$2.58 billion
Making overhead and profit an incurred coverage item can put a huge burden on an insured that may not have the means to front the expense. Imagine a homeowner has a fire that destroys their home. The replacement cost of the home is $200,000 and after overhead and profit is added the total rebuild cost is then $240,000. However, the home is older and the insurance carrier depreciates the home by $50,000 making an actual cash value payment of $150,000.  Replacement cost is the price that an entity would pay to replace an existing asset at current market prices with a similar asset. If the asset in question has been damaged, then the replacement cost relates to the pre-damaged condition of the asset.  • On a replacement cost of sales operating profit basis excluding significant items, the Group's net profit after income tax for the year was $332 million, compared to a profit of $458 million in 2012. • 2013 net profit before interest, income tax and significant items on a replacement cost of sales operating profit basis was $551 million, a decrease of $205 million over 2012. Underlying replacement cost profit, a common accounting measure to report profits in the oil industry which takes into account the fluctuations in the price of oil, came in at $2.809 billion. That was above a forecast supplied by the company of $2.7 billion. BP, the West's no.4 oil company, reported weaker quarterly profits after its refining business swung to a loss, and said it would increase the accounting provision for the 2010 U.S. oil spill by $200 million. DEFINITION of 'Replacement Cost'. The cost to replace the assets of a company or a property of the same or equal value. The replacement cost asset of a company could be a building, stocks, accounts receivable or liens. This cost can change depending on changes in market value. Also referred to as the price that will have to be paid to replace an existing asset with a similar asset. BP plc (ADR) (NYSE: BP) reported a decline in its profit for the first quarter. The company's underlying replacement cost profit dropped around 20 percent year-over-year to $2.58 billion, versus analysts' estimates of $1.28 billion. Its... BP today reported its results for first quarter of 2015. Underlying replacement cost profit for the quarter was 2.6 billion compared with 3.2 billion for the same period in 2014 and 2.2 billion for. As replacement cost and replacement cost profit are not IFRS measure (or a GAAP measure where that still matters) its exact definition may vary a little from company to company. Replacement cost, FIFO, LIFO and average cost are all consistent with the accrual principle, but they differ in how the costs accrue. Replacement cost is conceptually similar to mark to market, but implementation and practical issues are very different. BP PLC (NYSE: BP) reported a gain its second-quarter profit. BP's quarterly replacement cost profit rose to $2.4 billion, from $104 million, in the year-ago quarter. Its profit declined 24% to $2.71 billion, missing analysts' estimates of $3.40... BP today reported its results for first quarter of 2015. Underlying replacement cost profit for the quarter was 2.6 billion compared with 3.2 billion for the same period in 2014 and 2.2 billion for.
http://www.propertyinsurancecoveragelaw.com/tags/overhead-and-profit/ http://www.accountingtools.com/questions-and-answers/what-is-replacement-cost.html http://microsites.caltex.com.au/annualreports/2013/downloads/Replacement%20Cost%20of%20Sales.pdf http://www.cnbc.com/2014/02/04/bp-underlying-replacement-cost-profit-2809-bln-vs-company-supplied-consensus-of-27-bln.html http://www.investopedia.com/terms/r/replacementcost.asp http://www.wikinvest.com/wiki/Replacement_cost_profit http://moneyterms.co.uk/replacement-cost-profit/ http://www.wikinvest.com/wiki/Replacement_cost_profit
replacement cost profit