BP 2006 Annual Report Download - page 182

180
53 US GAAP reconciliation continued
BP shareholders’ equity $ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
At 31 December 2006 2005
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
BP shareholders’ equity as reported in the Annual Report and Accounts to accord with IFRS 84,624 79,976
Texas City provision timing differencea–(315)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
BP shareholders’ equity as reported in the Annual Report on Form 20-F to accord with IFRS 84,624 79,661
Adjustments
Deferred taxation/business combinations (a) 1,801 2,025
Provisions (b) 63 (112)
Oil and natural gas reserves differences (c) (202) 41
Goodwill and intangible assets (d) 248 171
Derivative financial instruments (e) 202 225
Inventory valuation (f) (5) (167)
Gain arising on asset exchange (g) 229 239
Pensions and other post-retirement benefits (h) –3,146
Impairments (i) 2327
Equity-accounted investments (j) (160) (43)
Consolidation of variable interest entities (l) (5) –
Share-based payments (n) (254) (334)
Other (26) (32)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
BP shareholders’ equity as adjusted to accord with US GAAP 86,517 85,147
Comprehensive income
The components of comprehensive income, net of related tax, are as follows:
$ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
For the year ended 31 December 2006 2005 2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Profit for the year as adjusted to accord with US GAAP 21,116 19,642 17,090
Currency translation differences net of tax benefit (expense) of $(203) million (2005 $328 million and
2004 $(208) million) 1,824 (2,865) 2,143
Investments
Unrealized gains net of tax benefit (expense) of $(83) million (2005 $(110) million and 2004 $(71) million) 480 291 141
Unrealized losses net of tax benefit (expense) of $nil (2005 $16 million and 2004 $nil) (2) (42) –
Less: reclassification adjustment for gains included in net income net of tax benefit (expense) of $191 million
(2005 $22 million and 2004 $627 million) (504) (59) (1,165)
Currency translation differences net of tax benefit (expense) of $nil (2005 $nil and 2004 $nil) 27 (32) –
Unrealized gains (losses) on cash flow hedges net of tax benefit (expense) of $(3) million (2005 $63 million and
2004 $nil) 102 (131) –
Minimum pension liability adjustment net of tax benefit (expense) of $44 million (2005 $(94) million and
2004 $130 million) 82 249 (838)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Comprehensive income 23,125 17,053 17,371
Accumulated other comprehensive income $ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
At 31 December 2006 2005
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Currency translation differences 3,320 1,496
Net unrealized gains on investments 386 385
Unrealized losses on cash flow hedges (29) (131)
Minimum pension liability adjustment –(866)
Funded status of defined benefit pension and other post-retirement benefit planscd (1,383) –
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Accumulated other comprehensive income 2,294 884
cThe amount reported for the funded status of defined benefit pension and other post-retirement benefit plans at 31 December 2006 includes $(599) million resulting from the
adoption of FASB Statement of Financial Accounting Standards (SFAS) No. 158 ‘Employers’ Accounting for Defined Benefit Pension and Other Post-retirement Plans, an
amendment of FASB Statements No. 87, 88, 106, and 132(R)’. Further information on the effects of adoption of SFAS 158 is provided in note (h) Pensions and other
post-retirement benefits.
dIncludes $(13) million relating to equity-accounted entities.
Consolidated statement of cash flows
The group’s financial statements include a consolidated cash flow statement in accordance with IAS 7 ‘Cash Flow Statements’. The statement prepared
under IAS 7 presents substantially the same information as that required under FASB SFAS No. 95 ‘Statement of Cash Flows’; however, as permitted
under IAS 7, the group includes payments in respect of capitalized interest in operating activities. Under SFAS 95, these payments are treated as cash
outflows for investing activities.
The adjustments to the group’s cash flow statement for the year to accord with US GAAP are summarized below.
Increase (decrease) in caption heading $ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
For the year ended 31 December 2006 2005 2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 478 351 204
Net cash provided by (used in) investing activities (478) (351) (204)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents –––