Page 230 - Annual Report 2020

37 Deed of Cross Guarantee

BHP Group Limited together with certain wholly owned subsidiaries as identified in note 13 ‘Related undertakings of the Group’ in section 5.2
have entered into a Deed of Cross Guarantee (Deed) dated 6 June 2016. The effect of the Deed is that BHP Group Limited has guaranteed to
pay any outstanding liabilities upon the winding up of any wholly owned subsidiary that is party to the Deed. Wholly owned subsidiaries that
are party to the Deed have also given a similar guarantee in the event that BHP Group Limited or another party to the Deed is wound up.
The wholly owned Australian subsidiaries identified in note 13 ‘Related undertakings of the Group’ in section 5.2 are relieved from the
requirements to prepare and lodge audited financial reports.
A Consolidated Statement of Comprehensive Income and Retained Earnings and Consolidated Balance Sheet, comprising BHP Group Limited
and the wholly owned subsidiaries that are party to the Deed for the year ended 30 June 2020 and 30 June 2019 are as follows:
2020 2019
Consolidated Statement of Comprehensive Income and Retained Earnings US$M US$M
Revenue 24,514 22,660
Other income 2,239 2,881
Expenses excluding net finance costs (15,415) (14,610)
Net finance costs (399) (414)
Total taxation expense (2,723) (2,317)
Profit after taxation 8,216 8,200
Total other comprehensive income 12 10
Total comprehensive income 8,228 8,210

Retained earnings at the beginning of the financial year 44,723 48,442
Net effect on retained earnings of entities added to/removed from the Deed − (34)
Profit after taxation for the year 8,216 8,200
Transfers to and from reserves (27) (31)
Shares bought back and cancelled − (5,199)
Dividends (4,214) (6,655)
Retained earnings at the end of the financial year 48,698 44,723

2020 2019
Consolidated Balance Sheet US$M US$M
ASSETS
Current assets
Cash and cash equivalents 7 13
Trade and other receivables 1,351 4,875
Loans to related parties 9,116 4,255
Inventories 1,887 1,677
Other 76 92
Total current assets 12,437 10,912
Non-current assets
Trade and other receivables 65 40
Loans to related parties − –
Inventories 496 326
Property, plant and equipment 33,735 31,508
Intangible assets 261 362
Investments in Group companies 37,646 33,123
Deferred tax assets 688 442
Other 39 59
Total non-current assets 72,930 65,860
Total assets 85,367 76,772
LIABILITIES
Current liabilities
Trade and other payables 3,319 4,790
Loans from related parties 17,312 13,682
Interest bearing liabilities 275 104
Current tax payable 570 694
Provisions 1,042 889
Deferred income 7 6
Total current liabilities 22,525 20,165
Non-current liabilities
Trade and other payables 10 8
Loans from related parties 8,925 7,689
Interest bearing liabilities 693 143
Non-current tax payable − 75
Deferred tax liabilities 751 542
Provisions 2,416 2,136
Deferred income 12 14
Total non-current liabilities 12,807 10,607
Total liabilities 35,332 30,772
Net assets 50,035 46,000
EQUITY
Share capital – BHP Group Limited 1,111 1,111
Treasury shares (5) (31)
Reserves 231 197
Retained earnings 48,698 44,723
Total equity 50,035 46,000

228 BHP Annual Report 2020