BP 2012 Annual Report Download - page 214

16. Auditor’s remuneration
$ million
Fees – Ernst & Young 2012 2011 2010
The audit of the company annual accountsa24 24 25
The audit of accounts of any subsidiaries of the company 911 12
Total audit 33 35 37
Audit-related assurance servicesb13 12 14
Total audit and audit-related assurance services 46 47 51
Taxation compliance services 211
Taxation advisory services 211
Services relating to corporate finance transactions 24–
Other assurance services 111
Total non-audit or non-audit-related assurance services 773
Services relating to BP pension plansc111
54 55 55
aFees in respect of the audit of the accounts of BP p.l.c. including the group’s consolidated financial statements.
bIncludes interim reviews and reporting on internal financial controls and non-statutory audit services.
cThe pension plan services include tax compliance services of $50,000 (2011 $108,000 and 2010 $300,000).
2012 includes $2 million of additional fees for 2011, and 2011 includes $1 million of additional fees for 2010. Auditor’s 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 (2011 $55 million and 2010 $55 million) is required to be presented as follows:
audit $33 million (2011 $35 million and 2010 $37 million); other audit-related services $13 million (2011 $12 million and 2010 $14 million); tax $4 million
(2011 $2 million and 2010 $2 million); and all other fees $4 million (2011 $6 million and 2010 $2 million).
17. Finance costs
$ million
2012 2011 2010
Interest payable 1,220 1,135 955
Capitalized at 2.25% (2011 2.63% and 2010 2.75%)a(378) (347) (254)
Unwinding of discount on provisionsb140 243 234
Unwinding of discount on other payablesb143 215 235
1,125 1,246 1,170
aTax relief on capitalized interest is $93 million (2011 $107 million and 2010 $71 million).
bUnwinding of discount on provisions relating to the Gulf of Mexico oil spill was $7 million (2011 $6 million and 2010 $4 million) and unwinding of discount on other payables relating to the Gulf of Mexico
oil spill was $12 million (2011 $52 million and 2010 $73 million). See Note 2 for further information on the financial impacts of the Gulf of Mexico oil spill.
18. Taxation
Tax on profit
$ million
2012 2011 2010
Current tax
Charge for the year 6,632 7,477 6,766
Adjustment in respect of prior years 252 111 (74)
6,884 7,588 6,692
Deferred tax
Origination and reversal of temporary differences in the current year 212 5,664 (8,157)
Adjustment in respect of prior years (103) (515) (36)
109 5,149 (8,193)
Tax charge (credit) on profit (loss) 6,993 12,737 (1,501)
Tax included in other comprehensive incomea
$ million
2012 2011 2010
Current tax 2(10) (107)
Deferred tax (448) (1,649) 244
(446) (1,659) 137
aSee Note 39 for further information.
212 Financial statements
BP Annual Report and Form 20-F 2012