated with transferred financial assets

TOTAL

Accounting Asymmetries Correction

Managed Instruments Based On Fair Value

Derivatives

Repositories received by ceded reinsurance

Widows for insurance operations:

-Widows with policyholders

-Debits with mediators

-Financial lease debts

debts:

-Widows with group entities

-Rest of debts

by asset lease operations

Other financial liabilities

TOTAL

 

(b) Financial assets and financial liabilities measured at fair value through profit and loss account changes.

The amount of the change in fair value shall be reported during the year and the amount accumulated since its designation and shall indicate the method used to perform the calculation.

With respect to derivative financial instruments, other than those that qualify as hedging instruments, the nature of the instruments and the important conditions that may affect the amount, timing and certainty of future cash flows shall be reported.

In the event that the entity has designated financial assets or financial liabilities in the category of "Other Financial Assets at Fair Value with Changes in the Profit and Loss Account" or in that of "Other Financial Liabilities at Fair Value with Changes in the Profit and Loss Account", it shall report on the use of this option, specifying compliance with the requirements of the registration and valuation standard.

c) Reclassifications.

If, in accordance with the standard of registration and valuation of financial instruments, a financial asset has been reclassified in such a way that the financial asset is valued at the cost or amortised cost, rather than at fair value, or vice versa, the amounts of such reclassification for each category of financial assets shall be reported and a justification thereof shall be included.

d) Classification by maturities.

For financial assets and financial liabilities that have a particular or determinable maturity, the amounts that are due in each of the five years following the end of the financial year and the remainder shall be reported until their last maturity. These indications shall be separately for each of the items of financial assets and financial liabilities in accordance with the balance sheet model.

e) Transfers of financial assets.

When the entity has made disposals of financial assets in such a way that a portion of the assets or their totality does not meet the conditions for the loss of the balance sheet, as set out in paragraph 2.9 of the standard of registration and valuation 8th relative to financial instruments, it shall provide the following information grouped by asset classes:

-The nature of the assets transferred.

-The nature of the risks and benefits inherent in the property to which the entity remains exposed.

-The book value of the assets transferred and the associated liabilities, which the entity maintains, and

-When the entity recognizes the assets based on their continued involvement, the book value of the assets that were initially included in the balance sheet, the book value of the assets that the entity continues to recognize, and the carrying value of the associated liabilities.

f) Assets transferred and accepted as collateral.

The value in books of the financial assets delivered as collateral, of the class to which they belong, as well as the terms and conditions related to that guarantee operation shall be reported.

If the entity held third-party assets in collateral, whether financial or not, of which it can dispose even if the non-payment has not occurred, it shall report:

-The fair value of the asset received under warranty.

-The fair value of any assets received as collateral for which the institution has disposed and whether it has an obligation to return it or not, and

-The terms and conditions relating to the entity's use of the assets received under collateral.

g) Value impairment corrections arising from credit risk.

For each class of financial assets, an analysis of the movement of the corrective accounts representative of the impairment losses arising from the credit risk shall be presented.

h) Impayment and breach of contractual terms.

For loans outstanding at the end of the financial year, the following shall be reported:

-Details of any default of principal or interest that occurred during the financial year.

-The book value on the date of the end of the financial year of those loans in which a default was incurred, and

-If the default has been remedied or the terms of the loan have been renegotiated, before the date of formulation of the annual accounts.

If during the year there had been a non-payment of non-payment and provided that the creditor was granted the right to claim the advance payment, information similar to that described would be provided, except if the non-compliance had been remedied or the conditions had been renegotiated before the end of the financial year.

i) Debts with special features.

When the institution has debts with special characteristics, it shall report the nature of the debts, their amounts and characteristics, by disaggregated where appropriate if they are with group or associated entities.

10.2.2 Information related to the profit and loss account and net worth.

The:

(a) Net profit or loss arising from the different categories of financial instruments as defined in the reporting and valuation standard for financial instruments.

(b) Income and financial expenses calculated by applying the effective interest rate method.

(c) The amount of impairment valuation corrections for each class of financial assets, as well as the amount of any financial income attributed to the profit and loss account related to such assets.

10.2.3 Other information to include in memory.

a) Cover accounting.

The entity shall include, by accounting coverage classes, a detailed description of the hedging operations it performs, of the financial instruments designated as hedging instruments, as well as of its fair values at the date of the close of the financial year and the nature of the risks that have been covered. In particular, it shall justify compliance with the requirements of the accounting records in the reporting and valuation standard for financial instruments.

Additionally, in cash flow hedges, the entity shall report on:

(a) The exercises in which cash flows are expected to occur and the exercises in which they are expected to affect the profit and loss account.

(b) The amount recognised in net worth during the financial year and the amount that has been charged to the profit and loss account from equity, detailing the amounts included in each item of the profit and loss account.

(c) The amount that has been reduced from net worth during the financial year and has been included in the initial valuation of the purchase price or the book value of an asset or non-financial liability, where the cover item is a highly likely intended transaction, and

d) All expected transactions for which hedge accounting has previously been applied, but are not expected to occur.

In fair value hedges, the amount of the hedging instrument's losses or gains and the losses or gains of the cover item attributable to the covered risk shall also be reported.

The amount of the ineffectiveness recorded in the profit and loss account in relation to the coverage of cash flows and with the coverage of net investment in foreign business will also be disclosed.

b) Reasonable value.

The entity shall disclose the fair value of each financial instrument class and compare it with its corresponding book value.

It will not be necessary to disclose the fair value in the following assumptions:

(a) When the value in books constitutes an acceptable approximation of fair value; for example, balances for insurance and reinsurance transactions.

(b) In the case of equity instruments not listed on an active market and derivatives held by them as underlying assets, which, as set out in the standard of registration and valuation of financial instruments, are valued at their cost.

In this case, the entity shall disclose this fact and describe the financial instrument, its value in books and the explanation of the causes that prevent the reliable determination of its fair value. It shall also be reported whether or not the entity intends to dispose of it and when.

In the case of a loss of the balance sheet of the financial instrument during the financial year, this fact shall be disclosed, as well as the value in books and the amount of the loss or gain recognised at the time of the discharge.

It shall also be indicated whether the fair value of financial assets and financial liabilities is determined, in whole or in part, by reference to prices quoted in active markets or estimated using a valuation technique. In the latter case, the assumptions and methodologies considered in the fair value estimate for each financial asset class and financial liabilities shall be reported.

The entity shall disclose the fact that the reasonable values recorded or reported in the memory are determined, in whole or in part, using valuation techniques based on assumptions that are not supported by market conditions on the same instrument or on observable market data that are available. Where the fair value has been determined in accordance with this paragraph, the total amount of the fair value variation charged to the profit and loss account for the financial year shall be reported.

c) Group, multigroup, and associated entities.

Information about group, multigroup, and associated entities will be detailed, including:

(a) Denomination, domicile and legal form of the entities of the group, specifying for each entity:

-Activities that they exercise.

-Capital Fraction and voting rights held directly and indirectly, distinguishing between both.

-Amount of capital, reserves, other items of net worth and result of the last financial year resulting from the criteria included in the Trade Code and its implementing rules, differentiating the operating result and breaking down the continued operations and the discontinued operations, in the event that the group entity is required to give this information in its individual annual accounts.

-Value according to books of equity participation.

-Dividends received in the exercise.

-Indication of whether the shares are listed or not on the Stock Exchange and, where applicable, the average price of the last quarter of the year and the closing of the financial year.

(b) The same information as that of the previous point with respect to the associated multigroup entities, those in which the entity still holds more than 20% of the capital does not exert any significant influence and those in which the company is a collective partner. It shall also report on any contingencies incurred in relation to those entities. If the entity has significant influence over another holding a percentage lower than 20% of the capital or if the entity holds more than 20%, the circumstances affecting those relations shall be explained.

(c) The acquisitions made during the financial year that have led to the rating of an entity as a subsidiary shall be detailed, indicating the share of capital and the percentage of voting rights acquired.

(d) Notifications made, in compliance with the provisions of Article 86 of the Consolidated Text of the Company Law, to the companies involved, directly or indirectly, by more than 10%.

e) Amount of the impairment valuation corrections recorded in the different units, differentiating those recognized in the exercise of the accumulated ones. It shall also be reported, where appropriate, on the envelopes and reversions of the impairment valuation corrections charged and credited, respectively, against the item of net worth that collects the valuation adjustments, in the terms indicated in the registration and valuation standard.

f) The result of the disposal or disposal by another means of investments in group, multigroup and associated entities.

g) breakdowns of positions in entities in the group, with the detail required in the following table:

Accepted reinsurance

companies financial assets

Group companies

Multigroup companies

Associated companies

Total

instruments:

-Financial investments in capital

-Participations in group managed investment funds

-Participations in venture capital funds managed by group societies

Other heritage instruments

representative values:

-

income values

-Other debt representative values

Derivatives

Hybrid instruments

on account of investment risk takers

for direct insurance operations:

-Insurance Tomadores:

Pending Receipts

-Provision for outstanding premiums

-Mediators:

-Outstanding balances with mediators

-Provision for balance impairment with mediators

for reinsurance operations:

for coinsurance operations:

-Pending balances with coinsurers

 

-Provision for balance impairment with coinsurance

for required disbursements

Other credits

financial assets

d) Other information.

Information must be included about:

(a) Firm commitments to purchase financial assets and predictable sources of financing, as well as firm commitments to sell.

(b) Contracts for the purchase or sale of non-financial assets, which are recognised and valued in accordance with paragraph 5.4 of the standard of registration and valuation of financial instruments in accordance with that rule.

c) Any other substantive circumstances affecting financial assets, such as: litigation, liens, etc.

d) The amount available on the discount lines, as well as the credit policies granted to the entity with their respective limits, specifying the willing part.

e) The amount of the debts with collateral, with an indication of their form and nature.

10.3 Information on the nature and level of risk from financial instruments.

10.3.1 Qualitative information.

For each type of risk: credit risk, liquidity risk and market risk (the latter includes exchange rate risk, interest rate risk and other price risks), risk exposure shall be reported and the risk exposure shall be reported and shall describe the risk management objectives, policies and procedures and the methods used for its measurement.

If there were changes at these extremes from one exercise to another, they should be explained.

10.3.2 Quantitative information.

For each risk type, it will be presented:

(a) A summary of the quantitative information regarding the exposure to the risk at the end of the financial year. This information shall be based on the information used internally by the board of the entity or equivalent governing body.

(b) Information on risk concentrations, which shall include a description of the way the concentration is determined, the common characteristics of each concentration (geographical area, currency, market, counterpart, etc.), and the amount of risk exposures associated with financial instruments that share such characteristics.

10.4 Own funds.

Reports on:

(a) Number of shares in the capital and nominal value of each of them, distinguishing by classes, as well as the rights granted to them and any restrictions they may have. Also, where appropriate, the outstanding disbursements as well as the date of enforceability shall be indicated for each class. This same information shall be required for other equity instruments other than capital.

b) Ongoing capital increase indicating the number of shares to be subscribed, their nominal value, the issue premium, the initial disbursement, the rights they will incorporate and restrictions they will have; as well as the existence or non-subscription rights of subscription in favour of shareholders, shareholders or debenture holders; and the time allowed for the subscription.

(c) The amount of capital authorised by the shareholders ' meeting to be put into circulation by the directors, indicating the period to which the authorisation is extended.

(d) Rights incorporated in the parts of founder, enjoyment bonds, convertible debentures and similar financial instruments, with an indication of their number and the extent of the rights they confer.

e) Specific circumstances that restrict the availability of reserves.

(f) Number, nominal value and average purchase price of the company's own shares held by the company or of a third party on behalf of the company, specifying its intended final destination and the amount of the reserve for the acquisition of shares in the dominant company. The number, nominal value and amount of the reserve corresponding to the own shares accepted as collateral shall also be reported. Where appropriate, it shall also be reported as appropriate for other equity instruments other than capital.

g) The share of capital that is, where applicable, owned by another entity, directly or through its subsidiaries, when it is equal to or greater than 10%.

h) Shares in the company admitted to trading.

(i) Options issued or other contracts by the company on its own shares, which are to be classified as own funds, describing their conditions and corresponding amounts.

(j) The above information shall also be provided in the event that the insurer takes the legal form of a mutual, applying to the mutual fund the requirements laid down for the social capital.

k) Specific circumstances relating to grants, donations and legacies awarded by partners or mutualists.

11. Foreign currency.

1. Total amount of assets and liabilities denominated in foreign currency, including a breakdown of more significant assets and liabilities classified by currency. The amounts corresponding to purchases, sales and commitments made shall also be indicated.

2. The entity shall disclose the following information:

(a) The amount of exchange differences recognised in the outcome of the exercise by classes of financial instruments, separately presenting those arising from transactions that have been settled over the period of which they are outstanding or outstanding at the end of the financial year, with the exception of those from financial instruments that are measured at fair value through changes in the profit and loss account, and

(b) Conversion differences classified as a separate component of equity, under the heading 'Conversion differences', as well as a reconciliation between the amounts of these differences at the beginning and end of the financial year.

3. Where a change in the functional currency has occurred, either of the reporting entity or of any significant business abroad, this fact shall be disclosed as well as the reason for such change.

4. In the exceptional case that the institution uses more than one functional currency, it shall disclose the amount of the assets, turnover and results that have been expressed in each of those functional currencies.

5. Where applicable, the functional currency of a business abroad, specifying the net investment in the currency, where it is different from the currency of presentation of the annual accounts.

6. Where the institution has business abroad and is subject to high inflation rates, it shall report on:

(a) The fact that the annual accounts, as well as the figures for previous financial years, have been adjusted to consider changes in the general purchasing power of the functional currency and which, as a result, are expressed in the current monetary unit at the end of the financial year, and

b) The identification and value of the general price index at the end of the financial year, as well as the movement of the same during the current and the previous financial year.

12. Tax situation.

12.1 Tax on benefits.

Explanation of the difference between the net amount of the income and expenses of the financial year and the tax base (tax result). For this purpose, the following reconciliation shall be included, taking into account that those differences between those magnitudes that are not identified as temporary according to the registration and valuation standard shall be qualified as permanent differences.

RECONCILIATION OF THE NET INCOME AND EXPENSE OF THE YEAR TO THE TAXABLE PROFIT TAX BASE

Exercise revenue and expense balance

-

-

-

Profit and loss account

Income and expenses directly imposed on

Augments

Decreases

Augments

Decreases

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Timetable_table_izq"> Temporary Differences:

-

-

-

-

With source in exercise

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Explanation and numerical reconciliation between income tax expense/income and the result of multiplying the applicable tax rates to the total income and expenses recognized, differentiating the balance from the profit and loss account.

In addition, the following information must be indicated:

1. Breakdown of expenditure or income by income tax, differentiating the current tax and deferred tax variation, which is imputed to the profit and loss account result-distinguishing the one corresponding to the continued operations and to interrupted operations if any and whenever the entity is required to report separately from the results from interrupted operations, as well as the directly imputed to the net worth, differentiating the one that affects each item of the income statement and recognized expenses.

2. In relation to deferred taxes, this difference should be broken down, distinguishing between assets (temporary differences, credit for negative taxable bases and other claims) and liabilities (temporary differences).

3. The amount and time limit for the application of deductible temporary differences, negative tax bases and other tax credits, where the corresponding deferred tax asset has not been recorded in the balance sheet.

4. The amount of temporary differences taxable by investments in subsidiaries, associates and joint ventures where the corresponding deferred tax liability has not been recorded in the terms set out in the registration and valuation standard.

5. The amount of deferred tax assets, indicating the nature of the evidence used for their recognition, including, where applicable, the tax planning, when the performance of the asset depends on future earnings in excess of those corresponding to the reversal of the taxable temporary differences, or when the entity has experienced a loss, either in the current financial year or in the previous year, in the country with which the deferred tax asset relates.

6. Nature, amount and commitments acquired in relation to the tax incentives applied during the financial year, such as benefits, deductions and certain permanent differences, as well as those to be deducted. In particular, it shall be reported on tax incentives which are the subject of a period of time, indicating the amount charged to the financial year and the amount remaining to be charged.

7. In addition, the tax payable to the different tax jurisdictions will be reported, detailing the withholding taxes and payments made.

8. The remaining permanent differences will be identified by indicating their amount and nature.

9. Changes in the applicable tax rates compared to the previous financial year. The effect on deferred taxes recorded in previous years shall be indicated.

10. Information relating to provisions arising from the tax on profits as well as on tax contingencies and on post-closure events involving a change in the tax rules affecting the registered tax assets and liabilities. In particular, the exercise shall be reported pending verification.

11. Any other substantive circumstances in relation to the tax situation.

12.2 Other Tributes.

Any circumstances of a significant nature in relation to other taxes shall be reported; in particular any fiscal contingency, as well as the exercise of the exercise of verification.

13. Revenue and Expenditure

1. Breakdown of item 6.b) of the profit and loss account "Social charges", distinguishing between contributions and endowments for pensions and other social charges.

2. The amount of the sale of goods and services produced by the swap of non-cash goods and services.

14. Provisions and contingencies.

1. For each provision recognised in the balance sheet it shall be indicated:

a) Analysis of the movement of each balance sheet item during the financial year, indicating:

-Initial Balance.

-Dotations.

-Applications.

-Other adjustments made (business combinations, etc.).

-End Balance.

It will not be necessary to include comparative information in this section.

b) Information about the increase, during the financial year, on the balances updated at the discount rate for the passage of time, as well as the effect that any change in the discount rate could have.

It will not be necessary to include comparative information in this section.

c) A description of the nature of the assumed obligation.

(d) A description of the estimates and calculation procedures applied for the valuation of the corresponding amounts, as well as the uncertainties that may arise in those estimates. Where appropriate, the adjustments to be made shall be justified.

e) Indication of the amounts of any right of reimbursement, indicating the amounts that have been recognised in the balance sheet asset for these rights.

2. Unless the resource output is remote, for each contingency type, it will be indicated:

a) A brief description of their nature.

b) Predictable developments, as well as the factors on which it depends.

(c) A quantified estimate of the possible effects on the financial statements and, in the event of failure to be carried out, information on such impossibility and uncertainties that motivate it, indicating the maximum and minimum risks.

d) The existence of any right of reimbursement.

e) In the exceptional case where a provision has not been able to be recorded on the balance sheet because it cannot be reliably valued, additionally, the reasons why such an assessment cannot be made shall be explained.

3. In the event that profit or economic income for the entity from assets that do not meet the recognition criteria is likely to be entered, it shall be indicated:

a) A brief description of their nature.

b) Predictable developments, as well as the factors on which it depends.

(c) Information on the criteria used for their estimation, as well as the possible effects on financial statements and, in the event of failure to perform, information on such impossibility and uncertainties that motivate it.

4. Exceptionally, in cases where a dispute with a third party is involved, the information required in the preceding paragraphs would seriously prejudice the position of the entity, it will not be necessary to provide such information, but the nature of the dispute will be described and will inform the omission of this information and the reasons that have led to such a decision.

15. Information on the environment.

Information on expenses, contingencies, investments made and, where appropriate, compensation to receive from a third party on issues related to environmental risks will be detailed.

16. Long-term remuneration to staff.

1. Where the institution grants long-term remuneration to the staff of the defined contribution or benefit, it shall include a general description of the type of plan concerned.

2. In the case of long-term remuneration to the defined benefit staff, in addition, the information required for the provisions recognised in the balance sheet in paragraph 1 of the note relating to provisions and contingencies shall also be included:

(a) A reconciliation between the assets and liabilities recognised in the balance sheet.

(b) Amount of items included in the fair value of the assets affected by the plan.

(c) Main actuarial assumptions used, with their values at the end of the financial year.

17. Transactions with payments based on equity instruments.

For each payment arrangement based on equity instruments, the following must be indicated:

1. Description of each type of payment arrangement based on equity instruments that has existed during the financial year, with the indication of the beneficiary. If such agreements have similar characteristics, they may be reported jointly, provided that such information makes it possible to understand the nature and extent of such agreements.

2. Where transactions with payments based on equity instruments are to be recorded, the information required for the provisions recognised in the balance sheet in paragraph 1 of the note relating to provisions and contingencies shall be included.

3. When transactions consist of payments based on stock options, the following information will be reported:

(a) The number and weighted average of the exercise prices of the options existing at the beginning and end of the year, those granted, and cancelled during the financial year, as well as those that have lapsed over the course of the financial year. Finally, the same information will be provided on the exercisable at the end of the period.

(b) For the options on shares exercised during the financial year, the weighted average share price shall be indicated on the date of the year, and the weighted average price of the share may be reported during the period.

c) For the options existing at the end of the financial year, the range of exercise prices and the weighted average life outstanding.

The fair value of the goods or services received or the fair value of the equity instruments granted shall be indicated as determined during the financial year.

The effect of transactions with payments based on equity instruments on the financial situation and the outcome of the entity shall be indicated.

4. Where the fair value of the goods and services received cannot be reliably estimated, as set out in the standard of registration and valuation, this fact shall be reported, explaining the reasons for such impossibility.

18. Grants, donations and legacies.

Reports on:

1. The amount and characteristics of the grants, donations and bequests received that appear on the balance sheet, as well as those charged in the profit and loss account.

2. Analysis of the movement of the contents of the corresponding subpool of the balance sheet, indicating the initial and final balance as well as the increases and decreases. In particular, the amounts received and, where appropriate, returned shall be reported.

3. Information on the origin of the grants, donations and legacies, indicating, for the first, the public Ente that grants them, specifying whether the grant of the same is the local, regional, state or international administration.

4. Information on the compliance or otherwise of the conditions associated with grants, donations and legacies.

19. Business combinations.

1. The acquiring institution shall indicate, for each of the business combinations it has carried out during the financial year, the following information:

a) The names and descriptions of the entities or businesses that are combined.

b) The date of acquisition.

c) The legal form used to carry out the combination.

d) The reasons for the operation, as well as a description of the factors that give rise to the recognition of the goodwill.

e) The cost of the combination and a description of the components of the combination, by disaggregating by categories of elements such as:

-Cash.

-Other tangible or intangible assets, such as a business or entity dependent on the acquirer.

-contingent payments.

-Debt instruments.

-Participation in the assets of the acquirer, including the number of equity instruments issued or issued and the method to estimate its fair value.

-The previous holdings in the assets of the acquired entity that have not given rise to the control of the same, in the business combinations in stages.

(f) The amounts recognised, at the date of acquisition, for each asset class and liabilities of the acquired entity, indicating those that are not collected in accordance with the standard of registration and valuation at fair value.

g) The maximum potential amount of future payments that the acquirer may be required to make in accordance with the terms of the acquisition, or the circumstance that such amount does not exist, if so.

h) In respect of the goodwill that may have arisen in the business combinations, the entity shall provide the information requested in paragraph 2 of the note relating to intangible fixed assets.

(i) In business combinations where the cost of the combination is less than the value of the identifiable assets acquired less than that of the liabilities assumed, the amount and nature of any excess that is recognised in the profit and loss account in accordance with the rule of record and valuation and the item in which it is listed. Also, where appropriate, intangible assets that have not been able to be registered for not being able to calculate their valuation by reference to an active market shall be described.

(j) In the business combinations in which there is a prior relationship between acquirer and acquired, at the date of acquisition, the nature of such relationship and, where applicable, the valuation of the amount to settle that prior relationship, the method used for its determination and any results recognised as a consequence of such settlement as well as the item in which it appears, shall be noted.

2. The information required in the preceding paragraph shall be disclosed in an aggregated form for business combinations carried out during the financial year, which are not individually relevant.

Additionally, the acquiring entity shall provide the information contained in the preceding paragraph for each of the business combinations made or in progress between the closing date of the annual accounts and the date of their formulation, unless this is not possible. In this case, the reasons why this information cannot be provided will be stated.

3. The acquiring institution shall disclose, separately for each business combination carried out during the financial year, or aggregately for which it is individually lacking in relative importance, the share of the revenue and the result attributable to the combination from the date of acquisition. It shall also indicate the revenue and the result of the financial year that the entity resulting from the business combination would have obtained under the assumption that all business combinations carried out in the financial year would have been made at the start date of the financial year.

In the event that this information could not be supplied, this fact will be pointed out and will be motivated.

4. The following information shall be given in relation to the business combinations carried out during the financial year or in the previous financial years:

(a) If the amount recognised in accounts has been provisionally determined, the reasons why the initial recognition is not complete shall be indicated, the assets acquired and commitments assumed for which the valuation period is open and the amount and nature of any adjustment in the valuation carried out during the financial year.

b) A description of the facts or circumstances after the acquisition that have resulted in recognition during the deferred tax year acquired as part of the business combination.

(c) The amount and a justification for any gain or loss recognized in the financial year that is related to the acquired assets or liabilities assumed and is of such amount, nature or effect that this information is relevant to the understanding of the entity's annual accounts resulting from the business combination.

5. The breakdown of information provided for in this paragraph shall also be required, where appropriate, for the acquisition of policy portfolios and the economic rights of a portfolio of policies acquired in favour of a mediator.

20. Joint ventures.

1. The entity shall indicate and describe the significant interests in joint ventures by performing a detail of the form that the business takes, distinguishing between:

(a) Jointly Controlled Holdings, and

(b) Jointly Controlled Assets.

2. Without prejudice to the information required in paragraph 2 of the Note concerning provisions and contingencies, the aggregate amount of the following contingencies shall be reported separately, unless the probability of loss is remote:

(a) Any contingency in which the entity as a participant has incurred in relation to investments in joint ventures and their share in each of the contingencies that have been incurred jointly with other unit-holders.

b) Your share of the contingencies of the joint businesses in which you can be responsible, and

c) Those contingencies arising because the entity as a participant may be liable for the liabilities of other unit-holders in a joint venture.

3. The institution shall report separately from the total amount of the following commitments:

(a) Any commitment to capital investment, which it has assumed in relation to its share in joint ventures, as well as its share of capital investment commitments undertaken jointly with other unit-holders, and

b) Their participation in the capital investment commitments assumed by the joint ventures themselves.

4. This shall be broken down for each significant balance sheet item, profit and loss account, cash flow statement and net worth change status, amounts for each joint venture.

21. Assets for sale and discontinued operations.

1. For each activity to be classified as interrupted, the following must be indicated:

(a) The income, expenses and the result before tax of the interrupted activities, recognized in the profit and loss account.

b) The profit tax expense relative to the previous result.

(c) Net cash flows attributable to the operating, investment and financing activities of the discontinued activities.

(d) A detailed description of the property assets affected by the activity, indicating the amount and the circumstances that have led to the classification.

(e) Adjustments to be made in the current financial year to amounts previously submitted that relate to activities that have been interrupted and which are directly related to the disposal or disposal of such activities in a previous financial year. Or, where appropriate, those originating in the absence of such disposal.

f) The results relating to the activity which have previously been presented as interrupted activities, and which have not yet been completed.

2. For each asset or group of items to be classified as held for sale, including those for discontinued activities, the following shall be indicated:

(a) A detailed description of the assets, indicating their amount and the circumstances that have led to the classification.

b) The result recognized in the profit and loss account or in the state of changes in net worth, for each significant item.

(c) Adjustments to be made in the current financial year to amounts previously submitted that relate to the assets or groups of items held for sale and which are directly related to the disposal or disposal of items in a previous financial year. Or, where appropriate, those originating in the absence of such disposal.

3. Where the requirements for qualifying a non-current asset or a qualifying group of items as held for sale are met after the end date of the financial year, but prior to the formulation of the annual accounts, the entity shall not qualify them as being held for sale in the annual accounts that it makes. However, it shall supply the information described in point (a) of the previous paragraph in relation to them.

22. Post-closure events.

The entity will report:

1. Subsequent events which reveal circumstances that already existed at the end of the financial year which did not, in accordance with their nature, include the inclusion of an adjustment in the figures contained in the annual accounts, but the information contained in the report should be amended in accordance with that subsequent event.

2. Subsequent events showing conditions which did not exist at the close of the financial year and which are of such importance that, if no information is provided, could affect the assessment capacity of the users of the annual accounts. In particular, the subsequent event shall be described and the estimation of its effects shall be included. Where it is not possible to estimate the effects of the said fact, an express expression on this point shall be included, together with the reasons and conditions which cause such impossibility of estimation.

3. Events occurring after the closure of the annual accounts affecting the implementation of the operating business principle, reporting:

(a) Description of the subsequent event and its nature (a factor that doubts the application of the operating company principle).

b) Potential impact of the subsequent event on the situation of the entity.

c) Related mitigating factors, if any, with the subsequent fact.

23. Transactions with related parties.

1. Information on related party transactions shall be provided separately for each of the following categories:

a) Dominant entity.

b) Other entities in the group.

(c) Joint business in which the entity is one of the unit-holders.

d) Associated entities.

e) Entities with joint control or significant influence over the entity.

f) Key personnel of the management of the entity or the parent entity.

g) Other related parties.

2. The institution shall provide sufficient information to understand the related party transactions it has carried out and the effects thereof on its financial statements, including, inter alia, the following:

(a) Identification of the persons or entities with whom the related transactions have been conducted, expressing the nature of the relationship with each party involved.

b) Detail of the transaction and its quantification, expressing the price policy followed, by putting it in relation to which the entity uses with respect to similar transactions carried out with parties that do not have the consideration of related. Where there are no analogous operations carried out with parties which do not have the consideration of related links, the criteria or methods used to determine the quantification of the operation.

(c) Profit or loss that the transaction has originated in the institution and description of the functions and risks assumed by each related party with respect to the transaction.

(d) Amount of outstanding balances, both assets and liabilities, their terms and conditions, the nature of the consideration established for settlement, grouping assets and liabilities by type of financial instrument (with the structure that appears in the institution's balance sheet) and guarantees granted or received.

e) Value adjustments for doubtful claims related to previous outstanding balances.

(f) Expenditure recognised in the financial year as a result of bad debts or of doubtful recovery of related parties.

3. In any case, the following types of related party transactions should be reported:

a) Sales and asset purchases.

b) Insurance and reinsurance operations.

c) Delivery and receipt of services.

d) Financial lease contracts.

e) Research and development transfers.

f) License agreements.

g) Financing agreements, including loans and capital injections, whether in cash or in kind. In the case of acquisition and disposal of equity instruments, the number, nominal value, average price and the result thereof shall be specified, specifying the final destination provided for in the acquisition case.

h) Interest paid and charged; as well as those accrued but not paid or charged.

i) Dividends and other distributed profits.

j) Guarantees and endorsements.

k) Remuneration and allowances.

l) Contributions to pension plans.

m) Benefits to be offset by own financial instruments.

n) Commitments in firm for options of purchase or sale or other instruments that may involve a transfer of resources or obligations between the entity and the related party.

o) A cost sharing agreement for the production of goods and services to be used by several related parties.

p) Treasury management agreements, and

q) Debt forgiveness and prescription agreements.

r) All those that affect or relate to goods and rights that are eligible for the coverage of technical provisions and elements that are available in the State of the Solvency of Solvency and the Guarantee Fund.

4. The above information may be presented in an aggregated form when referring to items of a similar nature. In any event, information of an individual nature shall be provided on the related operations which are significant for their size or relevant to a proper understanding of the annual accounts.

5. It shall not be necessary to inform in the case of transactions which, belonging to the ordinary traffic of the entity, are carried out under normal market conditions, are of little quantitative importance and are of relevance to express the true image of the assets, the financial situation and the results of the entity.

6. However, in any event, information on the amount of the salaries, allowances and remuneration of any (cash or in-kind) accrued in the course of the financial year by senior management staff and members of the administrative body, whatever their cause, as well as the obligations incurred in respect of pensions or the payment of life insurance premiums in respect of the former and current members of the management body and senior management staff shall be reported. Information on eesc allowances and payments based on equity instruments shall also be included. Where the members of the administrative body are legal persons, the above requirements shall relate to the natural persons representing them. This information may be given in a comprehensive manner by way of remuneration, separately collecting the information relating to the staff of the members of the administrative body.

The amount of advances and credits granted to senior management staff and members of the administrative bodies, with an indication of the interest rate, their essential characteristics and the amounts that may be returned, as well as the obligations assumed on behalf of them, shall also be reported. Where the members of the administrative body are legal persons, the above requirements shall relate to the natural persons representing them. This information may be given in a comprehensive manner for each category, separately collecting the information corresponding to the senior staff of the members of the administrative body.

7. Entities which are organised under the legal form of a public limited liability company must specify the participation of the administrators in the capital of another company with the same, similar or complementary gender of activity to which the social object constitutes, as well as the positions or functions which it carries out, as well as the self-realization or other activity of the same, analogous or complementary gender of activity of which the social object of the entity constitutes.

8. In the case of belonging to a group of entities, the financial structure of the group shall be described.

24. Other information.

Information about:

1. The average number of persons employed in the course of the financial year, expressed by category.

The distribution by gender at the end of the exercise of the company's staff, broken down into a sufficient number of categories and levels, including those of senior managers and members.

2. Companies which have issued securities admitted to trading on a regulated market in any Member State of the European Union, and which, in accordance with the rules in force, only publish individual annual accounts, shall be required to report on the main changes to the net worth and profit and loss account if the international financial reporting standards adopted by the European Union Regulations have been applied, indicating the valuation criteria that they have applied.

3. The amount broken down by concepts of the audit fees of accounts and other services provided by the auditors; in particular, the total of fees charged by other verification services as well as the total of fees charged for tax advice services shall be detailed. The same breakdown of information shall be given as fees for any entity in the same group as the auditor of accounts, or any other entity with which the auditor is linked by control, common ownership or management.

4. The nature and purpose of the business of the entity's agreements that do not appear on balance sheet and on which no information has been incorporated in another note of memory, as well as its possible financial impact, provided that this information is significant and helps to determine the financial position of the institution.

5. Where the company is the largest asset in the group of companies domiciled in Spain, subject to the same unit of decision, because they are controlled by any means by one or more natural or legal persons, not obliged to consolidate, to act jointly, or because they are under the sole direction of agreements or statutory clauses, they shall include a description of the companies, indicating the reason for which they are under the same decision-making unit, and shall report on the aggregate amount of the assets, liabilities, net worth, turnover and the result of all these companies.

It is understood by a higher-active society that at the time of its incorporation into the unit of decision, it presents a higher figure in the total assets of the model of the balance sheet.

6. Where the company is not the largest asset in the group of companies subject to a decision unit in the terms set out in the preceding paragraph, it shall indicate the unit of decision to which it belongs and the Trade Register where the annual accounts of the company containing the information required in the preceding paragraph are deposited.

7. In the event that the entity belongs to a consolidated group of insurance entities, as provided for in Article 21 of the recast of the Law on the Management and Supervision of Private Insurance, the name of the group and the entity required to submit the Consolidated Statistical Documentation Consolidated in the General Directorate of Insurance and Pension Funds shall be indicated, the description of the companies included for these purposes on the perimeter of the consolidation and the social object and methods of consolidation applied to each of these companies. In addition, where the consolidated group of insurance institutions does not coincide with the group of companies provided for in Article 42 of the Trade Code, the information contained in paragraph 10.2.3 (c) of the report shall be provided, referred to as the consolidated group of insurance institutions.

Information will also be provided on the group's subjection to the provisions of Law 5/2005, of 22 April, of supervision of financial conglomerates, and therefore other laws of the financial sector and in Royal Decree 1332/2005, of 11 November, which the former develops, in the same way as the circumstances provided for in the aforementioned rules for the purposes of its constitution as a financial conglomerate or a non-consolidated mixed group.

25. Segmented information.

It shall be broken down by classes or activities, both for life and non-life, by distinguishing the direct insurance operations of the accepted reinsurance, the volume of premiums and technical provisions corresponding to:

-Operations declared in Spain.

-Operations declared in other countries of the European Economic Area.

-Operations declared in other countries.

26. Technical information.

1. The entity shall disclose information relating to:

(a) Accounting policies relating to insurance contracts.

(b) The objectives related to risk management by insurance contracts, risk management policies and procedures and the methods used for their measurement.

c) The reinsurance policy.

d) The concentration of insurance risk.

e) The quantification of exposures to life insurance policy risks referred to in Article 36.2 of the Regulation on the management and supervision of private insurance.

2. In relation to life insurance, the following information will also be detailed:

2.1 Composition of the life business, by volume of premiums (direct insurance).

a) a. 1 Primas for individual contracts.

a. 2 Primas for collective insurance contracts.

b) b. 1 Regular Prims.

b. 2 Single Prims.

c) c. 1 Premium contracts with no profit participation.

c. 2 Premium contracts with profit participation.

c. 3. Contract premiums in which the investment risk falls on policy holders.

The information contained in this paragraph shall be completed only where the life-class premiums represent more than 10 per 100 of the total business of the entity in direct insurance.

The preceding information shall also relate to the reinsurance premiums accepted when they represent at least 10 per 100 of the total lifetime premiums.

2.2 Technical conditions of the main life insurance modalities.

The indicated information shall refer to the insurance modalities that represent more than 5 per 100 of the premiums or the mathematical provisions of the class of life, dealing with aspects such as the type of coverage to which the modality refers, tables used, the technical interest and whether or not it is granted participation in benefits; in this case, the amount of the benefit distributed to the insured in each modality, as well as the form of distribution of the benefit, will be mentioned.

It shall be indicated if this is the mode a.1, a.2, b.1, b.2, c.1, c.2, in accordance with the nomenclature used for paragraph 2.1 above.

3. In relation to the non-life insurance, the following information shall also be detailed:

3.1 Revenue and technical expenses for classes.

Only for classes in which the premiums issued exceed EUR 2,000,000; but in any case, this paragraph will be completed for the three most important branches.

Direct insurance

Reassured accepted (1)

I. Premiums charged (Direct and accepted) 1. Premiums written net of cancellations and extortions

2. +/-variation provision for unconsumed premiums

3. +/-variation provision for ongoing risks

4. +/-variation provision for premiums pending collection

II. Reinsurance Premiums (Transferred and Receded) 1. Net accruals of cancellations

2. +/-variation provision for unconsumed premiums

A. Total Reinsurance Net Premiums (I-II)

III. Claims (Direct and accepted) 1. Capabilities and expenses imputable to capabilities

2. +/-variation technical provisions for capabilities

IV. Claims for reinsurance (Transferred and Receded) 1. Benefits and expenses paid

2. +/-variation technical provisions for capabilities

B. Total net reinsurance (III-IV)

V. +/-variation other net reinsurance technical provisions

VI. Acquisition (Direct and Accepted)

VII. Administration (Direct and Accepted)

. Other technical expenses (Direct and accepted)

IX. Commissions and participations in the transferred and regressed reinsurance

C. Total operating expenses and other net technical expenses (V + VI + VII + VIII)

(1) This column shall be completed only, with the breakdown of the information relating to the direct insurance and the reinsurance accepted, where the acceptances assume more than 10% of the total premium volume.

3.2. Technical result per year of occurrence.

-In the non-life insurance classes, the following breakdown shall be made taking into account the following:

-The premiums will be the accruals in the financial year, excluding the cancellation and cancellation of previous years.

-The claims will be the ones in the financial year and the expenses of the accident will be attributable to them.

I. Premiums purchased (Direct and accepted) 1. Premiums written net of cancellations and extols2. +/-variation provision for non-consumer3 premiums. +/-variation provision for premiums pending collection

II. Period premiums for reaseguro1. Premiums written net of cancellations and extols2. +/-variation provision for non-consumer premiums. Total Reinsurance Net Acquired Premiums (I-II)

III. Claims (Direct and accepted) 1. Benefits and expenses attributable to prests2. Technical provision for disaster-related claims in the exercise

IV. Claims for reinsurance (Transferred) 1. Benefits and expenses paid for claims occurring in the exercises2. Technical provisions for the performance of claims occurring in the exercise. Total reinsurance net reinsurance (III-IV)

V. Acquisition (Direct)

VI. Administration Expenses (Direct)

VII. Other technical expenses (Direct)

VIII. Commissions and shares in the transferred reinsurance and regressed (Ceded)

IX. Net technical financial income from expenses of the same nature

4. If, in accordance with paragraph 3 of the Standard of Registration and Valuation 9, the institution recognises through the net worth or the profit and loss account and/or corrective liabilities for accounting asymmetries, it shall include information in the notes on the notes made for each type of insurance transaction, as well as the reconciliation of the balance of the assets and liabilities for accounting asymmetries at the beginning and the close of the financial year.

27. State of coverage of technical provisions.

In this section, the models should be reproduced in this section, which should be made by entities in the coverage states of Technical Provisions for the purposes of the completion of the Statistical-Accounting Documentation.

For these states, you should indicate:

• Employee valuation criteria.

• It will be included in the previous year. In the case of intermediate financial statements, the preceding period shall be provided.

• In the event of a deficit, reasons which the institution has given rise to and measures taken or to be taken to overcome this situation, indicating in its case of goods which do not yet meet the requirements of fitness, could be affected on a transitional basis until such conditions are met.

• Changes in the allocation of eligible assets from life to non-life and/or vice versa.

28. State of the solvency margin and guarantee fund.

The model that the State of the Margin of Solvency and Guarantee Fund that the entities must make for the purposes of the completion of the Statistical-Accounting Documentation must be reproduced in this section.

It should also be indicated:

• Employee valuation criteria.

• It will be included in the previous year. In the case of intermediate financial statements, the preceding period shall be provided.

• Main variations in terms of the minimum amount payable in respect of the previous year.

• In case of membership of a consolidated group of insurance institutions, indication of the minimum amount of the consolidated solvency margin and the uncommitted consolidated equity.

• In the event of a deficit, circumstances that the entity considers have originated and measures taken or to be taken to alleviate this situation.

• Changes in the allocation of the solvency margin of the life activity to non-life and/or vice versa.

B. CONTENT OF ABBREVIATED MEMORY.

In abbreviated memory, the information breakdowns required in the sections below are included in the normal memory content:

1. Activity of the entity.

2. Basis for the presentation of the annual accounts.

3. Application of results.

4. Rules for registration and valuation.

8. Commissions activated and other acquisition expenses activated.

11. Foreign Currency.

13. Revenue and expenditure.

14. Provisions and contingencies.

15. Information on the environment.

16. Long-term remuneration to staff.

17. Transactions with payments based on equity instruments.

18. Grants, donations and legacies.

19. Business combinations.

20. Joint ventures.

21. Assets for sale and discontinued operations.

22. Post-closure events.

23. Transactions with related parties.

24. Other information.

25. Segmented information.

27. Status of Coverage of Technical Provisions.

28. Solvency margin and guarantee fund status.

As far as the rest of the paragraphs are concerned, the abbreviated memory will complete and detail the information set out below.

-Referred to paragraphs 5, 6 and 7 relating to tangible fixed assets, real estate investments and intangible fixed assets:

1. Analysis of the movement during the exercise of each of these items of the balance sheet and its corresponding cumulative write-downs and cumulative value impairment corrections, indicating the following:

a. Initial balance.

b. Tickets.

c. Departures.

d. Final balance.

In particular, the intangible immobilized with indefinite shelf life and the reasons for the estimation of this indefinite useful life will be detailed.

Information on real estate investments will also be specified, including a description of the real estate investments.

If there is any significant item, by its nature or amount, the relevant additional information shall be provided.

2. On the goodwill and the expenditure on the acquisition of portfolios and economic rights derived from portfolios of policies acquired from a mediator, the main assumptions and parameters which have been used as a basis for their estimation and which justify the amounts by which they appear on the balance sheet.

-Referred to paragraph 9, relating to leases and other operations of a similar nature:

1. On financial leases and other transactions of a similar nature, it shall be specified, in accordance with the terms of the contract, the cost of the good at origin, the duration of the contract, years after, the fees paid in previous years and in the year, outstanding fees and, where appropriate, the value of the option to purchase.

2. On operating leases, their most significant aspects, both legal and economic, will be specified.

-Referred to paragraph 10 concerning financial instruments:

1. The book value shall be disclosed, with reference to each of the categories of financial assets and financial liabilities identified in the standard of registration and valuation of financial instruments, of the various financial instruments in each of them included, grouped by typologies, reporting the variation from the previous financial year. The financial instruments whose investment risk is assumed by the policyholders, investments affecting the preparatory operations of insurance contracts and those linked to the participation of the policyholders shall be detailed. The descriptive tables referred to in paragraphs (1) and (2) of paragraph 10.2.1 shall be complied with.

2. In addition, in relation to financial liabilities, the amount, maturity, guarantees and interest shall be reported and, in respect of the amount available on the discount lines, as well as the credit policies granted to the institution with their respective limits, specifying the willing party.

3. All information on transfers or reclassifications between the different categories of financial assets that have occurred in the financial year shall be provided. In particular, the amounts of such reclassification for each category of financial instruments shall be reported and a justification thereof shall be included.

4. For each class of financial assets, an analysis of the movement of the corrective accounts representative of the impairment losses caused by the credit risk shall be presented.

5. Where financial assets have been valued at fair value, it shall be indicated:

(a) If fair value is determined, in whole or in part, by reference to prices quoted in active markets or estimated using valuation models and techniques. In the latter case, the main assumptions on which the above models and valuation techniques are based will be identified.

(b) By category of financial assets, fair value, changes in the value recorded, if any, in the profit and loss account, as well as those entered directly in equity.

c) With respect to derivative financial instruments, other than those that qualify as hedging instruments, the nature of the instruments and the important conditions that may affect the amount, timing and certainty of future cash flows shall be reported.

6. Group, multi-group and associated companies.

(a) Denomination, domicile and legal form of the entities of the group, specifying for each entity:

-Activities that they exercise.

-Capital Fraction and voting rights held directly and indirectly, distinguishing between both.

-Amount of capital, reserves, other items of net worth and result of the last financial year, differentiating the operating result.

-Value according to books of equity participation.

-Dividends received in the exercise.

-Indication of whether the shares are listed or not on the Stock Exchange and, where applicable, the average price of the last quarter of the year and the closing of the financial year.

(b) The same information as that of the previous point with respect to the associated multigroup entities, those in which the entity still holds more than 20% of the capital, the entity does not have significant influence and those in which the company is a collective partner. It shall also report on any contingencies incurred in relation to those entities. If the institution has significant influence over another holding a percentage lower than 20% of the capital or if it holds more than 20% of the capital there is no significant influence, the circumstances affecting those relations shall be explained.

(c) The acquisitions made during the financial year that have led to the rating of an entity as a subsidiary shall be detailed, indicating the share of capital and the percentage of voting rights acquired.

(d) Notifications made, in compliance with the provisions of Article 86 of the Consolidated Text of the Company Law, to the companies involved, directly or indirectly, by more than 10%.

e) Amount of the impairment valuation corrections recorded in the different units, differentiating those recognized in the exercise of the accumulated ones. It shall also be reported, where appropriate, on the envelopes and reversions of the impairment valuation corrections charged and credited, respectively, against the item of net worth that collects the valuation adjustments, in the terms indicated in the registration and valuation standard.

(f) Disglses of information required under point (g) of section 10.2.3.c) of the normal model.

7. The breakdowns on other types of information referred to in paragraph 10.2.3.d) and information on the nature and level of risk from financial instruments referred to in paragraph 10.3 both of the normal model of memory.

8. Own funds:

(a) Where there are several classes of shares in the capital, the number and the nominal value of each of them shall be indicated, distinguishing by classes, as well as the rights granted to them and any restrictions they may have. Also, where appropriate, the outstanding disbursements as well as the date of enforceability shall be indicated for each class. This same information shall be required for other equity instruments other than capital.

b) Specific circumstances restricting the availability of reserves.

(c) Number, nominal value and average purchase price of the company's own shares held by the company or of a third party on behalf of the company, specifying its intended final destination and the amount of the reserve for the acquisition of shares in the dominant company. The number, nominal value and amount of the reserve corresponding to the own shares accepted as collateral shall also be reported. Where appropriate, it shall also be reported as appropriate for other equity instruments other than capital.

-Refer to paragraph 12, on the tax situation:

1. Tax on profits.

(a) Information regarding the deductible and taxable temporary differences recorded in the balance sheet at the end of the financial year.

(b) Antiquity and expected time limit for tax recovery of claims for negative taxable bases.

c) Tax incentives applied in the exercise and commitments assumed in relation to them.

(d) Provisions arising from the profit tax as well as on tax contingencies and on post-closure events involving a modification of the tax rules affecting the registered tax assets and liabilities. In particular, the exercise shall be reported pending verification.

e) Any other substantive circumstances in relation to the tax situation.

2. Other tributes.

Any circumstances of a significant nature shall be reported in relation to other taxes, in particular any fiscal contingency, as well as the exercises pending verification.

-Refer to paragraph 26, on technical information:

1. Analysis of the movement of each of the technical provisions included in the institution's balance sheet, indicating:

a) Initial Balance.

b) Dotations.

c) Applications.

d) Final salt.

2. In particular, in relation to the stabilisation reserve, the classes or arrangements in which it is constituted shall be indicated.

3. Where the allocation of the provisions for participation in profits is appropriate and for the purpose of extortion, the reasons for the establishment of the provisions shall be indicated.

4. The nature and extent of the differences between the provision for benefits provided for at the beginning of the financial year shall also be reported in respect of claims outstanding at that date and the sum of the amounts paid during the financial year for the claims included in the financial year and the amount of the provision made at the end of the financial year for such outstanding claims.

However, if there is any significant information that is not included in any of the above, it should also be contemplated.

FOURTH PART. TABLE OF ACCOUNTS

GROUP 0

Expense reclassification by target

00. Expenditure attributable to non-life benefits.

001. Commissions and other expenses attributable to benefits, not life.

002. External services attributable to benefits, not life.

003. Taxes attributable to benefits, not life.

004. Staff costs attributable to benefits, not life.

008. Endowments for write-downs attributable to benefits, not life.

01. Expenditure attributable to life benefits.

011. Commissions and other expenses attributable to benefits, life.

012. External services attributable to benefits, life.

013. Taxes attributable to benefits, life.

014. Staff costs attributable to benefits, life.

018. Endowments for write-downs attributable to benefits, life.

02. Non-life operating expenses.

020. Acquisition costs.

0201. Commissions and other expenses attributable to acquisition expenses, not life.

02010. Committees.

02015. Remuneration to insurers for collaboration agreements.

0202. External services attributable to acquisition costs, not life.

0203. Taxes attributable to acquisition costs, not life.

0204. Personnel costs attributable to acquisition costs, not life.

0208. Endowments for write-downs attributable to acquisition expenses, not life.

021. Administration costs.

0211. Expenses attributable to administration expenses, not life.

0212. External services attributable to administration costs, not life.

0213. Taxes attributable to administration expenses, not life.

0214. Personnel costs attributable to administration expenses, not life.

0218. Endowments for write-downs attributable to administration expenses, not life.

03. Operating expenses life.

030. Acquisition costs.

0301. Commissions and other expenses attributable to acquisition expenses, life.

03010. Committees.

03015. Remuneration to insurers for collaboration agreements.

0302. External services attributable to acquisition costs, life.

0303. Taxes attributable to acquisition costs, life.

0304. Personnel costs attributable to acquisition costs, life.

0308. Endowments for write-downs attributable to acquisition expenses, life.

031. Administration costs.

0311. Expenses attributable to administration expenses, life.

0312. External services attributable to administration expenses, life.

0313. Taxes attributable to administration expenses, life.

0314. Personnel costs attributable to administration expenses, life.

0318. Endowments for write-downs attributable to administration expenses, life.

04. Expenditure attributable to non-life investments.

042. External services attributable to investments, not life.

043. Taxes attributable to investments, not life.

044. Personnel costs attributable to investments, not life.

048. Endowments for write-downs attributable to investments, not life.

05. Expenditure attributable to investment life.

052. External services attributable to investments, life.

053. Taxes attributable to investments, life.

054. Personnel costs attributable to investments, life.

058. Endowments for write-downs attributable to investments, life.

06. Other non-life technical expenses.

062. External services attributable to other technical expenditure, not life.

063. Taxes attributable to other technical expenses, not life.

064. Personnel costs attributable to other technical expenses, not life.

068. Allocations for write-downs attributable to other technical expenses, not life.

07. Other technical expenses life.

072. External services attributable to other technical expenditure, life.

073. Taxes attributable to other technical expenses, life.

074. Personnel costs attributable to other technical expenses, life.

078. Endowments for write-downs attributable to other technical expenses, life.

08. Non-technical expenses.

082. External services attributable to expenditure, not technical.

083. Taxes attributable to expenditure, not technical.

084. Expenditure on staff responsible for expenditure, not technical expenditure.

088. Endowments for write-downs attributable to expenses, not technical.

GROUP 1

Basic Financing

10. Capital.

100. Social capital.

101. Mutual Fund.

103. Partners for unrequired disbursements.

1030. Partners for unpaid disbursements, social capital.

1034. Partners for unpaid disbursements, capital pending registration.

104. Partners for outstanding non-cash contributions.

1040. Partners for outstanding non-cash contributions, social capital.

1044. Partners for outstanding non-cash contributions, capital pending registration.

105. Permanent background with the central house.

108. Own actions in special situations.

109. Own shares for capital reduction.

11. Reserves and other equity instruments.

110. Emission premium.

111. Other equity instruments.

1110. Net worth by issue of compound financial instruments.

1111. Other net worth instruments.

112. Legal reservation.

113. Voluntary reservations.

114. Special reservations.

1140. Reserves for shares or units of the dominant company.

1141. Statutory reserves.

1142. Reserve for amortised capital.

1143. Reserve by goodwill.

1144. Reserves for own shares accepted as collateral.

1147. Reserve for stabilisation.

1148. Reserve for repricing of buildings.

115. Reserves for actuarial gains and losses and other adjustments.

118. Non-reintegrable contributions from partners and mutualists.

1180. Contributions from partners for loss compensation.

1181. Contributions from mutualists for loss compensation.

119. Differences in adjustment of capital to euro.

12. Results pending implementation.

120. Remnant.

121. Negative results from previous years.

129. Result of the exercise.

13. Grants, donations and adjustments for changes in value.

130. Official capital grants.

131. Donations and legacies of capital.

132. Other grants, donations and legacies.

133. Valuation adjustments in financial assets available for sale.

134. Hedging operations.

1340. Cash flow coverage.

1341. Coverage of a net investment in a foreign business.

135. Differences of change or conversion.

136. Valuation adjustments in assets and groups of items held for sale.

137. Tax revenue to be distributed in various exercises.

1370. Tax revenue for permanent differences to be distributed in various financial years.

1371. Tax receipts for deductions and allowances to be distributed in various financial years.

138. Correction of accounting asymmetries.

1381. Immunization operations by cash flows.

1382. Immunization operations for financial durations.

1383. Life insurance operations whose redemption value is referenced to the asset performance value.

1384. Insurance operations that recognize participation in benefits.

1385. Life insurance operations in which the taker assumes the risk of the investment or assimilated.

14. Provisions.

140. Provision for long-term remuneration to staff.

141. Provision for taxes.

142. Provision for other responsibilities.

143. Provision for decommissioning, withdrawal or rehabilitation of the immobilized.

147. Provision for transactions with payments based on equity instruments.

148. Provision for the participation of staff in premiums.

15. Debts with special characteristics.

150. Shares considered as financial liabilities.

153. Disbursements not required by shares considered as financial liabilities.

1533. Disbursements not required, companies of the group.

1534. Disbursements not required, associated companies.

1535. Disbursements not required, other related parties.

1536. Other non-required disbursements.

154. Outstanding non-cash contributions for shares considered as financial liabilities.

1543. Outstanding non-cash contributions, group companies.

1544. Outstanding non-cash contributions, associated companies.

1545. Outstanding non-cash contributions, other related parties.

1546. Other outstanding non-cash contributions.

16. Debt with related parties.

160. Debt for investments with related entities.

1603. Debt for investments, companies in the group.

1604. Debt for investments, associated companies.

1605. Debt for investments, other related parties.

163. Other related party debts.

1633. Other debts, group companies.

1634. Other debts, associated companies.

1635. Other debts, with other related parties.

17. Debts for loans received, borrowings and other items.

170. Debt with credit institutions.

1700. With real warranty.

1701. No real guarantee.

171. Other debts.

172. Transformative debts in grants, donations and legacies.

173. Debt for fixed assets and real estate investments.

174. Creditors for leasing.

175. Effects to be paid.

176. Liabilities for financial derivatives.

1765. Liabilities for financial derivatives, trading book.

1768. Liabilities for financial derivatives, hedging instruments.

177. Bonds and bonds.

178. Subordinated loans and other comparable financing.

179. Debts represented in other marketable securities.

18. Liabilities for bonds and other concepts.

180. Bonds received.

181. Advances received for services provided.

182. Fee income and other costs of acquisition of the transferred reinsurance.

1821. Commissions of the business class.

1822. Costs of acquisition of the life-class.

1823. Commissions of classes other than life.

1824. Acquisition costs for different classes of life.

186. Deposits received by ceded reinsurance and regressed.

1860. Deposits with technical provisions for outstanding benefits.

1861. Deposits for technical provisions for unconsumed premiums.

1862. Deposits with technical provisions for life insurance.

1863. Deposits with other technical provisions.

188. Liabilities for the correction of accounting asymmetries.

1881. Liabilities for the correction of accounting asymmetries in immunization operations by cash flows.

1882. Liabilities for the correction of accounting asymmetries in immunization operations for financial durations.

1883. Liabilities for the correction of accounting asymmetries in life insurance operations whose redemption value is referenced to the value of the performance of the assets.

1884. Liabilities for the correction of accounting asymmetries in insurance operations that recognise profit participation.

1885. Liabilities for the correction of accounting asymmetries in transactions treated as life insurance in which the taker assumes the risk of the investment.

19. Transitional financing situations.

190. Issued shares.

192. Stock subscribers.

194. Capital issued pending registration.

195. Issued shares considered as financial liabilities.

197. Subscribers of shares considered as financial liabilities.

199. Issued shares considered as financial liabilities pending registration.

GROUP 2

Quiescing and investments

20. Intangible fixed assets.

200. Research.

201. Development.

202. Administrative concessions.

203. Industrial property.

204. Trade fund.

205. Transfer rights.

206. Computer applications.

207. Economic rights derived from portfolios of policies acquired from a mediator.

209. Advances for intangible fixed assets.

21. Fixed assets and real estate investments.

210. Land and natural goods.

2101. Fixed assets.

2102. Investments in land and natural assets.

211. Buildings.

2111. Fixed assets.

2112. Investments in buildings.

212. Technical installations.

215. Other facilities.

216. Furniture.

217. Equipment for information processes.

218. Transport elements.

219. Other tangible fixed assets.

23. Fixed material immobilized.

230. Adaptation of land and natural assets.

231. Constructions in progress.

232. Technical installations in assembly.

237. Equipment for mounting information processes.

239. Advances for tangible fixed assets and real estate investments.

24. Financial investments in related parties.

240. Shares in related parties.

2403. Shares in companies of the group.

2404. Shares in associated companies.

2405. Shares in other related parties.

241. Representative debt securities of related parties.

2413. Representative debt securities of companies in the group.

2414. Representative debt securities of associated companies.

2415. Debt securities of other related parties.

242. Credits to related parties.

2423. Loans to companies in the group.

2424. Credits to associated companies.

2425. Credits to other related parties.

246. Advances on policies to related parties.

249. Outstanding disbursements on shares in related parties.

2493. Outstanding disbursements on shares in group companies.

2494. Outstanding disbursements on shares in associated companies.

2495. Outstanding disbursements on shares in other related parties.

25. Other financial investments.

250. Financial investments in equity instruments.

251. Debt securities securities.

252. Deposits with credit institutions.

253. Appropriations for the disposal of fixed assets and investments.

254. Credit to staff.

255. Assets by financial derivatives.

2550. Assets by financial derivatives trading book.

2553. Assets by financial derivatives instruments of coverage.

256. Advances on policies.

257. Assets and rights to reimbursement for long-term remuneration to staff.

2570. Reimbursement entitlements arising from insurance contracts relating to staff remuneration.

2571. Assets for long-term remuneration to staff.

258. Other appropriations.

2583. With real warranty.

2584. No real guarantee.

259. Outstanding disbursements on equity holdings.

26. Bonds, constituted deposits and other concepts.

260. Fianzas constituted.

266. Deposits consisting of reinsurance accepted.

2660. Deposits with technical provisions for outstanding benefits.

2661. Deposits for technical provisions for unconsumed premiums.

2662. Deposits with technical provisions for life insurance.

2663. Deposits with other technical provisions.

268. Assets for correction of accounting asymmetries.

2681. Assets by correction of accounting asymmetries in immunization operations by cash flows.

2682. Assets for the correction of accounting asymmetries in immunization operations for financial durations.

2683. Assets for the correction of accounting asymmetries in life insurance operations whose redemption value is referenced to the value of the assets.

2684. Assets for the correction of accounting asymmetries in insurance operations that recognise participation in profits.

2685. Assets for the correction of accounting asymmetries in transactions treated as life insurance in which the policyholder assumes the risk of the investment.

