BP 2013 Annual Report Download - page 170

18. Investments in associates – continued
Transactions between the group and its associates are summarized below.
$ million
Sales to associates 2013 2012 2011
Product Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December
LNG, crude oil and oil products, natural gas, employee services 5,170 783 3,771 401 3,855 393
$ million
Purchases from associates 2013 2012 2011
Product Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December
Crude oil and oil products, natural gas, transportation tariff 21,205 3,470 9,135 932 8,159 815
The terms of the outstanding balances receivable from associates are typically 30 to 45 days. The balances are unsecured and will be settled in cash.
There are no significant provisions for doubtful debts relating to these balances and no significant expense recognized in the income statement in
respect of bad or doubtful debts. Dividends receivable are not included in the table above.
The majority of the purchases from associates are crude oil and oil products purchased from Rosneft. BP has commitments amounting to $6,077
million (2012 $595 million) in relation to contracts with its associates for the purchase of crude oil and oil products, transportation and storage. See
Note 36 for further information on capital commitments relating to BP’s investments in associates.
19. Financial instruments and financial risk factors
The accounting classification of each category of financial instruments, and their carrying amounts, are set out below.
$ million
At 31 December 2013 Note
Loans and
receivables
Available-
for-sale financial
assets
Held-to-
maturity
investments
At fair value
through profit
or loss
Derivative
hedging
instruments
Financial
liabilities
measured at
amortized cost
Total carrying
amount
Financial assets
Other investments – equity shares 20 – 291 – – – – 291
– other 20 – 1,167 – 574 – – 1,741
Loans 979 – – – – – 979
Trade and other receivables 22 39,630 – – – – – 39,630
Derivative financial instruments 26 – – – 5,189 995 – 6,184
Cash and cash equivalents 23 19,153 2,267 1,100 – – – 22,520
Financial liabilities
Trade and other payables 25 – – – – – (48,072) (48,072)
Derivative financial instruments 26 – – – (4,159) (388) – (4,547)
Accruals – – – – – (9,507) (9,507)
Finance debt 27 – – – – – (48,192) (48,192)
59,762 3,725 1,100 1,604 607 (105,771) (38,973)
At 31 December 2012
Financial assets
Other investments – equity shares 20 –1,433 – – – – 1,433
– other 20 –1,005 – 585 – – 1,590
Loans 889 – – – – – 889
Trade and other receivables 22 35,962 – – – – – 35,962
Derivative financial instruments 26 – – – 5,342 3,459 – 8,801
Cash and cash equivalents 23 15,128 4,507 – – – – 19,635
Financial liabilities
Trade and other payables 25 – – – – – (44,405) (44,405)
Derivative financial instruments 26 – – – (5,093) (288) – (5,381)
Accruals – – – – – (7,366) (7,366)
Finance debt 27 – – – – – (48,168) (48,168)
51,979 6,945 – 834 3,171 (99,939) (37,010)
The fair value of finance debt is shown in Note 27. For all other financial instruments, the carrying amount is either the fair value, or approximates the
fair value.
Financial risk factors
The group is exposed to a number of different financial risks arising from natural business exposures as well as its use of financial instruments
including: market risks relating to commodity prices, foreign currency exchange rates, interest rates and equity prices; credit risk; and liquidity risk.
166 BP Annual Report and Form 20-F 2013