BP operates off-shore oil drilling platforms including rigs in the Gulf of Mexico. In April 2010, explosions and a fire on the Deepwater Horizon rig led to the death of 11 crew members and a 200-million-gallon oil spill in the Gulf of Mexico. BP's 2010 annual report included the following description of its contingent liabilities (provision) related to this accident:

In estimating the amount of the provision, BP has determined a range of possible outcomes for Individual and Business Claims, and State and Local Claims .... BP has concluded that a reasonable range of possible outcomes for the amount of the provision at December 31, 2010, is $6 billion to $13 billion. BP believes that the provision recorded at December 31, 2010, of $9.2 billion represents a reliable best estimate from within this range of possible outcomes.

REQUIRED

a. BP prepares its financial statements in accordance with IFRS. How did BP report the $9.2 billion estimate in its 2010 financial statements?

b. How would the accounting for this provision differ if BP prepared its financial statements in accordance with U.S. GAAP?