BP 2009 Annual Report Download - page 138

14. Auditor’s remuneration
$ million
Fees – Ernst & Young 2009 2008 2007
Fees payable to the company’s auditors for the audit of the company’s accountsa13 16 18
Fees payable to the company’s auditors and its associates for other services
Audit of the company’s subsidiaries pursuant to legislation 22 28 31
Other services pursuant to legislation 11 13 14
46 57 63
Tax services 1 2 2
Services relating to corporate finance transactions –2 1
All other services 6 5 8
Audit fees in respect of the BP pension plans 1 1 1
54 67 75
aFees in respect of the audit of the accounts of BP p.l.c. including the group’s consolidated financial statements.
2008 includes $3 million of additional fees for 2007 and 2007 includes $7 million of additional fees for 2006. Auditors’ remuneration is included in the
income statement within distribution and administration expenses.
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.
Under SEC regulations, the remuneration of the auditor of $54 million (2008 $67 million and 2007 $75 million) is required to be presented as
follows: audit services $46 million (2008 $57 million and 2007 $63 million); other audit related services $2 million (2008 $1 million and 2007 $3 million);
tax services $1 million (2008 $2 million and 2007 $2 million); and fees for all other services $5 million (2008 $7 million and 2007 $7 million).
15. Finance costs
BP Annual Report and Accounts 2009
Notes on financial statements
136
$ million
2009 2008 2007
Interest payable 906 1,319 1,433
Capitalized at 2.75% (2008 4.00% and 2007 5.70%)a(188) (162) (323)
Unwinding of discount on provisions 247 287 283
Unwinding of discount on other payables 145 103 –
1,110 1,547 1,393
aTax relief on capitalized interest is $63 million (2008 $42 million and 2007 $81 million).