Property, Plant and Equipment Disclosure
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
Item | Description | The company |
---|---|---|
Property, plant and equipment, cost | Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. | BP PLC property, plant and equipment, cost increased from 2012 to 2013 and from 2013 to 2014. |
Property, plant and equipment, net book amount | Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. | BP PLC property, plant and equipment, net book amount increased from 2012 to 2013 but then slightly decreased from 2013 to 2014. |
Asset Age Ratios (Summary)
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
Asset age ratio | Description | The company |
---|---|---|
Average age ratio | As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. | BP PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 and from 2013 to 2014. |
Estimated total useful life | Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. | BP PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Estimated time elapsed since purchase | The approximate age in years of a company fixed assets. Useful for comparison purposes. | BP PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Estimated remaining life | BP PLC estimated remaining life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Average Age
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
2014 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, cost – Land and land improvements)
= 100 × 151,009 ÷ (281,701 – 3,415) = 54.26%
Asset age ratio | Description | The company |
---|---|---|
Average age | As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. | BP PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 and from 2013 to 2014. |
Estimated Total Useful Life
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
2014 Calculations
1 Estimated total useful life = (Property, plant and equipment, cost – Land and land improvements) ÷ Depreciation charge for the year and impairment losses
= (281,701 – 3,415) ÷ 22,486 = 12
Asset age ratio | Description | The company |
---|---|---|
Estimated total useful life | Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. | BP PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Estimated Age, Time Elapsed since Purchase
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
2014 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation charge for the year and impairment losses
= 151,009 ÷ 22,486 = 7
Asset age ratio | Description | The company |
---|---|---|
Estimated time elapsed since purchase | The approximate age in years of a company fixed assets. Useful for comparison purposes. | BP PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level. |
Estimated Remaining Life
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
2014 Calculations
1 Estimated remaining life = (Property, plant and equipment, net book amount – Land and land improvements) ÷ Depreciation charge for the year and impairment losses
= (130,692 – 3,415) ÷ 22,486 = 6
Asset age ratio | Description | The company |
---|---|---|
Estimated remaining life | BP PLC estimated remaining life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |