BP 2013 Annual Report Download - page 120

Statement of directors’ responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
The directors are required by the UK Companies Act 2006 to prepare financial statements for each financial year that give a true and fair view of the
financial position of the group and the parent company and the financial performance and cash flows of the group and parent company for that period.
Under that law they are required to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union (EU) and applicable law and have elected to prepare the parent company financial statements in accordance with
applicable United Kingdom law and United Kingdom accounting standards (United Kingdom generally accepted accounting practice). In preparing the
consolidated financial statements the directors have also elected to comply with IFRSs as issued by the International Accounting Standards Board
(IASB). In preparing those financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently.
• make judgements and estimates that are reasonable and prudent.
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information.
• provide additional disclosure when compliance with the specific requirements of IFRS is insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the group’s financial position and financial performance.
• state that applicable accounting standards have been followed, subject to any material departures disclosed and explained in the parent company
financial statements.
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the
group and company and enable them to ensure that the consolidated financial statements comply with the Companies Act 2006 and Article 4 of the
IAS Regulation and the parent company financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the
assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors draw attention to Note 2 on the consolidated financial statements which describes the uncertainties surrounding the amounts and
timings of liabilities arising from the Gulf of Mexico oil spill.
The group’s business activities, performance, position and risks are set out in this report. The financial position of the group, its cash flows, liquidity
position and borrowing facilities are detailed in the appropriate sections on pages 56 to 58 and elsewhere in the notes on the consolidated financial
statements. The report also includes details of the group’s risk mitigation and management. Information on the Gulf of Mexico oil spill and BP’s
response is included on pages 38 to 40 and elsewhere in this report, including Safety on pages 41 to 44. The group has considerable financial
resources, and the directors believe that the group is well placed to manage its business risks successfully. After making enquiries, the directors have
a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Having made the requisite enquiries, so far as the directors are aware, there is no relevant audit information (as defined by Section 418(3) of the
Companies Act 2006) of which the company’s auditors are unaware, and the directors have taken all the steps they ought to have taken to make
themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
The directors confirm that to the best of their knowledge:
• the consolidated financial statements, prepared in accordance with IFRS as issued by the IASB, IFRS as adopted by the EU and in accordance with
the provisions of the Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group;
• the parent company financial statements, prepared in accordance with United Kingdom generally accepted accounting practice, give a true and fair
view of the assets, liabilities, financial position, performance and cash flows of the company; and
• the management report, which is incorporated in the strategic report and directors’ report, includes a fair review of the development and
performance of the business and the position of the group, together with a description of the principal risks and uncertainties that they face.
Fair, balanced and understandable
In accordance with the principles of the UK Corporate Governance Code, the board has established arrangements to evaluate whether the information
presented in the Annual Report is fair, balanced and understandable: these are described on page 69.
The board considers the Annual Report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the company’s performance, business model and strategy.
C-H Svanberg Chairman
6 March 2014
This page does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
116 BP Annual Report and Form 20-F 2013