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Financial instruments and financial risk factors (Tables)
 12 Months Ended
Dec. 31, 2019
Financial Instruments [Abstract]  
Disclosure of financial assets
Other investments
 
 
 
 
 
$ million

 
 
 
2019

 
2018

 
 
Current

Non-current

Current

Non-current

Equity investmentsa
 
—

571

1

482

Other
 
169

705

221

859

 
 
169

1,276

222

1,341

a 
The majority of equity investments are unlisted.
Other investments includes $598 million relating to contingent consideration amounts arising on disposals (2018 $893 million) which are financial assets classified as measured at fair value through profit or loss. The fair value is determined using an estimate of discounted future cash flows that are expected to be received and is considered a level 3 valuation under the fair value hierarchy. Future cash flows are estimated based on inputs including oil and natural gas prices, production volumes and operating costs related to the disposed operations. The discount rate used is based on a risk-free rate adjusted for asset-specific risks.
The accounting classification of each category of financial instruments and their carrying amounts are set out below.
 
 
 
 
 
 
 
$ million

At 31 December 2019
 
Note

 
Measured at amortized cost

Mandatorily measured at fair value through profit or loss

Derivative hedging instruments

Total carrying
amount

Financial assets
 
 
 
 
 
 
 
Other investments
 
18

 
—

1,445

—

1,445

Loans
 
 
 
906

63

—

969

Trade and other receivables
 
20

 
24,271

—

—

24,271

Derivative financial instruments
 
30

 
—

9,984

483

10,467

Cash and cash equivalents
 
25

 
18,183

4,289

—

22,472

Financial liabilities
 
 
 
 
 
 
 
Trade and other payables
 
22

 
(55,891
)
—

—

(55,891
)
Derivative financial instruments
 
30

 
—

(8,122
)
(676
)
(8,798
)
Accruals
 
 
 
(6,062
)
—

—

(6,062
)
Lease liabilities
 
28

 
(9,722
)
—

—

(9,722
)
Finance debta
 
26

 
(67,724
)
—

—

(67,724
)
 
 
 
 
(96,039
)
7,659

(193
)
(88,573
)
29. Financial instruments and financial risk factors – continued
 
 
 
 
 
 
 
$ million

At 31 December 2018
 
Note

 
Measured at amortized cost

Mandatorily measured at fair value through profit or loss

Derivative hedging instruments

Total carrying
amount

Financial assets
 
 
 
 
 
 
 
Other investments
 
18

 
—

1,563

—

1,563

Loans
 
 
 
839

124

—

963

Trade and other receivables
 
20

 
24,080

—

—

24,080

Derivative financial instruments
 
30

 
—

8,564

427

8,991

Cash and cash equivalents
 
25

 
20,366

2,102

—

22,468

Financial liabilities
 
 
 




Trade and other payables
 
22

 
(56,790
)
—

—

(56,790
)
Derivative financial instruments
 
30

 
—

(7,685
)
(1,248
)
(8,933
)
Accruals
 
 
 
(5,201
)
—

—

(5,201
)
Lease liabilities
 
28

 
(667
)
—

—

(667
)
Finance debta
 
26

 
(65,132
)
—

—

(65,132
)
 
 
 
 
(82,505
)
4,668

(821
)
(78,658
)

a As a result of the adoption of IFRS 16 ‘Leases’, leases that were previously classified as finance leases under IAS 17 are now presented as ‘Lease liabilities’ on the group balance sheet and therefore do not form part of finance debt. Comparative information for finance debt and lease liabilities have been amended to be on a consistent basis with amounts presented for 2019. The previously disclosed amounts for finance debt for 2018 was $65,799 million.
Disclosure of financial liabilities
The accounting classification of each category of financial instruments and their carrying amounts are set out below.
 
 
 
 
 
 
 
$ million

At 31 December 2019
 
Note

 
Measured at amortized cost

Mandatorily measured at fair value through profit or loss

Derivative hedging instruments

Total carrying
amount

Financial assets
 
 
 
 
 
 
 
Other investments
 
18

 
—

1,445

—

1,445

Loans
 
 
 
906

63

—

969

Trade and other receivables
 
20

 
24,271

—

—

24,271

Derivative financial instruments
 
30

 
—

9,984

483

10,467

Cash and cash equivalents
 
25

 
18,183

4,289

—

22,472

Financial liabilities
 
 
 
 
 
 
 
Trade and other payables
 
22

 
(55,891
)
—

—

(55,891
)
Derivative financial instruments
 
30

 
—

(8,122
)
(676
)
(8,798
)
Accruals
 
 
 
(6,062
)
—

—

(6,062
)
Lease liabilities
 
28

 
(9,722
)
—

—

(9,722
)
Finance debta
 
26

 
(67,724
)
—

—

(67,724
)
 
