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Note 18 | 12 Months Ended
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Dec. 31, 2023
Intangible assets and goodwill [abstract] |
Disclosure of intangible assets [text block] | Intangible assets Goodwill The breakdown of the balance under this heading in the consolidated balance sheets, according to the CGU to which goodwill has been allocated, is as follows:
Goodwill. Breakdown by CGU and changes of the year (Millions of Euros)
| Mexico | Turkey (1) | Colombia | Chile | Other | Total
Balance as of December 31, 2020 | 478 | 254 | 143 | 27 | 8 | 910
Additions | — | — | — | — | — | —
Exchange difference | 26 | (102) | (9) | (3) | — | (88)
Impairment | — | — | — | — | (4) | (4)
Companies held for sale | — | — | — | — | — | —
Balance as of December 31, 2021 | 504 | 152 | 134 | 24 | 4 | 818
Additions | — | — | — | — | — | —
Exchange difference | 55 | — | (16) | 1 | 1 | 41
Impairment | — | — | — | — | — | —
Companies held for sale | — | — | — | — | — | —
Other | — | (152) | — | — | — | (152)
Balance as of December 31, 2022 | 559 | — | 118 | 25 | 5 | 707
Additions | — | — | — | — | — | —
Exchange difference | 64 | — | 25 | (1) | — | 88
Impairment | — | — | — | — | — | —
Companies held for sale | — | — | — | — | — | —
Balance as of December 31, 2023 | 623 | — | 143 | 24 | 5 | 795
(1) As a result of the application of IAS 29 "Financial Reporting in Hyperinflationary Economies" as indicated in Note 2.2.18, the book value of the Turkish CGU exceeded the existing recoverable value as of December 31, 2021, and as a consequence the goodwill as well as other intangible assets (see Note 18.2) assigned to the Turkish CGU were derecognized. Goodwill in business combinations There were no significant business combinations during 2023, 2022 and 2021. Impairment Test As mentioned in Note 2.2.7, the CGU to which goodwill has been allocated, are periodically tested for impairment by including the allocated goodwill in their carrying amount. This analysis is performed at least annually and whenever there is any indication of impairment. Furthermore, it is analyzed whether certain changes in the valuation assumptions used could give rise to differences in the result of the impairment test. The BBVA Group performs estimations on the recoverable amount of certain CGU by calculating the value in use through the discounted value of future cash flows method. The main hypotheses used for the value in use calculation are the following: –The forecast cash flows, including net interest margin and cost of risk, estimated by the Group's management, and based on the latest available budgets for the next 4 to 5 years, considering the macroeconomic variables of each CGU, regarding the existing balance structure as well as macroeconomic variables such as the evolution of interest rates and the CPI of the geography where the CGU is located, among others. –The constant growth rate for extrapolating cash flows, starting in the fourth or fifth year, beyond the period covered by the budgets or forecasts. –The discount rate on future cash flows, which coincides with the cost of capital assigned to each CGU, and which consists of a risk-free rate plus a premium that reflects the inherent risk of each of the businesses evaluated. The focus used by the Group's management to determine the values of the assumptions is based both on its projections and past experience. These values are verified and use external sources of information, wherever possible. Goodwill - Mexico CGU The Group’s most significant goodwill corresponds to the CGU in Mexico, the main significant assumptions used in the impairment test of this CGU as of December 31, 2023, 2022 and 2021 are as follows:
Impairment test assumptions CGU goodwill in Mexico
| 2023 | 2022 | 2021
Discount rate (1) | 12.4 | % | 12.7 | % | 14.5 | %
Growth rate | 5.6 | % | 6.3 | % | 5.7 | %
(1) After tax discount rates. In accordance with paragraph 33.c of IAS 36, as of December 31, 2023, the Group used a growth rate of 5.6% based on the real GDP growth rate of Mexico, the expected inflation rate and the potential growth of the banking sector in Mexico. The assumptions with a greater relative weight and whose volatility could have a greater impact in determining the present value of the cash flows starting on the fourth year are the discount rate and the growth rate. The table below shows, in a simplified way, the relative variation by which the CGU recoverable amount would increase (or decrease) as a result of a reasonable variation (in basis points) of each of the key assumptions, considered in isolation as of December 31, 2023, where, in each case, their value in use would continue to exceed their book value:
Sensitivity analysis for main assumptions - Mexico
| Increase of 50 basis points (1) | Decrease of 50 basis points (1)
Discount rate | (6 | %) | 7 | %
Growth rate | 5 | % | (4 | %)
(1) The use of very different discount or growth rates would be inconsistent with the macroeconomic assumptions under which the Unit builds its business plan, such as inflation assumptions or interest rate curves used to determine cash flows. Goodwill - Turkey CGU As a result of the application of IAS 29 "Financial Reporting in Hyperinflationary Economies" in 2022, as indicated in Note 2.2.18, the book value of the Turkish CGU exceeded the existing recoverable value as of December 31, 2021 and as a consequence the goodwill as well as other intangible assets (see Note 18.2) assigned to the Turkish CGU were derecognized in their entirety. Goodwill - Other CGUs The impairment tests carried out on the rest of the CGUs have not detected significant impairment. Likewise, the sensitivity analysis on the main assumptions carried out for the rest of the CGU of the Group indicate that their value in use would continue to exceed their book value. Other intangible assets The breakdown of the balance and changes of this heading in the consolidated balance sheets, according to the nature of the related items, is as follows:
Other intangible assets (Millions of Euros)
| 2023 | 2022 | 2021
Computer software acquisition expense | 1,535 | 1,393 | 1,239
Other intangible assets with an infinite useful life | 8 | 13 | 12
Other intangible assets with a definite useful life | 25 | 43 | 128
Total | 1,568 | 1,449 | 1,379
The changes of this heading during the years ended December 31, 2023, 2022 and 2021, are as follows:
Other intangible assets (Millions of Euros)
| Notes | Computer software |  | Other intangible assets |  | Total of intangible assets
|  | 2023 | 2022 | 2021 |  | 2023 | 2022 | 2021 |  | 2023 | 2022 | 2021
Balance at the beginning |  | 1,396 | 1,239 | 1,202 |  | 56 | 140 | 233 |  | 1,453 | 1,379 | 1,435
Additions |  | 688 | 592 | 470 |  | 1 | — | — |  | 689 | 592 | 470
Amortization in the year | 45 | (518) | (490) | (446) |  | (19) | (20) | (48) |  | (536) | (510) | (494)
Amortization transfer to discontinued operations |  | — | — | — |  | — | — | — |  | — | — | —
Exchange differences and other |  | (6) | 80 | 29 |  | (5) | (63) | (45) |  | (11) | 17 | (16)
Impairment |  | (26) | (25) | (15) |  | — | — | — |  | (26) | (25) | (15)
Balance at the end |  | 1,535 | 1,396 | 1,239 |  | 33 | 56 | 140 |  | 1,568 | 1,453 | 1,379
As of December 31, 2023, 2022 and 2021, the cost of fully amortized intangible assets that remained in use were €4,214 million, €3,490 million and €2,992 million respectively, while their recoverable value was not significant.

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