BP 2005 Annual Report Download - page 141

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The following is a summary of adjustments to profit for the year and to BP shareholders’ equity that would be required if generally accepted
accounting principles in the United States (US GAAP) had been applied instead of International Financial Reporting Standards.
PROFIT FOR THE YEAR UNDER US GAAP $ million
2005 2004 2003
Profit for the year as reported 22,341 17,075 12,448
Adjustments
Deferred taxation/business combinations (496) (517) (588)
Provisions 9 (80) 49
Oil and natural gas reserve differences 11 30 –
Goodwill and intangible assets – (61) –
Derivative financial instruments 87 (337) (27)
Inventory valuation (232) 162 39
Gain arising on asset exchange (12) (107) (19)
Pensions and other post-retirement benefits (486) (47) (215)
Impairments (378) 677 –
Equity-accounted investments (255) 147 (47)
Major maintenance expenditure – 217 120
Share-based payments 62439
Other 156 (93) 90
Profit for the year before cumulative effect of accounting changes as adjusted to accord with US GAAP 20,751 17,090 11,889
Cumulative effect of accounting changes
Major maintenance expenditure (794) – –
Provisions – – 1,002
Derivative financial instruments – – 50
Profit for the year as adjusted to accord with US GAAP 19,957 17,090 12,941
Dividend requirements on preference shares 2 2 2
Profit for the year applicable to ordinary shares as adjusted to accord with US GAAP 19,955 17,088 12,939
Per ordinary share – cents
Basic – before cumulative effect of accounting changes 98.22 78.31 53.62
Cumulative effect of accounting changes (3.76) – 4.74
94.46 78.31 58.36
Diluted – before cumulative effect of accounting changes 97.09 76.88 53.10
Cumulative effect of accounting changes (3.71) – 4.69
93.38 76.88 57.79
Per American depositary share – centsa
Basic – before cumulative effect of accounting changes 589.32 469.86 321.72
Cumulative effect of accounting changes (22.56) – 28.44
566.76 469.86 350.16
Diluted – before cumulative effect of accounting changes 582.54 461.28 318.60
Cumulative effect of accounting changes (22.26) – 28.14
560.28 461.28 346.74
BP SHAREHOLDERS’ EQUITY UNDER US GAAP $ million
2005 2004 2003
BP shareholders’ equity as reported 79,976 76,892 69,139
Adjustments
Deferred taxation/business combinations 2,025 2,563 3,009
Provisions (112) (77) (128)
Oil and natural gas reserve differences 41 30 –
Goodwill and intangible assets 171 224 248
Derivative financial instruments 225 (315) 26
Inventory valuation (167) 65 (98)
Gain arising on asset exchange 239 251 269
Pensions and other post-retirement benefits 3,146 4,089 5,246
Impairments 327 677 –
Equity-accounted investments (43) 212 65
Investments – 227 1,251
Major maintenance expenditure – 794 545
Share-based payments (334) (353) (235)
Other (32) (187) (170)
BP shareholders’ equity as adjusted to accord with US GAAP 85,462 85,092 79,167
aOne American depositary share (ADS) is equivalent to six 25 cent ordinary shares.
BP Annual Report and Accounts 2005 139
United States accounting principles