BP » Topics » (f) Inventory valuation

This excerpt taken from the BP 6-K filed Feb 2, 2010.

7.         Inventory valuation

 

Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the fourth quarter of 2009 was a decrease of $423 million (third quarter of 2009 was an increase of $128 million). The net movement in the provision in the full year 2009 was a decrease of $1,366 million.

 

This excerpt taken from the BP 6-K filed Oct 27, 2009.
7.        Inventory valuation

Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the third quarter of 2009 was an increase of $128 million (second quarter of 2009 was an increase of $92 million). The movement in the provision in the nine months ended 30 September 2009 is a decrease of $943 million.


These excerpts taken from the BP 6-K filed Jul 28, 2009.

7.            Inventory valuation

Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the second quarter of 2009 was an increase of $92 million (first quarter of 2009 was a decrease of $1,163 million).

Inventory
valuation






Due to falling oil prices a provision of
$1,412 million was held at 31 December 2008 to write inventories down to their net
realizable value. The net movement in the provision during the second quarter of 2009 was
an increase of $92 million (first quarter of 2009 was a decrease of $1,163
million).






These excerpts taken from the BP 6-K filed Apr 28, 2009.

7. Inventory valuation

Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the first quarter of 2009 was a decrease of $1,163 million (fourth quarter of 2008 was an increase of $168 million).

7. Inventory
valuation



Due to falling oil prices a provision
of $1,412 million was held at 31 December 2008 to write inventories down to their net
realizable value. The net movement in the provision during the first quarter of 2009 was a
decrease of $1,163 million (fourth quarter of 2008 was an increase of $168
million).



These excerpts taken from the BP 6-K filed Feb 3, 2009.

        10. Inventory valuation

Due to falling oil prices, at 31 December 2008 a provision of $1,412 million was held to write inventories down to their net realizable value. The increase in the amount of the provision during the fourth quarter was $168 million and for the year was $1,295 million. This affects profit for the period only; replacement cost profit is unaffected.

       
10. Inventory valuation






Due to falling oil prices, at 31
December 2008 a provision of $1,412 million was held to write inventories down to their net
realizable value. The increase in the amount of the provision during the fourth quarter was
$168 million and for the year was $1,295 million. This affects profit for the period only;
replacement cost profit is unaffected.






These excerpts taken from the BP 6-K filed Oct 28, 2008.

10. Inventory valuation

Due to falling oil prices, an expense of $1,217 million has been recognized in the third quarter 2008 and $1,127 million in the nine months ended 30 September 2008 representing the write-down of inventories to their net realisable value. This affects profit for the period only; replacement cost profit is unaffected.

10. Inventory
valuation






Due to falling oil prices, an expense of
$1,217 million has been recognized in the third quarter 2008 and $1,127 million in the nine
months ended 30 September 2008 representing the write-down of inventories to their net
realisable value. This affects profit for the period only; replacement cost profit is
unaffected.






This excerpt taken from the BP 20-F filed Mar 6, 2007.
(f) Inventory valuation
Under IFRS, inventory held for trading purposes is remeasured to fair value with the changes in fair value recognized in the income statement. Under US GAAP, all balances recorded in inventory are measured at the lower of cost and net realizable value.
     
The adjustments to profit for the year and to BP shareholders’ equity to accord with US GAAP are summarized below.

Increase (decrease) in caption heading         $ million  







  2006   2005   2004  







Purchases (250 ) 357   (250 )
Taxation 88   (125 ) 88  
Profit for the year 162   (232 ) 162  







       
      $ million  





  2006   2005  





Inventories (7 ) (257 )
Deferred tax liabilities (2 ) (90 )
BP shareholders’ equity (5 ) (167 )





 

174  

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53 US GAAP reconciliation continued

This excerpt taken from the BP 20-F filed Jun 13, 2006.

Inventory valuation

        Inventories, other than inventory held for trading purposes, are valued at cost to the Group using the first-in first-out method or at net realizable value, whichever is the lower. Stores are valued at cost to the Group mainly using the average method or net realizable value, whichever is the lower.

        Inventory held for trading purposes is marked-to-market and any gains or losses are recognized in the income statement rather than the statement of total recognized gains and losses. The directors consider that the nature of the Group's trading activity is such that, in order for the accounts to show a true and fair view of the state of affairs of the Group and the results for the year, it is necessary to depart from the requirements of Schedule 4 to the Companies Act 1985. Had the treatment in Schedule 4 been followed, the profit and loss account reserve would have been reduced by $100 million (2003 $150 million and 2002 $209 million) and a revaluation reserve established and increased accordingly.

This excerpt taken from the BP 20-F filed Jun 30, 2005.

Inventory valuation

        Inventories, other than inventory held for trading purposes, are valued at cost to the Group using the first-in first-out method or at net realizable value, whichever is the lower. Stores are valued at cost to the Group mainly using the average method or net realizable value, whichever is the lower.

        Inventory held for trading purposes is marked-to-market and any gains or losses are recognized in the income statement rather than the statement of total recognized gains and losses. The directors consider that the nature of the Group's trading activity is such that, in order for the accounts to show a true and fair view of the state of affairs of the Group and the results for the year, it is necessary to depart from the requirements of Schedule 4 to the Companies Act 1985. Had the treatment in Schedule 4 been followed, the profit and loss account reserve would have been reduced by $100 million (2003 $150 million and 2002 $209 million) and a revaluation reserve established and increased accordingly.

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