On the next page, you can find the note on Property, Plant and Equipment Assets...
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Accounting
On the next page, you can find the note on Property, Plant and Equipment Assets of BPs 2006 Annual Report. Using the information provided in the note, please answer the questions below. All numbers in the questions below and in the footnote are in $ million.
How much did BP pay to purchase/develop additional Oil and Gas Properties in 2006?
Assume that BP received a total of $400 in cash from selling Oil and Gas Properties.
At the time of sale, what was the accumulated depreciation on the Oil and Gas Properties that were sold?
Calculate the total amount of gain or loss that BP recognised on these asset sales.
Property, plant and equipment
Land and land improvements
Buildings
Oil and gas properties
Plant,
machinery
and equipment
Fixtures,
fittings and
office equipment
Transportation
Oil depots,
Storage
tanks and
service
stations
Total
Of which:
assets under construction
Cost
At 1 January 2006
4,576
2,835
113,474
28,780
2,247
13,266
11,235
176,413
16,115
Exchange adjustments
255
239
72
1,028
138
27
517
2,276
137
Acquisitions
16
16
Additions
81
381
11,264
2,146
841
22
918
15,653
11,560
Transfers
(628)
(1)
(629)
(9,787)
Reclassified as assets held for sale
(15)
(1)
(842)
(1)
(47)
(906)
Deletions
(455)
(325)
(5,628)
(486)
(219)
(1,314) (1,412)
(9,839) (225)
At 31 December 2006
4,442
3,129
118,554
30,642
3,006
12,000
11,211
182,984
17,800
Depreciation
At 1 January 2006
709
1,437
61,253
13,417
1,450
7,104
5,096
90,466
Exchange adjustments
15
147
54
552
107
12
154
1,041
Charge for the year
52
149
6,214
1,059
418
301
718
8,911
Impairment losses
87
5
4
98
1
9
204
Impairment reversals
(340)
(340)
Transfers
(887)
(1)
(888)
Reclassified as assets held for sale
(1)
(325)
(1)
(15)
(342)
Deletions
(188)
(267)
(5,048)
(173)
(212)
(471) (708)
(7,067)
At 31 December 2006
675
1,470
61,250
14,628
1,762
6,946
5,254
91,985
Net book amount at 31 December 2006
3,767
1,659
57,304
16,014
1,244
5,054
5,957
90,999
17,800
Answer & Explanation
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