BP 2010 Annual Report Download - page 258

ParentcompanynancialstatementsofBPp.l.c.
1.Accountingpoliciescontinued
Deferred taxation
Deferredtaxisrecognizedinrespectofalltimingdifferencesthathaveoriginatedbutnotreversedatthebalancesheetdatewheretransactionsorevents
haveoccurredatthatdatethatwillresultinanobligationtopaymore,orarighttopayless,taxinthefuture.
Deferredtaxassetsarerecognizedonlytotheextentthatitisconsideredmorelikelythannotthattherewillbesuitabletaxableprotsfromwhich
theunderlyingtimingdifferencescanbededucted.
Deferredtaxismeasuredonanundiscountedbasisatthetaxratesthatareexpectedtoapplyintheperiodsinwhichtimingdifferencesreverse,
basedontaxratesandlawsenactedorsubstantivelyenactedatthebalancesheetdate.
Use of estimates
Thepreparationofaccountsinconformitywithgenerallyacceptedaccountingpracticerequiresmanagementtomakeestimatesandassumptionsthat
affectthereportedamountsofassetsandliabilitiesatthedateoftheaccountsandthereportedamountsofrevenuesandexpensesduringthereporting
period.Actualoutcomescoulddifferfromtheseestimates.
2.Taxation
 $million
Tax included in the statement of total recognized gains and losses2010 2009 2008
Deferredtax
 Originationandreversaloftimingdifferencesinthecurrentyear     123 (164) (1,434)
Thiscomprises:
Actuarial(loss)gainrelatingtopensionsandotherpost-retirementbenets    123 (164) (1,434)
Deferred tax
Deferredtaxliability
 Pensions      480 279 399
Deferredtaxasset
 Othertaxabletimingdifferences      70 130 77
Netdeferredtaxliability      410 149 322
Analysisofmovementsduringtheyear
 At1January      149 322 1,885
 Exchangeadjustments      45 47 (276)
 Charge(credit)fortheyearonordinaryactivities      93 (56) 147
 Charge(credit)fortheyearinthestatementoftotalrecognizedgainsandlosses    123 (164) (1,434)
At31December      410 149 322
 
3.Fixedassets–investments
 $million
Subsidiary Associated
undertakings undertakings
Shares Shares Loans Total
Cost
 At1January2010     93,137 2 2 93,141
 Additionsa 29,637 – – 29,637
 Disposals     (51) – – (51)
At31December2010     122,723 2 2 122,727
Amountsprovided
 At1January2010     74 – 2 76
At31December2010     74 – 2 76
Cost
 At1January2009     89,045 2 2 89,049
 Adjustments     (116) – – (116)
 Additions     4,208 – – 4,208
At31December2009     93,137 2 2 93,141
Amountsprovided
 At1January2009     74 – 2 76
At31December2009     74 – 2 76
Netbookamount
 At31December2010     122,649 2 – 122,651
 At31December2009     93,063 2 – 93,065
 
aIncludes$29,375millionrelatedtoanequityinjectioninBPInternationalLtd.
TheparentcompanynancialstatementsofBPp.l.c.onpagesPC1–PC16donotformpartofBP’sAnnualReportonForm20-FasledwiththeSEC.
PC6BPAnnualReportandForm20-F2010