27. Advance fees and other acquisition costs.

273. Advance fees and other costs of acquisition of life.

2731. Commissions of the business class.

2737. Other costs of acquisition of the business.

274. Advance commissions and other costs of acquisition of classes other than life.

2741. Commissions of classes other than life.

2747. Other costs of acquisition of the classes other than life.

28. Accumulated depreciation of fixed assets and real estate investments.

280. Accumulated depreciation of intangible fixed assets.

281. Accumulated depreciation of tangible fixed assets.

282. Cumulative depreciation of real estate investments.

29. Asset value impairment.

290. Impairment of intangible fixed assets.

291. Deterioration of the value of tangible fixed assets.

292. Deterioration in the value of real estate investments.

293. Impairment of the value of shares in related parties.

2933. Impairment of value of units, group companies.

2934. Impairment of value of units, associated companies.

294. Impairment of the value of debt securities of related parties.

2943. Impairment of the value of debt securities, group companies.

2944. Impairment of the value of debt securities, associated companies.

2945. Impairment of the value of debt securities, other related parties.

295. Impairment of credit value to related parties.

2953. Impairment of credit value to group companies.

2954. Impairment of credit value to associated companies.

2955. Impairment of credit value to other related parties.

297. Impairment of the value of debt securities.

298. Impairment of credit value.

GROUP 3

Technical provisions

30. Provisions for premiums not consumed and for ongoing risks, not life.

300. Provisions for unconsumed premiums.

3000. Direct insurance.

3001. Reinsurance accepted.

301. Provisions for ongoing risks.

3010. Direct insurance.

3011. Reinsurance accepted.

31. Life insurance provisions.

310. Provisions for unconsumed premiums.

3100. Direct insurance.

3101. Reinsurance accepted.

311. Provisions for ongoing risks.

3110. Direct insurance.

3111. Reinsurance accepted.

312. Mathematical provisions.

3120. Direct insurance.

3121. Reinsurance accepted.

32. Technical provisions relating to life insurance when the risk of investment is assumed by the policyholders.

34. Provisions for benefits, not life.

340. Pending payment.

3400. Direct insurance.

3401. Reinsurance accepted.

341. Pending settlement.

3410. Direct insurance.

3411. Reinsurance accepted.

342. Statement earrings.

3420. Direct insurance.

3421. Reinsurance accepted.

343. For settlement expenses.

3430. Direct insurance.

3431. Reinsurance accepted.

35. Provisions for benefits, life.

350. Pending payment.

3500. Direct insurance.

3501. Reinsurance accepted.

351. Pending settlement.

3510. Direct insurance.

3511. Reinsurance accepted.

352. Statement earrings.

3520. Direct insurance.

3521. Reinsurance accepted.

353. For settlement expenses.

3530. Direct insurance.

3531. Reinsurance accepted.

36. Provisions for participation in profits and for extortion.

360. Provisions for participation in profits and for extortion.

3600. Not life.

3601. Life.

37. Other technical provisions.

370. Other technical provisions, not life.

3700. Direct insurance.

3701. Reinsurance accepted.

371. Other technical provisions, life.

3710. Direct insurance.

3711. Reinsurance accepted.

38. Share of reinsurance in technical provisions, not life.

380. Provisions for unconsumed premiums.

3800. Ceded.

3801. Regressed.

384. Provisions for benefits.

3840. Ceded.

3841. Regressed.

387. Other technical provisions.

3870. Ceded.

3871. Regressed.

39. Share of reinsurance in technical provisions, life.

390. Provisions for unconsumed premiums.

3900. Ceded.

3901. Regressed.

391. Mathematical provisions.

3910. Ceded.

3911. Regressed.

394. Provisions for benefits.

3940. Ceded.

3941. Regressed.

397. Other technical provisions.

3970. Ceded.

3871. Regressed.

GROUP 4

Creditors and debtors by traffic operations

40. Creditors and debtors for reinsurance and co-insurance operations.

400. Creditors and debtors for transferred reinsurance and regressed.

401. Creditors and debtors by reinsurance accepted.

402. Creditors and debtors for co-insurance operations.

405. Credits of doubtful collection.

4050. By ceded reinsurance and regressed.

4051. By reinsurance accepted.

4052. For co-insurance operations.

41. Other creditors.

410. Creditors for the provision of services.

411. Miscellaneous creditors.

412. Creditors, commercial effects to be paid.

413. Debts to insurers.

4130. By agreements between insurers.

4131. Other debts.

42. Debt for the preparatory operations of insurance contracts.

421. Debt for other preparatory operations for insurance contracts.

43. Mediators and policyholders.

431. Receipts of premiums outstanding.

4310. Receipts held by the entity.

4311. Mediators, bill of receipts.

4312. I co-secured receipts.

4313. Anticipated receipts.

4315. Receipts of doubtful collection.

432. Credits for receipts pending issue.

4320. Receipts held by the entity.

4321. Mediators, bill of receipts.

4322. I co-secured receipts.

4323. Anticipated receipts.

4325. Receipts of doubtful collection.

433. Mediators, cash account.

4330. Agents.

4331. Runners.

4332. Insurance Banking Operators.

434. Debts to policyholders.

4340. For extortionate premiums.

4341. Other debts.

435. Mediators, credits of doubtful collection.

44. Other debtors.

440. Miscellaneous debtors.

441. Debtors, commercial effects to be charged.

4410. Debtors, commercial effects in portfolio.

4411. Debtors, discounted trade effects.

4412. Debtors, commercial effects in recovery management.

4415. Debtors, unpaid trade effects.

442. Debtors by agreements between insurers.

444. Debtors, by reason of claims.

445. Debtors of doubtful recovery.

45. Conditional debts.

452. Fees on premiums outstanding.

4520. Of mediators.

4521. De coinsurance.

4529. Correction for impairment of outstanding premiums.

453. Commissions on outstanding premiums to be issued.

4530. Of mediators.

4531. De coinsurance.

4539. Provision for outstanding premiums.

454. Debts for advance receipts.

455. Debts for receipts pending issue.

456. Taxes and surcharges on premiums outstanding.

4560. Insurance Compensation Consortium, surcharge for extraordinary risks.

4561. Insurance Compensation Consortium, surcharge for settlement function.

4562. Tax on insurance premiums.

4563. Other surcharges.

46. Personal.

460. Advances in remuneration.

465. Remuneration to be paid.

466. Remuneration by means of defined contribution systems to be paid.

47. General government.

470. Public Finance, which is responsible for various concepts.

4700. Hacienda Pública, debtor for VAT.

4708. Public finances, debtor for grants awarded.

4709. Hacienda Pública, debtor for tax refund.

471. Social Security Agencies, debtors.

472. Public finances, VAT incurred.

473. Public finances, withholding and payments on account.

474. Deferred tax assets.

4740. Assets for deductible temporary differences.

4742. Allowances for deductions and allowances to be applied.

4745. Credit for losses to compensate for the financial year.

475. Public Finance, which is a tax concept.

4750. Hacienda Pública, accretive por IV

4751. Hacienda Pública, accretive for retentions practiced.

4752. Public Finance, which is a corporation tax.

4758. Public finances, which are grants for reintegrating.

476. Social Security Agencies, creditors.

477. Public finances, VAT passed on.

478. Other Public Entities.

4780. Insurance Compensation Consortium, surcharge for extraordinary risks.

4781. Insurance Compensation Consortium, surcharge for settlement function.

4782. Tax on insurance premiums.

4783. Other Public Bodies.

479. Liabilities for taxable temporary differences.

48. Adjustments for the time-to-year

480. Anticipated expenses.

481. Commissions and other acquisition expenses.

482. Fees and other expenses for the acquisition of the transferred reinsurance.

485. Anticipated revenue.

489. Premiums written and not issued, net of commissions and disposals.

49. Impairment of credit value by traffic operations and other concepts.

490. Impairment of credit value for commercial transactions.

4900. Impairment of outstanding balances by ceded reinsurance transactions.

4901. Impairment of outstanding balances by accepted reinsurance transactions.

4902. Impairment of outstanding balances due to co-insurance operations.

4903. Impairment of outstanding balances with mediators.

4904. Impairment of outstanding balances with other debtors.

491. Correction for impairment of premiums outstanding.

496. Provision for payments for settlement agreements.

GROUP 5

Financial Accounts

51. Non-commercial creditors.

510. Interest on loans and loans.

511. Amortised marketable securities.

512. Active dividend payable.

513. Active branches or returns to be paid.

514. Debts for discounted purposes.

517. Dividends of shares considered as financial liabilities.

55. Other non-bank accounts.

550. Current account with related companies.

5501. Current account with companies in the group.

5502. Current account with associated companies.

5509. Current account with other related companies.

551. Current account with partners, administrators and other related persons.

5511. Current account with partners.

5512. Current account with administrators.

5519. Current account with other related persons.

552. Dividends and interest receivable.

553. It has the central house, temporary unions of companies, mergers, divisions and business combinations.

554. Reserve for the stabilisation account.

555. Items to be applied.

556. Disbursements required on equity holdings.

557. Active dividend on account.

558. Required disbursements.

5580. Partners for disbursements required on shares.

5585. Members for disbursements required on shares considered financial liabilities.

5587. Mutualists, for required disbursements.

559. Current account with intermediaries for financial and derivative investments.

56. Adjustments for prepayments and anticipated interest.

560. Interest paid in advance.

561. Interest to pay, not due.

562. Interest receivable, not due.

563. Interest charged in advance.

57. Treasury.

570. Box, EUR.

571. Box, foreign currency.

572. Banks and credit institutions c/c view, euro.

573. Banks and credit institutions c/c view, foreign currency.

574. Banks and credit institutions, savings accounts, euros.

575. Banks and credit institutions, savings accounts, foreign currency.

576. Short-term investments with high liquidity.

58. Assets and groups of assets and liabilities held for sale.

580. Fixed.

581. Real estate investments.

582. Financial investments.

583. Other assets for sale.

584. Technical provisions.

585. Non-technical provisions.

586. Creditors for traffic operations.

587. Debts with special characteristics.

588. Debts to persons and related entities.

589. Other liabilities associated with assets in sales.

59. Impairment of financial account value.

590. Impairment of Group 5 debtors ' value.

599. Impairment of asset value held for sale.

GROUP 6

Expenses

60. Benefits paid.

600. Benefits, direct insurance, not life.

6000. Benefits paid.

6001. Benefits recovered.

601. Benefits, direct insurance, life.

6010. Maturities. (Survival).

6011. Capital (Death).

6012. Income.

6013. Rescues.

602. Benefits, reinsurance accepted, not life.

6020. Benefits and expenses paid.

6027. Portfolio entry for benefits.

6028. Withdrawal of portfolio by benefits.

603. Benefits, reinsurance accepted, life.

6030. Benefits and expenses paid.

6037. Portfolio entry for benefits.

6038. Withdrawal of portfolio by benefits.

604. Benefits, reinsurance ceded and regressed, not life.

6040. Reinsurance ceded.

60400. Benefits and expenses paid.

60407. Entry of Portfolio for benefits.

60408. Withdrawal from Cartera for benefits.

6042. Reinsurance regressed.

60420. Benefits and expenses paid.

60427. Entry of Portfolio for benefits.

60428. Withdrawal from Cartera for benefits.

605. Benefits, reinsurance ceded and regressed, life.

6051. Reinsurance ceded.

60510. Benefits and expenses paid.

60517. Entry of Portfolio for benefits.

60518. Withdrawal from Cartera for benefits.

6053. Reinsurance regressed.

60530. Benefits and expenses paid.

60537. Entry of Portfolio for benefits.

60538. Withdrawal from Cartera for benefits.

606. Participation in profits and extortions.

6060. Participation in profits and extortions.

60600. Not life.

60601. Life.

607. Variation of benefits by claims settlement agreements.

61. Commission shares and other portfolio charges.

610. Commissions, direct insurance, not life.

6100. Fees on premiums issued.

6102. Commissions on premiums cancelled from the financial year.

6103. Commissions on premiums cancelled from previous years.

6104. Change in fees on the impairment correction of premiums outstanding.

6105. Commissions on premiums issued for the financial year.

6106. Commissions on premiums issued from previous years.

6107. Change in fees on premiums written and not issued.

611. Commissions, direct insurance, life.

6110. Fees on premiums issued.

6112. Commissions on premiums cancelled from the exercise.

6113. Commissions on premiums cancelled from previous years.

6114. Change in fees on the impairment correction of premiums outstanding.

6115. Commissions on premiums issued for the financial year.

6116. Commissions on premiums issued from previous years.

6117. Change in fees on premiums written and not issued.

612. Commissions and shares, reinsurance accepted, not life.

6120. Committees.

6121. Participations.

6126. Change in fees on premiums written and not issued.

613. Commissions and shares, reinsurance accepted, life.

6130. Committees.

6131. Participations.

6136. Change in fees on premiums written and not issued.

615. Remuneration to insurers for collaboration agreements.

62. External services.

620. Expenditure on research and development of the financial year.

621. Leases and royalties.

622. Repairs and conservation.

623. Services of independent professionals.

624. Office material.

625. Insurance premiums.

626. Banking and similar services.

627. Advertising, propaganda and public relations.

628. Supplies.

629. Other services.

63. Tributes.

630. Tax on profits.

6300. Current tax.

6301. Deferred tax.

631. Other tributes.

633. Negative adjustments in taxation on profits.

634. Negative adjustments to indirect taxation.

636. Tax refund.

638. Positive adjustments in taxation on profits.

639. Positive adjustments in indirect taxation.

64. Staff costs.

640. Wages and salaries.

641. Compensation.

642. Social security in charge of the company.

643. Long-term remuneration by means of defined contribution schemes.

644. Long-term remuneration through defined benefit systems.

6440. Annual contributions.

6442. Other costs.

645. Remuneration to staff by means of equity instruments.

6450. Remuneration for staff cleared with equity instruments.

6457. Remuneration for cash-settled staff based on equity instruments.

646. Participation in premiums.

649. Other social expenditure.

65. Social benefits of social welfare benefits.

66. Financial expenses.

660. Financial expenses per update of provisions.

661. Bond and bond interest.

6610. Bond and bond interests, group companies.

6611. Bond and bond interest, associated companies.

6612. Interest on bonds and bonds, other related parties.

6613. Bond and bond interest, other companies.

662. Interest on debts.

6620. Interest on debts, group companies.

6621. Interest on debts, associated companies.

6622. Interest on debts, other related parties.

6623. Interest on debts with credit institutions.

6624. Interest on debts, other companies.

663. Valuation losses of financial instruments at fair value.

6630. Trading portfolio losses.

6631. Losses of designated by the company.

66310. Asset losses on account of life insurance policyholders who assume the risk of the investment.

6632. Losses of available for sale.

6633. Losses of hedging instruments.

664. Dividend expense of shares considered as financial liabilities.

6640. Dividend of liabilities, companies of the group.

6641. Dividend of liabilities, associated companies.

6642. Dividend of liabilities, other related parties.

6643. Liabilities dividends, other companies.

665. Interest on advance receipts and effects discount.

6650. Interest on advance receipts and discount of effects on credit institutions of the group.

6651. Interest on anticipated receipts and effects discount on associated credit institutions.

6652. Interest on anticipated receipts and effects discount on other related credit institutions.

6653. Interest on advance receipts and effects discount on other credit institutions.

666. Losses in units and debt securities.

6660. Losses in representative debt securities, group companies.

6661. Losses in representative debt securities, associated companies.

6662. Losses on debt securities, other related parties.

6663. Losses on debt securities, other companies.

6664. Losses in holdings, companies in the group.

6665. Losses in shareholdings, associated companies.

6666. Losses in equity, other related parties.

6667. Losses in equity, other companies.

667. Non-commercial credit losses.

6670. Credit losses, group companies.

6671. Credit losses, associated companies.

6672. Credit losses, other related parties.

6673. Credit losses, other companies.

668. Negative differences of change.

669. Other financial expenses.

6690. Interest on transferred reinsurance deposits.

6691. Imputation to results of the excess over the redemption value.

6692. Expenditure on investments in preparatory operations for insurance contracts.

6696. Expenditure for corrections of accounting asymmetries.

67. Losses arising from fixed assets, real estate investments, exceptional expenses and other management costs.

670. Losses from intangible fixed assets.

671. Losses from tangible fixed assets.

672. Losses from real estate investments.

675. Losses from transactions with own obligations.

676. Credit losses from traffic operations.

679. Exceptional expenses.

68. Endowments for redemptions.

680. Depreciation of intangible fixed assets.

681. Depreciation of tangible fixed assets.

682. Depreciation of real estate investments.

686. Depreciation of fees and other acquisition costs.

687. Depreciation of economic rights derived from portfolios of policies acquired from a mediator.

69. Impairment losses and other allocations.

690. Impairment losses on intangible fixed assets.

691. Impairment losses on tangible fixed assets.

692. Impairment losses on real estate investments.

693. Allocations to technical provisions.

6930. Provision for provisions for unconsumed premiums and for ongoing risks, not life.

6931. Provision for life insurance provisions.

6932. Provision for life insurance provisions where the risk of investment is taken by insurance policy holders.

6934. Provision for provisions for benefits, not life.

6935. Provision for provisions for benefits, life.

6936. Provision for the provisions for the participation of insured persons in the benefits and for extortionate.

6937. Allocation to other technical provisions.

6938. Share of reinsurance in the provision of technical provisions, not life.

6939. Share of reinsurance in the allocation to technical provisions, life.

696. Losses due to impairment of units and debt securities.

6960. Losses due to impairment of equity instruments, group companies.

6961. Impairment losses on equity holdings in equity instruments, associated companies.

6962. Losses due to impairment of equity instruments, other related parties.

6963. Losses due to impairment of equity in equity instruments, other companies.

6965. Impairment losses on representative debt securities, group companies.

6966. Impairment losses on representative debt securities, associated companies.

6967. Impairment losses on debt securities, other related parties.

6968. Impairment losses on representative debt securities of other companies.

697. Loss from impairment of traffic operations.

6970. Losses due to impairment of debtors due to other traffic operations.

6971. Impairment losses on premiums outstanding.

698. Impairment of debtors ' value (group 5).

699. Losses due to impairment of claims.

6990. Impairment losses on loans, group companies.

6991. Impairment losses on credit or, associated companies.

6992. Impairment losses on loans, other related parties.

6993. Losses from impairment of loans, other companies.

GROUP 7

Revenue

70. Premiums.

700. Net premiums for cancellations, direct insurance, non-life.

7001. Premiums issued.

7002. Premiums cancelled from the financial year.

7003. Premiums cancelled from previous years.

7005. Premiums issued from the financial year.

7006. Premiums issued from previous years.

7007. Change in premiums written and not issued.

701. Net premiums for cancellations, direct insurance, life.

7011. Premiums issued.

7012. Premiums cancelled from the financial year.

7013. Premiums cancelled from previous years.

7015. Premiums issued from the financial year.

7016. Premiums issued from previous years.

7017. Change in premiums written and not issued.

702. Reinsurance premiums accepted, not life.

7021. Premiums.

7026. Change in premiums written and not issued.

7027. Cartera entry for premiums.

7028. Withdrawal from Cartera by premiums.

703. Reinsurance premiums accepted, life.

7031. Premiums.

7036. Change in premiums written and not issued.

7037. Cartera entry for premiums.

7038. Withdrawal from Cartera by premiums.

704. Reinsurance premiums ceded and regressed, not life.

7040. Reinsurance ceded.

70400. Premiums.

70406. Share of the reinsurer in the variation of premiums written and not issued.

70407. Cartera entry for premiums.

70408. Withdrawal from Cartera by premiums.

7042. Reinsurance regressed.

70420. Premiums.

70427. Cartera entry for premiums.

70428. Withdrawal from Cartera by premiums.

705. Reinsurance premiums ceded and regressed, life.

7051. Reinsurance ceded.

70510. Premiums.

70516. Share of the reinsurer in the variation of premiums written and not issued.

70517. Cartera entry for premiums.

70518. Withdrawal from Cartera by premiums.

7053. Reinsurance regressed.

70530. Premiums.

70537. Cartera entry for premiums.

70538. Withdrawal from Cartera by premiums.

71. Fees and shares of the transferred reinsurance and regressed.

710. Fees and shares of the transferred reinsurance, not life.

7100. Fees on premiums transferred.

7101. Participation in the benefits of the accrual reinsurer.

7106. Change in fees for the reinsurer's participation in the premiums written and not issued.

711. Commissions and shares of the transferred reinsurance, life.

7110. Fees on premiums transferred.

7111. Participation in the benefits of the accrual reinsurer.

7116. Change in fees for the reinsurer's participation in the premiums written and not issued.

712. Commissions and shareholdings, reinsurance regressed, not life.

713. Commissions and participations, reinsurance regressed, life.

73. Jobs performed for the entity.

730. Work carried out for intangible fixed assets.

731. Work carried out for the fixed assets.

732. Work carried out on real estate investments.

733. Work carried out for the fixed assets.

737. Incorporation into the asset of advance commissions and other acquisition costs.

74. Grants, donations and legacies.

740. Grants, donations and legacies to exploitation.

746. Grants, donations and capital legacies transferred to the outcome of the financial year.

747. Other grants, donations and legacies transferred to the result of the exercise.

75. Other management revenue.

750. Revenue from fund management for future insurance contracts.

751. Income from Administration of Pension Funds.

752. Revenue from leases.

755. Income from services to staff.

759. Miscellaneous services revenue.

7590. Commission for the collection of the Insurance Compensation Consortium.

7591. Other income accessories.

76. Financial income.

760. Income from equity holdings in equity instruments.

7600. Income from equity holdings, group companies.

7601. Income from equity holdings, associated companies.

7602. Income from equity holdings, other related parties.

7603. Income from equity holdings, other companies.

761. Income from debt securities.

7610. Income from debt securities, group companies.

7611. Income from debt securities, associated companies.

7612. Income from debt securities, other related parties.

7613. Income from debt securities, other companies.

762. Revenue from appropriations.

7621. Revenue from loans, group companies.

7622. Revenue from credits, associated companies.

7623. Revenue from credits, other related parties.

7624. Revenue from credits, other companies.

763. Profit by valuation of financial instruments at fair value.

7630. Trading portfolio benefits.

7631. Benefits of company appointees.

76310. Asset benefits on behalf of life insurance policyholders who assume the risk of investment.

7632. Benefits of available for sale.

7633. Benefits of hedging instruments.

766. Profit on shares and debt securities.

7660. Profit on representative debt securities, group companies.

7661. Profit on representative debt securities, associated companies.

7662. Profit on representative debt securities, other related parties.

7663. Profit in units and securities representing debt, other companies.

7664. Profit in units, group companies.

7665. Profit in equity, associated companies.

7666. Profit in equity, other related parties.

7667. Profit in equity, other companies.

767. Income from assets affected and rights to reimbursement relating to long-term remuneration.

768. Positive differences of change.

769. Other financial income.

7690. Interest on deposits consisting of reinsurance accepted.

7696. Income from corrections of accounting asymmetries.

7699. Rest of financial income.

77. Profits from fixed assets, real estate investments, exceptional income and other revenue from management.

770. Profits from intangible fixed assets.

771. Profits from tangible fixed assets.

772. Profits from real estate investments.

774. Negative difference in business combinations.

775. Profits from transactions with own obligations.

779. Exceptional income.

79. Excess and application of provisions and impairment losses.

790. Reversal of impairment of intangible fixed assets.

791. Reversal of impairment of material immobilized.

792. Reversal of the deterioration of real estate investments.

793. Technical provisions applied to their purpose.

7930. Application of the provisions for unconsumed premiums and for ongoing risks, not life.

7931. Application of life insurance provisions.

7932. Application of life insurance provisions where the investment risk is assumed by the insurance policy holders.

7934. Application of provisions for non-life benefits.

7935. Application of provisions for life benefits.

7936. Application of the provisions for the participation of the insured in the benefits and for extortionate.

7937. Application of other technical provisions.

7938. Share of reinsurance in the application of technical provisions, not life.

7939. Participation of reinsurance in the application of the standard, life.

795. Excess provision.

7950. Provision for remuneration and other benefits to staff.

7951. Provision for taxes.

7952. Provision for other responsibilities.

7957. Provision for transactions with payments based on equity instruments.

7958. Excess provision for staff participation in premiums.

796. Reversal of impairment of equity and debt securities.

7960. Reversal of the impairment of equity holdings in equity instruments, companies in the group.

7961. Reversal of the impairment of equity holdings in equity instruments, associated companies.

7965. Reversal of the impairment of debt securities, group companies.

7966. Reversal of impairment of debt securities, associated companies.

7967. Reversal of impairment of debt securities, other related parties.

7968. Reversal of impairment of debt securities, other companies.

797. Reversal of impairment losses on commercial transactions.

7970. Reversal of impairment by other trading operations.

7971. Reversal of the deterioration of premiums outstanding.

798. Reversal of the impairment of debtors ' value (group 5).

799. Reversal of credit deterioration.

7990. Reversal of impairment of loans, group companies.

7991. Reversal of impairment of credits, associated companies.

7992. Reversal of impairment of credits, other related parties.

7993. Reversal of credit deterioration, other companies.

GROUP 8

Expenses charged to net worth

80. Financial expenses for the valuation of assets and liabilities.

800. Losses in financial assets available for sale.

802. Transfer of benefits in financial assets available for sale.

81. Expenditure on hedging operations.

810. Losses from cash flow hedges.

811. Losses from net investments in a foreign business.

812. Transfer of benefits by hedge of cash flows.

813. Transfer of benefits by net investment coverage in a foreign business.

82. Expenses for differences in exchange or conversion.

820. Negative change or conversion differences.

821. Transfer of change or positive conversion differences.

83. Tax on profits.

830. Tax on profits.

8300. Current tax.

8301. Deferred tax.

833. Negative adjustments in taxation on profits.

834. Tax receipts for permanent differences.

835. Tax receipts for deductions and bonuses.

836. Transfer of permanent differences.

837. Transfer of deductions and bonuses.

838. Positive adjustments in taxation on profits.

84. Transfers of grants, donations and legacies.

840. Transfer of official capital grants.

841. Transfer of donations and capital legacies.

842. Transfer of other grants, donations and legacies.

85. Expenditure for actuarial losses and adjustments in assets for long-term benefits of defined benefit.

850. Actuarial losses.

851. Negative adjustments in assets for long-term benefits of defined benefit.

86. Expenses for assets for sale.

860. Losses on assets and groups of items held for sale.

862. Transfer of profits in assets and groups of assets held for sale.

88. Expenditure on the correction of accounting asymmetries.

881. Correction of accounting asymmetries for increases in the value of assets recognized in the net worth of immunization operations by cash flows.

882. Correction of accounting asymmetries for increases in the value of assets recognised in the net worth of immunisation operations for financial durations.

883. Correction of accounting asymmetries for increases in the value of the assets recognised in the net worth of life insurance operations whose redemption value is referenced to the value of the assets.

884. Correction of accounting asymmetries for increases in the value of the assets recognised in the net worth of insurance operations that recognise participation in profits.

885. Correction of accounting asymmetries for increases in the value of assets recognised in the net worth of life insurance operations in which the taker assumes the risk of the investment or assimilated.

89. Expenses of holdings in group companies or associated with prior positive valuation adjustments.

891. Impairment of equity holdings, group companies.

892. Impairment of equity holdings, associated companies.

GROUP 9

Revenue imputed to equity.

90. Financial income by valuation of assets and liabilities.

900. Benefits in financial assets available for sale.

902. Transfer of financial asset losses available for sale.

91. Revenue in hedging operations.

910. Benefits from cash flow hedges.

911. Benefits from hedges of a net investment in a foreign business.

912. Transfer of losses by hedge of cash flows.

913. Transfer of losses by hedges of a net investment in a foreign business.

92. Income from differences in exchange or conversion.

920. Positive change or conversion differences.

921. Transfer of change or negative conversion differences.

94. Income from grants, donations and legacies.

940. Revenue from official capital grants.

941. Proceeds from donations and capital legacies.

942. Income from other grants, donations and legacies.

95. Income from actuarial gains and adjustments in assets for long-term benefits of defined benefit.

950. Actuarial gains.

951. Positive adjustments in assets for long-term benefits of defined benefit.

96. Proceeds from assets for sale.

960. Profit on assets and groups of items held for sale.

962. Transfer of losses on assets and groups of items held for sale.

98. Revenue from the correction of accounting asymmetries.

981. Correction of accounting asymmetries for decreases in the value of assets recognized in the net worth of immunization operations by cash flows.

982. Correction of accounting asymmetries for decreases in the value of assets recognized in the net worth of immunization operations for financial durations.

983. Correction of accounting asymmetries for decreases in the value of the assets recognised in the net worth of life insurance operations whose redemption value is referenced to the value of the assets.

984. Correction of accounting asymmetries for decreases in the value of assets recognized in the net worth of insurance operations that recognize participation in profits.

985. Correction of accounting asymmetries for decreases in the value of assets recognised in the net worth of life insurance operations in which the taker assumes the risk of the investment or assimilated.

99. Income from holdings in group companies or associated with prior negative value adjustments.

991. Recovery of previous negative value adjustments, group companies.

992. Recovery of previous negative value adjustments, associated companies.

993. Impairment transfer of prior negative value adjustments, group companies.

994. Impairment transfer of prior negative value adjustments, associated companies.

QUINTA PART. DEFINITIONS AND ACCOUNTING RELATIONSHIPS

GROUP 0

Expense reclassification by target

Collects the accounts necessary to distribute those expenses initially classified by nature that, by their function, must be reclassified by destination. It therefore covers the part of the expenditure entered into group 6 which is to be charged to benefits, acquisition costs, administration costs, investment expenditure and other technical or non-technical expenditure, in view of the role that such expenditure plays. Therefore, those expenses accounted for in Group 6 shall not be included in this group, in respect of which its classification by nature coincides with that which would be effected by reason of its destination, such as financial expenses, allocations to provisions or deterioration corrections.

For the purposes of this reclassification, the following must be taken into account:

-The expenses attributable to the benefits include, in particular, the expenses of personnel engaged in the management of claims and the depreciation of the fixed assets affected by this activity, the commissions paid for the management of claims and the expenses incurred for services necessary for their processing;

-Acquisition expenses include primarily the commissions, those of personnel engaged in the production and depreciation of the immobilized affected to this activity, the costs of study, processing of applications and formalization of policies, as well as the expenses of advertising, propaganda and of the commercial organization directly linked to the acquisition of the insurance contracts;

-Administration expenses mainly include the expenses of services for contentious issues related to premiums, expenses of portfolio management and collection of premiums, processing of extortions, of reinsurance transferred and accepted, including, in particular, the expenses of staff dedicated to such functions and the depreciation of the immobilized affected to it.

-The expenses attributable to the investments mainly include the costs of managing the investments both internal and external, in the latter case the fees, commissions and corretages accrued, the expenses of the staff dedicated to those functions and the endowments to the redemptions.

-The other technical costs are those that, as part of the technical account, cannot be imputed in application of the criterion established to one of the previously related destinations, fundamentally the expenses of general management.

The criteria used by the institution shall be reasonable, objective and verifiable and shall be maintained from one financial year to the next, except in circumstances which, reasonably advised in its amendment. In this case, the new imputation criteria must also provide information in the memory.

For the reclassification of expenses to the accounts by destination, as well as the distribution of the expenses included in this group between life and non-life activities, the provisions of the annual accounts (profit and loss account) will be taken into account.

In general, all group 0 accounts shall be paid at the end of the financial year with account for 129 accounts; therefore, the movements of the successive accounts of the group shall be made only for the purposes of office.

00. Expenses attributable to benefits, not life.

001. Commissions and other expenses attributable to benefits, not life.

002. External services attributable to benefits, not life.

003. Taxes attributable to benefits, not life.

004. Staff costs attributable to benefits, not life.

008. Endowments for write-downs attributable to benefits, not life.

01. Expenses attributable to benefits, life.

011. Commissions and other expenses attributable to benefits, life.

012. External services attributable to benefits, life.

013. Taxes attributable to benefits, life.

014. Staff costs attributable to benefits, life.

018. Endowments for write-downs attributable to benefits, life.

001/002/ .../011/012/ ...

Part of the expenditure accounted for by nature, by the concepts mentioned in the accounts of these sub-groups, which are to be charged to benefits as expenses related to the management of claims.

They will be charged for the amount of expenses attributable to benefits, with credit to the accounts of subgroups 61, 62, 63, 64, or 68, as appropriate.

02. Non-life operating expenses.

020. Acquisition costs.

0201. Commissions and other expenses attributable to acquisition expenses, not life.

02010. Committees.

02015. Remuneration to insurers for collaboration agreements.

0202. External services attributable to acquisition costs, not life.

0203. Taxes attributable to acquisition costs, not life.

0204. Personnel costs attributable to acquisition costs, not life.

0208. Endowments for write-downs attributable to acquisition expenses, not life.

021. Administration costs.

0211. Expenses attributable to administration expenses, not life.

0212. External services attributable to administration costs, not life.

0213. Taxes attributable to administration expenses, not life.

0214. Personnel costs attributable to administration expenses, not life.

0218. Endowments for write-downs attributable to administration expenses, not life.

0201/0208/ ... 0212/0213/.

Part of the expenses accounted for by nature, by the concepts mentioned in the sub-accounts of this subgroup, which must be charged to acquisition or non-life administration expenses.

To be charged for the amount of expenses attributable to acquisition and/or administration expenses, with credit to the accounts of subgroups 61, 62, 63, 64, or 68 as applicable.

03. Operating expenses, life.

030. Acquisition costs.

0301. Commissions and other expenses attributable to acquisition expenses, life.

03010. Committees.

03015. Remuneration to insurers for collaboration agreements.

0302. External services attributable to acquisition costs, life.

0303. Taxes attributable to acquisition costs, life.

0304. Personnel costs attributable to acquisition costs, life.

0308. Endowments for write-downs attributable to acquisition expenses, life.

031. Administration costs.

0311. Expenses attributable to administration expenses, life.

0312. External services attributable to administration expenses, life.

0313. Taxes attributable to administration expenses, life.

0314. Personnel costs attributable to administration expenses, life.

0318. Endowments for write-downs attributable to administration expenses, life.

0301/0308/ ... 0312/0313/.

Part of the expenses accounted for by nature, by the concepts mentioned in the sub-accounts of this subgroup that are to be charged to acquisition or administration expenses, life.

To be charged for the amount of expenses attributable to acquisition and/or administration expenses, with credit to the accounts of subgroups 61, 62, 63, 64, or 68 as applicable.

04. Expenditure attributable to investments, not life.

042. External services attributable to non-life investments.

043. Taxes attributable to investments, not life.

044. Personnel costs attributable to Investments, not life.

048. Endowments for write-downs attributable to investments, not life.

05. Expenditure attributable to investments, life.

052. External services attributable to investments, life.

053. Taxes attributable to investments, life.

054. Personnel costs attributable to investments, life.

058. Endowments for write-downs attributable to investments, life.

042/043/ .../052/053/ ...

Part of the expenditure accounted for by nature, by the concepts mentioned in the accounts of these sub-groups, which must be imputed to investments.

They will be charged for the amount of expenses attributable to investments, with credit to the accounts of subgroups 62, 63, 64 or 68, as appropriate.

06. Other non-life technical expenses.

062. External services attributable to other technical expenditure, not life.

063. Taxes attributable to other technical expenses, not life.

064. Personnel costs attributable to other technical expenses, not life.

068. Allocations for write-downs attributable to other technical expenses, not life.

07. Other technical expenses life.

072. External services attributable to other technical expenditure, life.

073. Taxes attributable to other technical expenses, life.

074. Personnel costs attributable to other technical expenses, life.

078. Endowments for write-downs attributable to other technical expenses, life.

08. Non-technical expenses.

082. External services attributable to expenditure, not technical.

083. Taxes imputable to expenditure, not technical.

084. Expenditure on staff responsible for expenditure, not technical expenditure.

088. Endowments for write-downs attributable to expenses, not technical.

062/063/ .../072/073/ .../082/088/ ...

Part of the expenditure accounted for by nature, by the concepts mentioned in the accounts of these sub-groups, which must be charged to other technical expenditure or non-technical expenditure.

They will be charged for the amount of expenses attributable to other technical expenses or non-technical expenses, with credit to the accounts of subgroups 62, 63, 64 or 68, as appropriate.

GROUP 1

Basic Financing

Comprises the net worth and foreign financing of the entity other than that contemplated in other groups. It also includes transitional financing situations and accounts for the corrective liabilities of accounting asymmetries where, in accordance with paragraph 3 of the registration and valuation standard 9 contained in the second part of this Plan, recognition is not appropriate through the provision of life insurance.

In particular, the following rules apply:

(a) The financial liabilities included in this group shall be classified, as a general rule, for the purposes of their valuation, in the category of 'Debits and items to be paid'. However, they may also be included in the category of 'Other financial liabilities at fair value with changes in the profit and loss account' in the terms set out in the registration and valuation rules. Financial derivatives that are both hedging and trading liabilities are also included in this group.

(b) It is recommended that the accounts of four or more figures be developed which are necessary to differentiate the different categories in which financial liabilities have been included in accordance with the rules of registration and valuation, in order to permit the completion of the information breakdowns included in item 10 of the annual accounts ' memory.

(c) If hybrid financial liabilities are issued or assumed to be valued at fair value in accordance with the rules of registration and valuation, they shall be included in the account corresponding to the nature of the main contract, for which the due breakdown shall be established, accounts of four or more figures which identify that this is a jointly valued hybrid financial liability. Where the main contract and the implicit derivative are recognised separately, the principal contract and the underlying derivative contract shall be treated as if it had been contracted independently, and it shall be included in the account of groups 1 or 2 as appropriate and the main contract shall be collected in the account corresponding to its nature, with due breakdown by account of four or more figures identifying that this is a hybrid main financial contract.

(d) An account that collects financial liabilities classified in the category of "Other financial liabilities at fair value with changes in the profit and loss account" shall be paid or charged, for changes in fair value, with a charge or a credit, respectively, to accounts 663 and 763.

(e) An account that collects financial liabilities that, in accordance with the rules of registration and valuation, are part of a set group of items held for sale, will be charged at the time the conditions for its classification are met with credit to the respective account of the subgroup 58.

(f) The difference between the value for which the financial liabilities are initially recognised and their redemption value shall be recorded as a credit (or, where applicable, as a charge) in the account where the financial liability is registered, with charge (or credit) to the account of the sub-group 66 corresponding to the nature of the instrument.

10. Capital.

100. Social capital.

101. Mutual fund.

103. Partners for unrequired disbursements.

1030. Partners for unpaid disbursements, social capital.

1034. Partners for unpaid disbursements, capital pending registration.

104. Partners for outstanding non-cash contributions.

1040. Partners for outstanding non-cash contributions, social capital.

1044. Partners for outstanding non-cash contributions, capital pending registration.

105. Permanent background with the central house.

108. Own actions in special situations.

109. Own shares for capital reduction.

The accounts of this sub-group shall be included in the net worth of the balance sheet, forming part of own funds, with the exceptions set out in accounts 103 and 104.

100. Social capital.

Written capital of insurance institutions that are in the form of public limited liability companies or insurance cooperatives, except where the economic characteristics of the issue are to be accounted for as financial liabilities.

Until the time of registration, the issuance and subscription of shares shall be recorded in accordance with the provisions of the sub-group 19.

Your move is as follows:

(a) It shall be paid for the initial capital and subsequent extensions, at the time of registration in the Trade Register, with account of 194.

b) It will be charged for the reductions of the same and the extinction of the entity.

101. Mutual fund.

Permanent Fund for Mutual and Social Welfare Mutual Funds. Its motion is analogous to the one indicated for the account 100. To this end, the specific accounts that group 19 will be created to reflect the amount of the mutual fund outstanding. Any outstanding mutual fund disbursements that may be outstanding shall be granted through the account 5587.

103. Partners for unrequired disbursements.

Social capital written pending disbursement not required of the partners, except the non-required disbursements corresponding to financial instruments whose accounting rating is that of financial liability.

They shall be in net worth, with a negative sign, by minoring the share of capital, except for amounts corresponding to capital issued pending registration, which shall be classified as a minority item of the liability in which it is included.

1030. Partners for unpaid disbursements, social capital.

Your move is as follows:

(a) It will be charged for the nominal value not paid out of the shares subscribed at the time of their registration in the Commercial Registry, with credit to the account 1034.

(b) It shall be paid as the disbursements are required, with account of the account 5580.

1034. Partners for unpaid disbursements, capital pending registration.

Your move is as follows:

(a) The non-paid-up nominal value of the subscribed shares shall be debited, with credit, generally, to account 190 or 192.

(b) It shall be paid at the time of registration in the Trade Register, with the account of the account 1030.

104. Partners for outstanding non-cash contributions.

Social capital written outstanding that corresponds to non-cash contributions, except for outstanding contributions that correspond to financial instruments whose accounting rating is that of financial liabilities.

They shall be shown in net worth, with a negative sign, by minoring the share of capital, except for amounts corresponding to capital issued pending registration, which shall be classified as a minor item of the current liability in which the item is included.

1040. Partners for outstanding non-cash contributions, social capital.

Your move is as follows:

(a) It will be charged for the nominal value not paid out of the shares subscribed at the time of their registration in the Commercial Registry, with credit to the account 1044.

(b) It shall be paid when the disbursements are made, from the representative accounts of the non-cash assets provided.

1044. Partners for outstanding non-cash contributions, capital pending registration.

Your move is as follows:

(a) The non-paid-up nominal value of the subscribed shares shall be debited, with credit, generally, to account 190 or 192.

(b) It shall be paid at the time of registration in the Trade Register, with the account of the account 1040.

105. Permanent background with the central house.

Permanent investment in Spanish branches of insurance companies domiciled in third countries not members of the European Economic Area.

It will appear in net worth.

Your move is as follows:

(a) It shall be paid for the initial investment and subsequent extensions.

b) It will be charged for subsequent reductions and extinction of the branch.

108. Own actions in special situations.

Own shares acquired by the entity (Section 4 of Chapter IV of the Recast Text of the Companies Act).

They will be in net worth, with a negative sign.

Your move is as follows:

(a) The amount of the acquisition of the shares will be charged, with credit, generally, to sub-group 57 accounts.

b) It will be paid:

b1) By the divestiture of the shares, generally held to account of subgroup 57. The difference between the amount obtained in the disposal of own shares and their book value shall be charged or paid, as appropriate, to the accounts of subgroup 11.

b2) By the reduction of capital, at the expense of the account 100 by the amount of the nominal amount of the shares. The difference between the acquisition amount of the shares and their nominal value shall be charged or paid, as appropriate, to sub-group 11 accounts.

109. Own shares for capital reduction.

Own shares acquired by the executing entity of a capital reduction agreement adopted by the General Board (Article 170 of the Recast Text of the Companies Act).

They will be in net worth, with a negative sign.

Your move is as follows:

(a) The amount of the acquisition of the shares will be charged, with credit, generally, to sub-group 57 accounts.

(b) It shall be paid for the reduction of capital, at the expense of the account 100, by the amount of the nominal amount of the shares. The difference between the acquisition amount of the shares and their nominal value shall be charged or paid, as appropriate, to sub-group 11 accounts.

11. Reserves and other equity instruments.

110. Emission premium.

111. Other equity instruments.

1110. Net worth by issue of compound financial instruments.

1111. Other net worth instruments.

112. Legal reservation.

113. Voluntary reservations.

114. Special reservations.

1140. Reserves for shares or units of the dominant company.

1141. Statutory reserves.

1142. Reserve for amortised capital.

1143. Reserve by goodwill.

1144. Reserves for own shares accepted as collateral.

1147. Reserve for stabilisation.

1148. Reserve for repricing of buildings.

115. Reserves for actuarial gains and losses and other adjustments.

118. Non-reintegrable contributions from partners and mutualists.

1180. Contributions from partners for loss compensation.

1181. Contributions from mutualists for loss compensation.

119. Differences in adjustment of capital to euro.

The accounts of this sub-group will be included in the net worth of the balance sheet, forming part of the own funds.

110. Emission premium.

A contribution made by shareholders or partners in the case of issue and placement of shares at a price higher than their nominal value. In particular, it includes differences that may arise between the writing values and the values by which the goods received as a non-cash contribution should be recorded, in accordance with the rules of registration and valuation.

Your move is as follows:

(a) It shall be paid, in general, to account 111 or 194.

b) It will be charged for the provision that the premium can be made.

111. Other equity instruments.

1110. Net worth by issue of compound financial instruments.

Net equity component arising from the issuance of a composite financial instrument. In particular, the issuance of convertible bonds into shares.

Your move is as follows:

(a) It shall be paid for the equity component of the financial instrument, usually taken into account in subgroup 57.

b) 100 or 110 accounts will be debited when the conversion occurs.

1111. Other net worth instruments.

This account collects the rest of net worth instruments that have no place in others, such as options on own shares.

Your move is as follows:

(a) It shall be paid for the amount of the instrument rated as net worth, generally to account of group 6 or sub-group 57.

b This will be charged when other equity instruments are delivered, with credit to the appropriate equity account.

112. Legal reservation.

This account will register the reservation established by Article 214 of the Recast Text of the Company Law.

Your move is as follows:

(a) It shall generally be paid out of account 129.

b) We will be charged for the provision made of this reservation.

113. Voluntary reserves are those freely constituted by the entity.

Your movement is analogous to the one for account 112, without prejudice to the following paragraphs:

-When a change of accounting criteria or the correction of an error occurs, the adjustment for the accumulated effect calculated at the beginning of the financial year, the changes in the assets affected by the retroactive application of the new criterion or the correction of the error, shall be charged to reserves of free disposition. On a general basis, the voluntary reserves will be charged, as follows:

(a) It shall be paid for the amount resulting from the net creditor effect of the changes experienced by the application of a new accounting criterion compared to the old one or the correction of the error, with charge and credit, where applicable, to the respective representative accounts of the assets affected by this fact, including those related to the accounting of the tax effect of the adjustment.

(b) The amount resulting from the net debtor effect of the changes experienced by the application of a new accounting criterion compared to the old one or the correction of an accounting error, with credit or charge, if applicable, to the respective accounts of the assets affected by this fact, including those related to the accounting of the tax effect of the adjustment.

-When a business combination is produced in stages, in accordance with the rules of registration and valuation, the difference between the fair value of the acquirer's participation in the identifiable elements of the entity acquired in each of the dates of the individual transactions and its fair value at the date of acquisition, shall be charged to reserves of free disposition. In general, this voluntary reserve account shall be paid out of the corresponding accounts of the assets, including those related to the accounting of the tax effect.

In particular, in the event that, prior to a business combination in stages in which the acquisition method is to be applied, the investment in the acquiree would have been classified as a financial asset held for trading or fair value financial assets with changes in the profit and loss account, the voluntary reserve account shall be paid or charged to the accounts in which the holding was registered.

-When this Plan is applied for the first time, the adjustments resulting from the date of transit to it will be recognized in this heading, through a specific four-digit account created for this purpose.

-The transaction costs of equity instruments will be charged to reserves of free disposition. On a general basis, the voluntary reserves shall be charged, by registering as follows:

(a) The amount of the expenditure shall be debited from the accounts of sub-group 57.

(b) It shall be paid for the profit tax expense related to the transaction costs, from the corresponding account of the subgroup 47.

114. Special reservations.

Those established by any legal provision with a mandatory character, other than those included in other accounts of this subgroup.

In particular, the reserve for reciprocal participations set out in Article 84 of the Recast Text of the Company Law is included.

Generally speaking, the content and movement of the four-digit quoted accounts is as follows:

1140. Reserves for shares or units of the dominant company.

The obligatorily constituted in case of acquisition of shares or participations of the dominant society and as long as these are not in the article 79,3 of the Recast Text of the Law of Companies Anonymous). This account will also collect, with due breakdown in five-figure accounts, the reserves that must be constituted in case of acceptance of the shares of the dominant company in guarantee (article 80.1 of the Recast Text of the Law of Companies Anonymous). As long as these situations last, these reserves will become unavailable.

Your move is as follows:

(a) It shall be paid for the acquisition amount of the shares or units of the holding company or for the amount to which the guaranteed quantity ascends by its shares, from any of the available reserve accounts, or to account 129.

(b) It shall be charged, for the same amount, when such shares or shares are held or when the security is terminated, with credit to account 113.

1141. Statutory reserves.

They are those established in the statutes of society.

Your movement is analogous to the one for account 112.

1142. Reserve for amortised capital.

Nominal of the shares of the entity acquired by the entity and amortized by profit or available reserves. The nominal amount of the shares in the amortised entity itself shall also be included if they have been acquired for free. The allocation and availability of this account shall be governed by the provisions of Article 167.3 of the Recast Text of the Law on Anonymous Societies.

Your move is as follows:

a) It will be paid from any of the available booking accounts, or to account 129.

b) It will be charged for the reductions that are made.

1143. Reserve by goodwill.

The mandatory one in case there is a goodwill (article 213.4 of the Recast Text of the Law of Companies). As long as this situation lasts, this reservation will be unavailable.

Your move is as follows:

a) It will be paid from any of the available reserve accounts, or to account 129.

b) We will be charged for the disposition that may be made of this reservation.

1144. Reserves for own shares accepted as collateral.

Reserves to be incorporated in case of acceptance of own shares in guarantee (article 80.1 of the Recast Text of the Law of Companies Anonymous). As long as this situation lasts, these reserves will become unavailable.

Your move is as follows:

(a) It shall be paid for the amount to which the amount secured by means of own shares, from any of the available reserve accounts, or to account 129 is paid.

(b) It shall be charged, for the same amount, when the guarantee ceases, with credit to account 113.

1147. Reserve for stabilisation.

Reserve to be incorporated under the provisions of Articles 29 and 45 of the Regulation on the Management and Supervision of Private Insurance. As long as your amount is payable, it will be unavailable.

Your move is as follows:

(a) It shall be paid, for the appropriate allocation, from account 554.

(b) It shall be charged, when the amount is applied for its purpose, with credit to account 113.

1148. Reserve for repricing of buildings.

Reserve to be incorporated at the date of transit to this Plan when, in accordance with paragraph 1 of the first transitional provision of the royal decree approving this Plan, the option is to revalue the buildings. Your amount will be unavailable. Notwithstanding the foregoing, it shall be available on the terms and with the requirements laid down in that transitional provision first.

Your move is as follows:

(a) It shall be paid for the amount resulting from the revaluation of the buildings.

b) You will be charged when you purchase available character, with credit to account 113.

115. Reserves for actuarial gains and losses and other adjustments.

Net equity component arising from the recognition of actuarial gains and losses and adjustments in the value of the post-employment remuneration assets to the defined benefit staff, in accordance with the provisions of the registration and valuation rules.

Your move is as follows:

a) It will be paid:

to1) At the close of the financial year, for the amount of the gain recognized, from the accounts of the subgroup 95.

to2) For benefit tax expense related to these aspects, from the accounts in subgroup 83.

b) Charged:

b1) At the end of the financial year, for the amount of the recognised loss, with credit to subgroup 85 accounts.

b2) For benefit tax expense related to these aspects, with credit to the accounts in subgroup 83.

118. Non-reintegrable contributions from partners and mutualists.

Heritage items delivered by the partners or mutualists when they act as such, by virtue of operations not described in other accounts. That is, provided that they do not constitute consideration for the delivery of goods or the provision of services performed by the entity, nor have the nature of liabilities. In particular, it includes the quantities delivered by the partners or owners for loss compensation.

Your move is as follows:

(a) It shall generally be credited to the accounts of subgroup 57 or the representative accounts of the non-cash-in-money assets.

b) Charged:

b1) Generally, with credit to account 121.

b2) By the provision that the contribution can be made.

119. Differences in adjustment of capital to euro.

Differences arising as a result of the conversion to euro of the capital figure according to the content of Law 46/1998 of 17 December on the introduction of the euro.

12. Results pending implementation.

120. Remnant.

121. Negative results from previous years.

129. Result of the exercise.

The accounts of this sub-group shall be included in the net worth of the balance sheet, forming part of the own funds, with a positive or negative sign, as appropriate.

120. Remnant.

Benefits not distributed or applied specifically to any other account, after the approval of the annual accounts and the distribution of results.

Your move is as follows:

a) The account shall be paid to account 129.

b) Charged:

b1) By its application or disposition, with credit, generally, to the accounts of subgroup 57.

b2) By transferring, with credit, to subgroup 11 accounts.

121. Negative results from previous years.

Negative results from previous exercises.

Your move is as follows:

(a) Account 129 and, if applicable, account 554 shall be debited.

(b) The account or accounts with which your balance is cancelled shall be credited to the account or accounts.

The entity will develop in four-figure accounts the negative result of each financial year.

129. Result of the exercise.

Result, positive or negative, of last exercise closed, pending application.

Your move is as follows:

a) It will be paid:

to1) To determine the result of the exercise, from the accounts of groups 6 and 7 that present at the end of the exercise credit balance.

to2) By transferring the negative result, from account 121.

b) Charged:

b1) To determine the result of the exercise, with credit to the accounts of groups 6 and 7 that present at the end of the financial year the debtor balance.

b2) When the positive result is applied according to the distribution agreement of the result, with credit to the corresponding accounts.

13. Grants, donations and adjustments for changes in value.

130. Official capital grants.

131. Donations and legacies of capital.

132. Other grants, donations and legacies.

133. Valuation adjustments in financial assets available for sale.

134. Hedging operations.

1340. Cash flow coverage.

1341. Coverage of a net investment in a foreign business.

135. Differences of change or conversion.

136. Valuation adjustments in assets and groups of items held for sale.

137. Tax revenue to be distributed in various exercises.

1370. Tax revenue for permanent differences to be distributed in various exercises.

1371. Tax receipts for deductions and allowances to be distributed in various financial years.

138. Correction of accounting asymmetries.

1381. Immunization operations by cash flows.

1382. Immunization operations for financial durations.

1383. Life insurance operations whose redemption value is referenced to the asset performance value.

1384 Insurance operations that recognize profit participation.

1385. Life insurance operations in which the taker assumes the risk of the investment or assimilated.

Grants and legacies, non-reintegrable, granted by third parties other than the partners or owners, received by the entity and other income and expenses directly accounted for in the net worth, until in accordance with the provisions of the registration and valuation rules, where applicable, their transfer or imputation to the profit and loss account occurs.

The accounts of this subgroup will be in net worth.

130. Official capital grants.

Those granted by public administrations, both domestic and international, for the establishment or fixed structure of the entity when they are not reintegrable, in accordance with the criteria laid down in the rules of registration and valuation.

Your move is as follows:

a) It will be paid:

to1) At the end of the financial year, for the grant granted, from the corresponding account of the subgroup 94.

to2) By the profit tax expense linked to the grant attributed or transferred to the profit and loss account, from the accounts of subgroup 83.

b) Charged:

b1) At the end of the financial year, by the allocation to the profit and loss account of the grant received, with credit to the corresponding subgroup 84 account.

b2) By the profit tax expense linked to the subsidy directly attributed to the net worth, with credit to the accounts of subgroup 83.

131. Donations and legacies of capital.

Donations and legacies granted by entities or individuals, for the establishment or fixed structure of the entity when they are not reintegrable, in accordance with the criteria laid down in the rules of registration and valuation.

Your movement is analogous to the one pointed out for account 130.

132. Other grants, donations and legacies.

Grants, donations and legacies granted that do not appear in the accounts above, where they are not reintegrable, and are pending the outcome of the outcome in accordance with the criteria laid down in the rules of registration and valuation. This is the case for grants awarded to finance ograms that will generate future expenses.

Your movement is analogous to the one pointed out for account 130.

133. Valuation adjustments in financial assets available for sale.

Adjustments produced by the fair value valuation of the financial assets classified in the category of available for sale, in accordance with the standard of registration and valuation relating to financial instruments.

With a general character, your move is as follows:

a) It will be paid:

to1) At the close of the financial year, for positive changes in the fair value of the financial assets available for sale, at account of 900.

to2) At the close of the financial year, for the financial asset loss transfers available for sale, at account 902.

to3) At the end of the financial year, when investments were made prior to the consideration of equity holdings as group, multi-group or associated entities, by the recovery or transfer to the profit and loss account of the valuation adjustments for value reductions directly attributed to the net worth, with a sub-group of 99.

to4) For benefit tax expense caused by these adjustments, from the accounts of subgroup 83.

to5) By negative value variations directly imputed to the net worth in financial assets available for sale, when a combination of staged business has occurred, from the account in which the holding is registered.

b) They will be loaded:

b1) At the end of the financial year, due to negative changes in the fair value of the financial assets available for sale, with credit to account 800.

b2) At the end of the financial year, for the transfer of profits in financial assets available for sale, with credit to account 802.

b3) At the end of the financial year, due to the deterioration in investments in assets of group, multigroup and associated entities that previously caused value adjustments by value increase, with credit to the corresponding accounts of subgroup 89.

b4) For profit tax expense caused by these adjustments, with credit to the accounts of subgroup 83.

b5) By positive value variations directly attributed to the net worth in financial assets available for sale, when a combination of the staged business has occurred, with credit to the account in which the holding is registered.

134. Hedging operations.

Amount of the loss or gain of the hedging instrument that has been determined as an effective hedge, in the case of hedge of cash flows or hedging of a net investment in a foreign business.

1340. Cash Flow Coverage With a general character, your move is as follows:

a) It will be paid:

to1) At the end of the financial year, for cash flow hedge benefits, with account 910.

to2) At the close of the financial year, for losses transferred in cash flow hedges to account 912.

to3) For the benefit tax expense that arises from these operations, from the accounts in subgroup 83.

b) Charged:

b1) At the end of the financial year, for losses due to cash flows, with credit to account 810.

b2) At the end of the financial year, for the benefits transferred in cash flow hedges, with credit to account 812.

b3) For the benefit tax expense arising from these operations, with credit to the accounts of subgroup 83.

1341. Coverage of a net investment in a foreign business.

The coverage of a net investment in a foreign business includes the coverage of a monetary item that is considered as part of the said net investment, as it is not contemplated or likely to be settled for the foreseeable future in the terms provided for in the standard of registration and valuation.

