BP 2007 Annual Report Download - page 177

BP ANNUAL REPORT AND ACCOUNTS 2007 175
49 Auditors’ remuneration for US reporting
$ million
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2007 2006 2005
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Audit fees – Ernst & Young
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Group audit 37 36 31
Audit-related regulatory reporting 79
Statutory audit of subsidiaries 19 19 23
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63 64 60
Innovene operations –– (8)
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Continuing operations 63 64 52
Fees for other services – Ernst & Young
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Further assurance services
Acquisition and disposal due diligence 13
Pension plan audits 1–
Other further assurance services 8523
Tax services
Compliance services –110
Advisory services 2–
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12 936
Innovene operations –– (1)
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Continuing operations 12 935
Audit fees for 2007 include $7 million of additional fees for 2006 (2006 $5 million of additional fees for 2005 and 2005 $4 million of additional fees for
2004). Audit fees are included in the income statement within distribution and administration expenses.
Other further assurance services include $1 million (2006 $nil and 2005 $4 million) in respect of advice on accounting, auditing and financial
reporting matters; $nil (2006 $nil and 2005 $16 million) in respect of internal accounting and risk management control reviews; $5 million (2006
$5 million and 2005 $3 million) in respect of non-statutory audits and $2 million (2006 $nil and 2005 $nil) in respect of project assurance and advice on
business and accounting process improvement.
The tax services relate to income tax and indirect tax compliance, employee tax services and tax advisory services.
The audit committee has established pre-approval policies and procedures for the engagement of Ernst & Young to render audit and certain
assurance and tax services. The audit fees payable to Ernst & Young are reviewed by the audit committee in the context of other global companies for
cost-effectiveness. Ernst & Young performed further assurance and tax services that were not prohibited by regulatory or other professional
requirements and were pre-approved by the committee. Ernst & Young is engaged for these services when its expertise and experience of BP are
important. Most of this work is of an audit nature. Tax services were awarded either through a full competitive tender process or following an
assessment of the expertise of Ernst & Young compared with that of other potential service providers. These services are for a fixed term.
50 Valuation and qualifying accounts
$ million
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Additions
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Charged to Charged to
Balance at costs and other Balance at
a
1January expenses accounts Deductions 31 December
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2007
Fixed assets – Investmentsb151 158 2 (165) 146
Doubtful debtsb421 175 34 (224) 406
2006
Fixed assets – Investmentsb172 26 (3) (44) 151
Doubtful debtsb374 158 32 (143) 421
2005
Fixed assets – Investmentsb168 18 (13) (1) 172
Doubtful debtsb526 67 (30) (189) 374
aPrincipally currency transactions.
bDeducted in the balance sheet from the assets to which they apply.
6
2
1
–