 
 
 
(96,039
)
7,659

(193
)
(88,573
)
29. Financial instruments and financial risk factors – continued
 
 
 
 
 
 
 
$ million

At 31 December 2018
 
Note

 
Measured at amortized cost

Mandatorily measured at fair value through profit or loss

Derivative hedging instruments

Total carrying
amount

Financial assets
 
 
 
 
 
 
 
Other investments
 
18

 
—

1,563

—

1,563

Loans
 
 
 
839

124

—

963

Trade and other receivables
 
20

 
24,080

—

—

24,080

Derivative financial instruments
 
30

 
—

8,564

427

8,991

Cash and cash equivalents
 
25

 
20,366

2,102

—

22,468

Financial liabilities
 
 
 




Trade and other payables
 
22

 
(56,790
)
—

—

(56,790
)
Derivative financial instruments
 
30

 
—

(7,685
)
(1,248
)
(8,933
)
Accruals
 
 
 
(5,201
)
—

—

(5,201
)
Lease liabilities
 
28

 
(667
)
—

—

(667
)
Finance debta
 
26

 
(65,132
)
—

—

(65,132
)
 
 
 
 
(82,505
)
4,668

(821
)
(78,658
)

a As a result of the adoption of IFRS 16 ‘Leases’, leases that were previously classified as finance leases under IAS 17 are now presented as ‘Lease liabilities’ on the group balance sheet and therefore do not form part of finance debt. Comparative information for finance debt and lease liabilities have been amended to be on a consistent basis with amounts presented for 2019. The previously disclosed amounts for finance debt for 2018 was $65,799 million.
Analysis of credit exposures using external credit grading system
Management information used to monitor credit risk, which reflects the impact of credit enhancements, indicates that the risk profile of financial assets which are subject to review for impairment under IFRS 9 is as set out below.
 
 
 
%

As at 31 December
 
2019

2018

AAA to AA-
 
16
%
22
%
A+ to A-
 
51
%
41
%
BBB+ to BBB-
 
13
%
16
%
BB+ to BB-
 
7
%
8
%
B+ to B-
 
11
%
11
%
CCC+ and below
 
2
%
2
%
Disclosure of offsetting of financial assets
The following table shows the amounts recognized for financial assets and liabilities which are subject to offsetting arrangements on a gross basis, and the amounts offset in the balance sheet.
Amounts which cannot be offset under IFRS, but which could be settled net under the terms of master netting agreements if certain conditions arise, and collateral received or pledged, are also presented in the table to show the total net exposure of the group.
 
 
 
 
 
 
 
$ million

 
 
Gross amounts of recognized financial assets (liabilities)

Amounts
set off

Net amounts
presented on
the balance
sheet

Related amounts not set off
in the balance sheet
 
Net amount

At 31 December 2019
 
Master
netting
arrangements

Cash
collateral
(received)
pledged

Derivative assets
 
13,191

(2,724
)
10,467

(1,971
)
(206
)
8,290

Derivative liabilities
 
(11,445
)
2,724

(8,721
)
1,971

—

(6,750
)
Trade and other receivables
 
10,661

(5,211
)
5,450

(961
)
(190
)
4,299

Trade and other payables
 
(10,266
)
5,211

(5,055
)
961

—

(4,094
)
At 31 December 2018
 
 
 
 
 
 
 
Derivative assets
 
11,502

(2,511
)
8,991

(2,079
)
(299
)
6,613

Derivative liabilities
 
(11,337
)
2,511

(8,826
)
2,079

—

(6,747
)
Trade and other receivables
 
11,296

(5,390
)
5,906

(1,020
)
(169
)
4,717

Trade and other payables
 
(10,797
)
5,390

(5,407
)
1,020

—

(4,387
)
Disclosure of offsetting of financial liabilities
The following table shows the amounts recognized for financial assets and liabilities which are subject to offsetting arrangements on a gross basis, and the amounts offset in the balance sheet.
Amounts which cannot be offset under IFRS, but which could be settled net under the terms of master netting agreements if certain conditions arise, and collateral received or pledged, are also presented in the table to show the total net exposure of the group.
 
