Course detail

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Contents

• Introduction
• Prerequisites
  
• Course Level
  
• Topics
  
• Course Benefits
  
• Teaching Method
  
• Continuing Professional Education
  
• Venue
  
  

Introduction

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The complexities of accounting for oil and gas companies require an ability to properly interpret and comply with the accounting requirements that are applicable to this industry's unique issues. This three-day course focuses on these issues and provides an understanding of a series of major IFRS and US/Canadian GAAP accounting principles and standards that are particularly germane to the oil and gas business; shows how to apply these accounting rules; discusses financial reporting requirements for energy companies whose stock is traded in the U.S. such as British Petroleum, Total, and Chevron; shows where to find in corporate reports a wide variety of data and metrics relating to the performance of oil and gas firms; illustrates financial analysis of oil and gas firms; and presents and explains the metrics used to assess exploration and production operations.

The course is designed to guide you through the terminology and concepts relating to oil and gas accounting. You will also receive an update on the IASB's project for extractive industries and familiarity with SEC Oil & Gas Modernization Act

In this course, you will learn:

• How to understand and apply a series of major financial accounting principles and standards that are particularly relevant to oil and gas firms' activities

• How to review and analyze oil and gas company financial reports

• How to calculate and interpret financial and operational metrics used to analyze the costs, profitability, efficiency, and value added by a firm's exploration and production activities

• The implications for the oil and gas industry of the IASB's project on extractive industries

Prerequisites

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Understanding of basic accounting principles based on any national standard.
No advance preparation is required for this course.

Course Level

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Basic

Topics

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• Fundamental Concepts of Oil and Gas Accounting Methods
• Successful efforts
• Full cost
• IFRS 6 Exploration for and Evaluation of Mineral Resources
• Oil and Gas Accounting Case
• Non-drilling exploration costs
• Drilling exploration costs
• Development costs
• Production
• Depreciation, depletion, and amortization
• Additional Major Accounting Issues for the Oil and Gas Industry
• Dismantlement, restoration and abandonment ("asset retirement obligations")
• Capitalization of interest costs
• Asset impairment under both successful efforts and full cost accounting methods
• Update on the IASB's Project for Extractive Industries Financial Reporting
• SEC Oil & Gas Modernization Act
• Corporate Reports
• Annual Reports
• Form 10-K
• Form 20-F
• Form 10-Q
• Form 6-K
• Form 8-K
• Other reports
• Key information provided in each report and where to find it
• Report formats
• Financial Analysis Part I: Traditional Financial Analysis of Oil and Gas Firms
• Liquidity measures
• Profitability measures
• Risk measures
• Hands-on financial statement analysis case using data from oil and gas companies
• Financial Analysis Part II: Analysis of Exploration and Production Activities
• Disclosure requirements relating to oil and gas producing activities
• Proved oil and gas reserve quantities
• Costs incurred for property acquisition, exploration & development activities
• The standardized measure of discounted future net cash flows ('PV10')
• Where to find key data relating to firms' exploration and production activities
• Financial and operational metrics to assess oil & gas company's exploration and production
• Hands-on Financial Statement Analysis Case Using Data from Oil and Gas Companies
• Calculate and interpret various industry metrics
• Assess oil and gas company's exploration and production business performance
• Finding costs and reserve value-added-to-spending ratios

Course Benefits

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• Comprehend and practice financial analysis of oil and gas companies
• Learn the primary differences between the two major oil and gas accounting methods, successful efforts and full cost accounting
• Know how to record in the financial records the effect of oil and gas companies' exploration, development and production activities, including depreciation, depletion and amortization expenses and dismantlement, restoration and abandonment costs
• Learn how to calculate and evaluate a myriad of financial and operational metrics used to assess oil and gas firm's exploration and production business, such as finding costs, reserve value added to spending ratio and other reserve-based metrics
• Understand the current status of the IASB's project on extractive industries and SEC’s Oil & Gas Modernization Act

Teaching Method

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• Live group instruction
• Description and explanation of oil and gas accounting and financial analysis in clear and simple language
• Use of case studies and real-world examples to illustrate practical application of the standards and analysis techniques
• Interactive participation is encouraged
• All participants receive a comprehensive binder containing copies of the presentation slides, handouts and other course materials

Continuing Professional Education (CPE)

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24 hours

Venue

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All of our Calgary seminars take place in 4 star professional conference facilities, usually in city-centre downtown hotels like the Marriott, Sheraton or Hilton brands.

Detailed Joining Instructions are sent to all registered delegates by email approximately one month before the event. The Joining Instructions will confirm exact venue details and nearby (or onsite) hotel recommendations with bedroom rates where available.

Coffee and lunch will be provided.