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This excerpt taken from the BP 6-K filed Dec 13, 2006. Consolidation of variable interest entities: In April 2006, the FASB issued Staff Position No. FIN 46(R)-6, ‘Determining the Variability to Be Considered in Applying FASB Interpretation No. 46(R)’ (FSP 46(R)-6). FSP 46(R)-6 clarifies how variability should be considered in applying FIN 46(R). Variability is used in applying FIN 46(R) to determine whether an entity is a variable interest entity, which interests are variable interests in the entity, and who is the primary beneficiary of the variable interest entity. Under FSP 46(R)-6, the variability to be considered in applying FIN 46(6)-6 is based on the design of the entity, the nature and risks of the entity and the purpose for which entity was created. FSP 46(R)-6 is effective for accounting periods beginning after June 15, 2006. The adoption of FSP 46(R)-6 did not have a
significant effect on the Group’s profit as adjusted to accord with US GAAP, or on BP shareholders’ equity as adjusted to accord with US GAAP.
This excerpt taken from the BP 6-K filed Nov 17, 2006. Consolidation of variable interest entities: In April 2006, the FASB issued Staff Position No. FIN 46(R)-6, ‘Determining the Variability to Be Considered in Applying FASB Interpretation No. 46(R)’ (FSP 46(R)-6). FSP 46(R)-6 clarifies how variability should be considered in applying FIN 46(R). Variability is used in applying FIN 46(R) to determine whether an entity is a variable interest entity, which interests are variable interests in the entity, and who is the primary beneficiary of the variable interest entity. Under FSP 46(R)-6, the variability to be considered in applying FIN 46(6)-6 is based on the design of the entity, the nature and risks of the entity and the purpose for which entity was created. FSP 46(R)-6 is effective for accounting periods beginning after June 15, 2006. The adoption of FSP 46(R)-6 did not have a
significant effect on the Group’s profit as adjusted to accord with US GAAP, or on BP shareholders’ equity as adjusted to accord with US GAAP.
This excerpt taken from the BP 6-K filed Sep 11, 2006. Consolidation of variable
interest entities: In April 2006, the FASB issued Staff Position
No. FIN 46(R)-6, ‘Determining the Variability to Be Considered in Applying FASB
Interpretation No. 46(R)’ (FSP 46(R)-6).
FSP 46(R)-6 clarifies how variability should be considered in applying
FIN 46(R). Variability is used in
applying FIN 46(R) to determine whether an entity is a variable interest
entity, which interests are variable interests in the entity, and who is the
primary beneficiary of the variable interest entity. Under FSP 46(R)-6, the variability to be
considered in applying FIN 46(6)-6 is based on the design of the entity, the
nature and risks of the entity and the purpose for which entity was created. FSP 46(R)-6 is effective for accounting
periods beginning after June 15, 2006.
The adoption of FSP 46(R)-6 is not expected to have a significant effect
on the Group’s profit as adjusted to accord with US GAAP, or BP shareholders’
equity as adjusted to accord with US GAAP.
This excerpt taken from the BP 6-K filed Aug 17, 2006. Consolidation of variable
interest entities: In April 2006, the FASB issued Staff Position
No. FIN 46(R)-6, ‘Determining the Variability to Be Considered in Applying FASB
Interpretation No. 46(R)’ (FSP 46(R)-6).
FSP 46(R)-6 clarifies how variability should be considered in applying
FIN 46(R). Variability is used in
applying FIN 46(R) to determine whether an entity is a variable interest
entity, which interests are variable interests in the entity, and who is the
primary beneficiary of the variable interest entity. Under FSP 46(R)-6, the variability to be
considered in applying FIN 46(6)-6 is based on the design of the entity, the
nature and risks of the entity and the purpose for which entity was
created. FSP 46(R)-6 is effective for
accounting periods beginning after June 15, 2006. The adoption of FSP 46(R)-6 is not expected
to have a significant effect on the Group’s profit as adjusted to accord with
US GAAP, or BP shareholders’ equity as adjusted to accord with US GAAP.
This excerpt taken from the BP 20-F filed Jun 13, 2006. (q) Consolidation of variable interest entities In January 2003, the FASB issued FASB Interpretation No. 46 'Consolidation of Variable Interest Entities' (Interpretation 46). Interpretation 46 clarifies the application of existing consolidation requirements to entities where a controlling financial interest is achieved through arrangements that do not involve voting interests. Under Interpretation 46, a variable interest entity is consolidated if a company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns. The Group currently has several ships under construction which are accounted for under UK GAAP as operating leases. Under Interpretation 46 certain of the arrangements represent variable interest entities that would be consolidated by the Group. The maximum exposure to loss as a result of the Group's involvement with these entities is limited to the debt of the entity, less the fair value of the ships at the end of the lease term. The adoption of Interpretation 46 did not have a significant effect on profit, as adjusted to accord with US GAAP. The adjustment to BP shareholders' interest to accord with US GAAP are summarized below.
This excerpt taken from the BP 6-K filed Sep 7, 2005. Consolidation of variable
interest entities
In January 2003, the FASB issued FASB Interpretation No. 46 ‘Consolidation of Variable Interest Entities’ (Interpretation 46). Interpretation 46 clarifies the application of existing consolidation requirements to entities where a controlling financial interest is achieved through arrangements that do not involve voting interests. Under Interpretation 46, a variable interest entity is consolidated if a company is subject to a majority of the risk of loss from the variable interest entity’s activities or entitled to receive a majority of the entity’s residual returns.
The Group currently has several ships under construction which are accounted for under IFRS as operating leases. Under Interpretation 46 certain of the arrangements represent variable interest entities that would be consolidated by the Group. The maximum exposure to loss as a result of the Group’s involvement with these entities is limited to the debt of the entity, less the fair value of the ships at the end of the lease term.
The adoption of Interpretation 46 did not have a significant effect on profit, as adjusted to accord with US GAAP. The adjustments to BP shareholders’ equity to accord with US GAAP are summarized below.
Increase (decrease) in caption heading
43
The following is a summary of the adjustments to profit for the period attributable to BP shareholders and to BP shareholders’ equity which would be required if US GAAP had been applied instead of IFRS.
This excerpt taken from the BP 20-F filed Jun 30, 2005. (q) Consolidation of variable interest entities In January 2003, the FASB issued FASB Interpretation No. 46 'Consolidation of Variable Interest Entities' (Interpretation 46). Interpretation 46 clarifies the application of existing consolidation requirements to entities where a controlling financial interest is achieved through arrangements that do not involve voting interests. Under Interpretation 46, a variable interest entity is consolidated if a company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns. The Group currently has several ships under construction which are accounted for under UK GAAP as operating leases. Under Interpretation 46 certain of the arrangements represent variable interest entities that would be consolidated by the Group. The maximum exposure to loss as a result of the Group's involvement with these entities is limited to the debt of the entity, less the fair value of the ships at the end of the lease term. The adoption of Interpretation 46 did not have a significant effect on profit, as adjusted to accord with US GAAP. The adjustment to BP shareholders' interest to accord with US GAAP are summarized below.
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