BP 2010 Annual Report Download - page 194

Notesonnancialstatements
33.Tradeandotherpayables
$million
 2010 2009
Current Non-current Current Non-current
Financialliabilities
 Tradepayables     27,510 – 22,886 –
 Amountspayabletojointlycontrolledentities     1,361 1,905 304 2,419
 Amountspayabletoassociates     712 220  692 298
 GulfofMexicooilspilltrustfundliabilitya 5,002 9,899  – –
 Otherpayables     8,100 1,790 7,531 195
        42,685 13,814 31,413 2,912
Non-nancialliabilities      
 Otherpayables     3,644 471  3,791 286
        46,329 14,285 35,204 3,198
 
a
SeeNote2forfurtherinformation.
Tradeandotherpayablesarepredominantlyinterestfree,howevertheGulfofMexicooilspilltrustfundisrecordedonadiscountedbasis.SeeNote27for
furtherinformation.
34.Derivativenancialinstruments
Anoutlineofthegroup’snancialrisksandtheobjectivesandpoliciespursuedinrelationtothoserisksissetoutinNote27.
Inthenormalcourseofbusinessthegroupentersintoderivativenancialinstruments(derivatives)tomanageitsnormalbusinessexposuresin
relationtocommodityprices,foreigncurrencyexchangeratesandinterestrates,includingmanagementofthebalancebetweenoatingrateandxedrate
debt,consistentwithriskmanagementpoliciesandobjectives.Additionally,thegrouphasawell-establishedentrepreneurialtradingoperationthatis
undertakeninconjunctionwiththeseactivitiesusingasimilarrangeofcontracts.
IAS39prescribesstrictcriteriaforhedgeaccounting,whetherasacashoworfairvaluehedgeorahedgeofanetinvestmentinaforeign
operation,andrequiresthatanyderivativethatdoesnotmeetthesecriteriashouldbeclassiedasheldfortradingandfairvalued,withgainsandlosses
recognizedintheincomestatement.
Thefairvaluesofderivativenancialinstrumentsat31Decemberaresetoutbelow.
 $million
 2010  2009
          Fair Fair Fair Fair
          value value value value
          asset liability asset liability
Derivativesheldfortrading       
 Currencyderivatives     194 (280) 318 (226)
 Oilpricederivatives     1,099 (877) 1,140 (1,191)
 Naturalgaspricederivatives     5,350 (3,951) 5,636 (3,960)
 Powerpricederivatives    561 (432) 682 (497)
 Otherderivatives     – (89) 47 (47)
        7,204 (5,629) 7,823 (5,921)
Embeddedderivativecommoditypricecontracts     18 (1,625) 137 (1,468)
Cashowhedges
 Currencyforwards,futuresandcylinders     134 (124) 182 (114)
 Cross-currencyinterestrateswaps     101 (1) 44 (298)
        235 (125) 226 (412)
Fairvaluehedges
 Currencyforwards,futuresandswaps    772 (80) 490 (232)
 Interestrateswaps    337 (74) 256 (122)
        1,109 (154) 746 (354)
          8,566 (7,533) 8,932 (8,155)
Ofwhich–current     4,356 (3,856) 4,967 (4,681)
   –non-current     4,210 (3,677) 3,965 (3,474)
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192BPAnnualReportandForm20-F2010