BP 2013 Annual Report Download - page 161

11. Taxation – continued
Deferred tax
$ million
Income statement Balance sheet
2013 2012 2011 2013 2012
Deferred tax liability
Depreciation (474) (75) 4,774 31,551 32,065
Pension plan surpluses (691) ––284 –
Other taxable temporary differences (199) (2,239) 141 3,653 3,671
(1,364) (2,314) 4,915 35,488 35,736
Deferred tax asset
Pension plan and other post-retirement benefit plan deficits 787 (33) 224 (2,026) (3,421)
Decommissioning, environmental and other provisions 1,385 1,872 (1,443) (11,301) (12,705)
Derivative financial instruments 30 (7) 24 (579) (281)
Tax credits (174) 1,802 (401) (888) (714)
Loss carry forward (343) (911) (223) (2,585) (2,214)
Other deductible temporary differences 357 (445) 1,912 (1,655) (2,032)
2,042 2,278 93 (19,034) (21,367)
Net deferred tax charge (credit) and net deferred tax liability 678 (36) 5,008 16,454 14,369
Of which – deferred tax liabilities 17,439 15,243
– deferred tax assets 985 874
$ million
Analysis of movements during the year in the net deferred tax liability 2013 2012
At 1 January 14,369 14,609
Exchange adjustments 43 (27)
Charge (credit) for the year on profit 678 (36)
Charge (credit) for the year in other comprehensive income 1,397 (272)
Charge (credit) for the year in equity (33) 4
Acquisitions –11
Reclassified as assets/liabilities held for sale –48
Deletions –32
At 31 December 16,454 14,369
A summary of temporary differences, unused tax credits and unused tax losses for which deferred tax has not been recognized is shown in the table
below.
$ billion
At 31 December 2013 2012
Unused tax lossesa1.8 0.9
Unused tax credits 18.0 18.3
of which – arising in the UKb16.3 16.0
– arising in the USc1.7 2.3
Other deductible temporary differencesd11.2 7.0
Other taxable temporary differences associated with investments in subsidiaries and equity-accounted entities 0.5 0.5
aSubstantially all the tax losses have no fixed expiry date.
bThe UK tax credits arise predominantly in overseas branches of UK entities based in jurisdictions with high tax rates. No deferred tax asset has been recognized on these tax credits as they are unlikely
to have value in the future; UK taxes on these overseas branches are largely mitigated by double tax relief on the overseas tax. These tax credits have no fixed expiry date.
cThe US tax credits expire 10 years after generation and will all expire in the period 2015-2021.
dOther deductible temporary differences of $0.7 billion are expected to expire in the period 2014-2020, the remainder do not have an expiry date.
$ billion
Benefit of previously unrecognized deferred tax on current year tax charge 2013 2012 2011
Current tax benefit relating to the utilization of previously unrecognized tax losses –– 0.1
Current tax benefit relating to the utilization of previously unrecognized tax credits 0.2 0.4 0.1
Deferred tax benefit relating to the recognition of previously unrecognized tax credits 0.2 0.1 –
Financial statements
BP Annual Report and Form 20-F 2013 157