8.2 Other assets
Accounting policies
Loans are initially recognised at fair value and as at each reporting date are measured at amortised cost, using the effective interest rate method.
Non-current restricted cash represents cash of the Extraction Facilities Decommissioning Fund, accumulated by the Parent in a separate bank account from the first day of operation to the start of decommissioning of extraction facilities. The Fund’s cash is increased by the amount of interest accruing on the Fund’s assets. Due to formal and legal restrictions on the use of this cash (it may only be applied towards specific long-term objectives), the assets accumulated in the Extraction Facilities Decommissioning Fund are recognised in the Group’s statement of financial position as other assets under non-current assets. The amount of the provision for decommissioning of production and storage wells is adjusted for any unused contributions to the Extraction Facilities Decommissioning Fund (Note 6.3.2).
Connection charge is disclosed under accrued income. The charge amount is accounted for throughout the average useful lives of the relevant assets.
Unlisted shares in unconsolidated subsidiaries and shares in jointly controlled entities and associates not accounted for using the equity method are measured at cost (IAS 27.10.a.). Other unlisted shares are measured at fair value unless it can be determined that cost is a better estimate of their fair value.
Amounts receivable under long-term contracts are the excess of recognised income (measured using the percentage of completion method) over progress billings.
Other non-current assets and other current assets include mainly prepayments.
Finance lease receivables are recognised as the sum of minimum lease payments due to the Company, discounted at the interest rate implicit in the lease. The difference between the carrying amount of leased assets and their fair value is posted to deferred revenue.
| 2021 | 2020 | |
|---|---|---|
| Other non-current assets | 1,588 | 1,834 |
| Loans | 422 | 819 |
| Non-current restricted cash | 176 | 188 |
| Connection charge | 129 | 115 |
| Unlisted shares | 93 | 60 |
| Investment property | 165 | 147 |
| Prepayments for other tangible assets under construction, not related to exploration activities | 68 | 8 |
| Financial receivables (deposits, guarantees, and other) | 61 | 38 |
| Other non-current assets | 474 | 459 |
| Other current assets | 336 | 217 |
| Securities and other debt instruments | 65 | 47 |
| Property insurance | 46 | 56 |
| Other current assets | 225 | 114 |
Change in gross amount of loans advanced in the reporting period
| Loans | |||
|---|---|---|---|
| 12-month expected loss | lifetime expected loss | Impaired | |
| Gross amount as at Jan 1st 2020 | 704 | 29 | 55 |
| Repaid financial assets | (16) | (4) | (2) |
| Newly recognised financial assets | 107 | 16 | – |
| Other effect | 26 | – | 3 |
| Gross amount as at Dec 31st 2020 | 821 | 41 | 56 |
| Transfers between groups | (378) | – | 378 |
| Repaid financial assets | (3) | (3) | (3) |
| Newly recognised financial assets | 6 | 28 | – |
| Other effect | 5 | – | 52 |
| Gross amount as at Dec 31st 2021 | 451 | 66 | 483 |
Change in impairment losses on loans advanced in the reporting period
| Loans | |||
|---|---|---|---|
| 12-month expected loss | lifetime expected loss | Impaired | |
| As at Jan 1st 2020 | 11 | – | 55 |
| Increase taken to profit or loss | 7 | 1 | 3 |
| Decrease taken to profit or loss | (1) | (1) | (2) |
| As at Dec 31st 2020 | 17 | – | 56 |
| Increase taken to profit or loss | 1 | 2 | 416 |
| Decrease taken to profit or loss | (1) | – | (3) |
| Transfers | (9) | – | 9 |
| Effect of exchange rate movements and other | – | – | 4 |
| As at Dec 31st 2021 | 8 | 2 | 482 |