Accounting implications definition
Accounting implications. In accordance with the applicable accounting rules and as a consequence of the implementation of the Amended and Restated SHA, the BBVA Group shall value its current stake in Garanti Bank (which is classified at present as a joint venture accounted for using the equity method) at fair value and shall fully consolidate Garanti Bank in the consolidated financial statements of the BBVA Group as from the date of the actual acquisition of control foreseen during 2015, subject to obtaining the abovementioned regulatory consents. The estimated one-off impact in the attributable profit of the consolidated financial statements of the Group will be approximately 1,500 MM Euros3, basically being affected by the exchange differences due to the depreciation of the TL against euro since initial acquisition. These exchange differences are already registered as Other Comprehensive Income deducting the stock shareholder’s equity of the BBVA Group. Such accounting impact does not translate into any additional cash outflow from BBVA. The Acquisition will have an estimated impact on Common Equity Tier 1 (fully loaded) of approximately 1,900 MM Euros, that is, approximately 48 basis points.