BP 2014 Annual Report Download - page 138

16. Other investments
$ million
2014 2013
Current Non-current Current Non-current
Equity investmentsa– 420 – 291
Repurchased gas pre-paid bonds 254 153 276 408
Contingent consideration 956186 292
Other 66 599 5 574
329 1,228 467 1,565
aThe majority of equity investments are unlisted.
BP entered into long-term gas supply contracts which are backed by gas pre-paid bonds. In 2010, BP was unsuccessful in the remarketing of these
bonds and repurchased them. The outstanding bonds associated with these long-term gas supply contracts held by BP are recorded within other
investments, with the related liability recorded within other payables on the balance sheet. The fair value of the gas pre-paid bonds is the same as the
carrying amount, as the bonds are based on floating rate interest with weekly market re-set, and as such are in level 1 of the fair value hierarchy.
At both 31 December 2014 and 2013 the group had contingent consideration receivable, classified as an available-for-sale financial asset, in respectof
the disposal of the Devenick field in 2013.
Other non-current investments at 31 December 2014 of $599 million relate to life insurance policies (2013 $574 million). The life insurance policies
have been designated as financial assets at fair value through profit and loss and their valuation methodology is in level 3 of the fair value hierarchy.Fair
value gains of $41 million were recognized in the income statement (2013 $4 million loss and 2012 $70 million gain).
17. Inventories
$ million
2014 2013
Crude oil 5,614 10,190
Natural gas 285 235
Refined petroleum and petrochemical products 8,975 15,427
14,874 25,852
Supplies 3,051 2,735
17,925 28,587
Trading inventories 448 644
18,373 29,231
Cost of inventories expensed in the income statement 281,907 298,351
The inventory valuation at 31 December 2014 is stated net of a provision of $2,879 million (2013 $322 million) to write inventories down to their net
realizable value. The net charge to the income statement in the year in respect of inventory net realizable value provisions was $2,625 million (2013
$195 million charge).
Trading inventories are valued using quoted benchmark bid prices adjusted as appropriate for location and quality differentials. As such they are
predominantly categorized within level 2 of the fair value hierarchy.
18. Trade and other receivables
$ million
2014 2013
Current Non-current Current Non-current
Financial assets
Trade receivables 19,671 166 28,868 183
Amounts receivable from joint ventures and associates 1,558 – 1,213 47
Other receivables 7,863 1,293 6,594 2,725
29,092 1,459 36,675 2,955
Non-financial assets
Gulf of Mexico oil spill trust fund reimbursement asseta1,154 2,701 2,457 2,442
Other receivables 792 627 699 588
1,946 3,328 3,156 3,030
31,038 4,787 39,831 5,985
aSee Note 2 for further information.
Trade and other receivables are predominantly non-interest bearing. See Note 27 for further information.
134 BP Annual Report and Form 20-F 2014