BP Annual Report and Form 20-F 2011 - Company Reporting

Financial statements174 Statement of directors’responsibilities175 Consolidated financial statementsof the BP groupIndependent auditor’s reports 175Group income statement 178Group statement of comprehensive income 179Group statement of changes in equity 179Group balance sheet 180Group cash flow statement 181182 Notes on financial statements1 Significant accounting policies 1822 Significant event – Gulf of Mexico oil spill 1903 Business combinations 1944 Non-current assets held for sale 1965 Disposals and impairment 1976 Segmental analysis 2007 Interest and other income 2058 Production and similar taxes 2059 Depreciation, depletion and amortization 20510 Impairment review of goodwill 20611 Distribution and administration expenses 20712 Currency exchange gains and losses 20813 Research and development 20814 Operating leases 20815 Exploration for and evaluation of oil andnatural gas resources 20916 Auditor’s remuneration 20917 Finance costs 20918 Taxation 21019 Dividends 21220 Earnings per ordinary share 21221 Property, plant and equipment 21322 Goodwill 21423 Intangible assets 21424 Investments in jointly controlled entities 21525 Investments in associates 21626 Financial instruments and financial risk factors 21727 Other investments 22228 Inventories 22229 Trade and other receivables 22330 Cash and cash equivalents 22331 Valuation and qualifying accounts 22332 Trade and other payables 22433 Derivative financial instruments 22434 Finance debt 22935 Capital disclosures and analysis of changesin net debt 23036 Provisions 23137 Pensions and other post-retirement benefits 23438 Called-up share capital 24139 Capital and reserves 24240 Share-based payments 24641 Employee costs and numbers 24842 Remuneration of directors and senior management 24843 Contingent liabilities 24944 Capital commitments 25045 Subsidiaries, jointly controlled entities andassociates 25146 Condensed consolidating information on certainUS subsidiaries 253259 Supplementary informationon oil and natural gas (unaudited)Oil and natural gas exploration and production activities 260Movements in estimated net proved reserves 266Standardized measure of discounted future netcash flows and changes therein relating to provedoil and gas reserves 277Operational and statistical information 280PC1 Parent company financialstatements of BP p.l.c.Independent auditor’s report to the members of BP p.l.c. PC1Company balance sheetPC2Company cash flow statementPC3Company statement of total recognized gains and losses PC3Notes on financial statementsPC41 Accounting policies PC42 Taxation PC53 Fixed assets – investments PC54 Debtors PC65 Creditors PC66 Pensions PC77 Called-up share capital PC108 Capital and reserves PC109 Cash flow PC1110 Contingent liabilities PC1111 Share-based payments PC1112 Auditor’s remuneration PC1313 Directors’ remuneration PC14Financial statementsBP BP Annual Annual Report Report and and Form Form 20-F c 2011 173