Page 227 - Annual Report 2020

32 Related party transactions

The Group’s related parties are predominantly subsidiaries, joint operations, joint ventures and associates and key management personnel
of the Group. Disclosures relating to key management personnel are set out in note 23 ‘Key management personnel’. Transactions between Strategic Report
each parent company and its subsidiaries are eliminated on consolidation and are not disclosed in this note.
• All transactions to/from related parties are made at arm’s length, i.e. at normal market prices and rates and on normal commercial terms.
• Outstanding balances at year-end are unsecured and settlement occurs in cash. Loan amounts owing from related parties represent secured
loans made to joint operations, associates and joint ventures under co-funding arrangements. Such loans are made on an arm’s length basis.
Such loans made to joint operations are payable on demand and loans made to associates are due to be repaid by 16 August 2022.
• No guarantees are provided or received for any related party receivables or payables.
• No provision for expected credit losses has been recognised in relation to any outstanding balances and no expense has been recognised
in respect of expected credit losses due from related parties.
• There were no other related party transactions in the year ended 30 June 2020 (2019: US$ nil), other than those with post-employment
benefit plans for the benefit of Group employees. These are shown in note 26 ‘Pension and other post-retirement obligations’.
Transactions with related parties Governance at BHP
Further disclosures related to related party transactions are as follows:

Joint operations Joint ventures Associates
2020 2019 2020 2019 2020 2019
US$M US$M US$M US$M US$M US$M
Sales of goods/services − − − − − −
Purchases of goods/services − − − − 967.276 1,141.230
Interest income 1.306 1.532 − − 2.370 0.826
Interest expense − − − − − 0.011
Dividends received − − − − 126.187 509.577
Net loans made to/(repayments from) related parties 4.851 12.539 − − 12.273 14.547 Remuneration Report

Outstanding balances with related parties
Disclosures in respect of amounts owing to/from joint operations represent the amount that does not eliminate on consolidation.

Joint operations Joint ventures Associates
2020 2019 2020 2019 2020 2019
US$M US$M US$M US$M US$M US$M
Trade amounts owing to related parties − − − − 69.490 169.773
Loan amounts owing to related parties 33.812 40.513 − − 5.097 10.097 Directors’ Report
Trade amounts owing from related parties − − − − 0.473 3.828
Loan amounts owing from related parties 13.625 15.474 − − 40.759 33.486

5

Financial Statements

Additional information

BHP Annual Report 2020 225 Shareholder information