This excerpt taken from the BP 20-F filed Mar 6, 2007.
Hedges of net investments in foreign entities
At 31 December, the group held currency swap contracts as a hedge of a long-term investment in a UK subsidiary. The hedge was assessed to be highly effective. At 31 December 2006, the hedge had a fair value of $107 million (2005 $63 million) and the gain on the hedge recognized in equity was $105 million (2005 $58 million). US dollars have been sold forward for sterling purchased, with a maturity of 2 to 3 years.
The following information for 2004 shows certain disclosures required by UK GAAP (FRS 13 Derivatives and other Financial Instruments: Disclosures).
Fair value method