BP 2010 Annual Report Download - page 180

Notesonnancialstatements
 $million
      2010
   excluding 2010
   impacts of impacts of
   Gulf of Gulf of
   Mexico oil Mexico oil
  spill spill 2010 2009 2008
Prot(loss)beforetaxation    36,110 (40,935) (4,825) 25,124 34,283
Taxcharge(credit)onprot(loss)    11,393 (12,894) (1,501) 8,365 12,617
Effectivetaxrate    32% 31% 31% 33% 37%
%ofprotorlossbeforetaxation
UKstatutorycorporationtaxrate    28 28 28 28 28
Increase(decrease)resultingfrom
 UKsupplementaryandoverseastaxesathigherrates    9 7 (6) 8 14
 Taxreportedinequity-accountedentities    (3) – 23  (3) (2)
 Adjustmentsinrespectofprioryears    – – 2  1 (2)
 Currentyearlossesunrelieved(prioryearlossesutilized)    – – 1  – (1)
 Goodwillimpairment    – – –  2 –
 Taxincentivesforinvestment    (1) – 9  (2) (1)
 GulfofMexicooilspillnon-deductiblecosts    – (4) (30) – –
 Other     (1) – 4  (1) 1
Effectivetaxrate    32 31 31  33 37
 
Deferred tax
 $million
       Incomestatement  Balancesheet
      2010 2009 2008 2010 2009
Deferredtaxliability
 Depreciation    1,565  1,983 1,248 27,309  25,398
 Pensionplansurpluses    38  (6) 108 469  271
 Othertaxabletemporarydifferences    1,178  978 (2,471) 5,538  4,307
       2,781  2,955 (1,115) 33,316  29,976
Deferredtaxasset
 Pensionplanandotherpost-retirementbenetplandecits   179  180 104 (2,155) (2,269)
 Decommissioning,environmentalandotherprovisions    (8,151) 86 (333) (13,296) (4,930)
 Derivativenancialinstruments    (56) 80 228 (298) (243)
 Taxcredit    (1,088) (516) 330 (2,118) (1,034)
 Losscarryforward    24  402 (212) (943) (1,014)
 Otherdeductibletemporarydifferences    (1,882) (567) 232 (4,126) (2,340)
    (10,974) (335) 349 (22,936) (11,830)
Netdeferredtax(credit)chargeandnetdeferredtaxliability    (8,193) 2,620 (766) 10,380  18,146
Ofwhich –deferredtaxliabilities       10,908  18,662
   –deferredtaxassets       528  516
 
 $million
Analysisofmovementsduringtheyear      2010 2009
At1January       18,146 16,198
Exchangeadjustments       3  (7)
Charge(credit)fortheyearonprot(loss)       (8,193) 2,620
Charge(credit)fortheyearinothercomprehensiveincome       244  (525)
Charge(credit)fortheyearinequity       64  (65)
Acquisitions       187 
Reclassiedasliabilitiesdirectlyassociatedwithassetsheldforsale      (67)
Deletions        (4) (75)
At31December       10,380  18,146
  
–
–
19.Taxationcontinued
Reconciliation of the effective tax rate
ThefollowingtableprovidesareconciliationoftheUKstatutorycorporationtaxratetotheeffectivetaxrateofthegrouponprotorlossbeforetaxation.
For2010,theitemspresentedinthereconciliationaredistortedasaresultoftheoveralltaxcreditfortheyearandthelossbeforetaxation.Inorder
toprovideamoremeaningfulanalysisoftheeffectivetaxrate,thetablealsopresentsseparatereconciliationsforthegroupexcludingtheimpactsofthe
GulfofMexicooilspill,andfortheimpactsoftheGulfofMexicooilspillinisolation.
178BPAnnualReportandForm20-F2010