Your movement is analogous to the one pointed out for account 1340.

135. Differences of change or conversion.

Difference arising when converting to the functional or presentation currency, euro, balance sheet items and profit and loss account.

With a general character, your move is as follows:

a) It will be paid:

to1) At the end of the financial year, for income from change or conversion differences, from account 920.

to2) At the close of the exercise, by transfer of change or negative conversion differences, to account 921.

to3) By profit tax expense linked to the change or conversion difference, from the accounts of subgroup 83.

b) Charged:

b1) At the end of the financial year, for exchange or conversion differences, with credit to account 820.

b2) At the end of the financial year, by the transfer of exchange or positive conversion differences, with credit to account 821.

b3) By profit tax expense linked to the change or conversion difference, with credit to the accounts of subgroup 83.

136. Valuation adjustments in assets and groups of items held for sale.

Fair value adjustments of assets classified as held for sale, and of directly associated assets and liabilities, classified as collateral groups of items held for sale, whose value changes, prior to their classification in this category, were already attributed to another account of subgroup 13.

With a general character, your move is as follows:

(a) At the time of its classification in this category, it shall be paid or charged, for the variation in value directly attributed to the net worth up to that time, with a charge or a credit, to the corresponding accounts of this subgroup 13.

(b) thereafter, the change in the value of the assets held for sale and of directly associated assets and liabilities classified as a group of items held for sale, with or without charge, respectively, to the accounts of groups 96 and 86, shall be paid or charged.

c) The reasons for the charge and the payment corresponding to the tax effect are similar to those mentioned for account 133.

137. Tax revenue to be distributed in various exercises.

Tax advantages materialised in permanent differences and deductions and bonuses which, because they have an economic nature equivalent to the subsidies, are the subject of an imputation to the profit and loss account in various financial years.

For these purposes, the permanent differences are, in general, materialised in income which is not incorporated in the determination of the tax base of the profit tax and which does not revert in subsequent periods.

The four-figure cited accounts move is as follows:

1370. Tax revenue for permanent differences to be distributed in various exercises.

(a) The amount of the tax effect of the permanent differences to be charged in several financial years shall be paid at the end of the financial year to account for 834.

(b) The amount charged in the exercise of the tax effect of the permanent difference shall be charged at the end of the financial year with payment of account 836.

1371. Tax receipts for deductions and allowances to be distributed in various exercises

Your movement is analogous to the one pointed out for account 1370.

138. Correction of accounting asymmetries.

Adjustments made to accounts 312, 32, 188 or 268 as applicable, in accordance with the standard of registration and valuation relating to insurance contracts, where financial instruments linked to such commitments are accounted for by their fair value and their changes in value are recorded in net worth. The amount of such account shall, at the end of the financial year, reflect the balance of value changes recognised through the net worth of the relevant financial instruments in the accounts 133, 134 and 135.

With a general character, your move is as follows:

c) It will be paid:

to1) At the close of the financial year, by adjusting the negative changes in the fair value of the financial assets available for sale recognised in net worth, from the corresponding accounts of group 98.

to2) For benefit tax expense caused by these adjustments, from the accounts in subgroup 83.

d) They will be loaded:

b1) At the end of the period, the adjustment of positive changes in the fair value of the financial assets available for sale recognised in equity, from the corresponding accounts in Group 88.

b2) By profit tax expense caused by these adjustments, with credit to the accounts of subgroup 83.

14 Provisions.

140. Provision for long-term remuneration to staff.

141. Provision for taxes 142.

142. Provision for other responsibilities 143.

143. Provision for decommissioning, withdrawal or rehabilitation of the immobilized.

147. Provision for transactions with payments based on equity instruments.

148. Provision for the participation of staff in premiums.

Express, and tacit, obligations clearly specified in terms of their nature, but which, at the date of the end of the financial year, are not determined as to their exact amount or the date on which they will be produced.

The accounts of this subgroup shall be on the liabilities side of the balance sheet.

140. Provision for long-term remuneration to staff.

Legal, contractual or implied obligations to the staff of the entity, other than those listed in the accounts 147 and 148, on which there is uncertainty about their amount or maturity, such as post-employment benefits of defined benefit or disability benefits.

The provision corresponding to long-term benefits of defined benefit shall be quantified taking into account any assets affected, in the terms of the registration and valuation rule.

If the application of the provisions of this rule arose, an asset shall be recognised in account 2571, which shall be included in the balance sheet asset under the heading 'Assets arising from pension commitments and similar obligations'.

Your move is as follows:

a) It will be paid:

to1) By estimates of annual accruals, from a subgroup 64 accounts.

to2) For the recognition of actuarial losses by post-employment benefits of defined benefit, with account of the account 850.

to3) For the amount of adjustments that arise from the update of values, count 660.

to4) For the amount charged to the loss account and cost gains for past services, at account of 6442.

b) Charged:

b1) By the provision that is made from the provision, with credit, generally, to the accounts of subgroup 57.

b2) For the recognition of actuarial gains for post-employment benefits of defined benefit, with credit to account 950; b3) For the expected return on the assets affected, with credit to account 767.

b4) Due to excess provisioning, credit to account 7950.

141. Provision for taxes.

Estimated amount of tax liabilities whose payment is undetermined as to the exact amount or the date on which it will occur, depending on whether or not certain conditions are met.

Your move is as follows:

(a) It shall be paid for the annual accrual estimate, from the expenditure accounts for the various components that integrate them. In particular:

to1) To sub-group 63 accounts by the provision portion of the exercise quota.

to2) To accounts in subgroup 66 for the interest of delay for the financial year.

to3) Account 679, if any, for the associated sanction.

to4) Account 113 for the previous exercise fee and interest.

b) Charged:

b1) When provisioning is applied, with credit to subgroup 47 accounts.

b2) Due to excess provisioning, credit to account 7951.

142. Provision for other responsibilities.

Non-financial liabilities arising out of indeterminate claims not included in any of the other accounts of this subgroup; among others, those arising from ongoing litigation, indemnities or obligations arising from endorsements and other similar collateral by the entity.

Your move is as follows:

a) It will be paid:

to1) At the birth of the obligation determining compensation or payment, or for subsequent changes in their amount that result in an increase in the provision, under charge, to the accounts of the group 6 that correspond.

to2) For the amount of adjustments that arise from the update of values, count 660.

b) Charged:

b1) To the firm resolution of the dispute, or when the final amount of the compensation or payment is known, with credit, generally, to the accounts of subgroup 57.

b2) Due to excess provisioning, credit to account 7952.

143. Provision for decommissioning, withdrawal or rehabilitation of the immobilized.

Estimated amount of the costs of decommissioning or removal of the fixed assets, as well as the rehabilitation of the place on which it is based. The entity may incur these obligations at the time of acquiring the fixed assets or to be able to use it for a certain period of time.

When this obligation is incurred at the time of acquiring the fixed assets or arising as a result of using the fixed assets, their movement is as follows:

a) It will be paid:

to1) At the birth of the obligation, or for subsequent changes in its amount that result in an increase in the provision, generally taken into account in subgroup 21.

to2) For the amount of adjustments that arise from the update of values, count 660.

b) Charged:

b1) At the end of the financial year, by the decreases in the amount of the provision arising from a new estimate of their amount, with credit, generally, to sub-group 21 accounts.

b2) When the provision is applied, with credit, generally, to subgroup 57 accounts.

147. Provision for transactions with payments based on equity instruments.

Estimated amount of the obligation assumed by the institution as a result of a transaction with payments based on equity instruments that are settled with an effective amount that is based on the value of those instruments.

Your move is as follows:

a) It will be paid:

to1) At the birth of the obligation or for subsequent changes in its amount that result in an increase in the provision, generally taken into account for subgroups 62 or 64.

to2) For the amount of adjustments that arise from the actualication of values, count 660.

b) Charged:

b1) When the provision is applied, with credit, generally, to subgroup 57 accounts.

b2) Due to excess provisioning, credit to account 7957.

148. Provision for the participation of staff in premiums.

An estimated amount of the obligations incurred by the entity with its staff, in application of the contracts or labor agreements subscribed, by the concept of participation in premiums.

Your move is as follows:

a) It will be paid:

to1) For the estimated amount, charged to account 646.

to2) For the amount of adjustments that arise from the update of values, count 660.

b) Charged:

b1) When the provision is applied, with credit, generally, to subgroup 57 accounts.

b2) Due to excess provisioning, credit to account 7958.

15. Debts with special characteristics.

150. Shares considered as financial liabilities

153. Disbursements not required by shares considered as financial liabilities.

1533. Disbursements not required, companies of the group.

1534. Disbursements not required, associated companies.

1535. Disbursements not required, other related parties.

1536. Other non-required disbursements.

154. Outstanding non-cash contributions for shares considered as financial liabilities.

1543. Outstanding non-cash contributions, group companies.

1544. Outstanding non-cash contributions, associated companies.

1545. Outstanding non-cash contributions, other related parties.

1546. Other outstanding non-cash contributions.

Shares of the institution which, having regard to the economic characteristics of the issue, are to be considered as financial liabilities.

Debts with special characteristics shall be included in the liability of the balance sheet under heading A-3. IX "Other debts".

150. Shares considered as financial liabilities.

Social capital written and, where applicable, an issue premium which, in the light of the characteristics of the issue, must be accounted for as a financial liability. In particular, certain rescue actions and silent actions.

Figure 2 or 3, as the case may be, in the balance sheet of heading A-3. IX "Other debts".

Your move is as follows:

(a) It shall be paid for the initial capital and subsequent extensions, at the time of registration in the Mercantile Register, with account of 199.

(b) It shall be charged for the cancellation or reductions of the same and the termination of the entity, after the settlement period has elapsed.

153. Disbursements not required by shares considered as financial liabilities.

Unrequired written social capital corresponding to financial instruments whose accounting rating is that of financial liability.

shall be shown on the liability of the balance sheet with negative sign, by minoring headings 2 or 3, as appropriate, under heading A-3. IX "Other debts".

The four-figure cited accounts move is as follows:

1533/1534/1535/1536.

(a) They shall be charged for the non-paid-up nominal value of the subscribed shares, with credit, generally, to the accounts 195 or 197.

(b) They shall be paid for the required disbursements, at the expense of account 5585.

154. Outstanding non-cash contributions for shares considered as financial liabilities.

Social capital to be written pending for non-cash contributions, corresponding to financial instruments whose accounting rating is that of financial liabilities.

They shall appear on the liability side of the balance sheet, with a negative sign, by minoring headings 2 3, as appropriate, under heading A-3. IX "Other debts".

The four-figure cited accounts move is as follows:

1543/1544/1545/1546.

(a) They shall be charged for the non-paid-up nominal value of the subscribed shares, with credit, generally, to the accounts 195 or 197.

(b) They shall be paid when the disbursements are made, from the representative accounts of the non-cash assets provided.

16. Debt with related parties.

160. Debt for investments with related entities.

1603. Debt for investments, companies in the group.

1604. Debt for investments, associated companies.

1605. Debt for investments, other related parties.

163. Other related party debts.

1633. Other debts, group companies.

1634. Other debts, associated companies.

1635. Other debts, with other related parties.

Debts incurred with entities in the group, multigroup, associated and other related parties, including accrued interest. In this subgroup, in the accounts of three or more of the figures to be developed, the debts which by their nature should be included in sub-groups 17 or 18 other than accounts 182, 186 and 188.

The accounts of this subgroup shall be the liability of the balance sheet.

160. Debt for investments with related entities.

Debts to entities linked by the acquisition of investments defined in Group 2.

The four-figure cited accounts move is as follows:

1603/1604/1605.

a) They will be paid:

to1) On the date of hiring or settlement of assets, as applicable, from group 2 accounts.

to2) For the financial expense incurred until the debt repayment value is reached, generally charged to account 662.

(b) They shall be charged for the full or partial advance payment, with credit, to sub-group 57 accounts.

163. Other related party debts.

Contracted with related parties from operations other than those contained in account 160.

The four-figure cited accounts move is as follows:

1633/1634/1635.

The movement of the quoted four-figure accounts is analogous to the one for account 160.

17. Debts for loans received, borrowings and other items.

170. Debt with credit institutions.

1700. With real warranty.

1701. No real guarantee.

171. Other debts.

172. Transformative debts in grants, donations and legacies.

173. Debt for fixed assets and real estate investments.

174. Creditors for leasing.

175. Effects to be paid.

176. Liabilities for financial derivatives.

1765. Liabilities for financial derivatives, trading book.

1768. Liabilities for financial derivatives, hedging instruments.

177. Bonds and bonds.

178. Subordinated loans and other comparable financing.

179. Debts represented in other marketable securities.

Non-third party financing that does not qualify as related parties, including the implied interest accrued. The issuance and subscription of the marketable securities shall be recorded in the form that the entities have as appropriate while the securities in the subscription period are found.

The accounts of this subgroup shall be the liability of the balance sheet.

170. Debt with credit institutions.

Contracted with credit institutions for loans received and other debits.

Your move is as follows:

a) It will be paid:

to1) To the formalization of the debt or loan, for the amount received, mined in the transaction costs, usually charged to the accounts of subgroup 57.

to2) For the financial expense incurred until the debt repayment value is reached, generally charged to account 662.

(b) It shall be charged for the anticipated, total or partial refund, with credit, generally, to sub-group 57 accounts.

It will be included, with due development in accounts of four or more figures, the amount of the debts for discounted effects.

171. Other debts.

Contracted with third parties for loans received and other debits that have no place in other accounts of this subgroup.

Your move is as follows:

a) It will be paid:

to1) To the formalization of the debt or loan, for the amount received, mined in the transaction costs, usually charged to the accounts of subgroup 57.

to2) For the financial expense incurred until the debt repayment value is reached, generally charged to account 662.

b) Charged:

b1) By accepting effects to be paid, with credit to account 175.

b2) Due to the early, total or partial cancellation of debts, with credit, generally, to sub-group 57 accounts.

172. Transformative debts in grants, donations and legacies.

Amounts granted by public administrations, both domestic and international, entities or individuals with a grant, donation or reintegrable legacy.

Your move is as follows:

(a) It shall be paid for the amounts granted to the entity in charge, generally, to the accounts of the subgroups 47 or 57.

b) Charged:

b1) For any circumstance that determines the total or partial reduction of the same, according to the terms of its concession, with credit, generally, to the account 4758.

b1) If you lose your reintegrable character, credit your balance to 940, 941, or 942 accounts or to subgroup 74 accounts.

173. Debt for fixed assets and real estate investments.

Debts for transactions referring to subgroups 20, 21 and 23.

Your move is as follows:

a) It will be paid:

to1) By the birth of the obligation, from group 2 accounts.

to2) For the financial expense incurred until the debt repayment value is reached, generally charged to account 662.

b) Charged:

b1) By accepting effects to be paid, with credit to account 175.

b2) Due to the early, total or partial cancellation of debts, with credit, generally, to sub-group 57 accounts.

174. Creditors for leasing.

Debts to other entities in the capacity of the transferors of the use of goods, in agreements to be classified as financial leases in the terms of the registration and valuation rules.

a) It will be paid:

to1) By receipt pursuant to the right of use on the goods supplied, from group 2 accounts.

to2) For the financial expense incurred until the debt repayment value is reached, generally charged to account 662.

(b) It shall be charged for the early cancellation, in whole or in part, of the debts, with credit, generally, to sub-group 57 accounts.

175. Effects to be paid.

Debts incurred by loans received and other debits, instrumented by spin, including those that have their origin in supplies of fixed assets.

Your move is as follows:

a) It will be paid:

to1) When the entity accepts the effects, generally taken into account by this subgroup.

to2) For the financial expense incurred until the debt repayment value is reached, generally charged to account 662.

(b) It shall be charged for the advance payment of the effects, with credit, generally, to sub-group 57 accounts.

176. Liabilities for financial derivatives.

Amount corresponding to financial derivative transactions with unfavorable valuation for the entity. Also included are the full derivatives of hybrid financial instruments acquired, issued or assumed, that meet the criteria for inclusion in this account, with the creation of accounts of four or more figures that identify that this is an implicit derivative.

In particular, the premiums charged in options transactions shall be collected in this account, as well as, in general, changes in the fair value of the financial derivatives liabilities to which the entity operates: options, futures, financial swaps, purchase and sale of currency, etc.

1765. Liabilities for financial derivatives, trading book.

Your move is as follows:

a) It will be paid:

to1) For the amount received at the time of the hiring, generally, at the accounts of subgroup 57.

to2) For the losses that are generated in the exercise, at account 6630.

b) Charged:

b1) For earnings that are generated in the financial year up to the limit of the amount for which the derivative was registered in the liability in the previous financial year, with credit to the account 7630.

b2) For the amounts satisfied at the time of settlement, with credit, generally, to the accounts of subgroup 57.

1768. Liabilities for financial derivatives, hedging instruments.

Your move is as follows:

(a) It shall be paid for the amount received at the time of the procurement, usually from the accounts of subgroup 57.

(b) When the derivative is used as a hedging instrument, in fair value coverage:

b1) It will be loaded:

(i) For the profit that is generated in the financial year when applying the rules governing the accounting of hedges, up to the limit of the amount by which the derivative is recorded in the liability in the previous financial year, with credit to an account that will be charged to the profit and loss account in the same item in which the losses that are generated in the covered items are included in the assessment of the risk covered by its fair value.

(ii) At the time when the asset is acquired or the liabilities covered are assumed, with credit to the accounts in which such assets are accounted for.

b2) Shall be paid for losses incurred in the financial year when applying the rules governing the accounting of hedges, with a charge to an account to be charged to the profit and loss account in the same item in which the earnings that are generated in the covered items are included in the assessment of the risk covered by its fair value.

(c) Where the derivative is used as a hedging instrument, in other hedging operations, on the effective part, it shall be charged or paid, for the gain or loss generated in the financial year when applying the rules governing the accounting of hedges, with credit or charge, to the accounts of subgroup 91 and 81, respectively, and for the ineffective part, to the accounts 7633 and 6633.

(d) It shall be charged for the quantities satisfied at the time of the settlement, with credit, generally, to sub-group 57 accounts.

177. Bonds and bonds.

Include non-convertible bonds and bonds in shares and the liability component of bonds and bonds in circulation convertible into shares or not. Divisional accounts will be created to differentiate both types of bonds and bonds.

Your move is as follows:

a) It will be paid:

to1) At the time of issue, for the amount received, minorted on transaction costs, from account of subgroup 57.

to2) For the financial expense incurred until the debt repayment value is reached, generally taken into account 661.

(b) The amount shall be debited from the amount to be remolated from the securities to the early repayment, in whole or in part, of the securities, with credit, generally, to account 551 and, where applicable, to the account 775.

178. Subordinated loans and other comparable financing.

Debts incurred by the institution, whether or not represented by marketable securities, in respect of which it has been contractually agreed that, in the event of liquidation or bankruptcy of the entity, they shall be repaid only after the debts of the other creditors have been satisfied.

Your move is analogous to the 177 account.

179. Debts represented in other marketable securities.

Other financial liabilities represented in marketable securities, offered to public savings, other than the previous ones.

Its content and movement is analogous to the one for account 177, depending on whether it is a compound financial instrument or not.

18. Liabilities for bonds and other concepts.

180. Bonds received.

181. Advances received for services provided.

182. Revenue from omissions and other costs of acquisition of the transferred reinsurance.

1821. Commissions of the business class.

1822. Costs of acquisition of the life-class.

1823. Commissions of classes other than life.

1824. Acquisition costs for different classes of life.

186. Deposits received by ceded reinsurance and regressed.

1860. Deposits with technical provisions for outstanding benefits.

1861. Deposits for technical provisions for unconsumed premiums.

1862. Deposits with technical provisions for life insurance.

1863. Deposits with other technical provisions.

188 Liabilities to the correction of accounting asymmetries.

1881. Liabilities for the correction of accounting asymmetries in immunization operations by cash flows.

1882. Liabilities for the correction of accounting asymmetries in immunization operations for financial durations.

1883. Liabilities for the correction of accounting asymmetries in life insurance operations whose redemption value is referenced to the value of the performance of the assets.

1884 Liabilities to the correction of accounting asymmetries in insurance operations that recognize participation in profits.

1885. Liabilities for the correction of accounting asymmetries in transactions treated as life insurance in which the taker assumes the risk of the investment.

The accounts of this subgroup shall be on the liabilities side of the balance sheet.

180. Bonds received.

Cash received as a guarantee of compliance with an obligation.

With a general character, your move is as follows:

a) It will be paid:

to1) To the constitution, by the fair value of the financial liability, from accounts of subgroup 57.

to2) For the financial expense incurred until the bond repayment value is reached, generally charged to account 662.

b) Charged:

b1) To early cancellation, with credit to subgroup 57 accounts.

b2) For non-compliance with the established obligation to determine losses on the bond, with credit to the 759 accounts.

181. Advances received for services services

Amount received "on account" of services capabilities.

With a general character, your move is as follows:

a) It will be paid:

to1) For the amount received from the accounts in subgroup 57.

to2) For the amount of the adjustments that arise from the update of its value, generally taken into account 662.

b) It will be charged when the income is due, with credit to the accounts of the subgroup 70.

182. Fee income and other costs of acquisition of the transferred reinsurance.

Amount of the acquisition costs recovered from the reinsurer and related to the acquisition costs arising from direct insurance operations.

Your move is as follows:

a) It shall be paid for the amount recovered from the reinsurer.

(b) It shall be charged when the amount of the results is charged to the accounts of subgroup 71.

186. Deposits received by ceded reinsurance and regressed.

Amounts remaining held by the institution, as a deposit, for the coverage of the technical provisions in charge of the transferred reinsurance and receded.

Your move is as follows:

(a) The deposit shall be credited to the account, generally, to the account 400.

b) The cancellation of the deposit will be charged, with credit, generally, to the account 400.

188 Liabilities to the correction of accounting asymmetries.

Liabilities to the correction of accounting asymmetries which, in accordance with the standard of registration and valuation 9, shall reflect on the liability of the balance sheet the symmetric adjustment through the net worth or profit loss account of changes in financial instruments linked to insurance contract commitments where recognition is not appropriate through account 312 or subgroup 32

Your move will be as follows:

a) It will be paid:

to1) At the close of the financial year, by adjusting the positive changes in the fair value of the financial assets at fair value with changes in results, the account is taken out of account 6696.

to2) At the close of the financial year, by adjusting the positive changes in the exercise to the fair value of fair value financial assets with changes in equity, from the accounts of the subgroup 88.

b) Charged:

b1) At the end of the financial year, by adjusting the negative changes in the fair value of the financial assets at fair value through changes in results, and up to the amount by which that account would have been included at the end of the preceding period, the account shall be credited for 7696.

b2) At the end of the financial year, the adjustment of negative changes in the fair value of financial assets at fair value through changes in net worth, and up to the amount by which that account would have been included at the end of the preceding period, by crediting the accounts of subgroup 98.

19. Transitional financing situations.

190. Issued shares.

192. Stock subscribers.

194. Capital issued pending registration.

195. Issued shares considered as financial liabilities.

197. Subscribers of shares considered as financial liabilities.

199. Issued shares considered as financial liabilities pending registration.

190. Issued shares.

Social capital and, where applicable, the premium for the issuance of shares with a net worth of equity issued and unsubscribed.

The liability of the balance sheet, with a negative sign, shall be included under the heading 'Other debts'.

Your move is as follows:

(a) It shall be charged at the nominal value and, where applicable, the premium for the issuance of the shares issued and outstanding, with credit to account 194.

b) Will be paid as the shares are subscribed:

b1) In the concurrent foundation assumptions, generally, with charge, to the accounts of subgroup 57, or to accounts 1034 and 1044.

b2) In the successive foundation assumptions, account for account 192.

b3) In assumptions that do not subscribe to shares, count 194.

192. Stock subscribers.

Company law to require from the underwriters the amount of the subscribed shares that have a net worth.

The negative sign in the balance sheet current, under the heading "Other debts".

Your move is as follows:

(a) It shall be charged at the nominal value and, where applicable, the premium for the issuance of the subscribed shares, with credit to account 190.

(b) It shall be paid where the subscription of the shares is in accordance with the accounts of the sub-group 57 or the accounts 1034 and 1044.

194. Capital issued pending registration.

Social capital and, where applicable, the premium for the issuance of shares with a net worth of equity issued and pending registration in the Commercial Registry.

It shall appear on the liability side of the balance sheet if, on the date of the formulation of the annual accounts, the registration in the Mercantile Register has not occurred, under the heading "Other debts".

Your move is as follows:

(a) It shall be paid for the nominal value and, where applicable, the premium for the issue of the shares issued and pending registration, at the expense of the account 190.

b) It will be loaded;

b1) At the time of the registration of the capital in the Mercantile Register, with credit to the accounts 100 and 110.

b2) In cases where issued shares are not subscribed, with credit to account 190.

195. Issued shares considered as financial liabilities.

Social capital and, where applicable, the premium for the issuance of shares issued as financial liabilities and unsubscribe.

The negative sign in the balance sheet current, under the heading "Other debts".

Your move is as follows:

(a) It shall be charged at the nominal value and, where applicable, the premium for the issuance of the shares issued and outstanding, with credit to account 199.

b) Will be paid as the shares are subscribed:

b1) In the concurrent foundation assumptions, generally, with charge, to the accounts of subgroup 57 or to accounts 153 and 154.

b2) In the successive foundation assumptions, account for the account 197.

b3) In cases where issued shares are not subscribed, with account of 199.

197. Subscribers of shares considered as financial liabilities.

Company law to require subscribers to the amount of subscribed shares considered as financial liabilities.

The negative sign in the balance sheet current, under the heading "Other debts".

Your move is as follows:

(a) It shall be charged at the nominal value and, where applicable, the premium for the issuance of the subscribed shares, with credit to account 195.

(b) It shall be paid where the subscription of the shares is in accordance with the general accounts of subgroup 57 or accounts 153 and 154.

199. Issued shares considered as financial liabilities pending registration.

Social capital and, where applicable, the premium for the issuance of shares considered as financial liabilities issued and pending registration in the Mercantile Register.

It shall be included in the current liabilities of the balance sheet, under the heading 'Other debts'.

Your move is as follows:

(a) It shall be paid for the nominal value and, where applicable, the premium for the issue of the shares issued and pending registration, with charge, at account 195.

b) Charged:

b1) At the time of the registration of the capital in the Mercantile Register, with credit to the accounts 150.

b2) In assumptions that do not subscribe to issued shares, credit to account 195.

GROUP 2

Quiescing and investments

Comprises assets intended to serve in a lasting manner in the activities of the institution, to cover the commitments made under contract insurance contracts and expenses for advance fees and other acquisition costs.

In particular, the following rules apply:

(a) This group also includes financial derivatives with favorable valuation for both hedging and trading entities.

(b) The development of the accounts of four or more figures which are necessary to differentiate the different categories in which the financial assets have been included in accordance with the rules of registration and valuation is recommended in order to allow for the completion of the information breakdowns included in item 10 of the annual accounts ' memory.

(c) If hybrid financial assets are acquired in accordance with the rules of registration and valuation as a whole at fair value, they shall be included in the account corresponding to the nature of the main contract, for which the due breakdown shall be established, accounts of four or more figures which identify that this is a jointly valued hybrid financial asset. Where the main contract and the implicit derivative are recognised separately, the principal contract and the underlying derivative contract shall be treated as if it had been contracted independently and shall be included in the account of groups 1 or 2 as appropriate and the main contract shall be included in the account corresponding to its nature, with due breakdown of four or more figures which identify that this is a hybrid main financial contract.

(d) An account that collects financial assets classified in the category of "Other financial assets at fair value with changes in the profit and loss account" shall be charged or paid, for changes in fair value, with credit or charge, respectively, to accounts 763 and 663.

(e) An account that collects an asset that, in accordance with the rules of registration and valuation, is to be classified as held for sale or is part of a qualifying group of items held for sale, shall be paid at the time the conditions for its classification are met, with the respective account of the subgroup 58.

(f) The difference between the value for which the financial assets are initially recognised and their redemption value shall be recorded as a charge (or, where applicable, as a credit) in the account where the financial asset is registered with credit (or charge) to the account of the sub-group 76 corresponding to the nature of the instrument.

20. Intangible fixed assets.

200. Research.

201. Development.

202. Administrative concessions.

203. Industrial property.

204. Trade fund.

205. Transfer rights.

206. Computer applications.

207. Economic rights derived from portfolios of policies acquired from a mediator.

209. Advances for intangible fixed assets.

The intangible fixed asset comprises non-cash assets without physical appearance that are capable of economic valuation, as well as advances on account of those immobilized.

In addition to the aforementioned intangible elements, there are other elements of this nature that will be recognized as such on balance, as long as they meet the conditions outlined in the Conceptual Framework of Accounting, as well as the requirements specified in the rules of registration and valuation. Among others, the following: commercial rights, intellectual property or licenses. For your registration, an account will be opened in this subgroup whose movement will be similar to the one described below for the remaining intangible fixed assets.

The accounts of this subgroup will be included in the balance sheet asset.

200. Research.

It is the original and planned inquiry that seeks to discover new knowledge and superior understanding of the existing ones in the scientific or technical fields. It contains the research expenditure activated by the institution, in accordance with the rules of registration and valuation of this text.

Your move is as follows:

(a) The amount of the costs to be included in this account shall be charged with credit to the account 730.

(b) It shall be paid for the discharge of the asset, if any, from account 670.

In the case of research commissioned by other institutions or universities dedicated to scientific research, the movement of the account 200 is also the one that has been indicated.

201. Development.

It is the concrete application of the achievements obtained from research or any other type of scientific knowledge, to a particular plan or design for the production of new, or substantially improved materials, products, methods, processes or systems, until the commercial production is initiated.

Contains the development expenses activated by the entity in accordance with the rules of registration and valuation of this text.

Your move is as follows:

(a) The amount of the costs to be included in this account shall be charged with credit to the account 730.

b) It will be paid:

b1) Down the asset, if any, from the 670 account.

b2) For positive results and, if applicable, registered Public Registry, with account of 203 or 206, as applicable.

When it comes to the development by order of other entities or institutions, the movement of account 201 is also the one that has been indicated.

202. Administrative concessions.

Expenses incurred in obtaining the rights of research or exploitation granted by the State or other Public Administrations, or the purchase price of those concessions that may be transmitted.

Your move is as follows:

(a) It shall be charged for the costs incurred in obtaining the concession, or for the purchase price, with credit, generally, to the accounts of subgroup 57.

(b) It shall be paid for the securities and in general for its discharge from the asset, usually from sub-group 57 accounts and in the case of losses to the account 670.

203. Industrial property.

Amount satisfied by the property or by the right to use or to grant the use of the various manifestations of the property industry in cases where, by the stipulations of the contract, they must be invented by the acquiring entity. This concept includes, among others, patents for invention, certificates of protection of utility models and patents for introduction.

Your move is as follows:

a) It will be loaded:

to1) By acquisition to other entities, with credit, generally, to subgroup 57 accounts.

to2) By being positive and enrolled in the corresponding Public Registry, the development results, with credit to account 201.

to3) For the outlays required for registration in the corresponding Register, with credit, generally, to the accounts of subgroup 57.

(b) It shall be paid for the disposal and in general for the discharge of the asset, with a charge, generally, to sub-group 57 accounts and in the case of losses to the account 670.

204. Trade fund.

It is the excess, at the date of acquisition, of the cost of the business combination on the corresponding value of the identifiable assets acquired less that of the liabilities assumed. As a result, the goodwill will only be recognised when it has been acquired for consideration, and corresponds to future economic benefits from assets that have not been individually identified and recognised separately.

Your move is as follows:

(a) It shall be charged for the amount resulting from the application of the acquisition method, with credit, generally, to the accounts of subgroup 57, or account 553.

b) It will be paid:

b1) For the amount of the estimated impairment, at account 690.

b2) By the enajenations and in general by the asset's decline, with charge, generally, to the accounts of subgroup 57 and in case of losses to the account 670.

205. Transfer rights.

Amount satisfied by the lease rights of premises, in which the acquirer and new tenant, is subrogated in the rights and obligations of the transferee and former tenant arising from a previous contract.

Your move is as follows:

(a) It shall be charged for the amount of its acquisition, with credit, generally, to sub-group 57 accounts.

(b) It shall be paid for the securities and in general for its discharge from the asset, usually from sub-group 57 accounts and in the case of losses to the account 670.

206. Computer applications.

Amount satisfied by the ownership or by the right to the use of computer programs acquired from third parties as well as by the entity itself. It also includes the development costs of the websites, provided that their use is foreseen during several exercises.

Your move is as follows:

a) It will be loaded:

to1) By acquisition to other entities, with credit, generally, to subgroup 57 accounts.

to2) By own processing, with credit to account 730 and, if applicable, account 201.

(b) It shall be paid for the securities and in general for its discharge from the asset, usually from sub-group 57 accounts and in the case of losses to the account 670.

207. Economic rights derived from portfolios of policies acquired from a mediator.

In the case of purchase by the entity of the economic rights derived from portfolios of policies acquired from a mediator, the amount satisfied by the acquisition.

Your move is as follows:

(a) To be charged, in the purchase for the price of the acquired economic rights to a mediator, with credit, generally, to the accounts of the subgroup 57.

b) It will be paid:

b1) For the systematic depreciation of economic rights derived from portfolios of policies acquired from a mediator, with account 686.

b2) For the amount of the estimated impairment, at account 690.

b3) By the enajenations and generally by the absence of the asset, with charge, generally, to the accounts of the subgroup 57 and, in case of losses, to the account 670.

209. Advances for intangible fixed assets.

Deliveries to account, usually in cash, of future intangible fixed assets.

With a general character, your move is as follows:

(a) It shall be charged for cash deliveries, with credit to sub-group 57 accounts.

(b) It shall be paid for the corresponding deliveries in accordance with the general accounts of this subgroup.

21. Fixed assets and real estate investments.

210. Land and natural goods.

2101. Fixed assets.

2102. Investments in land and natural assets.

211. Buildings.

2111. Fixed assets.

2112. Investments in buildings.

212. Technical installations.

215. Other facilities.

216. Furniture.

217. Equipment for information processes.

218. Transport elements.

219. Other tangible fixed assets.

Items of tangible assets represented by goods, furniture or buildings, except those that are to be classified in other subgroups, in particular in subgroup 23.

The accounts of this subgroup will be included in the balance sheet asset.

Your move is as follows:

(a) They shall be charged for the purchase price or production cost, with credit, generally, to the accounts of subgroups 23 or 57 or account 731.

(b) They shall be paid for their disposal and discharge from the asset, generally, to the accounts of subgroup 57 and, in the case of losses, to account 671 or 672.

210. Land and natural goods.

Solar urban nature, rustic estates, other non-urban land, mines and quarries.

Land and natural goods shall be differentiated into accounts of four or more digits on the basis of their use or destination, as defined in the rules of registration and valuation.

In particular, they will have the consideration of real estate investments, land and natural assets that are held for rent, capital gains or both. For their part, the land and natural assets held for the provision of services or for administrative purposes shall be considered as tangible assets.

211. Buildings.

Buildings in general whatever their destination is within the entity's or the entity's or its own or the other.

Constructions shall be differentiated into accounts of four or more digits according to their use or destination, as defined in the rules of registration and valuation.

In particular, they will have the consideration of real estate investments, the constructions that are held to obtain income, capital gains or both. For their part, construction materials which are held for the provision of services or for administrative purposes shall be regarded as tangible fixed assets.

212. Technical installations.

Complex units of use specialized in the production process, comprising: buildings, machinery, material, parts or elements, including computer systems which, even being separable by nature, are permanently linked to their operation and subject to the same rate of depreciation; they will also include spare parts or spare parts for this type of installations.

215. Other facilities.

A set of elements that are permanently linked to their operation and subject to the same rate of depreciation, other than those mentioned in the 212 account; they shall also include spare parts or spare parts whose validity is exclusive for such installations.

216. Furniture.

Furniture, equipment and office equipment, with the exception of those to be included in account 217.

217. Equipment for information processes.

Computers and other electronic assemblies.

218. Transport elements.

Vehicles of all kinds that can be used for the transportation of people or furniture, among others.

219. Other tangible fixed assets.

Any other tangible assets not included in the other accounts of subgroup 21.

23 Tangible assets in progress.

230. Adaptation of land and natural assets.

231. Constructions in progress.

232. Technical installations in assembly.

237. Equipment for mounting information processes.

239. Advances for tangible fixed assets and real estate investments

The accounts of this subgroup will be included in the balance sheet asset.

230/237.

Adaptation, construction or assembly work at the end of the financial year carried out prior to the operation of the various elements of the fixed equipment, including those made in buildings.

Your move is as follows:

a) They will be loaded:

to1) By receiving works and jobs that correspond to the ongoing inmobilizations.

to2) For the works and works that the entity carries out for itself, with credit to account 733.

(b) These works and works shall be paid after completion of the work, from the accounts of the subgroup 21.

239. Advances for tangible fixed assets and real estate investments.

Deliveries to account, usually in cash, of future tangible assets and real estate investments.

With a general character, your move is as follows:

(a) It will be charged for cash deliveries, with credit, generally, to sub-group 57 accounts.

(b) It shall be paid for the corresponding deliveries to the accounts of this subgroup and of the subgroup 21.

24. Financial investments in related parties.

240. Shares in related parties.

2403. Shares in companies of the group.

2404. Shares in associated companies.

2405. Shares in other related parties.

241. Representative debt securities of related parties.

2413. Representative debt securities of companies in the group.

2414. Representative debt securities of associated companies.

2415. Debt securities of other related parties.

242. Credits to related parties.

2423. Loans to companies in the group.

2424. Credits to associated companies.

2425. Credits to other related parties.

246. Advances on policies to related parties.

249. Outstanding disbursements on shares in related parties.

2493. Outstanding disbursements on shares in group companies.

2494. Outstanding disbursements on shares in associated companies.

2495. Outstanding disbursements on shares in other related parties.

Financial investments in entities of the group, multigroup, associates and other related parties, including the implied interest accrued, as well as the securities and deposits constituted and other types of financial assets and investments with them. These investments shall be collected in the accounts of three or more figures which are developed and are accurate.

In the event that the representative debt securities or the credit claims interest is explicit, the necessary accounts shall be created to identify them in sub-group 56, and shall be included in the balance sheet in the same item in which the asset that generates them is included.

240. Shares in related parties.

Investments in equity rights-with or without listing on a regulated market-of related parties, generally shares issued by an anonymous company or shares in limited liability companies.

It will appear in the balance sheet asset.

2403/2404. Shares in group entities/in associated companies.

The four-figure cited accounts move is as follows:

a) They will be loaded:

to1) To the subscription or purchase, with credit, generally, to the accounts of subgroup 57 and, if applicable, account 249.

to2) Where applicable, at the time the recoverable amount is higher than the accounting value of the investments, up to the limit of the prior negative value adjustments directly imputed to equity, with credit to the accounts 991 or 992.

b) They will be paid:

b1) Where appropriate, for the amount of the estimated impairment, up to the limit of the prior positive value adjustments directly imputed to equity, from accounts 891 or 892.

b2) By the enajenations and in general due to its absence from the asset, with charge, generally, to the accounts of the subgroup 57, if there are outstanding disbursements to the account 249 and, in case of losses, to the account 666.

2405. Shares in other related parties.

The movement of the cited account is as follows:

(a) The subscription or purchase will be charged, with credit, generally, to the accounts of subgroup 57 and, if applicable, account 249.

b) It will be paid:

b1) For the amount of the estimated impairment, at account 696.

b2) By the enajenations and in general due to its absence from the asset, with charge, generally, to the accounts of the subgroup 57, if there are outstanding disbursements to the account 249 and in case of losses to the account 666.

