BP 2014 Annual Report Download - page 139

19. Valuation and qualifying accounts
$ million
2014 2013 2012
Accounts
receivable
Fixed asset
investments
Accounts
receivable
Fixed asset
investments
Accounts
receivable
Fixed asset
investments
At 1 January 343 168 489 349 332 643
Charged to costs and expenses 127 438 82 4 240 196
Charged to other accountsa(24) (2) (4) 4 7 18
Deductions (115) (87) (224) (189) (90) (508)
At 31 December 331 517 343 168 489 349
aPrincipally exchange adjustments.
Valuation and qualifying accounts comprise impairment provisions for accounts receivable and fixed asset investments, and are deducted in the
balance sheet from the assets to which they apply.
For information on significant estimates and judgements made in relation to the recoverability of trade receivables see Impairment of loans and
receivables within Note 1.
20. Trade and other payables
$ million
2014 2013
Current Non-current Current Non-current
Financial liabilities
Trade payables 23,074 – 28,926 –
Amounts payable to joint ventures and associates 2,436 – 3,576 47
Other payables 11,832 2,985 11,288 4,235
37,342 2,985 43,790 4,282
Non-financial liabilities
Other payables 2,776 602 3,369 474
40,118 3,587 47,159 4,756
Trade and other payables are predominantly interest free. See Note 27 for further information.
21. Provisions
$ million
Decommissioning Environmentala
Litigation and
claims
Clean Water
Act penalties Other Total
At 1 January 2014 17,205 3,454 4,911 3,510 2,880 31,960
Exchange adjustments (489) (18) (12) – (122) (641)
Acquisitions 8 – – – 13 21
New or increased provisions 2,216 561 1,290 – 1,101 5,168
Write-back of unused provisions (60) (92) (27) – (252) (431)
Unwinding of discount 202 19 12 – 24 257
Change in discount rate 778 21 14 – 9 822
Utilization (682) (1,098) (1,449) – (565) (3,794)
Deletions (458) – – – (6) (464)
At 31 December 2014 18,720 2,847 4,739 3,510 3,082 32,898
Of which – current 836 927 1,420 – 635 3,818
– non-current 17,884 1,920 3,319 3,510 2,447 29,080
Of which – Gulf of Mexico oil spillb– 1,141 3,954 3,510 – 8,605
aSpill response provisions are now included within environmental provisions as they are no longer individually significant.
bFurther information on the financial impacts of the Gulf of Mexico oil spill is provided in Note 2.
The decommissioning provision comprises the future cost of decommissioning oil and natural gas wells, facilities and related pipelines. The
environmental provision includes provisions for costs related to the control, abatement, clean-up or elimination of environmental pollution relating to
soil, groundwater, surface water and sediment contamination. The litigation and claims category includes provisions for matters related to, for example,
commercial disputes, product liability, and allegations of exposures of third parties to toxic substances. Included within the other category at
31 December 2014 are provisions for deferred employee compensation of $553 million (2013 $602 million).
For information on significant estimates and judgements made in relation to provisions, including those for the Gulf of Mexico oil spill, see Provisions,
contingencies and reimbursement assets within Note 1.
22. Pensions and other post-retirement benefits
Most group companies have pension plans, the forms and benefits of which vary with conditions and practices in the countries concerned. Pension
benefits may be provided through defined contribution plans (money purchase schemes) or defined benefit plans (final salary and other types of
schemes with committed pension benefit payments). For defined contribution plans, retirement benefits are determined by the value of funds arising
from contributions paid in respect of each employee. For defined benefit plans, retirement benefits are based on such factors as the employees’
pensionable salary and length of service. Defined benefit plans may be funded or unfunded. The assets of funded plans are generally held in separately
administered trusts.
Financial statements
BP Annual Report and Form 20-F 2014 135