BP 2009 Annual Report Download - page 131

BP Annual Report and Accounts 2009
Notes on financial statements
4. Segmental analysis continued
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Financial statements
129
$ million
2007
Other Consolidation
Exploration Refining businesses adjustment
and and and and Total
y business Production Marketing corporate eliminations group
egment revenues
ales and other operating revenues 65,740 250,221 3,698 (35,294) 284,365
ess: sales between businesses (32,083) (1,914) (1,297) 35,294 –
hird party sales and other operating revenues 33,657 248,307 2,401 – 284,365
quity-accounted earnings 3,199 542 91 – 3,832
nterest revenues 202 30 217 – 449
egment results
eplacement cost profit (loss) before interest and taxation 27,602 2,621 (1,209) (220) 28,794
nventory holding gains (losses)a127 3,455 (24) – 3,558
rofit (loss) before interest and taxation 27,729 6,076 (1,233) (220) 32,352
inance costs (1,393)
et finance income relating to pensions and other post-retirement benefits 652
rofit before taxation 31,611
ther income statement items
epreciation, depletion and amortization 7,856 2,421 302 – 10,579
mpairment losses 292 1,186 83 – 1,561
mpairment reversals 237 – – – 237
air value loss on embedded derivatives – – 7 – 7
harges for provisions, net of write-back of unused provisions 484 638 280 – 1,402
egment assets
egment assets 125,736 95,311 20,595 (6,271) 235,371
urrent tax receivable 705
otal assets 236,076
ncludes
Equity-accounted investments 16,770 5,268 654 – 22,692
dditions to non-current assets 15,535 5,437 916 – 21,888
Additions to other investments 23
Element of acquisitions not related to non-current assets 56
Additions to decommissioning asset (1,326)
apital expenditure and acquisitions 14,207 5,495 939 – 20,641
nventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies incurred during the period and the cost of sales calculated
n the first-in first-out (FIFO) method including any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting,
he cost of inventory charged to the income statement is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a
ignificant distorting effect on reported income. The amounts disclosed represent the difference between the charge to the income statement on a FIFO basis (and any related movements in net
ealizable value provisions) and the charge that would arise using average cost of supplies incurred during the period. For this purpose, average cost of supplies incurred during the period is calculated by
ividing the total cost of inventory purchased in the period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial statements as a gain or loss. No
djustment is made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positions.