Finance and Accounting Functions in the Oil and Gas Sector
The complexity of accounting for oil and gas operations has been further complicated by International Financial Reporting Standards (IFRS) requirements. For instance:
- How to understand and apply IFRS to oil and gas exploration, development and production activities?
- When to capitalise and when to expense under IFRS during exploration and development and how does the diversity in accounting practices in the extractive industry affect financial reporting?
- How do IFRS reporting requirements interact with reporting between ventures and the State?
- What are the characteristics of Production Sharing Agreements and how are these reflected in the financial statements?
- What methods of units of production calculation are permitted and what is best practice?
- When and how to assess unproved and proved properties for impairment?
- What are the main revenue recognition issues faced by the industry?
- How do different tax regimes impact upon financial reporting?
- How to calculate and interpret financial and operational metrics used to analyse the costs, profitability, efficiency, and value added by a firm’s exploration and production activities?
- How do oil and gas companies present their financial statements when reporting under IFRS?
- How does the investor in a joint venture account for its interest and how does the operator account to its partners?
- How does an oil and gas company establish its chart of accounts?
- What are the management accounting and reporting requirements internally and between venturers?
- What does IFRS have to say about asset exchanges and conveyances of oil and gas interests?
- How to account for decommissioning costs and rehabilitation funds under IFRS?
These and myriads of the considerations demands training and retraining in finance and accounting functions in oil and gas
By the end of the course, participants will be able to:
- Apply IFRS to oil and gas exploration, development and production activities
- Judge when to capitalise and when to expense under IFRS during exploration and development
- Identify the differences in treatment between accounts prepared under IFRS and those prepared under PSAs
- Evaluate the impact of using different units of production methods to calculate DD&A
- Describe the principal assumptions needed to conduct impairment reviews and to establish decommissioning provisions under IFRS
- When and how to assess unproved and proved properties for impairment
- Calculate and interpret financial and operational metrics used to analyse costs, profitability, efficiency, and value added by a firm’s exploration and production activities
- Prepare cash call requests, joint billing statements and cut back entries
- Develop the key components of an oil and gas chart of accounts
- Evaluate the impact of acquisitions, disposals and exchanges of oil and gas properties on the financial statements
- Fundamental Concepts of Oil and Gas Accounting Methods
- IFRS fundamentals
- Presentation of financial statements by IFRS reporters
- Accounting for exploration and evaluation
- Accounting for development
- Borrowing costs
- Retirement obligations / decommissioning
- Revenue recognition
- Reporting of reserves
- Performance metrics
- Taxation of oil and gas
- Joint operations and joint ventures
- Production sharing agreements (PSA/PSC)
- Accounting for acquisitions, asset exchanges and conveyances
- Financial accountants in the oil and gas industry
- Management accountants of IOC’s and NOC’s
- Internal and external auditors of oil and gas companies reporting under IFRS
- Staff of revenue authorities and NOC’s working with IOC’s
- Lectures 0
- Quizzes 0
- Duration 5 Days
- Skill level All levels
- Language English
- Students 0
- Assessments Self