BP 2010 Annual Report Download - page 160
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Please find page 160 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notesonnancialstatements
2.Signicantevent–GulfofMexicooilspill
AsaconsequenceoftheGulfofMexicooilspill,asdescribedonpages34to39,BPhasincurredcostsduringtheyearandhasrecognizedliabilitiesfor
futurecosts.Liabilitiesofuncertaintimingoramountandcontingentliabilitieshavebeenaccountedforand/ordisclosedinaccordancewithIAS37
‘Provisions,contingentliabilitiesandcontingentassets’.ThesearediscussedinfurtherdetailinNote37forprovisionsandNote44forcontingentliabilities.
BP’srightsandobligationsinrelationtothe$20-billiontrustfundwhichwasestablishedduringtheyearhavebeenaccountedforinaccordancewith
IFRIC5‘Rightstointerestsarisingfromdecommissioning,restorationandenvironmentalrehabilitationfunds’.Keyaspectsoftheaccountingfortheoilspill
aresummarizedbelow.
ThenancialimpactsoftheGulfofMexicooilspillontheincomestatement,balancesheetandcashowstatementofthegroupareshowninthe
tablebelow.Amountsrelatedtothetrustfundareseparatelyidentied.
$million
2010
Ofwhich:
amountrelated
Total tothetrustfund
Income statement
Productionandmanufacturingexpenses 40,858 7,261
Prot(loss)beforeinterestandtaxation (40,858) (7,261)
Financecosts 77 73
Prot(loss)beforetaxation (40,935) (7,334)
Less:Taxation 12,894 –
Prot(loss)fortheperiod (28,041) (7,334)
Balance sheet
Currentassets
Tradeandotherreceivables 5,943 5,943
Currentliabilities
Tradeandotherpayables (6,587) (5,002)
Provisions (7,938) –
Netcurrentliabilities (8,582) 941
Non-currentassets
Otherreceivables 3,601 3,601
Non-currentliabilities
Otherpayables (9,899) (9,899)
Provisions (8,397) –
Deferredtax 11,255 –
Netnon-currentliabilities (3,440) (6,298)
Netassets (12,022) (5,357)
Cash ow statement
Prot(loss)beforetaxation (40,935) (7,334)
Financecosts 77 73
Netchargeforprovisions,lesspayments 19,354 –
Increaseinothercurrentandnon-currentassets (12,567) (12,567)
Increaseinothercurrentandnon-currentliabilities 16,413 14,828
Pre-taxcashows (17,658) (5,000)
Trust fund
BPhasestablishedtheDeepwaterHorizonOilSpillTrust(theTrust)tobefundedintheamountof$20billion(thetrustfund)overtheperiodtothefourth
quarterof2013,whichisavailabletosatisfylegitimateindividualandbusinessclaimsadministeredbytheGulfCoastClaimsFacility(GCCF),stateandlocal
governmentclaimsresolvedbyBP,naljudgmentsandsettlements,stateandlocalresponsecosts,andnaturalresourcedamagesandrelatedcosts.In
2010BPcontributed$5billiontothefund,andfurtherquarterlycontributionsof$1.25billionaretobemadeduring2011to2013.Theincomestatement
chargefor2010includes$20billioninrelationtothetrustfund,adjustedtotakeaccountofthetimevalueofmoney.Fines,penaltiesandclaims
administrationcostsarenotcoveredbythetrustfund.TheestablishmentofthetrustfunddoesnotrepresentacaporooronBP’sliabilitiesandBPdoes
notadmittoaliabilityofthisamount.
UnderthetermsoftheTrustagreement,BPhasnorighttoaccessthefundsoncetheyhavebeencontributedtothetrustfundandBPhasno
decision-makingroleinconnectionwiththepaymentbythetrustfundofindividualandbusinessclaimsresolvedbytheGCCF.BPwillreceivefundsfrom
thetrustfundonlyuponitsexpiration,ifthereareanyfundsremainingatthatpoint.BPhastheauthorityundertheTrustagreementtopresentcertain
resolvedclaims,includingnaturalresourcedamagesclaimsandstateandlocalresponseclaims,totheTrustforpayment,byprovidingthetrusteeswithall
therequireddocumentsestablishingthatsuchclaimsarevalidundertheTrustagreement.However,anysuchpaymentscanonlybemadeontheauthority
oftheTrusteeandanyfundsdistributedarepaiddirectlytotheclaimants,nottoBP.BPwillnotsettleanysuchitemsdirectlyorreceivereimbursement
fromthetrustfundforsuchitems.
158BPAnnualReportandForm20-F2010