(c) If the shares are classified in the category of "Financial assets available for sale", it shall be charged or paid for the changes in fair value, with credit or charge, respectively, at the accounts 900 and 800.

241. Securities representing debt to related parties.

Investments in bonds, bonds or other debt securities, including those that set their performance on the basis of indices or similar systems, issued by related parties.

It will appear in the balance sheet asset.

2413/2414/2415.

Generally speaking, the four-figure quoted accounts move is as follows:

a) They will be loaded:

to1) To the subscription or purchase, for the purchase price, excluding the explicit interest accrued and not due, with credit, to the accounts of subgroup 57.

to2) Due to the financial income earned until the value of the value is reached, with credit, generally, to account 761.

b) They shall be paid for the disposal, early or low amortisation of the assets of the securities, with charge, to the accounts of the subgroup 57 and in case of losses to the account 666.

(c) If the securities are classified in the "Financial assets available for sale" category, they shall be charged or paid for the changes in their fair value, with credit or charge, respectively, to the accounts 900 and 800, except for the part corresponding to differences of exchange that is recorded with credit or charge to accounts 768 and 668. They shall also be charged when the value for the negative balance accumulated in the net worth is impaired, with credit to account 902.

242. Credits to related parties.

Investments in loans and other non-commercial loans, including derivatives of fixed assets, those arising from leasing transactions and deposits and impositions, whether or not they are formalised by means of rotation, granted to related parties. The various appropriations mentioned will be in five-figure accounts.

It will appear in the balance sheet asset.

2423/2424/2425.

The four-figure cited accounts move is as follows:

a) They will be loaded

to1) To the formalization of the credit, for the amount of credit, with credit, generally, to the accounts of subgroup 57.

to2) Due to the financial income earned until the credit repayment value is reached, with credit, generally, to account 762.

(b) They shall be paid for the anticipated, total or partial or low return of the asset, generally payable to the accounts of subgroup 57 and in the case of losses to account 667.

246. Advances on policies to related parties.

Amounts delivered on account of the provision provided for in the life insurance contracts awarded to related parties.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) To the grant of the advance for the amount granted, with credit, generally, to the accounts of subgroup 57.

to2) For interest that accrues, with credit to account 762.

(b) To be paid, to the payment of the benefit, generally to the accounts of the subgroups 57 or 60, as appropriate.

249. Outstanding disbursements on shares in related parties.

Unrequired disbursements on equity instruments in related parties.

The balance sheet asset shall be included in the balance sheet, which shall be reduced by the item in which the corresponding holdings are accounted for.

2493/2494/2495.

The four-figure cited accounts move is as follows:

(a) The purchase or subscription of the equity instruments shall be paid, for the amount outstanding, at the expense of the account 240.

(b) They shall be charged for the disbursements that are required, with credit to account 556 or account 240 for outstanding balances when undisbursed equity instruments are in place.

25. Other financial investments.

250. Financial investments in equity instruments.

251. Debt securities securities.

252. Deposits with credit institutions.

253. Appropriations for the disposal of fixed assets and investments.

254. Credit to staff.

255. Assets by financial derivatives.

2550. Assets by financial derivatives trading book.

2553. Assets by financial derivatives instruments of coverage.

256. Advances on policies.

257. Assets and rights to reimbursement for long-term remuneration to staff.

2570. Reimbursement entitlements arising from insurance contracts relating to staff remuneration.

2571. Assets for long-term remuneration to staff.

258. Other appropriations.

2583. With real warranty.

2584 No real warranty.

259. Outstanding disbursements on equity holdings.

Financial investments not related to related parties, whatever their form of instrumentation, including the implied interest accrued.

In the event that the representative debt securities or the credit claims interest is explicit, the necessary accounts shall be created to identify them in sub-group 56, and shall be included in the balance sheet in the same item in which the asset that generates them is included.

250. Financial investments in equity instruments.

Investments in equity rights-shares with or without listing on a regulated market or other securities, such as, shares in collective investment institutions, or shares in limited liability companies-of entities that do not have the consideration of related parties shall be in the balance sheet asset.

Your move is as follows:

(a) The subscription or purchase will be debited, with credit, generally, to the accounts of subgroup 57 and, where appropriate, account 259.

b) It will be paid:

b1) For the amount of the estimated impairment, at account 696.

b2) By the enajenations and in general due to its absence from the asset, with charge, generally, to the accounts of subgroup 57, if there are outstanding disbursements to the account 259 and, in case of losses, to the account 666.

(c) If the investment is classified in the category of "Financial assets available for sale", it shall be charged or paid for the changes in its fair value with credit or charge, respectively, at the accounts 900 and 800.

251. Debt securities securities.

Investments in bonds, bonds or other debt securities, including those that set their performance on the basis of indices or similar systems.

When securities entered into or acquired have been issued by related parties, the investment shall be reflected in account 241.

It will appear in the balance sheet asset.

With a general character, your move is as follows:

a) It will be loaded:

to1) To the subscription or purchase, for the purchase price, excluding the explicit interest accrued and not due, with credit, to the accounts of subgroup 57.

to2) Due to the financial income earned until the value of the value is reached, with credit, generally, to account 761.

(b) It shall be paid for the securities, early or low amortisation of the assets of the securities, with charge, to the accounts of the subgroup 57 and, in case of losses, to the account 666.

(c) If the securities are classified in the category of "Financial assets available for sale", it shall be charged or paid, for changes in fair value, with credit or charge, respectively, to the accounts 900 and 800, except for the part corresponding to differences in exchange that under the rules of registration and valuation must be recorded with credit or charge to the accounts 768 and 668. It shall also be charged when the value of the negative balance accumulated in the net worth is impaired, with the payment of account 902.

252. Deposits with credit institutions.

Favorable balances in banks and credit institutions in the form of an irregular or formalized deposit by means of a "term account" or similar, other than the accounts in the view and savings collected in subgroup 57.

When they are made with related parties, the investment will be reflected in account 242.

It will appear in the balance sheet asset.

a) It will be loaded:

to1) To the constitution, by cash delivered, with credit to sub-group 57 accounts.

to2) Due to the financial income earned until the deposit is reimbursed with credit, generally, to the account 762.

(b) It shall be paid to the early cancellation, from the accounts of subgroup 57.

253. Appropriations for the disposal of fixed assets and investments.

Credits to third parties with origin in operations involving the disposal of fixed assets and investments.

When agreed with related parties, the investment shall be reflected in account 242.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) For the amount of these credits, excluding any interest that would otherwise have been agreed, with credit to group 2 accounts.

to2) Due to the financial income earned until the credit repayment value is reached, with credit, generally, to account 762.

(b) It shall be paid to the cancellation, in whole or in part or in part, of the asset, in charge, generally, to the accounts of subgroup 57 and, in the case of losses, to account 667.

254. Credit to staff.

Credits granted to the staff of the entity that does not have a related party rating.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) To the formalization of the credit, for the amount of credit, with credit, generally, to the accounts of subgroup 57.

to2) Due to the financial income earned until the credit repayment value is reached, with credit, generally, to account 762.

(b) It shall be paid for the anticipated, total or partial or low return of the asset, generally payable to the accounts of subgroup 57 and, in the case of losses, to account 667.

255. Assets by financial derivatives.

Amount corresponding to financial derivative transactions with favorable valuation for the entity. Also included are the implied derivatives of hybrid financial instruments acquired, issued or assumed, that meet the criteria for inclusion in this account, with the creation of accounts of four or more figures that identify that this is an implicit derivative.

In particular, premiums paid in options transactions shall be collected in this account, as well as, in general, changes in the fair value of the assets by financial derivatives with which the institution operates: options, futures, financial swaps, foreign currency trading, etc.

It will appear in the balance sheet asset.

2550. Assets by financial derivatives, trading book.

Your move is as follows:

a) It will be loaded:

to1) For the quantities satisfied at the time of the hiring, with credit, generally, to the accounts of subgroup 57.

to2) For the earnings that are generated in the exercise, with credit to account 7630.

b) It will be paid:

b1) For any losses incurred in the financial year up to the limit of the amount for which the derivative was recorded in the asset in the previous financial year, under account 6630.

b2) For the amount received at the time of settlement, generally held at the accounts of subgroup 57.

2553. Assets by financial derivatives, hedging instruments.

Your move is as follows:

(a) It shall be charged for the quantities satisfied at the time of the hiring, with credit, generally to the accounts of subgroup 57.

(b) When the derivative is used as a hedging instrument, in fair value coverage:

b1) You will be charged for the earnings that are generated in the financial year when applying the rules governing the accounting of hedges, with credit to an account that will be charged to the profit and loss account in the same item in which the losses that are generated in the covered items are included in the assessment of the risk covered by its fair value.

b2) It will be paid:

(i) For the losses incurred in the financial year when applying the rules governing the accounting of hedges, up to the limit of the amount by which the derivative is recorded in the asset in the previous financial year, with an account to be charged to the profit and loss account in the same item in which the earnings that are generated in the items covered are included in the assessment of the risk covered by its fair value.

(ii) At the time the asset is acquired or the liability is assumed to be covered by the accounts in which the assets are accounted for.

(c) Where the derivative is used as a hedging instrument, in other hedging operations, on the effective part, it shall be charged or paid, for the gain or loss generated in the financial year when applying the rules governing the accounting of hedges, with credit or charge, to the accounts of subgroup 91 and 81, respectively, and for the ineffective part, to the accounts 7633 and 6633.

(d) It shall be paid for the amount received at the time of the settlement, generally held at the accounts of subgroup 57.

256. Advances on policies.

Advances of quantities delivered on account of the provision provided for in life insurance contracts other than those granted to related parties.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) To the grant of the advance for the amount granted, with credit, generally, to the accounts of subgroup 57.

to2) For interest that accrues, with credit to account 762.

(b) To be paid, to the payment of the benefit, generally to the accounts of the subgroups 57 or 60, as appropriate.

257. Assets and rights to reimbursement for long-term remuneration to staff.

Refund rights payable to an insurance institution, which does not meet the requirements to be qualified as an asset in accordance with the provisions of the registration and valuation rules must be recognised in the balance sheet asset.

Assets arising from the rules contained in the accounting definitions and relationships relating to account 140, in accordance with the standard of registration and valuation of liabilities for long-term remuneration to staff.

2570. Reimbursement entitlements arising from insurance contracts relating to staff remuneration.

Your move is as follows:

a) It will be loaded:

to1) For the amounts satisfied in premiums, with credit, generally, to the accounts of subgroup 57.

to2) For the recognition of actuarial gains by post-employment benefits of defined benefit, with credit to account 950;

to3) For the expected return on refund rights, with credit to account 767.

b) It will be paid:

b1) By the provision that is made from the chargeback right, with account 140, or from account of subgroup 57.

b2) For the recognition of actuarial losses by post-employment benefits of defined benefit, with charge of account 850;

b3) Due to the excess of the right of reimbursement that involves a direct refund, with a charge to the accounts of subgroup 57.

2571. Assets for long-term remuneration to staff.

The reasons for charging and crediting this asset shall be analogous, in reverse, to those indicated for this account 140.

258. Other appropriations.

Investments in loans and other non-commercial loans other than those referred to in other accounts of this group granted to third parties.

When the credits have been agreed with related parties, the investment will be reflected in account 242.

It will appear in the balance sheet asset.

Its motion is analogous to that of account 254.

259. Outstanding disbursements on equity holdings.

Outstanding, non-required disbursements on equity instruments of entities that do not have the consideration of related parties.

The balance sheet asset shall be included in the balance sheet, which shall be reduced by the item in which the corresponding holdings are accounted for.

Your move is as follows:

(a) It shall be paid to the acquisition or subscription of the equity instruments, for the amount outstanding, with account of the account 250.

(b) It shall be charged for the disbursements that are required, with credit to account 556 or account 250 for outstanding balances when undisbursed equity instruments are in full.

26. Bonds, constituted deposits and other concepts.

260. Fianzas constituted.

266. Deposits consisting of reinsurance accepted.

2660. Deposits with technical provisions for outstanding benefits.

2661. Deposits for technical provisions for unconsumed premiums.

2662. Deposits with technical provisions for life insurance 2663. Deposits with other technical provisions.

268. Assets for correction of accounting asymmetries.

2681. Assets by correction of accounting asymmetries in immunization operations by cash flows.

2682. Assets for the correction of accounting asymmetries in immunization operations for financial durations.

2683. Assets for the correction of accounting asymmetries in life insurance operations whose redemption value is referenced to the value of the performance of the assets.

2684. Assets for the correction of accounting asymmetries in insurance operations that recognise participation in profits.

2685. Assets for the correction of accounting asymmetries in transactions treated as life insurance in which the policyholder assumes the risk of the investment.

The accounts of this subgroup will be included in the balance sheet asset.

260 Fiances constituted.

Cash delivered as a guarantee of compliance with an obligation, longer than one year.

With a general character, your move is as follows:

a) It will be loaded:

to1) To the constitution, by the fair value of the financial asset, with credit to sub-group 57 accounts.

to2) Due to the financial income earned until the redemption value of the bonds is generally credited to the account 762.

b) It will be paid:

b1) By early cancellation, from account of subgroup 57.

b1) For non-compliance with the established obligation to determine losses on the bond, with account 676.

266. Deposits consisting of reinsurance accepted.

Credits against entities in excess of the amounts withheld or received by them, as a deposit, for the coverage of their technical provisions.

It will appear in the Balance sheet asset.

Your move is as follows:

(a) The deposit will be charged, with credit to the 401 account.

(b) The latter account shall be paid as the cancellation is made.

268. Assets for correction of accounting asymmetries.

Assets for the correction of accounting asymmetries which, in accordance with the standard of registration and valuation 9th, shall reflect in the balance sheet liabilities the symmetric adjustment through the net worth or the profit and loss account of changes in financial instruments linked to insurance contract commitments where recognition is not appropriate through account 312 or subgroup 32.

Your move will be as follows:

a) It will be loaded:

to1) At the close of the financial year, by adjusting the negative changes in the fair value of the financial assets at fair value through changes in results, with credit to the account 769.

to2) At the close of the financial year, by adjusting the negative changes in the fair value of the financial assets at fair value with changes in equity, with credit to the accounts of the subgroup 98.

b) It will be paid:

b1) At the end of the financial year, the adjustment of positive changes in the fair value of financial assets at fair value through changes in results, and up to the limit of the amount by which that account would have been included at the end of the period, with account 669.

b2) At the end of the financial year, the adjustment of positive changes in the fair value of financial assets at fair value through changes in equity, and up to the limit of the amount by which that account would have been included at the end of the preceding period, with the accounts of the subgroup 88.

27. Advance fees and other acquisition costs.

273. Advance fees and other costs of acquisition of life.

2731. Commissions of the business class.

2737. Other costs of acquisition of the business.

274. Advance commissions and other costs of acquisition of classes other than life.

2741. Commissions of classes other than life.

2747. Other costs of acquisition of the classes other than life.

273/274.

Commissions and other acquisition costs whose activation and imputation will be performed according to their ability to generate revenue during the same according to the rules of registration and valuation. Activated commissions and activated acquisition costs shall be broken down into sub-accounts.

It will appear in the balance sheet asset.

Your move is as follows:

(a) It will be charged for the amount of the commission and other accrued acquisition costs, with credit to the 737 account.

(b) It shall be paid, for the allocation fee for each financial year, from account 686.

28. Accumulated depreciation of fixed assets.

280. Accumulated depreciation of intangible fixed assets.

281. Accumulated depreciation of tangible fixed assets.

282. Cumulative depreciation of real estate investments.

Accounting expression of the distribution in time of investments in fixed assets for their intended use in the production process and real estate investments.

The accumulated write-downs recorded in this sub-group shall be included in the balance sheet asset by minoring the item in which the relevant asset item is accounted for.

280. Accumulated depreciation of intangible fixed assets.

Value correction for the depreciation of intangible fixed assets in accordance with a systematic plan. Notwithstanding the foregoing, the systematic depreciation of economic rights derived from policy portfolios acquired from a mediator shall be paid directly to the account representative of the same.

Your move is as follows:

(a) It shall be paid for the annual allocation, under account 680.

(b) It shall be debited when the intangible fixed assets are put in place or the asset is debased for any other reason, with credit to the accounts of the subgroup 20.

281. Accumulated depreciation of tangible fixed assets.

Value correction for the depreciation of tangible fixed assets in accordance with a systematic plan.

Your move is as follows:

(a) It shall be paid for the annual allocation, under account 681.

(b) It shall be debited when the tangible fixed assets are put in place or the asset is debased for any other reason, with credit to sub-group 21 accounts.

282. Cumulative depreciation of real estate investments.

Value correction for depreciation of real estate investments made in accordance with a systematic plan.

Your move is as follows

(a) It shall be paid for the annual allocation, under account 682.

(b) It will be charged when the real estate investment is sold or is discharged from the asset for any other reason, with credit to sub-group 22 accounts.

29. Asset value impairment.

290. Impairment of intangible fixed assets.

291. Deterioration of the value of tangible fixed assets.

292. Deterioration in the value of real estate investments.

293. Impairment of the value of shares in related parties.

2933. Impairment of value of units, group companies.

2934. Impairment of value of units, associated companies.

294. Impairment of the value of debt securities of related parties.

2943. Impairment of the value of debt securities, group companies.

2944. Impairment of the value of debt securities, associated companies.

2945. Impairment of the value of debt securities, other related parties.

295. Impairment of credit value to related parties.

2953. Impairment of credit value to group companies.

2954. Impairment of credit value to associated companies.

2955. Impairment of credit value to other related parties.

297. Impairment of the value of debt securities.

298. Impairment of credit value.

Accounting expression of value adjustments due to losses due to asset impairments.

The estimation of such losses should be performed systematically over time. In the case of subsequent recoveries of value, in the terms set out in the relevant registration and valuation rules, the recognised impairment value adjustments shall be reduced until their recovery, where appropriate in accordance with the provisions of those rules.

The accounts of this sub-group shall be included in the balance sheet asset by minoring the item on which the relevant asset item is listed.

290/291/292. Impairment of value of fixed assets.

Amount of valuation corrections for impairment of the value corresponding to intangible fixed assets, tangible fixed assets and real estate investments.

Your move is as follows:

(a) They shall be paid for the amount of the estimated impairment, payable to account 690, 691 or 692.

b) will load:

b1) When the causes that determined the recognition of the impairment value correction, with credit to account 790, 791 or 792, are removed.

b2) When the fixed asset is either frozen or is otherwise unmobilised for any other reason, with credit to the accounts of the subgroup 20 or 21.

293. Impairment of the value of shares in related parties.

Amount of the value impairment valuation corrections that corresponds to the units in the group and associated entities.

2933/2934.

The four-figure cited accounts move is as follows:

(a) They shall be paid for the amount of the estimated impairment to be charged to the profit and loss account in accordance with the provisions of the registration and valuation rules, under account 696.

b) They will be loaded:

b1) When the causes that determined the recognition of the impairment valuation correction, with credit to account 796, disappear.

b2) When the financial immobilized or is discharged from the asset for any other reason, with credit to subgroup 24 accounts.

294. Impairment of the value of debt securities of related parties.

Amount of the value impairment valuation corrections corresponding to investments in debt securities issued by persons or entities that have the status of related parties.

2943/2944/2945.

The four-figure cited accounts move is as follows:

(a) They shall be paid for the amount of the estimated impairment, charged to account 696.

b) They will be loaded:

b1) When the causes that determined the recognition of the impairment valuation correction, with credit to account 796, disappear.

b2) When the financial immobilized or is discharged from the asset for any other reason, with credit to subgroup 24 accounts.

295. Impairment of credit value to related parties.

Amount of value impairment valuation corrections corresponding to credits granted to related parties.

2953/2954/2955.

The four-figure cited accounts move is as follows:

(a) They shall be paid for the amount of the estimated impairment, charged to account 699.

b) They will be loaded:

b1) When the causes that determined the recognition of the impairment value correction, with credit to the account 799, disappear.

b2) By the credit portion that is non-performing, with credit to account 242.

297. Impairment of the value of debt securities.

Amount of value impairment valuation corrections corresponding to investments in debt securities issued by persons or entities that do not have a related party rating.

Your movement is analogous to the one pointed out for account 294.

298. Impairment of credit value.

Amount of the value impairment adjustments in credit and we are in the subgroup 25.

Your move is analogous to the one flagged for account 295.

GROUP 3

Technical provisions

Provisions reflecting the true or estimated value of the obligations incurred by reason of the subscribed insurance and reinsurance contracts, as well as the expenses related to the fulfilment of those obligations.

30. Provisions for premiums not consumed and for ongoing risks, not life.

300. Provisions for unconsumed premiums.

3000. Direct insurance.

3001. Reinsurance accepted.

301. Provisions for ongoing risks.

3010. Direct insurance.

3011. Reinsurance accepted.

Provisions to collect the amount of the risks and expenses to be covered by the insurance institution that correspond to the coverage period not after the reference date of the calculation, in accordance with the rules laid down in the rules laid down for that purpose.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

(a) They shall be paid, for the appropriate allocation, from account 693.

(b) It shall be charged for the allocation made in the preceding period, with payment of account 793.

31. Life insurance provisions.

310. Provisions for unconsumed premiums.

3100. Direct insurance.

3101. Reinsurance accepted.

311. Provisions for ongoing risks.

3110. Direct insurance.

3111. Reinsurance accepted.

312. Mathematical provisions.

3120. Direct insurance.

3121. Reinsurance accepted.

Provisions to constitute for the set of activities of the life class to collect the current value, of the future commitments of the entity including the shares in the profits already assigned, net of the current value of the obligations; as well as, the amount of the provisions for premiums not consumed, if applicable.

In life insurance where the coverage period is equal to or less than the year, the provisions for premiums not consumed and, where applicable, for ongoing risks, shall be calculated by applying the rules of non-life insurance, all in accordance with the provisions of the applicable rules.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

a) They will be paid.

to1) For the corresponding envelope, under account 693, except for the part corresponding to the participation in benefits, in which case the account 606 will be charged for the amount of those.

to2) At the close of the period, by the corrective adjustments of accounting asymmetries to be recognized through the mathematical provision derived from positive changes in the fair value of financial assets at fair value with changes in profit and loss, with account of account 693.

to3) At the close of the period, by the corrective adjustments of accounting asymmetries to be recognised through the mathematical provision arising from positive changes in the fair value of the financial assets available for sale recognised in net worth, from the relevant accounts of Group 88.

(b) They shall be charged for the allocation made in the preceding period with credit to account 793 and, where applicable, to group 98 accounts, as appropriate, taking into account whether the allocation for the preceding period was recognised in the profit and loss account or through the net worth.

32. Technical provisions relating to life insurance when the risk of investment is assumed by the policyholders.

Amount of provisions set up to cover commitments linked to investments in the framework of life insurance contracts, the value or performance of which is determined on the basis of the assets representing those investments or of the indices or assets that have been set as a reference for determining the rights of the taker, where the risk is fully supported by the holder.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

a) They will be paid.

to1) By the appropriate envelope, with account 693.

to2) At the close of the period, by the corrective adjustments of accounting asymmetries to be recognized through the mathematical provision derived from positive changes in the fair value of financial assets at fair value with changes in profit and loss, with account of account 693.

to3) At the close of the period, by the corrective adjustments of accounting asymmetries to be recognised through the mathematical provision arising from positive changes in the fair value of the financial assets available for sale recognised in net worth, from the relevant accounts of Group 88.

(b) They shall be charged for the allocation made in the preceding period with credit to account 793 and, where applicable, to group 98 accounts, as appropriate, taking into account whether the allocation for the preceding period was recognised in the profit and loss account or through the net worth.

34. Provisions for benefits, not life.

340. Pending payment.

3400. Direct insurance.

3401. Reinsurance accepted.

341. Pending settlement.

3410. Direct insurance.

3411. Reinsurance accepted.

342. Statement earrings.

3420. Direct insurance.

3421. Reinsurance accepted.

343. For settlement expenses.

3430. Direct insurance.

3431. Reinsurance accepted.

Provisions intended to collect the total amount of the final, or estimated, final cost of all claims, including the costs incurred in processing, which have occurred prior to the reference date of the calculation, are pending payment, settlement or declaration, deducted amounts that have been satisfied on account of such claims. The amounts outstanding shall be included in the provision of payment to other insurers in execution of claims settlement agreements, by the insurer of the person responsible for the damage and the interests in profits and extortions that have been assigned to policyholders, policyholders or beneficiaries and that are pending payment.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

(a) They shall be paid, for the appropriate allocation, from account 693.

(b) They shall be charged for the allocation made in the preceding period by crediting the account 793.

35. Provisions for benefits, life.

350. Pending payment.

3500. Direct insurance.

3501. Reinsurance accepted.

351. Pending settlement.

3510. Direct insurance.

3511. Reinsurance accepted.

352. Statement earrings.

3520. Direct insurance.

3521. Reinsurance accepted.

353. For settlement expenses.

3530. Direct insurance.

3531. Reinsurance accepted.

Provisions intended to collect the total amount of the final or estimated final cost of all claims, including the costs incurred in processing them, which have occurred before the reference date of the calculation, are pending payment, settlement or declaration, deducted amounts that have been satisfied on account of such claims. It shall also include the holdings in profits and extortions that have been allocated to policyholders, policyholders or beneficiaries and which are pending payment.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

(a) They shall be paid, for the appropriate allocation, from account 693.

(b) They shall be charged for the allocation made in the preceding period by crediting the account 793.

36. Provisions for participation in profits and for extortion.

360. Provisions for participation in profits and for extortion.

3600. Not life.

3601. Life.

Amount of accrued benefits in favour of policyholders or beneficiaries and not yet allocated; as well as the estimated amount of premiums to be returned to the policyholders, by virtue of the behaviour experienced by the insured risks.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

(a) They will be paid, for the overall amount of the accrued and unallocated benefits, as well as, if applicable, the estimated amount of the extortions to be made, with account of the account 693.

(b) They shall be charged for the allocation made in the preceding period by crediting the account 793.

37. Other technical provisions.

370. Other technical provisions, not life.

3700. Direct insurance.

3701. Reinsurance accepted.

371. Other technical provisions, life.

3710. Direct insurance.

3711. Reinsurance accepted.

Technical provisions to constitute by the insurance entities in the terms and conditions set out in the applicable regulations and which do not have a specific seat in the previous sub-groups.

Appear on the liabilities side of the balance sheet.

Your move is as follows:

(a) They shall be paid, for the appropriate allocation, from account 693.

b) For the allocation made in the preceding period, with credit to the account 793.

38. Share of reinsurance in technical provisions, not life.

380. Provisions for unconsumed premiums.

3800. Ceded.

3801. Regressed.

384. Provisions for benefits.

3840. Ceded.

3841. Regressed.

387. Other technical provisions.

3870. Ceded.

3871. Regressed.

Accounts intended to collect the amount of the reinsurers ' participation in the technical provisions. No Life.

They will be in the balance sheet asset.

Your move is as follows:

(a) They shall be charged for the participation of the reinsurer in the expenditure corresponding to the provision concerned, with subscription to sub-account 6938.

(b) They shall be paid for the application of the provision accounted for in the preceding period under sub-account 7938.

39. Share of reinsurance in technical provisions, life.

390. Provisions for unconsumed premiums.

3900. Ceded.

3901. Regressed.

391. Mathematical provisions.

3910. Ceded.

3911. Regressed.

394. Provisions for benefits.

3940. Ceded.

3941. Regressed.

397. Other technical provisions.

3970. Ceded.

3971. Regressed.

Accounts intended to collect the amount of the reinsurers ' participation in the technical provisions Vida.

They will be in the balance sheet asset.

Its movement is analogous to that of the accounts in subgroup 38.

GROUP 4

Creditors and debtors for commercial transactions.

Financial instruments and accounts that have their origin in the entity's traffic, as well as the accounts with the Public Administrations.

In particular, the following rules apply:

(a) The financial assets and financial liabilities included in this group shall be classified in general, for the purposes of their valuation, in the categories of 'Loans and items receivable' and 'Debts and items to be paid' respectively.

(b) If financial assets and financial liabilities are classified for the purposes of their valuation in more than one category, the accounts of four or more figures shall be developed which are necessary to differentiate the category in which they are included.

(c) An account that collects creditors or debtors for commercial transactions that, in accordance with the rules of registration and valuation, are part of a set group of items held for sale, shall be charged or paid, respectively, at the time the conditions for their classification are met, with credit or charge to the respective account of the subgroup 58.

40. Creditors and debtors for reinsurance and co-insurance operations.

400. Creditors and debtors for transferred reinsurance and regressed.

401. Creditors and debtors by reinsurance accepted.

402. Creditors and debtors for co-insurance operations.

405. Credits of doubtful collection.

4050. By ceded reinsurance and regressed.

4051. By reinsurance accepted.

4052. For co-insurance operations.

400. Creditors and debtors for transferred reinsurance and regressed.

Debts and loans with reinsurers, as a result of the current account ratio established with them by reason of reinsurance operations transferred or regressed.

The balance with each reinsurer shall be included in the assets or liabilities of the balance sheet, respectively, debtor or creditor.

Your move is as follows:

a) It will be loaded:

to1) For the amount of fees payable by the reinsurers, with credit to the accounts 710 or 711.

to2) For the amount of the benefits in charge of the reinsurers, with credit to the accounts 604 or 605.

to3) For the cancellation of premiums ceded or regressed, with credit to the 704 or 705 accounts.

to4) By participating in the profits of the reinsurers accrued in favor of the entity, with credit to the accounts 710 or 711.

to5) By deposits received from reinsurers, with credit to account 186.

to6) By the total or partial cancellation of the balance with reinsurers, with credit to the accounts of subgroup 57.

to7) For premium or benefit portfolio withdrawals, with credit to the 704 or 705 and 604 or 605 accounts, respectively.

b) It will be paid:

b1) By the amount of the premiums transferred or regressed to the reinsurers, from the accounts 704 or 705.

b2) By the amount of the fees for the premiums transferred or regressed that are cancelled, with the accounts 710 or 711.

b3) By the cancellation of the deposits received from the reinsurers, with charge of account 186.

b4) For the amount of interest accrued on deposits received from reinsurers, at account 669.

b5) For remittance sent by the reinsurers, from the accounts of subgroup 57.

b6) For the amount of the debatable balances, charged to the 405 account.

b7) By the portion of the credit that would be definitively uncollectible from account 676.

b8) By premium or benefit portfolio entries, with the accounts 604 or 605 and 704 or 705, respectively.

401. Creditors and debtors by reinsurance accepted.

Debts and credits with transferors, as a consequence of the current account relationship established with them by reason of reinsurance transactions accepted.

It shall be included in the assets or liabilities of the balance sheet, depending on whether the balance with each transferor is, respectively, debtor or creditor.

Your move is as follows:

a) It will be loaded:

to1) For the amount of premiums accepted from the transferors, with credit to the 702 or 703 accounts.

to2) For the amount of fees for accepted premiums that are cancelled, with credit to the 612 or 613 accounts.

to3) By the cancellation of the deposited deposits held by the transferors, with credit to account 266.

to4) For the amount of interest accrued on deposits held by the transferors, with credit to account 7690.

to5) For remittances referred to the transferors with credit to the accounts of subgroup 57.

to6) By the premium or benefit portfolio entry, with credit to the accounts 702 or 703 and 602 or 603, respectively.

b) It will be paid:

b1) For the cancellation of accepted premiums, from 702 or 703 accounts.

b2) For the amount of fees payable in favor of the transferors, from the accounts 612 or 613.

b3) For the amount of the benefits in charge of the reinsurer under accounts 602 or 603.

b44) For the amount of the share in benefits accrued in favour of the transferors, from accounts 612 or 613.

b5) For the amount of the deposits held by the transferors, at account of 266.

b6) By the total or partial cancellation of the balance of the transferors, from the accounts of subgroup 57.

b7) For the amount of the indoubt balances with credit to the 405 account. For the part of the credit that would be definitively uncollectible from account 676.

b8) By premium or benefit portfolio withdrawals, from 702 or 703 and 602 or 603, respectively.

402. Creditors and debtors for co-insurance operations.

Debts and credits with insurers or others for co-insurance operations. This account shall include transactions with entities incorporated on a permanent basis for the distribution of risks, the necessary breakdown being made.

It shall be included in the assets or liabilities of the balance sheet, depending on whether the balance with each co-insurer is, respectively, debtor or creditor.

Your move is as follows:

a) It will be loaded:

to1) By the starter, for the amount that corresponds to the other co-insurers in the satisfied commissions, with credit to account 4521. For the starter, for the amount of the benefit paid by the other co-insurers, with credit, generally, to the account of the subgroup 57.

to2) By the non-starter co-insurer, for the amount charged by the starter of the receipts relative to the premiums that correspond to the coinsurance, with credit to the account 4312.

to3) By the starter, by the commission agreed in his favor by the co-insurance administration, with credit to the account 7591.

to4) By the total or partial cancellation of the balance with co-insurers, with credit to sub-group 57 accounts.

to5) By the starter, for the amount corresponding to the other co-insurers, for the satisfied premium extortions, with credit to account 434 or to the accounts of subgroup 57.

to6) By the non-starter co-insurer, by the amount of commissions that are credited to the account 610 or 611.

b) Will Be Paid

b1) By the starter, by the amount charged for the receipts relative to the premiums that correspond to the coinsurance to the non-starter, with load the account 4312.

b2) By the non-starter co-insurer, for the amount of the fees to be paid by the starter, with load to account 4521.

b3) By the non-starter co-insurer, for the amount of the benefits to be paid by the starter, from the accounts 600 or 601.

b4) By the non-starter co-insurer, by the commission agreed in favor of the starter by the co-insurance administration, with account 629.

b5) By the total or partial cancellation of the co-insurance balance, from the accounts of subgroup 57.

b6) For the amount of the doubtful coinsurance receivables, charged to the 405 account.

b7) By the portion of the credit that would be definitively uncollectible, with account 676.

b8) By the non-starter co-insurer, for the amount that corresponds to the premiums that are issued, under the account 7005 and, where applicable, account 478.

b9) By the starter, by the amount of the commissions issued, charged to account 433.

405. Credits of doubtful collection.

Cash balances with reinsurers, transferors, and co-insurers, in which circumstances may reasonably be considered to be of doubtful recovery.

It will appear in the balance sheet asset.

Your move is as follows:

(a) You will be charged for the amount of the balances of doubtful collection, with credit to the accounts 400, 401 or 402, as appropriate.

b) It will be paid:

b1) When the credit for doubtful collection is bad, account 676.

b2) For the total collection of the credits, from the accounts of subgroup 57.

b3) By the partial collection of the credits, from the accounts of subgroup 57, by the collected part, and to account 676, by the part that is uncollectible.

41. Other creditors.

410. Creditors for the provision of services.

411. Miscellaneous creditors.

412. Creditors, commercial effects to be paid.

413. Debts to insurers.

4130. By agreements between insurers.

4131. Other debts.

Debts for traffic operations other than those included in sub-groups 40 and 43.

Appear on the liabilities side of the balance sheet.

410. Creditors for the provision of services.

Amount to be paid for services provided to the entity.

Your move is as follows:

a) It will be paid:

to1) By the "to compliance" receipt of services, generally held at the accounts of subgroup 62.

to2) If applicable, to reflect the accrual financial expense, generally, to account 662.

b) Charged:

b1) By the formalization of debt in accepted spin effects, with credit to account 412.

b2) By the total or partial cancellation of debts to creditors, with credit to sub-group 57 accounts.

411. Miscellaneous creditors.

Amount to be paid for the supply of goods delivered on a regular basis.

Its motion is analogous to that of account 410.

412. Creditors, commercial effects to be paid.

Amount to be paid for debentures formalized in accepted spin effects.

Your move is as follows:

a) It will be paid:

to1) By the "in compliance" receipt of the services, generally taken into account in subgroup 62, by acceptance of the spin effects.

to2) When the entity agrees to formalize the obligation by accepting spin effects, generally charged to account 410.

(b) The payment of the effects shall be charged upon arrival, with credit to the accounts corresponding to the sub-group 57.

413. Debts to insurers.

Amount to be paid for debts incurred by other insurers. This account will be collected in the form of collaboration agreements for the subscription of insurance policies through the distribution network of those.

Your move is as follows:

(a) It shall be paid when the debt is incurred, by the amount of the debt, generally taken into account 615.

(b) It shall be charged for the payment of the debt, with credit, generally, to sub-group 57 accounts.

42. Debt for the preparatory operations of insurance contracts.

421. Debt for other preparatory operations for insurance contracts.

421. Debt for other preparatory operations for insurance contracts.

Amount of the amounts given to the entity as a payment account for the premiums for future insurance contracts.

It will appear on the liabilities side of the Balance Sheet.

a) It will be paid:

to1) By receiving the funds, from group 57 accounts.

to2) By the returns that the entity has of s facer until s formalize the insurance contract, with account 662.

(b) It shall be charged, by the birth of the insurance operation, with credit to the group 70 accounts and, if applicable, to 456.

43. Mediators and policyholders.

431. Receipts of premiums outstanding.

4310. Receipts held by the entity.

4311. Mediators, bill of receipts.

4312. I co-secured receipts.

4313. Anticipated receipts.

4315. Receipts of doubtful collection.

432. Credits for receipts pending issue.

4320. Receipts held by the entity.

4321. Mediators, bill of receipts.

4322. I co-secured receipts.

4323. Anticipated receipts.

4325. Receipts of doubtful collection.

433. Mediators, cash account.

4330. Agents.

4331. Runners.

4332. Banking-insurance operators.

434. Debts to policyholders.

4340. By external premiums.

4341. Other debts.

435. Mediators, credits of doubtful collection.

431. Receipts of premiums outstanding.

Amount of premium receipts issued that are pending collection.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The total amount of the receipts issued shall be debited from the accounts 700 or 701 and 456.

(b) It shall be paid for the amount of receipts charged or cancelled, under account 433, to accounts of subgroup 57 or account 454, for receipts charged, and to accounts 456, 700 or 701, for cancelled receipts.

In the case of co-insurance, it will be paid by the starter in the amount of the issued part of receipt that corresponds to the other co-insurers, and will be charged for the amount of receipts collected or cancelled that correspond to those, using for this the sub-accounts of four or more figures that are necessary.

In turn, it will be charged by the non-starter co-insurer for the issued receipt portion corresponding to that part and will be paid for the amount of receipts charged or cancelled.

In both cases, the counteritems of the charges and credits described above will be the ones that correspond, according to the nature of the operation.

When, in accordance with the rules of registration and valuation, a receipt has suffered a deterioration of value, the timely reclassification of the credit shall be carried out using sub-account 4315.

432. Credits for receipts pending issue.

Amount of the fractional payment premiums whose receipt has not yet been issued.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The amount of premiums written for the financial year corresponding to the premium fractions whose receipts will be issued subsequently for the payment of the split payment of the premiums shall be charged with the payment of the account 7007 or 7017.

(b) The issuance of the receipt corresponding to the premium fractions shall be paid at the time of account of the account 7007 or 7017.

In the case of co-insurance, it shall be paid by the starter in the amount of the part of the fractional premiums, the receipt of which has not yet been issued corresponding to the other co-insurers, and shall be charged upon the occurrence of the issuance of the receipt corresponding to such fractional premiums.

In turn, it will be charged by the non-starter co-insurer for the portion of such fractional premiums that correspond to it and will be paid upon the issuance of the receipt corresponding to such fractional premiums.

In both cases, the counteritems of the charges and credits described above will be the ones that correspond, according to the nature of the operation.

When the assignment, if any, to the reinsurer occurs according to the issuance of the receipts the entity shall open an account in the liability of the balance sheet with the denomination, 455, "debts for receipts outstanding".

When, in accordance with the rules of registration and valuation, a receipt has suffered a deterioration of value and the credit is to be classified as doubtful, it shall be reclassified, using sub-account 4325.

