BP 2013 Annual Report Download - page 142

1. Significant accounting policies, judgements, estimates and assumptions – continued
Detailed restated financial information for 2012 and 2011 is shown in BP Financial and Operating Information 2008-2012 available on bp.com/investors.
Other standards
A number of other new or amended standards have been adopted by the group with effect from 1 January 2013 but do not have a significant impact
on the financial statements. These include:
IFRS 10 ‘Consolidated Financial Statements’ introduces a single consolidation model that identifies control as the basis for consolidation. The new
model applies to all types of entities, including structured entities. Under the new model, an investor controls an investee when it is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. There
was no effect on the group’s reported income or net assets as a result of the adoption of IFRS 10.
IFRS 12 ‘Disclosures of Interests in Other Entities’ combines all the disclosure requirements for an entity’s interests in subsidiaries, joint arrangements,
associates and structured entities into one comprehensive disclosure standard. There was no effect on the group’s reported income or net assets as a
result of the adoption of IFRS 12. The disclosures required by the standard are included in this report.
In May 2011, the IASB issued a new standard, IFRS 13 ‘Fair Value Measurement’. The new standard defines fair value, sets out a framework for
measuring fair value and contains the required disclosures about fair value measurements. IFRS 13 does not require fair value measurements in
addition to those already required or permitted by other standards, rather it prescribes how fair value should be measured if another standard requires
it. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date i.e. it is an exit price. There was no significant impact on the group’s reported income or net assets as a result of
the adoption of IFRS 13. The disclosures required by the new standard are included in this report.
In December 2011, the IASB issued an amendment to IFRS 7 ‘Disclosures – Offsetting Financial Assets and Financial Liabilities’. This amendment
introduces new disclosure requirements about the effects of offsetting financial assets and financial liabilities and related arrangements on an entity’s
balance sheet. The new disclosures are included in this report.
In June 2011, the IASB issued amendments to IAS 1 ‘Presentation of Financial Statements’ on the presentation of other comprehensive income (OCI).
The amendments require that those items of OCI that might be reclassified to profit or loss at a future date be presented separately from those items
that will never be reclassified to profit or loss. The adoption of the amended standard has a presentational impact on the group’s statement of
comprehensive income, with no effect on the reported income, total comprehensive income, or net assets of the group. The presentation required by
the amended standard is included in this report.
In May 2013, the IASB issued an amendment to IAS 36 ‘Impairment of Assets’ in relation to the disclosure of recoverable amounts for non-financial
assets. The amendment addressed certain unintended consequences arising from consequential amendments made to IAS 36 when IFRS 13 was
issued. Although the mandatory effective date for application of the amendment is for annual periods beginning on or after 1 January 2014, the group
has early-adopted it in these financial statements.
In addition, a number of other standards and interpretations were adopted in the year which had no significant impact on the group’s reported income
and net assets.
Not yet adopted
The following pronouncements from the IASB will become effective for future financial reporting periods and have not yet been adopted by the group.
As part of the IASB’s project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’, in November 2009 the IASB issued the first
phase of IFRS 9 ‘Financial Instruments’, dealing with the classification and measurement of financial assets. In October 2010, the IASB updated IFRS 9
by incorporating the requirements for the accounting for financial liabilities and in November 2013 the IASB published revised guidance for hedge
accounting. The remaining phase of IFRS 9, dealing with impairment, and further changes to the classification and measurement requirements, are still
to be completed. In November 2013, the IASB also removed the effective date from IFRS 9 and will decide on an effective date when the entire IFRS 9
project is closer to completion. BP has not yet decided the date of adoption for the group and has not yet completed its evaluation of the effect of
adoption. The EU has not yet adopted IFRS 9.
In December 2011, the IASB issued an amendment to IAS 32 ‘Offsetting Financial Assets and Financial Liabilities’. This amendment clarifies the
presentation requirements in relation to offsetting financial assets and financial liabilities on an entity’s balance sheet. The amendment to IAS 32is
effective for annual periods beginning on or after 1 January 2014. BP’s evaluation of the effect of adoption of the amendment to IAS 32 is substantially
complete, and is not expected to result in any significant changes to the offsetting of financial assets and liabilities on the group’s balance sheet.
There are no other standards and interpretations in issue but not yet adopted that the directors anticipate will have a material effect on the reported
income or net assets of the group.
138 BP Annual Report and Form 20-F 2013