Annual Report 2007 in PDF - Cairn Energy PLC

NOTES TO THE ACCOUNTS
CONTINUED
4. Segmental Analysis (continued)
Segment liabilities comprise operating liabilities and exclude items such as taxation, corporate borrowings and inter-company
balances.
Other assets include assets of Cairn’s head office in Edinburgh, as well as interest receivable, deposits, cash and cash equivalents
of the Group which cannot be allocated to an operating segment.
Other liabilities include liabilities of Cairn’s head office in Edinburgh, as well as income tax liabilities and deferred tax liabilities of
the Group which cannot be allocated to an operating segment.
Business Segments
Cairn operates in only one business segment, being the oil and gas extractive industry and therefore no business segmental
analysis is provided.
5. Operating Loss
(a) Operating loss is stated after charging/(crediting):
90 CAIRN ENERGY PLC ANNUAL REPORT 2007
2007 2006
$’000 $’000
Unsuccessful exploration costs 40,714 62,018
Movement in inventory of oil and condensate (3,363) 918
Depletion and decommissioning charge of property, plant & equipment – development/producing assets 118,994 103,487
Impairment losses on financial assets (Other loans and receivables) 3,606 4,606
Depreciation of property, plant & equipment – other 2,022 3,145
Amortisation of intangible assets – other 4,310 3,862
Operating lease costs
– land and buildings 2,963 2,650
– other 205 283
Impairment of intangible exploration/appraisal assets (Note 13) 58,924 –
Impairment of property, plant & equipment – development/producing assets (Note 14) – 71,455
Reversal of impairment of property, plant & equipment – development/producing assets (Note 14) (3,718) –
Loss on sale of oil and gas assets (Note 3(c)) 89 –
Auditor’s remuneration
Fees payable to the Group’s auditor for the audit of the Group’s annual accounts 467 460
Fees payable to the Company’s auditor for the audit of the Company’s annual accounts 22 22
Fees payable to the Group’s auditor and its associates for other services:
– for the audit of subsidiaries pursuant to legislation 646 642
– other services pursuant to legislation 111 41
– other services relating to taxation 68 48
– services relating to corporate finance transactions – 132
– all other services 483 232
Fees in respect of Cairn Energy PLC pension scheme
– audit 1 2
Other advisers’ fees in respect of taxation work 41 60
Other advisers’ fees in respect of other work 331 303
The Group has a policy in place for the award of non-audit work to the auditors which, in certain circumstances, requires Audit
Committee approval.
Other advisers comprise accountancy firms other than the Group’s auditor.