BP 2010 Annual Report Download - page 179

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Notesonnancialstatements
Financial statements
18.Financecosts
 $million
        2010 2009 2008
Interestpayable      955 906 1,319
Capitalizedat2.75%(20092.75%and20084.00%)a(254) (188) (162)
Unwindingofdiscountonprovisionsb 234 247 287
Unwindingofdiscountonotherpayablesb 235  145 103
       1,170  1,110 1,547
 
aT
axreliefoncapitalizedinterestis$71million(2009$63millionand2008$42million).
bUnwindingofdiscountonprovisionsrelatingtotheGulfofMexicooilspillwas$4millionandunwindingofdiscountonotherpayablesrelatingtotheGulfofMexicooilspillwas$73million.SeeNote2for
furtherinformationonthenancialimpactsoftheGulfofMexicooilspill.
17.Auditor’sremunerationcontinued
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xedterm.
UnderSECregulations,theremunerationoftheauditorof$55million(2009$54millionand2008$67million)isrequiredtobepresentedas
follows:auditservices$47million(2009$46millionand2008$57million);otherauditrelatedservices$1million(2009$2millionand2008$1million);tax
services$2million(2009$1millionand2008$2million);andfeesforallotherservices$5million(2009$5millionand2008$7million).
19.Taxation
Tax on prot
 $million
       2010 2009 2008
Currenttax
Chargefortheyear      6,766 6,045 13,468
Adjustmentinrespectofprioryears      (74) (300) (85)
       6,692 5,745 13,383
Deferredtax
Originationandreversaloftemporarydifferencesinthecurrentyear  (8,157) 2,131 (324)
Adjustmentinrespectofprioryears      (36) 489 (442)
 (8,193) 2,620 (766)
Taxonprot(loss)      (1,501) 8,365 12,617
 
Tax included in other comprehensive income
 $million
       2010 2009 2008
Currenttax      (107) – (264)
Deferredtax      244 (525) (2,682)
        137 (525) (2,946)
 
Tax included directly in equity
 $million
       2010 2009 2008
Currenttax      (37) – –
Deferredtax      64 (65) 190
        27 (65) 190
 
BPAnnualReportandForm20-F2010 177