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Basis of preparation (Tables)
 6 Months Ended
Jun. 30, 2019
Corporate Information And Statement Of IFRS Compliance [Abstract]  
Impacts of adoption of IFRS 16
The following table provides a reconciliation of the group’s operating lease commitments as at 31 December 2018 to the total lease liability recognized on the group balance sheet in accordance with IFRS 16 as at 1 January 2019.
$ million
 
 
Operating lease commitments at 31 December 2018
 
11,979

 
 
 
Leases not yet commenced
 
(1,372
)
Leases below materiality threshold
 
(86
)
Short-term leases
 
(91
)
Effect of discounting
 
(1,512
)
Impact on leases in joint operations
 
836

Variable lease payments
 
(58
)
Redetermination of lease term
 
(252
)
Other
 
(22
)
Total additional lease liabilities recognized on adoption of IFRS 16
 
9,422

Finance lease obligations at 31 December 2018
 
667

Adjustment for finance leases in joint operations
 
(189
)
Total lease liabilities at 1 January 2019
 
9,900

The effect of the adoption of IFRS 16 on the group balance sheet is set out below.

Note 1. Basis of preparation (continued)
 
 
 
 
Adjustment

 
 
31 December

1 January

on adoption

$ million
 
2018

2019

of IFRS 16

Non-current assets
 
 
 
 
Property, plant and equipment
 
135,261

143,950

8,689

Trade and other receivables
 
1,834

2,159

325

Prepayments
 
1,179

849

(330
)
Deferred tax assets
 
3,706

3,736

30

Current assets
 
 
 
 
Trade and other receivables
 
24,478

24,673

195

Prepayments
 
963

872

(91
)
Current liabilities
 
 
 
 
Trade and other payables
 
46,265

46,209

(56
)
Accruals
 
4,626

4,578

(48
)
Lease liabilities
 
44

2,196

2,152

Finance debt
 
9,329

9,329

—

Provisions
 
2,564

2,547

(17
)
Non-current liabilities
 
 
 
 
Other payables
 
13,830

14,013

183

Accruals
 
575

548

(27
)
Lease liabilities
 
623

7,704

7,081

Finance debt
 
55,803

55,803

—

Deferred tax liabilities
 
9,812

9,767

(45
)
Provisions
 
17,732

17,657

(75
)
 
 
 
 
 
Net assets
 
101,548

101,218

(330
)
 
 
 
 
 
Equity
 
 
 
 
BP shareholders' equity
 
99,444

99,115

(329
)
Non-controlling interests
 
2,104

2,103

(1
)
 
 
101,548

101,218

(330
)
The total adjustments to the group's lease liabilities at 1 January 2019 are reconciled as follows:
$ million
 
 
Total additional lease liabilities recognized on adoption of IFRS 16
 
9,422

Less: adjustment for finance leases in joint operations
 
(189
)
Total adjustment to lease liabilities
 
9,233

Of which – current
 
2,152

–
non-current
 
7,081


IFRIC agenda decision on IFRS 9 'Financial Instruments'
In March 2019, the IFRS Interpretations Committee (IFRIC) issued an agenda decision on the application of IFRS 9 to the physical settlement of contracts to buy or sell a non-financial item. The agenda decision concluded that where a derivative contract is settled by the physical receipt (or delivery) of the commodity, the transaction price reported for the purchase (or sale) should include the fair value of the derivative instrument in addition to the cash payable (or receivable). BP is currently assessing the impact of the agenda decision but expects it to have no effect on reported earnings.