433. Mediators, cash account.

Balances of cash with the mediators of the Entity, as a consequence of the operations in which those are involved.

To be included in the assets or liabilities of the balance sheet, in the case of debtors or creditors, respectively.

Your move in the following:

a) It will be loaded:

to1) For the amount of receipts charged by the mediators on behalf of the entity, with credit to account 431.

to2) By the Amount of fees for premiums that are credited to account 610 or 611.

to3) By the total or partial cancellation of the balance with credit, generally, to subgroup 57 accounts.

b) It will be paid:

b1) For the amount of the fees corresponding to the premiums charged on whose issuance the mediator has intervened, net of the deductions made by the entity, with the account of the account 452.

b2) For the amount of the benefits satisfied by the mediator on behalf of the entity, from the accounts 600 or 601.

b3) By the total or partial cancellation of the balance in charge generally, to the accounts of subgroup 57.

b4) For the amount of the debatable balances, charged to account 435.

b5) By the portion of the credit that would be definitively uncollectible, with account 676.

434. Debts to policyholders.

Amount of certain claims with policyholders other than those incurred on the basis of outstanding outstanding claims, including advance premiums for current insurance contracts.

Your move is as follows:

(a) It shall be paid for the amount of the premiums for outstanding premiums, with a charge of the accounts 700, 701 and 478.

(b) The payment of the debt shall be debited from the accounts of subgroup 57.

435. Mediators, credits of doubtful collection.

Balances corresponding to mediators in which circumstances that reasonably allow their rating to be considered as doubtful.

They will be in the balance sheet asset.

Your move is as follows:

(a) The amount of the balances of doubtful recovery shall be charged, with credit to account 433.

b) It will be paid:

b1) For firm insolvencies, count 676.

b2) For the total collection of the balances, from the accounts of subgroup 57.

b3) The partial recovery of the balances, from the accounts of subgroup 57, by the collected part, and to account 676, for which it is not bad.

44. Other debtors.

440. Miscellaneous debtors.

441. Debtors, commercial effects to be charged.

4410. Debtors, commercial effects in portfolio.

4411. Debtors, discounted trade effects.

4412. Debtors, commercial effects in recovery management.

4415. Debtors, unpaid trade effects.

442. Debtors by agreements between insurers.

444. Debtors, for claims of claims.

445. Debtors of doubtful recovery.

440. Miscellaneous debtors.

Debtors for sales or services of goods or services related to the traffic of the entity.

This account shall also account for the amount of the grants and legacies to the holding granted to the institution, which are settled by the delivery of cash or other financial assets, excluding grants to be recorded in sub-group 47 accounts.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) For service delivery, with credit to subgroup 75 accounts.

to2) By the grant or legacy of exploitation granted, with credit to subgroup 74 accounts.

to3) If applicable, to reflect the accrued financial income, with credit, generally, to account 762.

b) It will be paid:

b1) By the formalization of the credit in order of turn accepted by the debtor, with account 441.

b2) By the total or partial cancellation of the credits, usually taken into account in subgroup 57.

b3) By reclassification as indoubt debtors, charged to account 445.

b4) By the credit portion that would be definitively uncollectible, with account 676.

441. Debtors, commercial effects to be charged.

Credits with debtors, formalized in accepted spin effects.

This account shall include the portfolio effects, the discounted, the receivables and the unpaid bills; in the latter case only when they are not to be reflected in the account 445.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) By the provision of services, accepting the perceptive spin effects, with credit to subgroup 75 accounts.

to2) By the formalization of the right of collection in order to be accepted by the recipient of the service or debtor, with credit, generally, to the account 440.

b) It will be paid:

b1) By the collection of the effects at maturity, from accounts in subgroup 57.

b2) By its classification as doubtful collection, with count of 445.

b3) By the portion of the credit that would be definitively uncollectible, with account 676.

The financing obtained by the effect discount is a debt to be collected in account 514. As a result, account 441 shall be paid at the end of the effects taken into account 514.

442. Debtors by agreements between insurers.

Amount of claims against insurers born under claims settlement agreements.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The birth of the credit shall be debited from account 607.

b) It will be paid:

b1) To the credit collection, from a sub-group 57 accounts.

b2) By its classification as doubtful collection, with count of 445.

b3) By the portion of the credit that would be definitively uncollectible, with account 676.

444. Debtors for claims of claims.

Amount of claims against third parties responsible for damages that have resulted in the payment of damages, or against the insurers of those third parties.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The credit is debited with credit to the account 600.

b) It will be paid:

b1) The collection of the credit from the accounts of subgroup 57.

b2) When the credit ceases to meet the conditions that allow it to be activated, it will be charged to the account 600.

445. Debtors of doubtful recovery.

Balances of debtors included in this subgroup, including those formalised in turn, in which circumstances reasonably qualify as a doubtful recovery.

It will appear in the balance sheet asset.

Your move is as follows:

(a) It shall be charged for the amount of the balances of doubtful recovery, with credit to the accounts of subgroup 44.

It will be paid:

b1) For firm insolvencies, count 676.

b2) For the total collection of the balances, from the accounts of subgroup 57.

b3) The partial recovery of the balances, from the accounts of subgroup 57, by the collected part, and to account 676, for which it is not bad.

45. Conditional debts.

452. Fees on premiums outstanding.

4520. Of mediators.

4521. De coinsurance.

4529. Provision for outstanding premiums.

453. Commissions on outstanding premiums to be issued.

4530. Of mediators.

4531. De coinsurance.

4539. Provision for outstanding premiums.

454. Debts for advance receipts.

455. Debts for receipts pending issue.

456. Taxes and surcharges on premiums outstanding.

4560. Insurance Compensation Consortium, surcharge for extraordinary risks.

4561. Insurance Compensation Consortium, surcharge for settlement function.

4562. Taxes on insurance premiums.

4563. Other surcharges.

Debts the enforceability of which is conditional upon the collection of premium receipts.

452. Fees on premiums outstanding.

Amount of the fees for the premiums issued that are outstanding, deducted from the premiums that allow them to be taken into account for the calculation of the impairment correction of the premiums outstanding.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid for the amount of the fees corresponding to the premiums issued, as well as for the fees corresponding to the premiums that have been taken into account for the formation of the outstanding premiums provided at the end of the preceding financial year, with the accounts of 610 or 611.

b) Charged:

b1) For the amount of fees for premiums charged, with credit to account 433.

b2) For the amount of fees corresponding to premiums that have been taken into account for the formation of the provision for outstanding premiums constituted at the end of the financial year, with credit to the accounts 610 or 611.

b3) For the amount of the referrals for the premiums cancelled, with credit to the accounts 610 or 611.

In the case of co-insurance will be charged by the starter in the amount of the fees relating to the premiums corresponding to the other co-insurers, and will be paid for those relating to premiums charged or cancelled.

In turn, it will be paid by the non-starter co-insurer for the amount of its share in the premium fees issued by the starter, and will be charged for the amount of your participation in the fees paid or cancelled.

453. Commissions on outstanding premiums to be issued.

Amount of fees for fractional payment premiums whose receipt has not yet been issued.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid for the amount of the fees corresponding to fractional payment premiums, the receipt of which has not yet been issued, to the accounts 610 or 611.

(b) The issuance of the receipt shall be charged for the amount of the fees corresponding to the premium fractions, with credit to the accounts 610 or 611.

In the case of co-insurance will be charged by the starter in the amount of the commissions relating to the payment premiums split whose receipt has not yet been issued corresponding to the other co-insurers, and will be paid upon the issuance of the receipt for the amount of the commissions corresponding to those.

In turn, it will be paid by the non-starter co-insurer, for the amount of its participation in the commissions on fractional premiums not issued by the starter, and will be charged for the amount of its participation in the commissions upon the issuance of the receipt.

454. Debts for advance receipts.

Debts with credit institutions, as a result of the advance by these of the amount of the receipts of premiums, the collection of which is entrusted to them by the entity. This account will, in any case, be charged to the due date of the corresponding receipts.

It will appear on the liability side of the balance sheet.

Your move is as follows:

a) It will be paid:

to1) When receiving from the credit institution the amount of the receipts, from the accounts of subgroup 57.

to2) For accrued interest, at account 665.

b) Charged:

b1) The receipt by the credit institution of the receipts, with credit to account 4313.

b2) By uncollected receipts, with credit to sub-group 57 accounts.

455. Debts for receipts pending issue.

Debts with reinsurers entities on the part of the premiums of the receipts outstanding to be issued to the extent that the transfer occurs when the receipts are issued.

It will appear on the liabilities side of the Balance Sheet.

Your move will be as follows:

(a) It shall be paid at the time of the loading of account 432, under account 704 or 705.

(b) It shall be charged at the time of cancellation of account 432, with credit to account 704 or 705.

456. Taxes and surcharges spare premiums outstanding.

Amount of the debts to Public Bodies, due to taxes and surcharges established under statutory or regulatory provisions, included in the receipts of premiums that are pending collection, provided that they are passed on to the taker.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) The issue of the premium receipts shall be paid for the amount of the surcharges included in the premiums, with the account of 431.

(b) The charge shall be charged to the recovery or cancellation of the premium receipts, with credit respectively, to the accounts 478 or 431.

In the case of coinsurance granted or accepted, account shall be taken of the impact of the participation of the co-insurers on the balance of this account.

46. Personal.

460. Advances in remuneration.

465. Remuneration to be paid.

466. Remuneration by means of defined contribution systems to be paid.

Balances with persons providing their services to the institution or with which post-employment remuneration commitments are implemented, and whose remuneration shall be accounted for in subgroup 64.

460. Advances in remuneration.

Remuneration to the staff of the entity.

Any other advances that have the consideration of loans to staff will be included in account 254.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The deliveries referred to above shall be charged on the basis of a sub-group 57 accounts.

(b) It shall be paid by offsetting advances with accrued remuneration, from accounts in subgroup 64.

465. Remuneration to be paid.

Debits of the entity to the staff by the concepts cited in the accounts 640 and 641.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid for accrued and unpaid remuneration, from the accounts of the sub-group 64 that correspond.

b) It will be charged when the remuneration is paid, with credit to the accounts of subgroup 57.

466. Remuneration by means of defined contribution systems to be paid.

Outstanding amounts of payment to a separate entity for long-term remuneration to staff, such as pensions and other retirement or retirement benefits, that have the defined contribution character, in accordance with the terms set out in the rules of registration and valuation.

It will appear on the liability side of the balance sheet.

With a general character, your move is as follows:

(a) It shall be paid for the amounts accrued and unpaid, at account 643.

(b) It shall be charged when the outstanding contributions to the accounts of subgroup 57 are paid.

47. General government.

470. Public Finance, debtor for various concepts.

4700. Hacienda Pública, debtor for VAT.

4708. Public finances, debtor for grants awarded.

4709. Hacienda Pública, debtor for tax refund.

471. Social Security Agencies, debtors.

472. Public finances, VAT incurred.

473. Public finances, withholding and payments on account.

474. Deferred tax assets.

4740. Assets for deductible temporary differences.

4742. Allowances for deductions and allowances to be applied.

4745. Credit for losses to compensate for the financial year.

475. Public Finance, which is a tax concept.

4750. Hacienda Pública, accretive por IV

4751. Hacienda Pública, accretive for retentions practiced.

4752. Public Finance, which is a corporation tax.

4758. Public finances, which are grants for reintegrating.

476. Social Security Agencies, creditors.

477. Public finances, VAT passed on.

478. Other Public Entities.

4780. Insurance Compensation Consortium, surcharge for extraordinary risks.

4781. Insurance Compensation Consortium, surcharge for settlement function.

4782. Taxes on insurance premiums 4783. Other Public Bodies.

479. Liabilities for taxable temporary differences.

470. Public Finance, which is responsible for various concepts.

Grants, compensations, reliefs, tax refunds and, in general, how many perceptions are due for tax or promotion reasons, excluding Social Security.

It will appear in the balance sheet asset.

The content and movement of the quoted four-figure accounts is as follows:

4700. Hacienda Pública, debtor for VAT.

Excess, in each tax period, of the input VAT deductible on VAT.

(a) It shall be charged at the end of each settlement period, for the amount of the excess, with credit to account 472.

b) It will be paid:

b1) In case of compensation in subsequent settlement-settlement, with account 477.

b2) In cases of return by Public Finance, with a charge to the accounts of subgroup 57.

4708. Public finances, debtor for grants awarded.

Appropriations with the Public Finance for grants awarded.

(a) It will be charged when the grants are awarded, with credit, generally, to the accounts 172, 740 or accounts of the subgroup 94.

(b) It shall be paid to the collection, generally charged to the accounts of subgroup 57.

4709. Hacienda Pública, debtor for tax refund.

Credits with the Public Finance for tax refund.

Your move is as follows:

a) It will be loaded:

to1) By retentions and payments to be returned, with credit to account 473.

to2) For the previous exercise fee that the entity retrieves as a result of tax or tax settlements on the benefit, with credit, to the account 6300 or, if applicable, account 8300.

to3) Dealing with tax refunds that would have been accounted for in expense accounts, with credit to account 636. If they have been loaded into group 2 accounts, these accounts shall be the accounts paid for the amount of the refund.

(b) It shall be paid to the collection, from the accounts of subgroup 57.

471. Social Security Agencies, debtors.

Credits in favor of the quality of the various Social Security Organizations, related to the social benefits that they perform.

It will appear in the balance sheet asset.

Your move is as follows:

(a) It will be charged for the benefits in charge of the Social Security, with credit, generally, to the accounts of the subgroup 57.

(b) The credit shall be paid by credit, usually to the accounts of sub-group 57.

472. Public finances, VAT incurred.

VAT due on the acquisition of goods and services and other transactions included in the legal legal text of the tax, which has a deductible character.

Your move is as follows:

a) It will be loaded:

to1) For the amount of deductible VAT when the tax is due, with credit to group 1 or 4 creditor accounts, or to subgroup 57 accounts.

to2) For positive differences resulting in the deductible VAT corresponding to transactions on goods or services, when the regularisations provided for in the Prorrata Rule are practiced, with credit to the account 639.

b) It will be paid:

b1) For the amount of the deductible VAT that is offset in the declaration-settlement of the settlement period, with account of the account 477. If, after this seat has been lodged, the balance in account 472, the amount of the account shall be debited to account 4700.

b2) For any negative differences resulting in the deductible VAT corresponding to transactions on goods or services, when the regularisations provided for in the Prorrata Rule are practiced, with account 634.

(c) It shall be charged or paid, with credit or charge to groups 1, 2 or 4, for the amount of the deductible VAT corresponding to the case of price changes after the taxable transactions have been carried out, or where they are not fully or partially left, or where the tax base is to be reduced by virtue of discounts and allowances granted after the tax accrual.

473. Public finances, withholding and payments on account.

Amounts retained to the entity and payments made by the same to tax account.

Your move is as follows:

(a) The amount of the withholding or payment shall be charged, with credit, generally, to group 5 accounts and to sub-group 76 accounts.

b) It will be paid:

b1) For the amount of the supported holds and the income on account of the corporation tax, up to the amount of the liquid quota for the period, from account 6300 or, if applicable, to account 8300.

b2) For the amount of the supported holds or income on account of the corporation tax to be returned to the entity, with account of 4709.

474. Deferred tax assets.

Assets for deductible temporary differences, claims for the right to compensate in subsequent financial years for negative tax bases pending compensation and deductions and other unused tax advantages, which are outstanding in the settlement of tax on profits.

This account will include the full amount of deferred tax assets corresponding to income taxes, not being eligible for compensation with deferred tax liabilities, or even within the same financial year. All this, without prejudice to the provisions of Part Three of this Plan, for the purposes of its submission to the annual accounts.

It will appear in the balance sheet asset.

The content and movement of the quoted four-figure accounts is as follows:

4740. Assets for deductible temporary differences.

Tax assets for differences that will result in lower amounts to be paid or higher amounts to be paid back for profits in future years, usually as assets are recovered or the liabilities of which they are derived are settled.

a) It will be loaded:

to1) For the amount of the asset for deductible differences originating in the exercise, with credit, generally, to account 6301.

to2) For the amount of the asset for deductible differences that arises in a transaction or event that was recognized directly in a net worth item, with credit, to account 8301.

to3) By increasing the assets by deductible differences, with credit, generally, to account 638.

to4) By increasing assets for deductible differences originating from a transaction or event that would have been directly recognized in a net worth item, with credit, to account 838.

b) It will be paid:

b1) By asset reductions for deductible differences, generally taken into account 633.

b2) By asset reductions for deductible differences originated in a transaction or event that was directly recognized in a net worth item, with a charge, to account 833.

b3) When assets are imputed by deductible differences, generally, from account 6301.

b4) When assets are charged for deductible differences originating in a transaction or event that was directly recognized in a net worth item, with a charge, to account 8301.

4742. Allowances for deductions and allowances to be applied.

Amount of the decrease of the tax on profits to be paid in the future arising from the existence of deductions or bonuses of such tax to be applied.

a) It will be loaded:

to1) By the tax credit derived from the deduction or bonus in profit tax obtained in the year, with credit, generally, to account 6301.

to2) By increasing the tax credit, with credit, generally, to account 638.

b) It will be paid:

b1) By decreasing the tax credit, generally charged to account 633.

b2) By the tax application of the deductions or bonuses from previous exercises, generally taken into account, to the account 6301.

4745. Credit for losses to compensate for the financial year.

Amount of the reduction of the tax on profits to be paid in the future arising from the existence of negative taxable bases of such tax to be paid.

a) It will be loaded:

to1) By the tax credit derived from the negative tax base on profit taxes obtained in the year, with credit, generally, to account 6301.

to2) By increasing the tax credit, with credit, generally, to account 638.

b) It will be paid:

b1) By tax credit reductions, generally taken into account 633.

b2) When the negative tax bases of previous years are offset, generally, to account 6301.

475. Public Finance, creditor by tax concepts.

Taxes in favor of Public Administrations, pending payment, whether or not an entity is a substitute for the same or a retainer.

It will appear on the liability side of the balance sheet.

The content and movement of the quoted four-figure accounts is as follows:

4750. Hacienda Pública, accretive por IV

Excess, in each tax period, of VAT passed on the deductible input VAT.

Your move is as follows:

(a) It shall be paid at the end of each settlement period for the amount of the excess referred to in account 477.

(b) The amount of the excess shall be debited when payment is made, with subscription to sub-group 57 accounts.

4751. Hacienda Pública, accretive for retentions practiced.

Amount of the tax deductions made to the Public Finance. The effect on the retentions practiced as a result of extortionate premiums will be collected in this sub-account.

Your move is as follows:

(a) The tax accrual shall be paid, where the entity is a substitute for the taxpayer or retainer, with the accounts of groups 4, 5 or 6.

(b) It will be charged when payment is made, with subscription to sub-group 57 accounts.

4752. Public Finance, which is a corporation tax.

Amount to be charged on corporation tax payable.

Your move is as follows:

(a) It shall be paid for the amount to be entered, with charge, generally, to the account 6300 and, if applicable, to the account 8300.

(b) It will be charged when payment is made, with subscription to sub-group 57 accounts.

476. Social Security Agencies, creditors.

Debts outstanding with Social Security Agencies as a result of the benefits they perform.

It will appear on the liability side of the balance sheet.

Your move is as follows:

a) It will be paid:

to1) By the quotas that correspond to the entity, with account 642.

to2) By quota holds that correspond to the entity's staff, with count of 465 or 640.

(b) It will be charged when the debt is cancelled, with subscription to sub-group 57 accounts.

477. Public finances, VAT passed on.

VAT due on the delivery of goods or the provision of services and other transactions included in the legal text.

Your move is as follows:

(a) It shall be paid for the amount of VAT passed on when it becomes due and tax, from group 2 or 4 debtor accounts, or to sub-group 57 accounts.

(b) The amount of the deductible input VAT shall be charged to the statement-settlement of the settlement period, with credit to account 472. If, after this seat has been lodged, balance in account 477, the amount of the same shall be paid to the account 4750.

(c) The amount of VAT shall be paid or charged, charged or credited to groups 2 or 4, for the amount of VAT passed on in the case of price changes after the taxable transactions have been carried out, or where they are not fully or partially in effect, or where the tax base is to be reduced by virtue of discounts and allowances granted after the tax is due.

478. Other Public Entities.

Amount of certain credits or debts with Public Bodies due to the mandatory surcharges and taxes, by virtue of laws or regulations, on premiums corresponding to receipts collected or extornados.

It shall appear on the assets or liabilities of the balance sheet, as appropriate.

Your move is as follows:

(a) The collection of the premium receipts shall be paid, with the account of the account 456.

b) Charged:

b1) For the payment of the debt, with credit to sub-group 57 accounts.

b2) For the amount of the surcharges corresponding to the premiums that are credited to account 434.

b3) If applicable, for the Insurance Compensation Consortium collection award, with credit to the 7590 account.

479. Liabilities for taxable temporary differences.

Differences that will result in higher amounts to be paid or lower amounts to be paid back for profit in future years, usually as assets are recovered or the liabilities of which they are derived are settled.

This account will include the full amount of deferred tax liabilities, not being eligible for compensation with the deferred income tax assets. All this, without prejudice to the provisions of Part Three of this Plan, for the purposes of its submission to the annual accounts.

It will appear on the liability side of the balance sheet.

Your move is as follows:

a) It will be paid:

to1) For the amount of taxable difference liabilities originated in the financial year, generally taken into account at the account of 6301.

to2) For the amount of taxable difference liabilities arising in a transaction or event that would have been directly recognised in a net worth item, with a charge, to account 8301.

to3) By increasing taxable difference liabilities, generally charged to account 633.

to4) By increasing liabilities for taxable differences originated in a transaction or event that would have been directly recognized in a net worth item, with charge, to account 833.

b) Charged:

b1) By reductions in liabilities for taxable differences, with credit, generally, to account 638.

b2) By reductions in liabilities for taxable differences originating in a transaction or event that would have been directly recognised in a net worth item, with credit, to account 838.

b3) When the liability is cancelled for taxable differences, usually with credit to account 6301.

b4) When the liability is cancelled for taxable differences originating in a transaction or event that was directly recognised in a net worth item, with credit, to account 8301.

48. Adjustments for the time-to-year

480. Anticipated expenses.

481. Commissions and other acquisition expenses.

482. Fees and other expenses for the acquisition of the transferred reinsurance.

485. Anticipated revenue.

489. Premiums written and not issued, net of commissions and disposals.

480. Anticipated expenses.

Expenses accounted for in the year that is closed and corresponding to the following, including the office material not consumed in the financial year.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The balance of the financial year shall be charged to the accounts of Group 6 which have recorded the expenditure to be charged for the subsequent financial year.

(b) It shall be paid when the expenditure is incurred in the following financial year, from group 6 accounts.

481. Fees and other acquisition costs.

Amount of fees and other costs of acquisition of direct insurance and reinsurance accepted to be imputed to the following financial year or exercises in accordance with the policy coverage period and with the limits set out in the technical note.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The balance sheet shall be debited from the accounts of Group 6 which have recorded the expenditure to be charged for the subsequent financial year or financial years, and where applicable, with the accounts of Group 0.

(b) It shall be paid when the expenditure in the following year is incurred, from group 6 accounts.

482. Fees and other costs of acquisition of the transferred reinsurance.

Amount of fees and other acquisition costs recovered by ceded reinsurance transactions that may be imputed to the following financial year or exercises in accordance with the policy coverage period.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) The accounts of Group 7 which have recorded the revenue for the subsequent financial year shall be paid at the end of the financial year.

(b) It shall be charged when the income in the following year is earned on the basis of group 7 accounts.

485. Anticipated revenue.

Revenue accounted for in the year that is closed corresponding to the following:

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) The accounts of Group 7 which have recorded the revenue for the subsequent financial year shall be paid at the end of the financial year.

(b) It shall be charged, when the income is earned in the following financial year, with credit to group 7 accounts.

489. Premiums written and not issued, net of commissions and disposals.

Estimated amount of premiums written at the end of the exercise, other than those of split payment, whose receipts will be issued in the following. The balance of this account shall be deducted from the amount of the fees corresponding to those premiums, as well as the part thereof corresponding to the transferred reinsurance.

It will appear in the balance sheet asset.

Their movement is explained in subgroups 61, 70 and 71.

49. Impairment of credit value by traffic operations.

490. Impairment of credit value for commercial transactions.

4900. Impairment of outstanding balances by ceded reinsurance transactions.

4901. Impairment of outstanding balances by accepted reinsurance transactions.

4902. Impairment of outstanding balances due to co-insurance operations.

4903. Impairment of outstanding balances with mediators.

4904. Impairment of outstanding balances with other debtors.

491. Correction for impairment of premiums outstanding.

496. Provision for payments for settlement agreements.

Impairment of the value of financial assets by traffic operations due to latent insolvency situations of debtors included in subgroups 40, 43 and 44. The amounts outstanding shall also be included in the amounts to be paid to insured persons in respect of claims settlement agreements.

490. Impairment of credit value for commercial transactions.

Amount of valuation corrections for impairment of bad credit, with origin in traffic operations.

The corresponding accounts of subgroups 40, 43 and 44 shall be included in the balance sheet asset.

Your move is as follows:

(a) It shall be paid during the financial year, in respect of the amount of the appropriations which are estimated to be of doubtful recovery, from account 697.

(b) It shall be debited, as the balances of debtors for which provision was provided are discharged, or where the risk is removed, by the amount of the risk, by crediting the account 797.

491. Correction for impairment of premiums outstanding.

Amount of the part of the fee premiums for the period that is expected to not be charged. The amount of this provision shall be determined in accordance with the rules applicable.

It will appear in the balance sheet asset, offsetting the 431 account.

Your move is as follows:

(a) Be paid at the end of the period for the amount of the provision to the provision, under account 697.

(b) The amount of the provision constituted at the end of the preceding period shall be debited from the account 797.

496. Provision for payments for settlement agreements.

Estimated amount of such outstanding amounts to the insured, in execution of claims settlement agreements, by the insurer of the injured party.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid at the end of the financial year, for the estimated amount outstanding to the insured, at account 607.

(b) The amount of the provision constituted at the end of the preceding financial year shall be debited from the account 607.

GROUP 5

Financial Accounts

Financial instruments for non-commercial transactions, that is, for operations other than the traffic and liquid media available.

51. Non-commercial creditors.

510. Interest on borrowings and loans.

511. Amortised marketable securities.

512. Active dividend payable.

513. Active branches or returns to be paid.

514. Debts for discounted purposes.

517. Dividends of shares considered as financial liabilities.

510. Interest on borrowings and loans.

Interest on loans and loans due to be repaid.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid at the maturity of the outstanding amount, charged to account 561.

(b) The payment shall be debited, with credit to the accounts of subgroup 57.

511. Amortised marketable securities.

Amount of debts for amortized marketable securities.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid for the redemption value of the amortised securities, from the accounts of the sub-group 17.

b) Charged:

b1) By the redemption value of the amortized values, with credit to the accounts of subgroup 57.

b2) In case of conversion of bond into shares, with credit, generally to account 100 and, if applicable, account 110.

512. Active dividend payable.

Liabilities to shareholders for active dividends, whether they are final or on account of the profits of the year.

It will appear on the liability side of the balance sheet.

Your move is as follows:

a) It will be paid:

to1) For the account dividend that is agreed, with account 557.

to2) For the final dividend, excluding, if applicable, the dividend on account, upon approval of the profit distribution, with account for account 129.

to3) To agree on the distribution of express free-disposition reservations, with a charge to the accounts of subgroup 11.

b) Charged:

b1) By withholding tax, with credit to account 475.

b2) Upon payment of the dividend, with credit to sub-group 57 accounts.

513. Active branches or returns to be paid.

Debts to mutualists or cooperativists by active branches or agreed returns.

Your balance sheet situation and movement are analogous to those in the 512 account.

514. Debts for discounted purposes.

Debts to credit institutions as a result of the effect discount.

It will appear on the liability side of the balance sheet.

Your move is as follows:

a) It will be paid:

to1) When you discount the effects, for the perceived amount, generally, to account for subgroup 57.

to2) For the financial expense accrued to the value of reimbursement for the discounted effects, generally taken into account 665.

b) Charged:

b1) Due to the effects served, with credit, generally to account 441.

b2) For the amount of the unserved effects at maturity, with credit to subgroup 57 accounts.

517. Dividends of shares considered as financial liabilities.

Dividends to be paid from shares considered as financial liabilities.

Your move is as follows:

(a) It shall be paid for the amount of dividends accrued during the financial year, with account 664.

b) Charged:

b1) By withholding tax, where applicable, with credit to account 475.

b2) To payment, with credit to subgroup 57 accounts.

55. Other non-bank accounts.

550. Current account with related companies.

5501. Current account with companies in the group.

5502. Current account with associated companies.

5509. Current account with related companies.

551. Current account with partners, administrators and other related persons.

5511. Current account with partners.

5512. Current account with administrators.

5519. Current account with other related persons.

552. Dividends and interest receivable.

553. It has the central house, temporary unions of companies, mergers, divisions and business combinations.

555. Items to be applied.

554. Reserve for the stabilisation account.

556. Disbursements required on equity holdings.

557. Active dividend on account.

558. Required disbursements.

5580. Partners for disbursements required on shares.

5585. Members for disbursements required on shares considered as financial liabilities.

5587. Contributions from mutualists to be disbursed.

559. Current account with intermediaries for financial and derivative investments.

550/551. Current accounts with ...

Current accounts that the entity maintains with associated and linked group entities, as well as with partners, administrators, and other related persons. These accounts shall not be used for the traffic operations included in Group 4.

They shall be in the balance sheet asset, by the sum of the debtor balances and the liabilities, by the sum of the creditor balances.

Your move is as follows:

a) They will be charged for remittances or deliveries made by the entity.

(b) They shall be paid for the remittances received, with credit and charge, respectively, to the accounts of subgroup 57.

552. Dividends and interest receivable.

Credit for dividends, whether final or on account, and interest due for recovery.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be charged for the amount due, with credit to the accounts 760, 761 or 762.

(b) It shall be paid for the amount charged, in charge, generally, to the accounts of the subgroup 57 and, for the retention supported, account 473.

553. It has the central house, temporary unions of companies, mergers, divisions and business combinations.

Cash accounts to record:

-The moves between the Spanish branch of foreign entities and their central home.

-Moves with the temporary joins of companies in which the entity participates.

-The transfer of the assets, the delivery of consideration and the corresponding changes in the net worth of the companies involved in the merger, division or other business combinations.

It shall be included in the asset or liability on the balance sheet, as appropriate.

Your move is as follows:

a) It will be charged, usually, a1). For the cash remittances sent by the branch to the central house, with credit to the accounts of subgroup 57.

to1) For remittances or deliveries made by the entity to the temporary union of companies, with credit to the accounts of groups 2, 5 and 7 that correspond.

to2) In the business combinations, the company will be charged in the company that is extinguished or relent of the assets that integrate the business combination at the time of the disposal of the assets and liabilities assumed.

to3) In business combinations, the acquiring or acquiring company of the assets belonging to the business combination shall be charged at the time of delivery of the issued shares, with credit to the accounts 100 and 110 and, where applicable, to the corresponding accounts of group 57.

b) It will be paid, generally,

b1) For cash remittances received by the branch of your central household from the accounts of subgroup 57 and, if applicable, account 129.

b2) By receipts in favor of the entity that receives from the temporary union of companies, from the accounts of the groups 2, 5 and 6 that correspond.

b3) In business combinations, it shall be paid in the acquiring or acquiring company of the assets that integrate the business combination at the time of receipt of the assets and liabilities assumed.

b4) In the business combinations, the company shall be charged in the company that is extinguished or relented from the assets belonging to the business combination at the time of the receipt of the equity instruments, from the group accounts 24 or 25 and, where appropriate, the corresponding accounts of group 57.

554. Reserve for the stabilisation account.

Amount of the stabilization reserve recognized in the financial year.

It will figure in the net worth of the balance by minoring own funds.

Your move is as follows:

(a) It shall be charged for the recognition of the equalisation reserve required by the arrangements for the management and supervision of private insurance, with payment on account 1147.

(b) It shall be paid for the amount of your balance when the decision on the distribution and application of the benefits is taken, with account of 129, and in case of losses, with account of the account 121.

555. Items to be applied.

Remittances from funds received whose cause is not, in principle, identifiable, and provided that they do not correspond to operations which by their nature should be included in other sub-groups. Such remittances will remain registered in this account the time strictly necessary to clarify their cause.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid for the charges that are incurred in respect of the accounts of subgroup 57.

b) You will be charged when making your application, with credit to the account to which it actually corresponds.

556. Disbursements required on equity holdings.

Disbursements required and outstanding payments corresponding to equity interests.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid when the disbursement is required, with the accounts of groups 24 and 25.

(b) It shall be charged for the disbursements that are made, with credit to sub-group 57 accounts.

557. Active dividend on account.

Amounts, in the form of 'on account' of profits, the distribution of which is agreed by the competent body.

It will figure in the net worth of the balance sheet, minoring own funds.

Your move is as follows:

a) It will be charged when its distribution is agreed upon, with credit to the account 512.

(b) It shall be paid for the amount of your balance, when the decision on the distribution and application of the benefits is taken, with account taken to account 129.

558. Required disbursements.

5580. Partners for disbursements required on shares.

Social capital written, pending disbursement, the amount of which has been required from the shareholders.

They will be broken down, with due development into five-figure accounts, the outstanding disbursements in arrears.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The amount of the disbursements required by credit to account 103 shall be charged.

(b) The amount of the disbursements to be paid shall be paid out of the accounts of subgroup 57.

5585. Members for disbursements required on shares considered as financial liabilities.

Amount corresponding to the shares considered as financial liabilities, issued and subscribed, to be disbursed, the amount of which has been required of the subscribers.

They will be broken down, with due development into five-figure accounts, the outstanding disbursements in arrears.

It will appear on the liability side of the balance sheet, with a negative sign, minoring the item "Other debts".

Your move is as follows:

(a) It shall be charged for the required disbursements, with credit to account 153.

(b) It shall be paid to the extent that such disbursements are carried out, from the accounts of subgroup 57.

5587. Mutualists, for required disbursements.

Contributions required from the mutualists, either to compensate for losses or to increase the mutual fund, under an agreement of the governing bodies of the institution.

It will appear in the balance sheet asset.

Your move is as follows:

(a) The amount of the required disbursements shall be debited from the accounts of the subgroup 10 or 11, as appropriate.

(b) It shall be paid for the collection of the contributions, from the accounts of subgroup 57.

559. Current account with intermediaries for financial and derivative investments.

Cash current account with intermediaries for the above transactions.

It shall be included in the asset or liability on the balance sheet, as appropriate.

Your move is as follows:

a) You will be charged for remittances or deliveries and for the amount of positive differences or the cancellation of your balance.

b) You will pay for the remittances received and for the amount of the negative differences or the cancellation of your balance.

56. Adjustments for prepayments and anticipated interest.

560. Interest paid in advance.

561. Interest to pay, not due.

562. Interest receivable, not due.

563. Interest charged in advance.

560. Interest paid in advance.

Interest paid by the entity corresponding to the following exercises.

It will appear in the balance sheet asset.

Your move is as follows:

(a) It shall be charged at the end of the financial year with credit to the accounts of the sub-group 66 which have recorded the interest accounted for.

(b) It shall be paid for the expenditure incurred in the following financial year from the accounts of subgroup 66.

561. Interest to pay, not due.

explicit interest on loans and loans to be paid.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) It shall be paid for the amount of accrued and unexpired interest corresponding to the financial year, from the accounts of subgroup 66.

b) Charged:

b1) For payment of interest, with credit to sub-group 57 accounts.

b2) By withholding tax, where applicable, with credit to account 475.

b3) For interest due, with credit to account 510.

562. Interest receivable, not due.

Amount at the close of the exercise of accrued and unexpired interest on financial investments, when they are not part of the redemption value.

It will appear in the balance sheet asset.

Your move is as follows:

(a) It shall be charged, at the end of the financial year, with credit to account 761 or 762 or the acquisition of the title with credit to the accounts of subgroup 57.

b) It will be paid:

b1) To the recovery of interest, in the following financial year, from the accounts of subgroup 57 and the withholding tax, if applicable, to account 473.

b2) At the expiration of interest, at account 552.

563. Interest charged in advance.

Interest charged by the entity corresponding to subsequent years.

It will appear on the liability side of the balance sheet.

Your move is as follows:

(a) The accounts of sub-group 76 that have recorded the interest accounted for shall be paid at the end of the financial year.

(b) The following year shall be charged with credit to the accounts of subgroup 76.

57. Treasury.

570. Box, pesetas.

571. Box, foreign currency.

572. Banks and credit institutions c/c view, pesetas.

573. Banks and credit institutions c/c view, foreign currency.

574. Banks and credit institutions, savings accounts, pesetas.

575. Banks and credit institutions, savings accounts, foreign currency.

576. Short-term investments with high liquidity.

570/571. Box, ...

Liquid-in-box media disposal.

They will be in the balance sheet asset.

Your move is as follows:

a) They will be loaded at the entrance of the liquid media.

(b) They shall be paid upon their departure, with credit and charge to the accounts to be served as a counterpart, depending on the nature of the transaction which results in the payment or recovery.

572/573/574/575. Banks and credit institutions.

Balances in favor of the entity, in current accounts and savings of immediate availability in Banks and Credit Institutions, being understood by such Savings Banks, Rural Banks and Credit Unions, for balances located in Spain, and analogous entities if these are balances located abroad.

The balances in the banks and institutions mentioned above shall be excluded from accounting in this sub-group if they are not immediately available. Balances of immediate disposition shall also be excluded if they are not held by banks or the institutions concerned.

They will be in the balance sheet asset.

Your move is as follows:

(a) They shall be charged for cash deliveries and transfers, with credit to the account to be served as a counterpart, depending on the nature of the transaction that results in the recovery.

(b) They shall be paid for the provision, in whole or in part, of the balance, with the account to be served as a counterpart, depending on the nature of the transaction that results in the payment.

576. Short-term investments with high liquidity.

Cash convertible financial investments, with a maturity of no more than three months from the date of acquisition, that do not have significant value change risks and which are part of the entity's normal cash management policy.

It will appear in the balance sheet asset.

Your move is as follows:

a) It will be loaded:

to1) At the entry of financial investments, with credit for the account to be served as a counterpart.

to2) For the implied returns that are payable on your case, with credit to group 75 accounts.

(b) It shall be paid on the way out of the financial investments, from the accounts to be used as a counterpart.

58. Assets and groups of assets and liabilities held for sale.

580. Fixed.

581. Real estate investments.

582. Financial investments.

583. Other assets for sale.

584. Technical provisions.

585. Non-technical provisions.

586. Creditors for traffic operations.

587. Debts with special characteristics.

588. Debts to persons and related entities.

589. Other liabilities associated with assets in sales.

Individual assets, as well as assets and liabilities included in a qualifying group of items, the recovery of which is expected to be performed primarily through its sale, rather than for its continued use, including those that are part of an interrupted operation that would have been classified as held for sale.

580/583 These accounts will appear in the balance sheet asset.

Your movement, generally, is as follows:

a) They will be loaded:

to1) At the time the conditions for classification are met, in accordance with the rules of registration and valuation contained in the second part of this text, with credit to the respective accounts of the asset.

to2) In the case of financial assets which, for the purposes of their valuation, are classified in the category of 'Financial assets held for trading' or 'Other financial assets at fair value with changes in the profit and loss account', for changes in fair value, with credit to account 763.

to3) In the case of financial assets which, for the purposes of their valuation, are classified in the category of "Financial assets available for sale", for changes in fair value, with credit to account 960, except the share of exchange differences in monetary items to be registered with account 768.

to4) Where applicable, due to the accrued financial income, with credit to the account corresponding to the subgroup 76.

b) They will be paid:

b1) At the time the disposal or disposal is produced by another means of the asset or group of items, generally taken into account in subgroup 57 and in the case of losses to the account of subgroup 67 corresponding to the nature of the asset.

b2) In the case of financial assets which, for the purposes of their valuation, are classified in the category of 'Financial assets held for trading' or 'Other financial assets at fair value with changes in the profit and loss account', due to changes in fair value from account 663.

b3) In the case of financial assets which, for the purposes of their valuation, are classified in the category of "Financial assets available for sale", for changes in fair value, to account 860, except for the share of exchange differences in monetary items to be recorded under account 668.

b4) If the asset or group of items in the asset or group of items no longer meets the requirements for classification as maintained for sale in accordance with the provisions of the registration and valuation rules contained in the second part of this text, from the respective accounts of the asset.

584/589.

These accounts shall be on the liabilities side of the balance sheet.

Your movement, generally, is as follows:

a) They will be paid:

to1) At the time the conditions for classification are met, in accordance with the provisions of the registration and valuation rules contained in the second part of this text, with the respective liability accounts.

to2) In the case of financial liabilities that, for the purposes of their valuation, are classified in the category of "Financial liabilities held for trading" or in the category of "Other financial liabilities at fair value with changes in profit and loss", by changes in fair value, with account 663.

to3) If applicable, for the accrued financial expense, from the corresponding account of subgroup 66.

b) They will be loaded:

b1) At the time the disposal or disposition is produced by another path of the item's enajenable group.

b2) In the case of financial liabilities which, for the purposes of their valuation, are classified in the category of 'Financial liabilities held for trading' or 'Other financial liabilities at fair value with changes in profit and loss', for changes in fair value, with credit to account 763.

b3) If the group of items is no longer eligible for classification as held for sale in accordance with the rules of registration and valuation contained in the second part of this text, with credit to the respective liability accounts.

59. Impairment of the value of financial accounts.

590. Impairment of Group 5 debtors ' value.

599. Impairment of asset value held for sale.

590. Impairment of Group 5 debtors ' value.

Accounting expression of value corrections driven by impairment losses of assets included in Group 5.

In the case of subsequent recoveries of value, in accordance with the relevant registration and valuation rules, the recognised impairment losses shall be reduced to their full recovery, where appropriate in accordance with the provisions of those rules.

The asset in the balance sheet shall be shown by minoring the item on which the relevant asset item is listed.

Your move is as follows:

(a) It shall be paid for the amount of the estimated impairment, from the corresponding account of subgroup 69.

b) Charged:

b1) When the causes that determined the recognition of the valuation correction for impairment disappear, with credit to the account corresponding to the subgroup 79.

b2) When the asset is either in or out of the asset for any other reason, with credit to group 5 accounts.

599. Impairment of asset value held for sale.

Amount of the impairment valuation corrections of the value of assets held for sale or in assets that are part of a pool of items held for sale.

Your move is as follows:

(a) It shall be paid for the amount of the estimated impairment, with the corresponding account of group 69.

b) Charged:

b1) When the causes that determined the recognition of the valuation correction for impairment disappear, with credit to the account corresponding to group 79.

b1) When the asset is either in or out of the asset for any other reason, with credit to group 58 accounts.

GROUP 6

Expenses

Expenses arising from insurance and other operations necessary for the development of the entity's activity, as well as certain concepts, such as claims for claims or benefits in charge of the transferred or regressed reinsurance, which are to be considered as a minorage of expenses. It also includes the fees charged by the institution, the financial expenses and the exceptional expenses.

In general, all accounts in Group 6 shall be credited, at the end of the period, to account 129, or to group 0 accounts, where, in the latter case, the expenditure accounted for by nature in Group 6 is to be reclassified on the basis of its destination; therefore, the movements of the successive accounts of this group shall only be made reference to the reasons of charge.

The exceptions will cite the reasons for the credit and the counterpart accounts.

60. Benefits paid.

600. Benefits, direct insurance, not life.

6000. Benefits paid.

6001. Benefits recovered.

601. Benefits, direct insurance, life.

6010. Maturities. (Survival).

6011. Capital (death).

6012. Income.

6013. Rescues.

602. Benefits, reinsurance accepted, not life.

6020. Benefits and expenses paid.

6027. Portfolio entry for benefits.

6028. Withdrawal of portfolio by benefits.

603. Benefits, reinsurance accepted, life.

6030. Benefits and expenses paid.

6037. Portfolio entry for benefits.

6038. Withdrawal of portfolio by benefits.

604. Benefits, reinsurance ceded and regressed, not life.

6040. Reinsurance ceded.

60400. Benefits and expenses paid.

60407. Entry of Portfolio for benefits.

60408. Withdrawal from Cartera for benefits.

6042. Reinsurance regressed.

60420. Benefits and expenses paid.

60427. Entry of Portfolio for benefits.

60428. Withdrawal from Cartera for benefits.

605. Benefits, reinsurance ceded and regressed, life.

6051. Reinsurance ceded.

60510. Benefits and expenses paid.

60517. Entry of Portfolio for benefits.

60518. Withdrawal from Cartera for benefits.

6053. Reinsurance regressed.

60530. Benefits and expenses paid.

60537. Entry of Portfolio for benefits.

60538. Withdrawal from Cartera for benefits.

606. Participation in profits and extortions.

6060. Participation in profits and extortions.

60600. Not life.

60601. Life.

607. Variation of benefits by claims settlement agreements.

Payments for benefits arising from insurance contracts as well as the expenses inherent in such benefits. It also includes the benefits and expenses borne by the institution for the reinsurance transactions accepted, as well as those passed on to the reinsurers in transferred reinsurance and regressed operations.

600/601. Benefits.

Benefits paid for direct insurance, non-life and life operations.

They will be charged for payments made, with credit to sub-groups 43 or 57, or 402 for co-insurance operations.

The recovered benefits will be paid to the account 600.

602/603. Benefits.

Benefits in charge of the entity for reinsurance transactions accepted not life and life.

Your move is as follows:

(a) They shall be charged for the amount of the benefits corresponding to the reinsurance transactions accepted, as well as for the withdrawals, with credit to the 401 account.

(b) They shall be paid for the amount of the portfolio entries, and, where applicable, for the reinsurer's participation in the amount of benefits recovered by the transferors, from the 401 account.

604/605. Benefits.

Amount of the benefits that the institution has passed on to the reinsurers under the reinsurance contracts in force.

Your move is as follows:

(a) They shall be paid for the amount of the benefits passed on to the reinsurers as well as the amount of the portfolio withdrawals from the account 400.

(b) They shall be charged for the amount of the portfolio entries, and, where applicable, for the reinsurer's participation in the amount of the benefits recovered by the institution, with credit to the account 400.

606. Participation in profits and extortions.

6060. Participation in profits and extortions.

60600. Not life.

60601. Life.

Amount of benefits satisfied to policyholders or policyholders, including those intended to increase technical provisions or to reduce future premiums, in so far as such amounts represent a profit-sharing from the activity as a whole or from a part of it. It also includes those who are being extorted for the purpose of partial refund of premiums, carried out in accordance with the conduct of insurance contracts.

It will be charged for the amount of the participation in profits or of the extortions that correspond to the exercise, with credit, generally, to:

(a) Accounts of subgroup 57, when they are met in cash.

b) Account 312, when intended to increase the mathematical provision of the contract.

(c) Account 701, when granted in the form of unique inventory premiums, in the case of insurance released from the premium payment.

607. Variation of benefits by claims settlement agreements.

Negative or positive differences between amounts that are satisfied or owed by the entity to its policyholders, in execution of claims settlement agreements, and those recovered from the insurer of the person responsible. Changes in the provisions for payments by settlement agreements included in account 496 shall also be included in this account.

Your move is as follows:

(a) It shall be debited, when payment is made to the insured person in execution of settlement agreements or in the form of the provision at the end of the financial year, with credit, respectively, to the accounts of subgroup 57 or account 496.

b) It will be paid:

b1) Recognition of the debt by the insurer of the cause of the damage, charged to account 442.

b2) At the end of the financial year, the amount of the provision constituted at the end of the preceding financial year, with a charge of account 496.

61. Fees, shares and other portfolio charges.

610. Commissions, direct insurance, not life.

6100. Fees on premiums issued.

6102. Commissions on premiums cancelled from the financial year.

6103. Commissions on premiums cancelled from previous years.

6104. Change in fees on the impairment correction of premiums outstanding.

6105. Commissions on premiums issued for the financial year.

6106. Commissions on premiums issued from previous years.

6107. Change in fees on premiums written and not issued.

611. Commissions, direct insurance, life.

6110. Fees on premiums issued.

6112. Commissions on premiums cancelled from the financial year.

6113. Commissions on premiums cancelled from previous years.

6114. Change in fees on the impairment correction of premiums outstanding.

6115. Commissions on premiums issued for the financial year.

6116. Commissions on premiums issued from previous years.

6117. Change in fees on premiums written and not issued.

612. Commissions and shares, reinsurance accepted, not life.

6120. Committees.

6121. Participations.

6126. Change in fees on premiums written and not issued.

613. Commissions and shares, reinsurance accepted, life.

6130. Committees.

6131. Participations.

6136. Change in fees on premiums written and not issued.

615. Remuneration to insurers for collaboration agreements.

Commissions, participations and other expenses, by direct insurance and reinsurance accepted, satisfied to mediators or other insurers for the work carried out by them for the production of policies.

610/611. Direct insurance fees.

Amount of commissions written by the mediators, in relation to the transactions in which they are involved.

Your move is as follows:

a) They will be loaded:

to1) For the amount of fees corresponding to the premiums issued, with credit to account 452.

to2) For the amount of fees for premiums written and not issued, with credit to account 489 or account 453 when applicable to fractional premiums.

to3) For the amount of the fees corresponding to the impairment correction of the outstanding premiums constituted at the end of the previous financial year, with credit to the account 452.

to4) For the amount of commissions that were activated at the end of the previous period, correspond to this year with credit to account 481.

b) They will be paid:

b1) For the amount of the remisions corresponding to the nullified premiums, charged to account 452.

b2) For the amount of the referrals corresponding to the premium premiums, charged to account 433.

b3) For the amount of the fees for premiums written and unissued from the previous year, under account 489 or 453 when it corresponds to fractional premiums.

b4) For the amount of the fees corresponding to the impairment correction of the premiums outstanding for the financial year, with the account of the account 452.

b5) For the amount of the fees to be charged to the results of the following exercise or exercises under account 481.

612/613. Commissions and shares, reinsurance accepted.

Amount of fees payable by the transferors in the reinsurance transactions accepted, as well as the share corresponding to those in the entity's profits from such operations.

Your move is as follows:

a) They will be loaded:

to1) For the amount of fees and participations, with credit to the 401 account.

to2) For the amount of the fees corresponding to the premiums written and not issued, with credit to account 489.

to3) For the amount of commissions that were activated at the end of the previous period, correspond to this year with credit to account 481.

b) They will be paid:

b1) For the amount of fees corresponding to accepted premiums that are cancelled, from the 401 account.

b2) For the amount of fees corresponding to accepted premiums that are issued, from the 401 account.

b3) By the amount of the fees corresponding to the premiums written and unissued from the previous financial year, under account 489.

b4) For the amount of the fees that may be charged to the results of the following financial year or exercises under account 481.

615. Remuneration to insurers for collaboration agreements.

Expenses incurred on the occasion of contracts concluded with other insurance companies for the subscription of insurance policies of the entity through the distribution network of those premiums.

The accrual of the expense will be charged, with credit, generally, to account 413.

62. External services.

620. Expenditure on research and development of the financial year.

621. Leases and royalties.

622. Repairs and conservation.

623. Services of independent professionals.

624. Office material.

625. Insurance premiums.

626. Banking and similar services.

627. Advertising, propaganda and public relations.

628. Supplies.

629. Other services.

Expenses incurred by the entity for services of a different nature that are not part of the price of acquisition of the fixed assets, investments in real estate investments.

Charges in accounts 620/629 will normally be charged to account 410, to accounts of subgroup 57, to provisions of subgroup 14 or, if applicable, to account 475.

620. Expenditure on research and development of the financial year.

Research and development expenses for services entrusted to other entities.

621. Leases and royalties.

Leases.

The accruals for the rental or operating lease of movable and immovable property in use or at the disposal of the entity.

Canyons.

Fixed or variable amounts that are satisfied by the right to use or the granting of use of the various manifestations of industrial property.

622. Repairs and conservation.

The support of the goods included in group 2.

This account shall be broken down into the sub-accounts necessary to record the costs relating to fixed assets and real estate investments.

623. Services of independent professionals.

Amount that professionals are satisfied with the services provided to the entity. It includes the fees of economists, lawyers, auditors, notaries, etc., as well as the commissions of independent mediators.

624. Office material.

Amount of accrued expenses for office equipment.

625. Insurance premiums.

Amounts satisfied in terms of insurance premiums, except those relating to the staff of the institution and those of a financial nature.

626. Banking and similar services.

Amounts satisfied in terms of banking services and the like, which do not have the consideration of financial expenses.

627. Advertising, propaganda and public relations.

Amount of expenses satisfied by the concepts indicating the denomination of this account.

628. Supplies.

Electricity and any other supplies that do not have the quality of storage.

629. Other services.

Those not included in the previous accounts.

This account shall include, among other things, the travel expenses of the staff of the entity, including the travel expenses, and the office expenses not included in other accounts.

63. Tributes.

630. Tax on profits.

6300. Current tax.

6301. Deferred tax.

631. Other tributes.

633. Negative adjustments in taxation on profits.

634. Negative adjustments to indirect taxation.

636. Tax refund.

638. Positive adjustments in taxation on profits.

639. Positive adjustments in indirect taxation.

630. Tax on profits.

Income tax amount accrued in the financial year, except for the purpose of a transaction or event that has been recognised directly in a net worth item, or because of a business combination.

Generally speaking, the content and movement of the four-digit quoted accounts is as follows:

6300. Current tax.

a) It will be loaded:

to1) For the fee to enter, with credit to account 4752.

to2) For the supported holds and income on account of the tax made, up to the amount of the period's liquid quota, with credit to account 473.

(b) It shall be paid for the share of previous financial years recovered by the institution as a result of tax settlements or tax on profit, with account of 4709.

c) It will be paid or charged, charged or credited to account 129.

6301. Deferred tax.

a) It will be loaded:

to1) For the amount of liabilities for taxable temporary differences originating in the financial year, with credit to account 479.

to2) By applying the assets for temporary differences deductible from previous years, with credit to account 4740.

to3) By the application of the tax credit as a result of the compensation in the exercise of negative tax bases of previous years, with credit to the account 4745.

to4) For the amount of the tax effect of the permanent differences to be imputed in various exercises, with credit to account 834.

to5) For the amount of the tax effect corresponding to the deductions and bonuses to be imputed in various exercises, with credit to account 835.

to6) By the tax application of the deductions or bonuses from previous exercises, with credit to account 4742.

to7) For the amount of the tax effect derived from the transfer to income results directly imputed to the net worth that would have caused the corresponding current tax in previous years, with credit to account 8301.

b) It will be paid:

b1) For the amount of the assets for deductible temporary differences originating in the financial year, at account 4740.

b2) By the tax credit generated in the financial year as a result of the existence of a negative tax base to compensate, with account of 4745.

b3) By the cancellation of liabilities for taxable temporary differences from previous years, with account 479.

b4) Due to the periodic differences that are caused by the exercise, count 836.

b5) For the periods of deductions and allowances that are charged to the financial year, under account 837.

b6) By the assets by deductions and other unused tax advantages, pending tax enforcement, charged to account 4742.

b7) By the amount of the tax effect arising from the transfer to results of expenses directly charged to the net worth that would have caused the corresponding current tax in previous years, under account 8301.

c) It will be paid or charged, charged or credited to the account 129.

631. Other tributes.

Amount of the taxes on which the entity is a contributor and do not have a specific seat in other accounts of this subgroup or in account 477.

The taxes that must be charged in other accounts are also excepted according to the definitions of the same.

This account will be charged when the taxes are payable, with credit to the accounts of the subgroups 47 and 57. It shall also be charged for the amount of the provision provided for in the financial year 141.

633. Negative adjustments in taxation on profits.

Decrease, known in the financial year, of deferred tax assets or increase, also known in the financial year, of deferred tax liabilities, in respect of previously generated deferred tax assets and liabilities, except that such balances have originated as a result of a transaction or event that would have been directly recognized in a net worth item.

It will be loaded:

to1) For the least amount of the asset for deductible temporary differences, with credit to account 4740.

to2) By the lower amount of the loss tax credit to compensate, with credit to account 4745.

to3) By the least amount of the asset by deductions and bonuses to be applied, with credit to account 4742.

to4) By the largest amount of the liability for taxable temporary differences, with credit to account 479.

634. Negative adjustments to indirect taxation.

Amount of the negative differences that result, in the deductible input VAT corresponding to the transactions of goods or services or of investment goods, when the annual regularisations derived from the application of the Rule of Prorrata are observed.

These accounts will be charged for the amount of the annual regularization, with credit to account 472.

636. Tax refund.

Amount of tax refunds payable by the institution as a result of payments unduly made, excluding those that had been loaded into group 2 accounts.

Your move is as follows:

(a) It shall be paid where the returns are payable, at the expense of account 4709.

(b) The balance shall be debited at the end of the financial year, with credit to account 129.

638. Positive adjustments in taxation on profits.

Increase, known in the financial year, of assets by deferred tax or decrease, equally known in the financial year, of deferred tax liabilities, in respect of previously generated deferred tax assets and liabilities, except that such balances have originated as a result of a transaction or event that would have been directly recognized in a net worth item.

With a general character, your move is as follows:

a) It will be paid:

to1) For the largest amount of the asset for deductible temporary differences, at count 4740.

to2) For the largest amount of the loss tax credit to be offset, charged to account 4745.

to3) By the largest amount of the asset by deductions and bonuses to be applied, taken into account 4742.

to4) By the lower amount of the liability for taxable temporary differences, charged to account 479.

(b) The balance shall be debited at the end of the financial year, with credit to account 129.

639. Positive adjustments in indirect taxation.

Amount of the positive differences that result, in the deductible input VAT corresponding to the operations of goods or services or of investment goods, when the annual regularisations derived from the application of the Rule of Prorrata are practiced.

Your move is as follows:

(a) They shall be paid for the amount of the annual regularisation, charged to account 472.

(b) The balance shall be debited at the end of the financial year, with credit to account 129.

64. Staff costs.

640. Wages and salaries.

641. Compensation.

642. Social security in charge of the company.

643. Long-term remuneration by means of defined contribution schemes.

644. Long-term remuneration through defined benefit systems.

6440. Annual contributions.

6442. Other costs.

645. Remuneration to staff by means of equity instruments.

6450. Remuneration for staff cleared with equity instruments.

6457. Remuneration for cash-settled staff based on equity instruments.

646. Participation in premiums.

649. Other social expenditure.

Remuneration to staff, whatever form or concept they are satisfied with; Social Security contributions by the institution and other expenses of a social nature.

640. Wages and salaries.

Remuneration, fixed and eventual, to the staff of the institution, other than those relating to insurance mediation activities to be accounted for in subgroup 61.

To be charged for the full amount of accrued remuneration:

to1) For cash payment, with credit to subgroup 57 accounts.

to2) For accruals and unpaid, with credit to account 465.

to3) For outstanding debt compensation, with credit to accounts 254 and 460 as applicable.

to4) By withholding taxes and Social Security contributions from staff, with credit to subgroup 47 accounts.

641. Compensation.

Quantities that are delivered to the entity's personnel to resarcirle from damage or injury. Specifically included in this account are severance payments and early retirements.

It will be charged for the amount of the compensation, with credit, generally, to the accounts of the subgroups 14, 46, 47 or 57.

642. Social security in charge of the company.

Quotas of the entity in favor of the Social Security agencies for the various benefits that they perform.

It will be charged for the fees payable, with credit to account 476.

643. Long-term remuneration by means of defined contribution schemes.

Amount of contributions due on long-term remuneration to the staff of the institution, such as pensions or other retirement or retirement benefits, which are articulated through a defined contribution system.

a) It will be loaded:

to1) For the amount of annual contributions to pension plans or other similar institutions external to the cash-satisfied entity, with credit to sub-group 57 accounts.

to2) For the amount of premiums written and unpaid, with credit to account 466.

644. Long-term remuneration through defined benefit systems.

Amount of contributions due on long-term remuneration to the staff of the institution, such as pensions or other retirement or retirement benefits, which are articulated through a defined benefit system.

6440. Annual contributions.

Amount of the annual contribution to the defined benefit system.

The amount of the cost of the service of the current financial year related to pension plans or other similar institutions external to the institution, satisfied in cash, with credit, generally, to the accounts of subgroup 57 or account 140.

6442. Other costs.

Amount of costs charged to the profit and loss account for past services arising from the establishment of a defined benefit long term remuneration plan or an improvement in the terms of the benefit.

It will be charged for the amount that proceeds in accordance with the registration and valuation standard applicable to these long-term remuneration plans, with credit to account 140.

645. Remuneration to staff by means of equity instruments.

Amounts settled by the entity with equity instruments or with cash amounts based on the value of equity instruments in exchange for the services provided by the employees.

The four-figure cited accounts move is as follows:

6450/6457.

a) They will be loaded:

to1) For the amount of accrued remuneration satisfied with equity instruments of the institution itself, with credit to sub-groups 10 and 11.

to2) For the amount of remuneration payable to be met in cash, with credit to account 147.

646. Participation in premiums.

Amount of the premiums written by the staff of the institution, in application of the contracts or labour agreements signed.

Your movement is analogous to the 640 account.

649. Other social expenditure.

Social expenses incurred in compliance with a legal provision voluntarily by the entity.

Grants to economates and canteens are cited as an indication; support for schools and vocational training institutions; scholarships for study; premiums for life insurance contracts, accidents, sickness, etc., except for social security contributions.

It will be charged for the amount of the expenses, with credit to groups 5 or 7, as they are paid in cash or in merchandise or other products.

65. Social benefits of social welfare benefits.

When social welfare mutual societies recognize social benefits to the mutualists, the accounts of three or more accurate digits must be enabled within this subgroup for their reflection in accounts.

Generally, the amount of the expense payable shall be charged to an account of subgroup 41 or 57 and, where applicable, to the accounts of group 47.

66. Financial expenses.

660. Financial expenses per update of provisions.

661. Bond and bond interest.

6610. Bond and bond interests, group companies.

6611. Bond and bond interest, associated companies.

6612. Interest on bonds and bonds, other related parties.

6613. Bond and bond interest, other companies.

662. Interest on debts.

6620. Interest on debts, group companies.

6621. Interest on debts, associated companies.

6622. Interest on debts, other related parties.

6623. Interest on debts with credit institutions.

6624. Interest on debts, other companies.

663. Valuation losses of financial instruments at fair value.

6630. Trading portfolio losses.

6631. Losses of designated by the company.

66310. Asset losses on account of life insurance policyholders who assume the risk of the investment.

6632. Losses of available for sale.

6633. Losses of hedging instruments.

664. Dividend expense of shares considered as financial liabilities.

6640. Dividend of liabilities, companies of the group.

6641. Dividend of liabilities, associated companies.

6642. Dividend of liabilities, other related parties.

6643. Liabilities dividends, other companies.

665. Interest on advance receipts and effects discount.

6650. Interest on advance receipts and discount of effects on credit institutions of the group.

6651. Interest on anticipated receipts and effects discount on associated credit institutions.

6652. Interest on anticipated receipts and effects discount on other related credit institutions.

6653. Interest on advance receipts and effects discount on other credit institutions.

666. Losses in units and debt securities.

6660. Losses in representative debt securities, group companies.

6661. Losses in representative debt securities, associated companies.

6662. Losses on debt securities, other related parties.

6663. Losses on debt securities, other companies.

6664. Losses in holdings, companies in the group.

6665. Losses in shareholdings, associated companies.

6666. Losses in equity, other related parties.

6667. Losses in equity, other companies.

667. Non-commercial credit losses.

6670. Credit losses, group companies.

6671. Credit losses, associated companies.

6672. Credit losses, other related parties.

6673. Credit losses, other companies.

668. Negative differences of change.

669. Other financial expenses.

6690. Interest on transferred reinsurance deposits.

6691. Imputation to results of the excess over the redemption value.

6692. Expenditure on investments in preparatory operations for insurance contracts.

6696. Expenditure for corrections of accounting asymmetries.

660. Financial expenses per update of provisions.

Amount of the financial burden corresponding to the value adjustments of the provisions as a financial update.

It will be charged for the recognition of financial adjustment, with credit to the corresponding provisions of the sub-group 14.

661. Bond and bond interest.

Amount of interest accrued during the financial year corresponding to the financial year in respect of foreign debt instruments, irrespective of the maturity period and the manner in which such interest is provided, including due breakdown in the accounts of four or more figures, the implied interest that corresponds to the timing of the difference between the reimbursement amount and the issue price of the securities, minus the costs associated with the transaction.

The accrual of the interest shall be charged for the entire interest, with the payment, generally, to the accounts of the subgroups 17, 51or 56 and, if applicable, to the account 475.

662. Interest on debts.

Amount of interest on loans received and other outstanding debts to write down, whatever the way such interest is implemented, the breakdowns in the accounts of four or more figures that are necessary; in particular, to record the implied interest associated with the transaction.

The accrual of the interest shall be charged for the entire interest, with the payment, generally, to the accounts of the subgroups 16, 17, 51 or 56 and, where applicable, to the account 475.

663. Valuation losses of financial instruments at fair value.

losses arising from the fair value valuation of certain financial instruments, including those that occur on the occasion of their reclassification.

Generally speaking, the content and movement of the four-digit quoted accounts is as follows:

6630. Trading portfolio losses.

losses arising from the fair value valuation of the financial instruments classified in the category 'Financial assets held for trading' or 'Financial liabilities held for trading'.

It will be charged for the decrease in the fair value of the financial assets or the increase in the value of the financial liabilities classified in this category, with credit to the corresponding account of the assets element.

6631. Losses of designated by the company.

losses arising from the fair value valuation of financial instruments classified in the category "Other fair value financial assets with changes in profit and loss account" or "Other financial liabilities at fair value with changes in profit and loss account".

Your movement is analogous to the one pointed out for account 6630.

6632. Losses of available for sale.

losses arising from the loss, disposal or cancellation of financial instruments classified in the category of "Financial assets available for sale".

It will be charged at the time of the reduction, disposal or cancellation of the financial instrument, due to the negative balance accumulated in the net worth with credit to the account 902.

6633. Losses of hedging instruments.

Losses incurred in hedging instruments, in cash flow hedge transactions where the institution does not expect the intended transaction to take place.

The transfer to the profit and loss account of the negative amount directly recognised in the net worth shall be debited with credit to the account 912.

664. Dividend expense of shares considered as financial liabilities.

Amount of the dividends accrued during the financial year corresponding to the foreign financing instrument in shares in the capital of the institution which, having regard to the characteristics of the issue, must be accounted for as a liability.

It will be charged for the amount of dividends accrued, with credit, generally, to account 517 and, if applicable, to account 475.

665. Interest on advance receipts and effects discount.

Financial expenses arising from the advance by the credit institutions of the amount of premium receipts to be charged to them, as well as the discount of commercial effects.

It will be charged, for the amount of interest accrued and together with the accounts of group 57, with credit, generally, to the accounts 454 or 514.

666. Losses in units and debt securities.

losses caused by the loss, disposal, or cancellation of debt securities and equity instruments, excluding those that are to be recorded in account 663.

It will be charged for the loss produced, with credit to the accounts of the subgroups 24 or 25.

667. Non-commercial credit losses.

Losses produced by firm insolvencies of non-commercial credits.

It will be charged for the loss due to the firm insolvency, with credit to the accounts of the subgroups 24 or 25.

668. Negative differences of change.

Losses produced by changes in the exchange rate in currency items denominated in currency other than the functional currency.

It will be loaded:

to1) For each closure, for the loss of valuation of the monetary items alive to that date, which, according to the rules of registration and valuation, must be recorded in the income statement, with credit to the accounts representative of the same denominated in currency other than the functional one.

to2) At the time of the low, the disposal or cancellation of the asset element associated with a negative conversion difference, with credit to account 921.

to3) By the transfer to the profit and loss account of the negative amount directly recognised in the net worth in the hedging transactions on a net investment in a foreign business, with credit to account 913.

to4) When cash items are sold or cancelled in advance, by delivery of cash in currency other than the functional currency, with credit, generally, to the accounts of subgroup 57.

669. Other financial expenses.

Expenses of a financial nature not collected in other accounts of this subgroup. This shall include, inter alia, the imputation to the results of the excess over the redemption value of the fixed income securities, the interest on deposits of the transferred reinsurance and receded, the expenses inherent in the execution of deposit management contracts and corrective adjustments to accounting asymmetries arising from increases in the value of financial assets at fair value with changes in results.

6690. Interest on transferred reinsurance deposits.

It will be charged, for the amount of expenses incurred, with credit to account 186 or group 57 accounts.

6691. Imputation to results of the excess over the redemption value.

It will be charged for the amount of the accrued costs of the imputation of the negative implicit return, with credit to the accounts of the subgroups 24 and 25.

6692. Expenditure on investments in preparatory operations for insurance contracts.

Amount of the expenses inherent in the execution of contracts for the management of deposits and similar transactions, for the yield that proceeds to be paid to the fund to achieve in its day the premiums of the future insurance contracts.

The accrual of the expenses will be charged, with payment to the accounts 420 or 421.

6696. Expenditure for corrections of accounting asymmetries.

Amount to be recognised in the income account in accordance with the 9th registration and valuation standard to correct the accounting asymmetries, where its registration does not proceed through account 312.

It will be loaded:

to1) With a general character, at the end of the period, and provided that the account 268 does not throw any balance that has been recognized through the profit or loss account in the preceding financial years, or has already been adjusted, with credit to account 188.

to2) For the balance of the account 268 recognized in the preceding exercises and up to the limit of its amount, with credit to account 268.

67. Losses arising from fixed assets, real estate investments, exceptional expenses and other management costs.

670. Losses from intangible fixed assets.

671. Losses from tangible fixed assets.

672. Losses from real estate investments.

675. Losses from transactions with own obligations.

676. Credit losses from traffic operations.

679. Exceptional expenses.

670/671/672. Losses from fixed assets.

losses arising from the disposal of intangible fixed assets, material or real estate investments or from the asset's loss as a result of reversible losses of such assets.

They will be charged for the loss produced in the disposal or discharge, with credit to the group 2 accounts that correspond or to the 580 account.

675. Losses from transactions with own obligations.

Losses produced on the basis of repayment of obligations.

It will be charged, for the loss produced when the securities are written off, generally to the accounts of subgroup 57.

676. Credit losses from traffic operations.

Losses produced by firm insolvencies of credit for traffic operations.

The amount of losses will be charged as a result of firm insolvencies, with credit to group 4 accounts.

679. Exceptional expenses.

Exceptional losses and expenses and significant amounts that are not to be accounted for in other accounts of Group 6 or Group 8.

The following are indicated: penalties and fines, fires, etc.

68. Endowments for redemptions.

680. Depreciation of intangible fixed assets.

681. Depreciation of tangible fixed assets.

682. Depreciation of real estate investments.

686. Amortization of commissions and other acquisition expenses.

687. Depreciation of economic rights derived from portfolios of policies acquired from a mediator.

680/681/682. Depreciation of ...

Expression of the effective annual systematic depreciation suffered by intangible and intangible fixed assets and real estate investments.

To be charged for the financial year, with credit to the accounts 280, 281 and 282.

686. Depreciation of fees and other acquisition costs.

Amount to be imputed to results of the exercise of advance commissions and other acquisition costs that appear on the balance sheet asset according to the rules of registration and valuation.

It will be charged, for the amount of the charge from the exercise to the amortisation, with credit to account 273 and 274.

687. Depreciation of economic rights derived from portfolios of policies acquired from a mediator.

Systematic amortization of economic rights derived from portfolios of policies acquired from a mediator.

It will be charged, for the amount of systematic amortization with credit to account 207.

69. Impairment losses and other allocations.

690. Impairment losses on intangible fixed assets.

691. Impairment losses on tangible fixed assets.

692. Impairment losses on real estate investments.

693. Allocations to technical provisions.

6930. Provision for provisions for unconsumed premiums and for ongoing risks, not life.

6931. Provision for life insurance provisions.

6932. Provision for life insurance provisions where the risk of investment is taken by insurance policy holders.

6934. Provision for provisions for benefits, not life.

6935. Provision for provisions for benefits, life.

6936. Provision for the provisions for the participation of insured persons in the benefits and for extortionate.

6937. Allocation to other technical provisions.

6938. Share of reinsurance in the provision of technical provisions, not life.

6939. Share of reinsurance in the allocation to technical provisions, life.

696. Losses due to impairment of units and debt securities.

6960. Losses due to impairment of equity instruments, group companies.

6961. Impairment losses on equity holdings in equity instruments, associated companies.

6962. Losses due to impairment of equity instruments, other related parties.

6963. Losses due to impairment of equity in equity instruments, other companies.

6965. Impairment losses on representative debt securities, group companies.

6966. Impairment losses on representative debt securities, associated companies.

6967. Impairment losses on debt securities, other related parties.

6968. Impairment losses on representative debt securities of other companies.

697. Loss from impairment of traffic operations.

6970. Losses due to impairment of debtors due to other traffic operations.

6971. Impairment losses of premiums outstanding.

698. Impairment of debtors ' value (group 5).

699. Losses due to impairment of claims.

6990. Impairment losses on loans, group companies.

6991. Impairment losses on credit or, associated companies.

6992. Impairment losses on loans, other related parties.

6993. Losses from impairment of loans, other companies.

690/691/692. Impairment losses on fixed assets.

Valuation correction for the reversible impairment of intangible and material fixed assets and real estate investments. The impairment valuation corrections recognised in the trading fund and in the expenditure on portfolio acquisition shall not be reversed.

They shall be charged for the amount of the estimated impairment, with credit to account 204, 207 or to accounts 290, 291 and 292, respectively or to account 599.

693. Allocation to technical provisions.

Amount, certain or estimated, to the date of the calculation, of the obligations accrued by reason of the insurance and reinsurance contracts entered into, including the expenses related to the performance of those obligations. The appropriations corresponding to the provisions of the direct insurance and the reinsurance accepted shall be carried out in the four-digit accounts which are necessary.

Your move is as follows:

to1) In the case of the provisions corresponding to the direct insurance and the reinsurance accepted, they shall be charged for the amount of the appropriations at the end of the period, with credit to the accounts of the sub-groups 30 to 37.

to2) In the case of the provisions corresponding to the transferred reinsurance, they shall be paid for the share of the reinsurer in the expenditure corresponding to the provision in question, from the accounts of subgroups 38 and 39.

696. Losses due to impairment of units and debt securities.

Value impairment correction on the investments of subgroups 24 and 25 or, as the case may be, subgroup 58, other than credit impairment corrections.

It will be charged for the amount of the estimated impairment, with credit to the accounts 2405, 250, 293, 294, 297, 599 or to group 9 accounts.

697. Loss from impairment of traffic operations.

Amount of the valuation corrections for depreciations of a reversible character in debtors for traffic operations or for premiums outstanding.

Your move is as follows:

a) It will be loaded:

to1) In the case of debtor insolvencies for traffic operations, as those are disclosed, with credit to account 490.

to2) In the case of the impairment correction of premiums outstanding, at the end of the financial year, with credit to account 491.

698. Impairment of debtors ' value (group 5).

Amount of the valuation corrections for reversible character depreciations in Group 5 debtors.

Your move is as follows:

It will be charged for the amount of the estimated insolvencies, as these are revealed, with credit to the account 590.

699. Losses due to impairment of claims.

Value impairment correction of the value of the sub-groups 24 and 25 or, where applicable, of the subgroup 58.

It will be charged for the amount of the estimated impairment, with credit to the accounts 295, 298 or 599.

GROUP 7

Revenue

Technical income, including direct and accepted insurance premiums, fees and shares of the transferred reinsurance and regressed, as well as other income that is a consequence of the entity's traffic, the extraordinary benefits, in addition to certain concepts, such as premiums and the share in provisions of the transferred reinsurance and regressed, which should be considered as a minorite of such income.

In general, all accounts in Group 7 are charged at the end of the financial year, with credit to account 129; therefore, when the group is set up, only the credit will be made reference. The exceptions shall include the reasons for the charge and the counterpart accounts.

70. Premiums.

700. Net premiums for cancellations, direct insurance, non-life.

7001. Premiums issued.

7002. Premiums cancelled from the financial year.

7003. Premiums cancelled from previous years.

7005. Premiums issued from the financial year.

7006. Premiums issued from previous years.

7007. Change in premiums written and not issued.

701. Net premiums for cancellations, direct insurance, life.

7011. Premiums issued.

7012. Premiums cancelled from the financial year.

7013. Premiums cancelled from previous years.

7015. Premiums issued from the financial year.

7016. Premiums issued from previous years.

7017. Change in premiums written and not issued.

702. Reinsurance premiums accepted, not life.

7021. Premiums.

7026. Change in premiums written and not issued.

7027. Cartera entry for premiums.

7028. Withdrawal from Cartera by premiums.

703. Reinsurance premiums accepted, life.

7031. Premiums.

7036. Change in premiums written and not issued.

7037. Cartera entry for premiums.

7038. Withdrawal from Cartera by premiums.

704. Reinsurance premiums ceded and regressed, not life.

7040. Reinsurance ceded.

70400. Premiums.

70406. Share of the reinsurer in the variation of premiums written and not issued.

70407. Cartera entry for premiums.

70408. Refined Cartera for Reinsurance premiums

7042. Reinsurance regressed.

70420. Premiums.

70427. Cartera entry for premiums.

70428. Withdrawal from Cartera by premiums.

705. Reinsurance premiums ceded and regressed, life.

7051. Reinsurance ceded.

70510. Premiums.

70516. Share of the reinsurer in the variation of premiums written and not issued.

70517. Cartera entry for premiums.

70518. Withdrawal from Cartera by premiums.

7053. Reinsurance regressed.

70530. Premiums.

70537. Cartera entry for premiums.

70538. Withdrawal from Cartera by premiums.

Income from premiums for direct insurance and reinsurance accepted, and reinsurance participation in such income.

700/701. Premiums ... (1)

premiums, net of cancellations and extortions, accrued in the year, issued or not. Premiums written are defined as those for contracts which have been completed or carried over in the financial year, in respect of which the insurer's right to recovery arises during the said period.

In the event that the premium collection is anticipated at the due date, the entity shall use the anticipated sub-accounts of the anticipated receipts included in the accounts 431 and 432, with credit to a specific sub-account included in the accounts 700 or 701 that collects that circumstance.

Your move is as follows:

a) They will be paid:

to1) For the amount of the premiums issued, charged to account 431.

to2) For the amount, certain or estimated, of the earned premiums whose receipts have not been issued at the close of the financial year, respectively, to the accounts 432 or 489.

b) They will be loaded:

b1) For the amount of the premiums cancelled, distinguishing those issued in the year of those issued in the previous financial years, with credit to the account 431.

(1) If the insurance entity is a co-insurance policy holder, only its share will be accounted for in these premium accounts.

b2) For the amount of premiums issued for risk modification, with credit to sub-groups 43 or 57, or to account 402 for the non-starter co-insurer, distinguishing those corresponding to the previous financial year or years. The shares in profit and external equity included in account 606 shall not be included in this account.

b3) For the amount of the cancellations of the premiums written and not issued from the previous year, with credit to the accounts 432 or 489.

