BP 2006 Annual Report Download - page 110

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108
1 Significant accounting policies continued
IFRS 8 ‘Operating Segments’ was issued in October 2006 and defines operating segments as components of an entity about which separate financial
information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing
performance. The new standard sets out the required disclosures for operating segments and is effective for annual periods beginning on or after
1 January 2009. BP has not yet completed its evaluation of the impact on its disclosures of adopting IFRS 8. There will be no effect on the group’s
reported income or net assets. IFRS 8 has not yet been adopted by the EU.
Three further IFRIC interpretations, issued in late 2006, are not yet effective and have not yet been adopted by the EU.
IFRIC 10 ‘Interim Financial Reporting and Impairment’ prohibits the reversal of an impairment loss relating to goodwill or certain financial assets made
in an earlier interim period in the same annual period.
IFRIC 11 ‘IFRS 2 – Group and Treasury Share Transactions’ deals with share-based payment arrangements within a group and share-based payment
arrangements satisfied by using treasury shares.
The directors do not anticipate that the adoption of these interpretations will have a material effect on the reported income or net assets of the group.
IFRIC 12 ‘Service Concession Arrangements’ gives guidance on the accounting by operators for public-to-private service concession arrangements.
BP has not yet completed its evaluation of the impact of adopting this interpretation.