BP 2011 Annual Report Download - page 176

174 BP Annual Report and Form 20-F 2011
Consolidated financial statements of the BP group
Statement of directors’ responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
The directors are required by the UK Companies Act 2006 to prepare financial statements for each financial year that give a true and fair view
of the financial position of the group and the parent company and the financial performance and cash flows of the group and parent company for that
period. Under that law they are required to prepare the consolidated financial statements in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union (EU) and applicable law and have elected to prepare the parent company financial statements in accordance
with applicable United Kingdom law and United Kingdom accounting standards (United Kingdom generally accepted accounting practice). In preparing the
consolidated financial statements the directors have also elected to comply with IFRSs as issued by the International Accounting Standards Board (IASB).
In preparing those financial statements, the directors are required to:
• Select suitable accounting policies and then apply them consistently.
• Make judgements and estimates that are reasonable and prudent.
• Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information.
• Provide additional disclosure when compliance with the specific requirements of IFRS is insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the group’s financial position and financial performance.
• State that applicable accounting standards have been followed, subject to any material departures disclosed and explained in the parent company
financial statements.
• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the
group and company and enable them to ensure that the consolidated financial statements comply with the Companies Act 2006 and Article 4 of the IAS
Regulation and the parent company financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of
the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors draw attention to Notes 2, 36 and 43 on the consolidated financial statements which describe the uncertainties surrounding the
amounts and timings of liabilities arising from the Gulf of Mexico oil spill.
The group’s business activities, performance, position and risks are set out in this report. The financial position of the group, its cash flows,
liquidity position and borrowing facilities are detailed in the appropriate sections on pages 103 to 106 and elsewhere in the notes on the consolidated
financial statements. The report also includes details of the group’s risk mitigation and management. Information on the Gulf of Mexico oil spill and BP’s
response is included on pages 76 to 79 and elsewhere in this report, including Safety on pages 65 to 69. The group has considerable financial resources,
and the directors believe that the group is well placed to manage its business risks successfully. After making enquiries, the directors have a reasonable
expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing the annual report and accounts.
Having made the requisite enquiries, so far as the directors are aware, there is no relevant audit information (as defined by Section 418(3) of
the Companies Act 2006) of which the company’s auditors are unaware, and the directors have taken all the steps they ought to have taken to make
themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
The directors confirm that to the best of their knowledge:
• The consolidated financial statements, prepared in accordance with IFRS as issued by the IASB, IFRS as adopted by the EU and in accordance with the
provisions of the Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group;
• The parent company financial statements, prepared in accordance with United Kingdom generally accepted accounting practice, give a true and fair
view of the assets, liabilities, financial position, performance and cash flows of the company; and
• The management report, which is incorporated in the directors’ report, includes a fair review of the development and performance of the business and
the position of the group, together with a description of the principal risks and uncertainties.
This page does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.