702/703. Reinsurance premiums accepted.

premiums written in the financial year, whether issued or not, by reinsurance accepted.

Your move is as follows:

a) They will be paid:

to1) For the amount of the accepted premiums and the portfolio entries, from the 401 account.

to2) For the estimated amount of accepted earned premiums whose receipts have not been issued at the end of the financial year, with account of the account 489.

b) They will be loaded:

b1) For the amount of the premiums cancelled and the portfolio withdrawals, with credit to the 401 account.

b2) For the amount of premium premiums, with credit to the 401 account.

b3) For the amount of the cancellations of the premiums written accepted and not issued from the previous year, with credit to account 489.

704/705. Reinsurance premiums ceded and regressed.

premiums written by the transferred reinsurance and regressed.

Your move is as follows:

a) They will be loaded:

to1) For the amount of premiums that are given or backed up, with credit to the account 400.

to2) For the amount of the portfolio entries, with credit to the account 400.

to3) For the amount of the reinsurer's share in the premiums written and not issued, with credit to account 489.

to4) Where applicable, by the amount of the reinsurer's share in the premiums written and not issued, with credit to the account 455.

b) They will be paid:

b1) For the amount of the premiums cancelled or exceeded and of the portfolio withdrawals, under the account 400.

b2) For the amount of the reinsurer's share in the premiums written and unissued from the previous financial year, under account 489.

b3) For the amount of the reinsurer's share in the premiums written and unissued from the previous year, with a charge of account 455.

(c) They shall be paid at the end of the financial year in charge of account 129.

71. Fees and shares of the transferred reinsurance and regressed.

710. Fees and shares of the transferred reinsurance, not life.

7100. Fees on premiums transferred.

7101. Participation in the benefits of the accrual reinsurer.

7106. Change in fees for reinsurer's participation in premiums written and not issued

711. Commissions and shares of the transferred reinsurance, life.

7110. Fees on premiums transferred.

7111. Participation in the benefits of the accrual reinsurer.

7116. Change in fees for the reinsurer's participation in the premiums written and not issued.

712. Commissions, and shareholdings, reinsurance regressed, not life.

713. Commissions and participations, reinsurance regressed, life.

Compensation by the reinsurers of the acquisition and management expenses incurred by the entity, as well as the participation of the entity in the reinsurance benefits.

Your move is as follows:

a) They will be paid:

to1) For the amount of fees relative to the ceded premiums, charged to the account 400.

to2) For the amount of fees relating to premiums written and not issued, charged to account 489.

to3) For the amount of the share of the reinsurer's profits accrued in favor of the entity, with account of the account 400.

to4) For the amount of commissions relating to broken and unissued fractional premiums, charged to account 453.

to5) For the amount of the fees that are included in the balance sheet of the previous period, they must be charged in this financial year with the account of the account 482.

b) They will be loaded:

b1) For the amount of fees for premiums written and not issued from the previous year, with credit to account 489.

b2) By the amount of the fees corresponding to ceded premiums that are cancelled or exceeded, with credit to the account 400.

b3) For the amount of the rotating fees to the broken premiums written and not issued from the previous year, with credit to account 453.

b4) For the amount of commissions to be charged to the following financial year or exercises with credit to account 482.

73. Jobs performed for the entity.

730. Work carried out for intangible fixed assets.

731. Work carried out for the fixed assets.

732. Work carried out on real estate investments.

733. Work carried out for the fixed equipment.

737. Incorporation into the asset of advance commissions and other acquisition expenses.

Counterpart of the expenses incurred by the entity for its immobilized and real estate investments, of the expenses made by commission to other entities for research and development purposes, as well as those that correspond to the asset for advance commissions and other acquisition expenses, when according to the rules of registration and valuation, it is appropriate to be activated by being the object of distribution in several exercises.

730. Work carried out for intangible fixed assets.

Research and development expenses and other expenses for the creation of the goods included in the subgroup 20.

It will be paid for the amount of the expenses that are the object of the inventory, in charge of the account 200, 201 or 206.

731. Work carried out for the fixed assets.

Construction or extension of assets and elements of the fixed assets included in subgroup 21.

It shall be paid for the annual amount of the expenditure, from the accounts of the subgroup 21.

732. Work carried out on real estate investments.

Construction or expansion of real estate investments in subgroup 21.

It shall be paid for the annual amount of the expenditure, from the accounts of the subgroup 21.

733. Work carried out for the fixed assets.

Jobs performed during the exercise and not completed at the end of the exercise for the fixed assets. The real estate investments constructed by the entity will be treated contably as tangible fixed assets until they are finished.

It shall be paid for the annual amount of the expenditure, from the accounts of the subgroup 23.

737. Incorporation into the asset of advance commissions and other acquisition costs.

Advance commissions and other acquisition costs, activated in the financial year in accordance with the rules of registration and valuation.

It shall be paid for the amount of advance fees and other acquisition costs activated in the financial year, from the accounts 273 and 274.

74. Grants, donations and legacies.

740. Grants, donations and legacies to exploitation.

746. Grants, donations and capital legacies transferred to the outcome of the financial year.

747. Other grants, donations and legacies transferred to the result of the exercise.

Amounts to be charged to the result of the exercise by grants, donations and legacies. The entity shall open the necessary three-digit accounts.

740. Grants, donations and legacies to exploitation.

Those received from the Public Administrations, entities or individuals to the object, usually to ensure a minimum return or to compensate for "deficit" of exploitation of the exercise or previous exercises.

It shall be paid for the amount granted, from the accounts of the subgroups 44, 47 or 57.

746. Grants, donations and capital legacies transferred to the outcome of the financial year.

Amount transferred to the result of the exercise of grants, donations and capital legacies.

Your movement is explained in the 840 account.

747. Other grants, donations and legacies transferred to the result of the exercise.

Amount transferred to the result of the exercise of other grants, donations and legacies.

Your movement is explained in account 842.

75. Other management revenue.

750. Revenue from fund management for future insurance contracts.

751. Income from Administration of Pension Funds.

752. Revenue from leases.

755. Income from services to staff.

759. Miscellaneous services revenue.

7590. Commission for the collection of the Insurance Compensation Consortium.

7591. Other income accessories.

Revenue from management not included in other sub-groups.

750. Revenue from fund management for future insurance contracts.

Revenue derived from the administration by the entity of such funds.

It will be paid for the amount of revenue, usually charged to the accounts of subgroup 57 or account 440.

751. Income from Administration of Pension Funds.

Revenue from Administration of Pension Funds.

It will be paid for the amount of revenue, usually charged to the accounts of subgroup 57 or account 440.

752. Revenue from leases.

Accruals for the rental or operating lease of movable or immovable property for use or disposal by third parties.

It will be paid for the amount of the income, from the accounts of the subgroup 44 or 57.

755. Income from services to staff.

Revenue for miscellaneous services, such as economates, canteens, transports, housing, etc., provided by the entity to its staff.

It shall be paid for the amount of the revenue, usually charged to the accounts of subgroup 57 or account 649.

759. Miscellaneous services revenue.

Income derived from the holding that did not have a specific seat in the accounts of this subgroup. For example, the collection commission of the Insurance Compensation Consortium, the revenue from co-insurance management and the proceeds from the collaboration agreements with insurers are cited.

This account will be developed in the four-digit accounts that are required to pick up the above concepts.

It will be paid for the amount of revenue, generally charged, to accounts of subgroups 40, 47, 57 or account 440.

76. Financial income.

760. Income from equity holdings in equity instruments.

7604. Income from equity holdings, group companies.

7605. Income from equity holdings, associated companies.

7606. Income from equity holdings, other related parties.

7607. Income from equity in equity instruments, other companies.

761. Income from debt securities.

7610. Income from debt securities, group companies.

7611. Income from debt securities, associated companies.

7612. Income from debt securities, other related parties.

7613. Income from debt securities, other companies.

762. Revenue from appropriations.

7621. Revenue from loans, group companies.

7622. Revenue from credits, associated companies.

7623. Revenue from credits, other related parties.

7624. Revenue from credits, other companies.

763. Profit by valuation of financial instruments at fair value.

7630. Trading portfolio benefits.

7631. Benefits of company appointees.

76310. Asset benefits on behalf of life insurance policyholders who assume the risk of investment.

7632. Benefits of available for sale.

7633. Benefits of hedging instruments.

766. Profit on shares and debt securities.

7660. Profit on representative debt securities, group companies.

7661. Profit on representative debt securities, associated companies.

7662. Profit on representative debt securities, other related parties.

7663. Profit in units and securities representing debt, other companies.

7664. Profit in units, group companies.

7665. Profit in equity, associated companies.

7666. Profit in equity, other related parties.

7667. Profit in equity, other companies.

767. Income from assets affected and rights to reimbursement relating to long-term remuneration.

768. Positive differences of change.

769. Other financial income.

7690. Interest on deposits consisting of reinsurance accepted.

7696. Income from corrections of accounting asymmetries.

7699. Rest of financial income.

760. Income from equity holdings in equity instruments.

Income in favour of the institution, accrued in the financial year, from holdings in equity instruments.

It shall be paid when the right to receive dividends is born, for the whole of the same, with a charge of 552 and, where applicable, account 473.

761. Income from debt securities.

Interest of fixed income securities in favor of the entity, accrued in the financial year.

It will be paid:

(a) The accrual of interest, both implied and explicit, by the whole of the interest, from the accounts of subgroups 24, 25, 56 or account 552 and, where appropriate, account 473.

(b) For the recognition in the profit and loss account, over its residual life, of the positive balance accumulated in the net worth of a financial asset available for sale that has been reclassified as an investment held to maturity under the terms set out in the rules of registration and valuation, under account 802.

762. Revenue from appropriations.

Amount of interest on loans and other loans, accrued in the financial year.

The accrual of interest, both implicit and explicit, shall be paid for the entire interest of the interest, charged to the accounts of the subgroups 24, 25, 26, 43, 44, 56 or account 552 and, where applicable, account 473.

763. Profit by valuation of financial instruments at fair value.

Benefits arising from the fair value valuation of certain financial instruments, including those that occur on the occasion of their reclassification.

Generally speaking, the content and movement of the four-digit quoted accounts is as follows:

7630. Trading portfolio benefits.

Benefits arising from the fair value valuation of the financial instruments classified in the category 'Financial assets held for trading' or 'Financial liabilities held for trading'.

It shall be paid for the increase in the fair value of the financial assets or the decrease in the value of the financial liabilities classified in this category, from the corresponding account of the asset item.

7631. Benefits of Company Designated Benefits Benefits arising from the fair value valuation of financial instruments classified in the category "Other financial assets at fair value with changes in profit and loss account" or "Other financial liabilities at fair value with changes in profit and loss account".

Your movement is analogous to that of account 7630.

7632. Benefits of available for sale.

Benefits arising from the removal or disposal of financial instruments classified in the category of "Financial assets available for sale".

To be paid at the time of the loss or disposal of the financial instrument, due to the positive balance accumulated in the net worth from account 802.

7633. Benefits of hedging instruments.

Benefits originated in hedging instruments, in cash flow hedging operations when the entity does not expect the intended transaction to take place.

It shall be paid for the transfer to the profit and loss account of the positive amount directly recognised in the net worth, under account 812.

766. Profit on shares and debt securities.

Benefits produced in the disposal of representative debt securities and equity instruments excluding those to be recorded in the account 763.

It will be paid for the benefit produced in the disposal, generally charged to the accounts of subgroup 57.

767. Income from assets affected and rights to reimbursement relating to long-term remuneration.

Amount of the expected return on the assets affected by the commitments to which the institution's obligations for long-term benefits of defined benefit or the repayment rights intended to cancel those obligations will be settled.

It will be paid for the expected positive return, from accounts 140 or 257.

768. Positive differences of change.

Benefits produced by changes in the exchange rate in currency items denominated in currency other than the functional currency.

It will be paid:

to1) In each closing, for the valuation gain of the monetary items alive to that date, which, according to the rules of registration and valuation, must be recorded in the profit and loss account, with the representative accounts of the same denominated in currency other than the functional one.

to2) At the time of the loss, disposal, or cancellation of the asset item associated with a positive conversion difference, under account 821.

to3) By transfer to the profit and loss account of the positive amount directly recognised in the net worth in the hedging transactions on a net investment in a foreign business, with account 813.

to4) When cash items are sold or cancelled in advance, by delivery of currency other than the functional currency, generally held at the accounts of subgroup 57.

769. Other financial income.

Income derived from the holding that did not have a specific seat in the accounts of this subgroup. For example, the collection commission of the Insurance Compensation Consortium, the revenue from co-insurance management, the proceeds from the collaboration agreements with insurers, and the corrective adjustments to accounting asymmetries resulting from the decrease in the value of the financial assets at fair value, are cited as a result of changes in results.

This account will be developed in the four-digit accounts that are required to pick up the above concepts.

It will be paid for the amount of revenue, generally charged, to accounts of subgroups 40, 47, 57 or account 440.

7690. Interest on deposits consisting of reinsurance accepted.

It will be charged, for the amount of interest accrued, with credit to account 266 or group 57 accounts.

7696. Income from corrections of accounting asymmetries.

Amount to be recognised in the profit and loss account in accordance with the 9th registration and valuation rule to correct accounting asymmetries, where registration is not made through account 312 or sub-group 32.

It will be paid:

to1) As a general rule, at the end of the period, and provided that account 188 does not throw any balance that has been recognized through the profit or loss account in the preceding financial years, or has already been adjusted, with account of 268.

to2) For the balance of the account 188 recognized in the preceding periods and up to the limit of its amount, charged to account 188.

77. Profits from fixed assets, real estate investments, exceptional income and other revenue from management.

770. Profits from intangible fixed assets.

771. Profits from tangible fixed assets.

772. Profits from real estate investments.

774. Negative difference in business combinations.

775. Profits from transactions with own obligations.

779. Exceptional income.

770/771/772. Profits from fixed assets.

Benefits produced in the disposal of intangible fixed assets, material or real estate investments.

They shall be paid for the benefit obtained in the disposal of the group 5 accounts, generally from the accounts of the group 5.

774. Negative difference in business combinations.

It is the excess, at the date of acquisition, of the fair value of the identifiable assets acquired less that of the liabilities assumed, on the cost of the business combination.

To be paid, for this amount charged to the corresponding accounts of groups 2, 3, 4 and 5.

775. Profits from transactions with own obligations.

Benefits produced on the basis of repayment of obligations.

It will be paid, for the profits produced when the securities are amortized to the accounts of the subgroup 17.

779. Exceptional income.

Benefits and income of an exceptional nature and a significant amount that are not to be accounted for in other accounts in Group 7 of Group 9.

They will include, among others, those from those credits that in their day were amortized by firm insolvencies.

79. Excess and application of provisions and impairment losses.

790. Reversal of impairment of intangible fixed assets.

791. Reversal of impairment of material immobilized.

792. Reversal of the deterioration of real estate investments.

793. Technical provisions applied to their purpose.

7930. Application of the provisions for unconsumed premiums and for ongoing risks, not life.

7931. Application of life insurance provisions.

7932. Application of life insurance provisions where the investment risk is assumed by the insurance policy holders.

7934. Application of provisions for non-life benefits.

7935. Application of provisions for life benefits.

7936. Application of the provisions for the participation of the insured in the benefits and for extortionate.

7937. Application of other technical provisions.

7938. Share of reinsurance in the application of technical provisions, not life.

7939. Participation of reinsurance in the application of technical provisions, life.

795. Excess provision.

7950. Provision for remuneration and other benefits to staff.

7951. Provision for taxes.

7952. Provision for other responsibilities.

7957. Provision for transactions with payments based on equity instruments.

7958. Excess provision for staff participation in premiums.

796. Reversal of impairment of equity and debt securities.

7960. Reversal of the impairment of equity holdings in equity instruments, companies in the group.

7961. Reversal of the impairment of equity holdings in equity instruments, associated companies.

7965. Reversal of the impairment of debt securities, group companies.

7966. Reversal of impairment of debt securities, associated companies.

7967. Reversal of impairment of debt securities, other related parties.

7968. Reversal of impairment of debt securities, other companies.

797. Reversal of impairment losses on commercial transactions.

7970. Reversal of impairment by other trading operations.

7971. Reversal of the deterioration of premiums outstanding.

798. Reversal of the impairment of debtors ' value (group 5).

799. Reversal of credit deterioration.

7990. Reversal of impairment of loans, group companies.

7991. Reversal of impairment of credits, associated companies.

7992. Reversal of impairment of credits, other related parties.

7993. Reversal of credit deterioration, other companies.

790/791/792. Reversal of impairment of fixed assets ...

Value correction, recovery of value, intangible and material assets and real estate investments, up to the limit of previously recorded losses.

They shall be paid for the amount of the value correction, charged to accounts 290, 291, 292 or account 599.

793. Technical provisions applied to their purpose.

Amount of existing provisions at the end of the period, provided that it has not been recognised through group 88 accounts, except in the case of a stabilisation reserve, where the amount of the application will depend on the circumstances under which the actual application is regulated.

Applications corresponding to life and non-life provisions in the corresponding groups and in six-digit accounts shall be developed in five-figure accounts corresponding to the provisions of the direct insurance and the reinsurance accepted.

Your move is as follows:

to1) In the case of the provisions corresponding to the accepted direct insurance and reinsurance, they shall be paid for the amount of the provisions constituted at the end of the preceding period, from the accounts of the sub-groups 30 to 37.

to2) In the case of the provisions corresponding to the transferred reinsurance and regressed, they shall be charged for the application of the provision accounted for at the end of the period, with credit to the accounts of subgroups 38 and 39.

795. Excess provisions.

7950/7951/7952/7957.

A positive difference between the amount of the existing provision and the amount corresponding to the closing of the financial year or at the time of the corresponding obligation.

The quoted four-figure accounts will be paid for the excess supply from the corresponding sub-group 14 accounts.

796. Reversal of impairment of equity and debt securities.

Value correction, recovery of value in financial investments of sub-groups 24 and 25 or, where applicable, of subgroup 58, up to the limit of losses previously accounted for.

It shall be paid for the amount of the value correction, charged to the accounts 293, 294, 297 or 599.

797. Reversal of impairment by other trading operations.

Amount of impairment corrections recognized at the close of the previous period.

The amount recognised at the end of the preceding period shall be paid at the end of the period to the accounts 490 or 491.

798. Reversal of the impairment of debtors ' value (group 5).

Difference between recognised impairment and recovery of value in group 5 credits, up to the limit of previously reported losses.

It will be paid for the said difference, from the accounts of subgroup 59.

799. Reversal of credit deterioration.

GROUP 8

Expenses charged to net worth

80. Financial expenses for the valuation of financial assets.

800. Losses in financial assets available for sale.

802. Transfer of benefits in financial assets available for sale.

800. Losses in financial assets available for sale.

Your move is as follows:

(a) The negative changes in the fair value of the financial assets classified as available for sale, including those that occur in the case of reclassification, shall be charged with credit to the accounts of the relevant assets.

(b) The account shall be paid at the end of the financial year 133.

802. Transfer of benefits in financial assets available for sale.

Your move is as follows:

a) It will be loaded:

to1) At the time the low or disposal of the available financial asset for the sale, including those that have been reclassified, occurs, due to the positive balance accumulated in the net worth with credit to the account 7632.

to2) In case of reclassification to an investment held until maturity, for the positive balance accumulated in the net worth that is recognized in the profit and loss account, over its residual life, as an increase in the financial income in the terms established in the standard of registration and valuation, with credit to account 761.

(b) The account shall be paid at the end of the financial year 133.

81. Expenditure on hedging operations.

810. Losses from cash flow hedges.

811. Losses from net investments in a foreign business.

812. Transfer of benefits by hedge of cash flows.

813. Transfer of benefits by net investment coverage in a foreign business.

810. Losses from cash flow hedges.

Your move is as follows:

(a) It shall be charged, for the amount derived from considering the lower value of the following amounts: the cumulative negative result of the hedging instrument from the start of the hedge or the accumulated change in the fair value of the expected future cash flows of the item covered from the start of the coverage; with credit, generally, to the accounts 176 or 255.

(b) The account shall be paid at the end of the financial year 1340.

811. Losses from net investments in a foreign business.

Your move is as follows:

(a) The amount of the coverage to be determined shall be charged, with the payment, in general, to the accounts 176 or 255.

(b) The account shall be paid at the end of the financial year 1341.

812. Transfer of benefits by hedge of cash flows.

Your move is as follows:

a) It will be loaded:

to1) When the coverage of a planned transaction or the hedging of the exchange rate risk for a firm commitment, results in the subsequent recognition of a financial asset or financial liability, for the positive amount directly recognised in the equity, as such asset or liability affects the outcome of the financial year, with credit to an account to be charged to the profit and loss account in the same item in which the loss is included in the cover item.

to2) When the coverage of an expected transaction or the hedging of the exchange rate risk of a firm commitment, it would result in the recognition of a non-financial asset or liability, for the positive amount directly recognised in the equity, with credit to the account of the relevant equity element.

to3) When in the coverage of an expected transaction or the hedging of the exchange rate risk of a firm commitment, the absence of a covered non-financial asset or liability, for the positive amount directly recognised in the equity, is credited to an account that is charged to the profit and loss account in the same item as the loss that is generated in the cover item.

to4) When in the coverage of an asset or a recognized liability, the cover item affects the result, with credit to an account that is charged to the profit and loss account in the same item in which the loss is included in the cover item.

to5) For the amount of the gain directly recognized in equity, if the entity does not expect the intended transaction to take place, with credit to account 7633.

(b) The account shall be paid at the end of the financial year 1340.

813. Transfer of benefits by net investment coverage in a foreign business.

Your move is as follows:

(a) The amount of the benefit of the hedging instrument directly imputed to the net worth shall be charged at the time of the sale or provision of the net investment in a foreign business with credit to the account 768.

(b) The account shall be paid at the end of the financial year 1341.

82. Expenses for differences in exchange or conversion.

820. Negative change or conversion differences.

821. Transfer of change or positive conversion differences.

820. Negative change or conversion differences.

Your move is as follows:

(a) It shall be charged for the net debtor effect arising from the difference in the value of assets and liabilities valued in currency other than the functional currency (difference of exchange) or in functional currency other than that of filing (conversion difference), as a result of conversion to the functional or filing currency, with charge and/or credit to the respective accounts representing those assets and liabilities.

(b) The account shall be paid at the end of the financial year 135.

821. Transfer of change or positive conversion differences.

Your move is as follows:

(a) At the time of the discharge or cancellation of the associated assets, the account shall be debited from the account 768.

(b) The account shall be paid at the end of the financial year 135.

83. Tax on profits.

830. Tax on profits.

8300. Current tax.

8301. Deferred tax.

833. Negative adjustments to the tax on profit.

834. Tax receipts for permanent differences.

835. Tax receipts for deductions and bonuses.

836. Transfer of permanent differences.

837. Transfer of deductions and bonuses.

838. Positive adjustments in taxation on profits.

830. Tax on profits.

8300. Current tax.

Your move is as follows:

a) It will be loaded:

to1) For the fee to enter associated with the income attributed to the net worth, with credit to the account 4752.

to2) For the supported holds and income on account of the tax incurred, associated with the income attributed to the net worth, up to the amount of the period's liquid quota, with credit to account 473.

(b) It shall be paid for the share of previous financial years recovered by the institution as a result of tax or tax settlements on the benefit, payable, to account 4709.

(c) At the end of the financial year, the following shall be charged or paid with credit or charge to the relevant sub-group 13 accounts.

8301. Deferred tax.

Your move is as follows:

a) It will be loaded:

to1) For deferred tax associated with revenue directly recognized in net worth, with credit to account 479.

to2) At the time the transfer results from the negative amount accumulated in the net worth, with credit to account 4740.

to3) For the amount of the tax effect resulting from the transfer to results of expenses directly charged to the net worth that would have caused the corresponding current tax in previous years, with credit to account 6301.

b) It will be paid:

b1) By the deferred tax associated with the expenses recognized directly in the net worth, charged to the account 4740.

b2) At the time the transfer to results of the cumulative positive amount in net worth occurs, with account 479.

b3) By the amount of the tax effect arising from the transfer to income results directly imputed to the net worth that would have caused the corresponding prior financial year, with the account of the account 6301.

(c) At the end of the financial year, the following shall be charged or paid with credit or charge to the relevant sub-group 13 accounts.

833. Negative adjustments in taxation on profits.

Decrease, known in the financial year, of deferred tax assets or increase, also known in the financial year, of deferred tax liabilities, in respect of previously generated deferred tax assets and liabilities, as long as such balances have originated as a result of a transaction or event that would have been directly recognized in a net worth item.

With a general character, your move is as follows:

It will be loaded:

to1) For the least amount of the asset for deductible temporary differences, with credit to account 4740.

to2) For the largest amount of the liability for taxable temporary differences, with credit to account 479.

(b) At the end of the financial year, the corresponding sub-group 13 accounts shall be paid.

834. Tax receipts for permanent differences.

Your move is as follows:

(a) The amount of the tax effect of the permanent differences to be charged for several financial years shall generally be paid out of account 6301.

(b) At the end of the financial year, account 137 shall be debited.

835. Tax receipts for deductions and bonuses.

Your movement will be analogous to that provided for account 834.

836. Transfer of permanent differences.

With a general character, your move is as follows:

(a) It shall be charged, generally, with credit to account 6301, for the part corresponding to impute in the financial year, in a manner correlated with the depreciation of the asset that motivates the permanent difference.

(b) At the end of the financial year, account 137 shall be paid.

837. Transfer of deductions and bonuses.

Your move will be analogous to the planned 836 account.

838. Positive adjustments in taxation on profits.

Increase, known in the financial year, of assets by deferred tax or decrease, equally known in the financial year, of deferred tax liabilities, in respect of previously generated deferred tax assets and liabilities, provided that such balances have originated as a result of a transaction or event that would have been directly recognized in a net worth item.

With a general character, your move is as follows:

a) It will be paid:

to1) For the largest amount of the asset for deductible temporary differences, at count 4740.

to2) By the lower amount of the liability for taxable temporary differences, charged to account 479.

(b) At the close of the financial year close, the corresponding sub-group 13 accounts shall be paid.

84. Transfers of grants, donations and legacies.

840. Transfer of official capital grants.

841. Transfer of donations and capital legacies.

842. Transfer of other grants, donations and legacies.

840/841. Transfer of ...

Your move is as follows:

(a) At the time of the allocation to the profit and loss account of the grant received, the account shall be credited to the account 746.

(b) The account shall be paid at the end of the financial year by account 130 or 131, as appropriate.

842. Transfer of other grants, donations and legacies.

Your move is as follows:

(a) It will be charged, at the time of the imputation to the profit and loss account of the grant received, with credit to the 747 account.

(b) The account shall be paid at the end of the financial year 132.

85. Expenditure for actuarial losses and adjustments in assets for long-term benefits of defined benefit.

850. Actuarial losses.

851. Negative adjustments in assets for long-term benefits of defined benefit.

850. Actuarial losses.

Your move is as follows:

(a) Be charged, at the end of the financial year for the actuarial loss produced by the increase in the current value of the post-employment benefits committed in defined benefit systems or by the decrease in the fair value of the assets related to them, with credit to the accounts 140 or 257.

(b) The account shall be paid at the end of the financial year 115.

851. Negative adjustments in assets for long-term benefits of defined benefit.

Your move is as follows:

(a) It shall be charged at the end of the financial year for the negative adjustment to be made for the limitation laid down in the rules of registration and valuation in the assets for long-term post-employment remuneration to the defined benefit staff, with credit to account 140 or 257.

(b) The account shall be paid at the end of the financial year 115.

86. Expenses for assets held for sale.

860. Losses on assets and groups of items held for sale.

862. Transfer of profits in assets and groups of assets held for sale.

860. Losses on assets and groups of items held for sale.

With a general character, your move is as follows:

(a) It shall be charged for negative changes in the fair value of assets held for sale, and of directly associated assets and liabilities classified in a qualifying group of items held for sale, to be valued at fair value with changes in net worth in accordance with the rules of registration and valuation, with credit to sub-group 58 accounts.

(b) The account shall be paid at the end of the financial year 136.

862. Transfer of profits in assets and groups of assets held for sale.

With a general character, your move is as follows:

(a) It shall be charged at the time of the loss or disposal of the asset held for sale, or of the asset or liability directly associated with a qualifying group of items held for sale, to be valued at fair value through changes in net worth in accordance with the provisions of the registration and valuation rules, with credit, generally on account 7632.

(b) The account shall be paid at the end of the financial year 136.

88. Expenditure on the correction of accounting asymmetries.

881. Correction of accounting asymmetries for increases in the value of assets recognized in the net worth of immunization operations by cash flows.

882. Correction of accounting asymmetries for increases in the value of assets recognised in the net worth of immunisation operations for financial durations.

883. Correction of accounting asymmetries for increases in the value of the assets recognised in the net worth of life insurance operations whose redemption value is referenced to the value of the assets.

884 Correction of accounting asymmetries for increases in the value of assets recognized in the net worth of insurance operations that recognize participation in profits.

885. Correction of accounting asymmetries for increases in the value of assets recognised in the net worth of life insurance operations in which the taker assumes the risk of the investment or assimilated.

Amount of corrections to accounting asymmetries which, in accordance with the registration and valuation standard 9, should be recognised, where the assets assigned to the corresponding commitments are recorded at fair value with changes in net worth.

(a) The adjustment of positive changes in the fair value of financial assets at fair value through changes in equity, with credit to accounts 188, 312 or sub-group 32, and, where applicable, up to the amount of the balance for which the accounts are based on the accounting asymmetries of the previous financial years, with credit to account 268 shall be charged at the close of the financial year.

(b) The account shall be paid at the end of the financial year 138.

89. Expenses of holdings in group companies or associated with prior positive valuation adjustments.

891. Impairment of equity holdings, group companies.

892. Impairment of equity holdings, associated companies.

The accounts of this subgroup shall include impairment losses on group, multi-group or associated entities, which are to be directly placed in net worth, when investments have been made prior to the consideration of the holdings as of group, multigroup or associated entities, and the same would have resulted in value adjustments for value increases directly attributed to the equity. All this, in accordance with the relevant rules of registration and valuation, is in line with this.

891/892.

Your move is as follows:

(a) They shall be charged at the time of the impairment of the value of the financial asset, up to the limit of the prior positive value adjustments, with credit to the account 240.

(b) The account shall be paid at the end of the financial year 133.

GROUP 9

Income imputed to net worth

90. Financial income by valuation of financial assets.

900. Benefits in financial assets available for sale.

902. Transfer of financial asset losses available for sale.

900. Benefits in financial assets available for sale.

Your move is as follows:

(a) It shall be paid for positive changes in the fair value of the financial assets classified as available for sale, including those that occur in the case of reclassification, from the accounts of the relevant financial assets.

(b) To be charged, at the end of the financial year, with credit to account 133.

902. Transfer of financial asset losses available for sale.

Your move is as follows:

a) It will be paid:

to1) At the time of the loss or disposal of the financial asset available for sale, including those that have been reclassified, by the negative balance accumulated in the net worth under account 6632.

to2) At the time of the deterioration of the financial instrument, due to the negative balance accumulated in the net worth from the accounts of the corresponding debt instruments or account 696 in the case of investments in equity instruments.

to3) In case of reclassification to an investment held until maturity, due to the negative balance accumulated in the net worth that is recognized in the profit and loss account over its residual life, with a minorization of the financial income in the terms established in the standard of registration and valuation, with account 761.

(b) To be charged, at the end of the financial year, with credit to account 133.

91. Revenue in hedging operations.

910. Benefits from cash flow hedges.

911. Benefits from hedges of a net investment in a foreign business.

912. Transfer of losses by hedge of cash flows.

913. Transfer of losses by hedges of a net investment in a foreign business.

910. Benefits from cash flow hedges.

Your move is as follows:

(a) It shall be paid for the amount derived from considering the lower value of the following amounts: the cumulative positive result of the hedging instrument from the start of the hedge or the accumulated change in the fair value of the expected future cash flows of the covered item from the start of the coverage; generally, with charge to the accounts 176 or 255.

(b) It shall be charged at the end of the financial year, with payment of account 1340.

911. Benefits from hedges of a net investment in a foreign business.

Your move is as follows:

(a) It shall be paid for the positive result in the amount of the coverage that is determined to be effective, usually charged to the accounts 176 or 255.

(b) To be charged, at the end of the financial year, with credit to account 1341.

912. Transfer of losses by hedge of cash flows.

Your move is as follows:

a) It will be paid:

to1) When the coverage of an expected transaction or the hedging of the exchange rate risk for a firm commitment, results in the subsequent recognition of an asset or financial liability, for the negative amount directly recognised in the equity, as such asset or liability affects the outcome of the financial year, from an account to be charged to the profit and loss account in the same item in which the profit is included in the cover item.

to2) When the coverage of an expected transaction or the hedging of the exchange rate risk for a firm commitment, it would result in the recognition of a non-financial asset or liability, for the negative amount directly recognised in the equity, from the account of the relevant equity element.

to3) When in the coverage of an expected transaction or the hedge of the exchange rate risk of a firm commitment, the downside of an asset or a covered non-financial liability occurs, for the negative amount directly recognised in the equity, from an account to be charged to the profit and loss account in the same item in which the profit is included in the cover item.

to4) When in the coverage of an asset or a recognized liability, the cover item affects the result, which is charged to an account that is charged to the profit and loss account in the same item in which the profit is included in the cover item.

to5) For the amount of the loss directly recognized in the net worth that the entity does not expect to recover, from account 6633.

b) To be charged, at the end of the financial year, with credit to the account 1340.

913. Transfer of losses by hedges of a net investment in a foreign business.

Your move is as follows:

(a) The amount of the loss of the hedging instrument directly imputed to the net worth, with account 668, shall be paid at the time of the sale or provision of the net investment in a foreign business.

(b) To be charged, at the end of the financial year, with credit to account 1341.

92. Income from differences in exchange or conversion.

920. Positive change or conversion differences.

921. Transfer of change or negative conversion differences.

920. Positive change or conversion differences.

Your move is as follows:

(a) It shall be paid for the net debtor effect arising from the difference in the value of assets and liabilities valued in currency other than the functional currency (difference of exchange) or in functional currency other than that of filing (conversion difference), as a result of conversion to the functional or filing currency, with charge and/or credit to the respective accounts representing those assets and liabilities.

b) To be charged, at the end of the financial year, with credit to the account 135.

921. Transfer of change or negative conversion differences.

Your move is as follows:

(a) It shall be paid, at the time of the discharge, to the disposal or cancellation of the associated assets, with the account of 668.

b) To be charged, at the end of the financial year, with credit to the account 135.

94. Income from grants, donations and legacies.

940. Revenue from official capital grants.

941. Proceeds from donations and capital legacies.

942. Income from other grants, donations and legacies.

940/941/942. Income of ....

Your move is as follows:

a) They will be paid:

to1) By the grant, grant, or legacy granted to the entity in charge, generally, to the accounts of the subgroup 47 or 57.

to2) For debts that are transformed into grants or legacy grants, with account of 172.

(b) They shall be charged at the end of the financial year with credit to accounts 130, 131 or 132, as appropriate.

95. Income from actuarial gains and adjustments in assets for long-term benefits of defined benefit.

950. Actuarial gains.

951. Positive adjustments in assets for long-term benefits of defined benefit.

950. Actuarial gains.

Your move is as follows:

(a) To be paid, at the end of the financial year for the actuarial gain produced by the decrease in the current value of the post-employment benefits committed in defined benefit systems or by the increase in the fair value of the assets related to them, from accounts 140 or 257.

(b) The balance of the financial year shall be charged at the end of the financial year 115.

951. Positive adjustments in assets for long-term benefits of defined benefit.

Your move is as follows:

(a) To be paid, at the end of the financial year for the positive adjustment to be made in accordance with the provisions of the rules of registration and valuation in the assets for post-employment long-term remuneration to the defined benefit staff, from accounts 140 or 257.

(b) The balance of the financial year shall be charged at the end of the financial year 115.

96. Income from assets held for sale.

960. Profit on assets and groups of items held for sale.

962. Transfer of losses on assets and groups of items held for sale.

960. Profit on assets and groups of items held for sale.

With a general character, your move is as follows:

(a) It shall be paid for positive changes in the fair value of assets held for sale, and of directly associated assets and liabilities classified in a qualifying group of items held for sale, to be valued at fair value with changes in equity in accordance with the provisions of the registration and valuation rules, from accounts of subgroup 58.

b) To be charged, at the end of the financial year, with credit to account 136.

962. Transfer of losses on assets and groups of items held for sale.

With a general character, your move is as follows:

a) It will be paid:

to1) At the time when the asset held for sale, or the asset or liability directly associated with a qualifying group of items held for sale, occurs, or the asset or disposal of the asset held for sale, which is to be valued at fair value through changes in equity in accordance with the rules of registration and valuation, generally taken into account 6632.

to2) At the time of the deterioration of the asset held for sale, or of the directly associated asset classified in a qualifying group of items held for sale, to be valued at fair value with changes in equity in accordance with the rules of registration and valuation, the negative balance accumulated in equity, with the accounts of the corresponding debt instruments or account 696 in the case of investments in equity instruments.

b) To be charged, at the end of the financial year, with credit to account 136.

98. Revenue from the correction of accounting asymmetries.

980. Correction of accounting asymmetries for decreases in the value of assets recognised in equity.

981. Correction of accounting asymmetries for decreases in the value of assets recognized in the net worth of immunization operations by cash flows.

982. Correction of accounting asymmetries for decreases in the value of assets recognized in the net worth of immunization operations for financial durations.

983. Correction of accounting asymmetries for decreases in the value of the assets recognised in the net worth of life insurance operations whose redemption value is referenced to the value of the assets.

984. Correction of accounting asymmetries for decreases in the value of assets recognized in the net worth of insurance operations that recognize participation in profits.

985. Correction of accounting asymmetries for decreases in the value of assets recognised in the net worth of life insurance operations in which the taker assumes the risk of the investment or assimilated.

Amount of corrections to accounting asymmetries which, in accordance with the registration and valuation standard 9, should be recognised, where the assets assigned to the corresponding commitments are recorded at fair value with changes in net worth.

(a) To be paid at the end of the financial year, for the adjustment of negative changes in the fair value of financial assets at fair value through changes in equity, from accounts 268, 312 or sub-group 32 and, where appropriate, to the amount of the balance for which the accounts are based on the accounting asymmetries of the previous financial years, under account 188.

(b) shall be charged at the end of the financial year with credit to account 138.

99. Income from holdings in the assets of the group or associated with previous negative valuation adjustments.

991. Recovery of previous negative value adjustments, group companies.

992. Recovery of previous negative value adjustments, associated companies.

993. Impairment transfer of prior negative value adjustments, group companies.

994. Impairment transfer of prior negative value adjustments, associated companies

The accounts of this subgroup will collect the recovery of the valuation adjustments for value reductions directly attributed to the equity, when investments have been made prior to the consideration of equity holdings as group, multi-group and associated entities. Transfers to the profit and loss account of the aforementioned valuation adjustments in the event of deterioration shall also be collected. All this, in accordance with the relevant rules of registration and valuation, is in line with this.

991/992. Recovery of previous negative value adjustments, companies of the group/associated companies.

Your move is as follows:

(a) They shall be paid at the time the recoverable amount is higher than the accounting value of the investments, up to the limit of the previous negative value adjustments, from the accounts 240 or 530.

(b) They shall be charged at the end of the financial year with credit to account 133.

993/994. Impairment transfer of prior negative value adjustments, group companies/associated companies Their move is as follows:

(a) They shall be paid at the time of the deterioration of the financial asset, due to the prior negative valuation adjustments, with a charge to the accounts 696 or 698.

(b) They shall be charged at the end of the financial year with credit to account 133.