 
 
 
 
 
 
$ million

 
 
Gross amounts of recognized financial assets (liabilities)

Amounts
set off

Net amounts
presented on
the balance
sheet

Related amounts not set off
in the balance sheet
 
Net amount

At 31 December 2019
 
Master
netting
arrangements

Cash
collateral
(received)
pledged

Derivative assets
 
13,191

(2,724
)
10,467

(1,971
)
(206
)
8,290

Derivative liabilities
 
(11,445
)
2,724

(8,721
)
1,971

—

(6,750
)
Trade and other receivables
 
10,661

(5,211
)
5,450

(961
)
(190
)
4,299

Trade and other payables
 
(10,266
)
5,211

(5,055
)
961

—

(4,094
)
At 31 December 2018
 
 
 
 
 
 
 
Derivative assets
 
11,502

(2,511
)
8,991

(2,079
)
(299
)
6,613

Derivative liabilities
 
(11,337
)
2,511

(8,826
)
2,079

—

(6,747
)
Trade and other receivables
 
11,296

(5,390
)
5,906

(1,020
)
(169
)
4,717

Trade and other payables
 
(10,797
)
5,390

(5,407
)
1,020

—

(4,387
)
Disclosure of detailed information of maturities of trade and other payables, accrued expenses, finance debt, and Interest
The table below shows the timing of cash outflows relating to finance debt, trade and other payables and accruals.
 
 
 
 
 
 
 
 
 
$ million

 
 
 
 
 
2019

 
 
 
2018

 
 
Trade and
other
payablesa

Accruals

Finance
debt

Interest on finance debt

Trade and
other
payablesa

Accruals

Finance
debtb

Interest on finance debtb

Within one year
 
43,699

5,066

10,065

2,037

43,230

4,626

9,257

2,350

1 to 2 years
 
1,937

261

6,726

1,641

2,232

146

6,743

1,904

2 to 3 years
 
1,465

146

7,949

1,409

1,662

95

6,758

1,653

3 to 4 years
 
1,409

181

7,022

1,172

1,484

64

8,005

1,379

4 to 5 years
 
1,332

108

7,554

942

1,406

89

7,009

1,101

5 to 10 years
 
5,863

231

23,540

1,970

6,058

113

25,187

2,250

Over 10 years
 
3,957

69

2,497

249

5,001

68

983

9

 
 
59,662

6,062

65,353

9,420

61,073

5,201

63,942

10,646

a 2019 includes $16,129 million (2018 $18,360 million) in relation to the Gulf of Mexico oil spill, of which $14,501 million (2018 $16,058 million) matures in greater than one year.
b As a result of the adoption of IFRS 16 ‘Leases’, leases that were previously classified as finance leases under IAS 17 are now presented as ‘Lease liabilities’ on the group balance sheet and therefore do not form part of finance debt. Comparative information for finance debt and interest on finance debt has been amended to be on a consistent basis with amounts presented for 2019. $667 million and $683 million relating to finance lease liabilities have been excluded from the comparative information for finance debt and interest on finance debt respectively for 2018. The previously disclosed amounts for finance debt and interest on finance debt for 2018 was $64,608 million and $11,329 million respectively. The timing of cash outflows relating to lease liabilities reported on the balance sheet are now shown in Note 28.
Disclosure of maturity analysis for derivative financial liabilities
For further information on our derivative financial instruments, see Note 30.
 
 
 
$ million

Cash outflows for derivative financial instruments at 31 December
 
2019

2018

Within one year
 
1,678

1,700

1 to 2 years
 
2,384

1,678

2 to 3 years
 
2,838

2,384

3 to 4 years
 
2,906

2,838

4 to 5 years
 
3,321

2,906

5 to 10 years
 
10,633

11,475

Over 10 years
 
2,224

724

 
 
25,984

23,705

Derivative liabilities held for trading have the following fair values and maturities.
 
 
 
 
 
 
 
 
$ million

 
 
 
 
 
 
 
 
2019

 
 
Less than
1 year

1-2 years

2-3 years

3-4 years

4-5 years

Over
5 years

Total

Currency derivatives
 
(166
)
(283
)
(201
)
(1
)
(23
)
(70
)
(744
)
Oil price derivatives
 
(1,405
)
(56
)
(14
)
(2
)
(1
)
—

(1,478
)
Natural gas price derivatives
 
(1,070
)
(522
)
(446
)
(399
)
(363
)
(2,071
)
(4,871
)
Power price derivatives
 
(395
)
(165
)
(104
)
(76
)
(51
)
(161
)
(952
)
 
 
(3,036
)
(1,026
)
(765
)
(478
)
(438
)
(2,302
)
(8,045
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ million

 
 
 
 
 
 
 
 
2018

 
 
Less than
1 year

1-2 years

2-3 years

3-4 years

4-5 years

Over
5 years

Total

Currency derivatives
 
(299
)
(71
)
(256
)
(171
)
(3
)
(98
)
(898
)
Oil price derivatives
 
(1,560
)
(232
)
(43
)
(12
)
(2
)
—

(1,849
)
Natural gas price derivatives
 
(1,030
)
(557
)
(391
)
(338
)
(285
)
(1,287
)
(3,888
)
Power price derivatives
 
(401
)
(213
)
(95
)
(54
)
(47
)
(133
)
(943
)
 
 
(3,290
)
(1,073
)
(785
)
(575
)
(337
)
(1,518
)
(7,578
)