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 ASC 932 providing an understanding of US GAAP accounting principles and standards that are specific to the upstream oil and gas industry; shows how to apply these accounting rules; discusses financial reporting requirements for upstream companies whose stock is traded in the U.S. including both majors such as Exxon Mobil and minor stocks; discusses the importance to financial reporting of reserves definitions; 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.
The course is designed to guide you through the terminology and concepts relating to oil and gas accounting. You will also receive familiarity with SEC Oil & Gas Modernization Act and an overview comparing US GAAP with IFRS principles.
In this course, you will learn:
- How to apply the key financial accounting standards applicable to upstream oil and gas entities reporting under US GAAP and SEC regulation
- To appreciate the impact on results of applying the full cost and successful efforts methods of accounting
- The uses of reserves in financial accounting, their definitions and classification
- Which methods of depreciation to apply to producing properties
- How to account for impairment and asset retirement obligations
- How to recognise revenue arising from oil and gas sales
- How to calculate and interpret financial performance metrics used to analyze the costs, profitability, efficiency, and value added by a firm's exploration and production activities
- How business combinations, joint ventures and non-monetary exchanges of oil and gas assets are accounted for