i.

What type of information does the company provide in the annual report?
Answer: Strategic Information, Financial Information, Shareholder Information,
Corporate Governance Information and other additional disclosures

ii.

Read pages 2 - 55, any comments thoughts. In particular look at BPs Key
Performance Indicators (KPIs) - What areas do the KPIs cover?
Answer: KPIs are
Replacement Cost Profit (loss) per ordinary share
Operating Cash Flow
Gearing (net debt ratio)
Refining Availability
Reported recordable injury frequency
Loss of primary containment
Total shareholder return
Reserves replacement ratio
Major project delivery
Production
Tier 1 process safety events
Green house gas emissions
Group priorities engagement
Diversity and inclusion

iii.

Identify and list the five principal financial statements for 2013.
Answer: Five principals are
1. Statement of Directors Responsibilities
2. Consolidated financial statements of the BP group
3. Notes on Financial Statements
4. Supplementary information on oil and natural gas (unaudited)
5. Parent company financial statements of BP p.l.c

iv.

Look at the Group balance sheet of 2013, what are the 5 main section headings,
what do you think they mean? Which 2 numbers are the same and what were
they for year ending 31 December 2013 and 2012?
Answer: 5 section headings with my understanding are 1. Non Current Assets:
A company's long-term investments whose full value will not be realized within
the accounting year. Noncurrent assets are capitalized rather than expensed,
meaning that the company allocates the cost of the asset over the number of
years for which the asset will be in use, instead of allocating the entire cost to the
accounting year in which the asset was purchased.
2. Current Assets:
a. A balance sheet account that represents the value of all assets that
are reasonably expected to be converted into cash within one year in
the normal course of business. Current assets include cash, accounts
receivable, inventory, marketable securities, prepaid expenses and
other liquid assets that can be readily converted to cash.
b. In personal finance, current assets are all assets that a person can
readily convert to cash to pay outstanding debts and cover liabilities
without having to sell fixed assets.
3. Non Current Liabilities
A business's long-term financial obligations that are not due within the present
accounting year. Examples of noncurrent liabilities include long-term borrowing,
bonds payable and long-term lease obligations. Any noncurrent liabilities will be
listed on the company's balance sheet.

4. Current liabilities
A company's debts or obligations that are due within one year. Current
liabilities appear on the company's balance sheet and include short term debt,
accounts payable, accrued liabilities and other debts.
5. Equity
a. A stock or any other security representing an ownership interest.
b. On a company's balance sheet, the amount of the funds contributed by
the owners (the stockholders) plus the retained earnings (or losses).
Also referred to as "shareholders' equity".
c. In the context of margin trading, the value of securities in a margin
account minus what has been borrowed from the brokerage.
d. In the context of real estate, the difference between the current market
value of the property and the amount the owner still owes on the
mortgage. It is the amount that the owner would receive after selling a
property and paying off the mortgage.
e. In terms of investment strategies, equity (stocks) is one of the principal
asset classes. The other two are fixed-income (bonds) and cash/cashequivalents. These are used in asset allocation planning to structure a
desired risk and return profile for an investor's portfolio.
The two numbers that were same for year ending December 31, 2013 was
130,407 and December 31, 2012 was 119,752
v.

From the numbers that you found in part iv above, look at the area in bold of the
Group statement of changes in equity. What do you notice? Explain why the
figures changed.
Answer: Shareholder equity increased and non-controlling interests were
decreased. The figures were changed because of decrease in financial debt.

vi.

There are 2 sets of financial statements presented:- Consolidated financial statements of the BP Group (page 115 onwards)
- Parent company financial statements of BP plc (page 224 onwards).
Can you think why this would be the case? (Hint look at and compare the called
up share capital figure in the Parent Company Balance sheet of $5,129 and see if
you can find the share capital figure for the BP Group refer to Note 32)
Answer:

vii.

What period of time do the 2013 accounts cover?

Answer: January 13 December 13

viii.

Find the Auditors Report for 2013

a. Who are the groups auditors?
b. To whom is the report addressed to?
c. Which parts of the annual report have been audited?
d. What is their opinion?
e. How much were they paid this year and last year? Were the auditors used for
anything else? (You will need to look in the notes relating to the financial
statements for this information)
Answer:
a. Independent Auditors.
b. Accounts to the member of BP p.l.c.
c. Consolidated financial statements
d. Their opinion in the consolidated financial statements:

give a true and fair view of the state of the groups affairs as at 31
December 2013 and of its profit for the year then ended;

have been properly prepared in accordance with IFRS as adopted by the

European Union; and
Have been prepared in accordance with the requirements of the
Companies Act 2006 and Article 4 of the IAS Regulation.

ix.

What does IFRS and IAS stand for?

Answer:
IFRS International Financial Reporting Standards.
IAS International Accounting Standards.
x.
Write down the following financial figures for BP for 2013 and 2012
a. Sales and other operating revenues
b. Profit figure
c. Increase/(decrease) in cash and cash equivalents Include cash equivalent
figure at the beginning and end of the year (look at the cash flow statement
for)
d. Earning per share for the year basic and diluted, what is the difference
between the two types?
Answer:
a. 379,136 in 2013 and 375,765 in 2012 (*Figures in $million)
b. 23,758 in 2013 and 11,252 in 2012 (*Figures in $million)
c. 22,520 in 2013 and 19,635 in 2012 (*Figures in $million)
d. EPS a. Basic 123.87 in 2013 and 57.89 in 2012
b. Diluted 123.12 in 2013 and 57.50 in 2012
Difference in Basic and Diluted
A performance metric used to gauge the quality of a company's earnings per share
(EPS) if all convertible securities were exercised. Convertible securities refers to all
outstanding convertible preferred shares, convertible debentures, stock options
(primarily employee based) and warrants. Unless the company has no additional
potential shares outstanding (a relatively rare circumstance) the diluted EPS will
always be lower than the simple EPS.
xi.

xii.

Who was the highest paid Executive Director in during 2013 and what was it
made up of?
Answer: Bob Dudley and it was made up with Annual Remuneration, Vested Equity
& Pension
Who was the highest paid Non-Executive Director during 2013?
Answer: Carl-Henric Svanberg