BP 2015 Annual Report Download - page 211

13. Directors’ remuneration – continued
Emoluments
These amounts comprise fees paid to the non-executive chairman and the non-executive directors and, for executive directors, salary and benefits
earned during the relevant financial year, plus cash bonuses awarded for the year. There was no compensation for loss of office in 2015 (2014 $nil).
14. Explanation of transition to FRS 101
For all periods up to and including the year ended 31 December 2014, the company prepared its financial statements in accordance with
United Kingdom generally accepted accounting practice (UK GAAP). These financial statements, for the year ended 31 December 2015, are the first
the company has prepared in accordance with FRS 101.
Comparative information included in these financial statements has also been prepared in accordance with FRS 101 and the significant accounting
policies described in Note 1.
On transition to FRS 101, the company has applied the requirements of paragraphs 6 – 33 of IFRS 1 ‘First-time adoption of International Financial
Reporting Standards’ (IFRS 1).
Exemptions applied
IFRS 1 allows first-time adopters certain exemptions from the general requirements to apply IFRS. The company has taken advantage of the following
exemptions:
(a) business combinations (paragraphs C1 – C5);
(b) share-based payment transactions (paragraphs D2 and D3);
(c) cumulative translation differences (paragraphs D12 and D13).
In preparing these financial statements, the company has started from an opening balance sheet as at 1 January 2014, the company’s date of transition
to FRS 101, and made those changes in accounting policies and other restatements required for the first time adoption of FRS 101.
Pensions
Under previous UK GAAP the interest cost was determined by applying the discount rate to the opening present value of the defined benefit obligation
and the changes in the defined benefit obligation during the year. The interest income on the expected return on plan assets was based on an
assessment made at the beginning of the year of the long-term market returns on plan assets. Under IAS 19 net interest is calculated by applying the
discount rate to the net defined liability or asset. As a result of transition to FRS 101, net interest for the year ended 31 December 2014 was
$722 million higher than had been recognized under previous UK GAAP (2013 $664 million), with a corresponding reduction in remeasurement gains
recognized in other comprehensive income.
The parent company financial statements of BP p.l.c. on pages 196-213 do not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
Financial statements
BP Annual Report and Form 20-F 2015 207