BP 2010 Annual Report Download - page 171

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Notesonnancialstatements
Financial statements
7.Segmentalanalysiscontinued
 $million
          2009
           Other Consolidation
         Exploration Rening businesses adjustment
         and and and and Total
Bybusiness       Production Marketing corporate eliminations group
Segmentrevenues
Salesandotheroperatingrevenues    57,626 213,050 2,843 (34,247) 239,272
Less:salesbetweenbusinesses    (32,540) (821) (886) 34,247 –
Thirdpartysalesandotheroperatingrevenues    25,086 212,229 1,957 – 239,272
Equity-accountedearnings    3,309 558 34 – 3,901
Interestrevenues    98 32 95 – 225
Segmentresults
Replacementcostprot(loss)beforeinterestandtaxation    24,800 743 (2,322) (717) 22,504
Inventoryholdinggainsa    142 3,774 6 – 3,922
Prot(loss)beforeinterestandtaxation    24,942 4,517 (2,316) (717) 26,426
Financecosts        (1,110)
Netnanceexpenserelatingtopensionsandotherpost-retirementbenets      (192)
Protbeforetaxation        25,124
Otherincomestatementitems
Depreciation,depletionandamortization    9,557 2,236 313 – 12,106
Impairmentlosses    118 1,834 189 – 2,141
Impairmentreversals    3 – 8 – 11
Fairvalue(gain)lossonembeddedderivatives    (664) 57 – – (607)
Chargesforprovisions,netofwrite-backofunusedprovisions,
 includingchangeindiscountrate    307 756 488 – 1,551
Segmentassets
Equity-accountedinvestments    20,289 6,882 1,088 – 28,259
Additionstonon-currentassets    15,855 4,083 1,297 – 21,235
 Additionstootherinvestments        19
 Elementofacquisitionsnotrelatedtonon-currentassets       (7)
 Additionstodecommissioningasset        (938)
Capitalexpenditureandacquisitions    14,896 4,114 1,299 – 20,309
 
a
InventoryholdinggainsandlossesrepresentthedifferencebetweenthecostofsalescalculatedusingtheaveragecosttoBPofsuppliesacquiredduringtheperiodandthecostofsalescalculated
ontherst-inrst-out(FIFO)methodafteradjustingfor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,thecostofinventorychargedtotheincomestatementisbasedonitshistoriccostofpurchase,ormanufacture,ratherthanitsreplacementcost.Involatileenergymarkets,thiscanhavea
signicantdistortingeffectonreportedincome.Theamountsdisclosedrepresentthedifferencebetweenthecharge(totheincomestatement)forinventoryonaFIFObasis(afteradjustingforanyrelated
movementsinnetrealizablevalueprovisions)andthechargethatwouldhavearisenifanaveragecostofsupplieswasusedfortheperiod.Forthispurpose,theaveragecostofsuppliesduringtheperiod
isprincipallycalculatedonamonthlybasisbydividingthetotalcostofinventoryacquiredintheperiodbythenumberofbarrelsacquired.Theamountsdisclosedarenotseparatelyreectedinthenancial
statementsasagainorloss.Noadjustmentismadeinrespectofthecostofinventoriesheldaspartofatradingpositionandcertainothertemporaryinventorypositions.
BPAnnualReportandForm20-F2010 169