BP (BP)

(f)  Revisions to fair market values

UK GAAP permits assets and liabilities acquired in a business combination to be revised during the year following that in which the acquisition was made. Under US GAAP, subsequent to determining acquisition date fair values, such adjustments are not permitted.

In 2003, revisions were made to the previously reported fair values for tangible fixed assets (decrease of $76 million) and other provisions (decrease of $365 million) relating to the 2002 acquisition of Veba. Under US GAAP, the revisions were included in cost of sales.

The adjustments to profit for the year to accord with US GAAP are summarized below. The consequential Balance Sheet adjustments are reflected in (c) Deferred taxation/Business combinations and (h) Goodwill and intangible assets.

(f)  Revisions to fair market values

UK GAAP permits assets and liabilities acquired in a business combination to be revised during the year following that in which the acquisition was made. Under US GAAP, subsequent to determining acquisition date fair values, such adjustments are not permitted.

In 2003, revisions were made to the previously reported fair values for tangible fixed assets (decrease of $76 million) and other provisions (decrease of $365 million) relating to the 2002 acquisition of Veba. Under US GAAP, the revisions were included in cost of sales.

The adjustments to profit for the year to accord with US GAAP are summarized below. The consequential Balance Sheet adjustments are reflected in (c) Deferred taxation/Business combinations and (h) Goodwill and intangible assets.