Oil and Gas Accounting and Performance Measurement Course

By the end of the programme, delegates will learn how to:

• Develop understanding of the accounting standards, policies and practices used by companies in the Oil & Gas Exploration & Production industry
• Appreciate the nature and financial implications of Production Sharing Contracts and other agreements between host governments and international companies
• Examine issues and guidelines in accounting for Joint Ventures
• Identify and know how to apply international and national accounting standards most relevant to the E&P industry
• Improve relevance and reliability of financial reports to better meet the needs of users
• Review and use publicly available information for benchmarking the business performance of companies in the E&P industry

The Oil & Gas Sector & The Macro-economic Factors

• Commodity prices, currency fluctuations, interest rate risk and political developments and environmental risk.

Costs in Acquisition, Exploration, Development and Production of new oil or natural gas reserves

Accounting Approaches

• The "Successful Efforts" (SE) Method or the "Full Cost" (FC) Method

An Introduction/Overview of IFRS in relation to the Oil & Gas Sector, with particular reference to:

• IFRS 1: First-time Adoption of International Financial Reporting Standards
• IFRS 6: Exploration for and Evaluation of Mineral Assets
• IFRS 10: Consolidated Financial Statements
• IFRs 11: Joint Arrangements
• IAS 16: Property, Plant and Equipment
• IAS 36: Impairment of Assets
• IAS 37: Provisions, Contingent Liabilities and Contingent Assets
• IAS 38: Intangible Assets
• IAS 39 Financial Instruments: Recognition and Measurement – Superseded by IFRS 9 effective 2013

Evaluating the Performance and Identifying the Accounting Issues: Analysis of financial statements

• Income Statements
• Statement of Financial Position (Balance Sheet)
• Cashflow Statements

Accounting for Upstream Activities with Reference to IFRS

• Reserves and resources
• Exploration and evaluation
• Revenue recognition
• Assets
• Depletion, Depreciation & Amortisation (“DD&A”)
• Impairment of development, production and downstream assets

Joint Arrangements; Financial Instruments & Derivatives

• Business Combinations, Joint Ventures & Production Sharing Agreements (“PSA”s)
• Treasury Management Issues for Multi-nationals
• The Use of Derivatives in the Oil& Gas Sector to manage the commodity, currency and interest-rate risks etc

Creative Accounting and Corporate Governance

• Creative Accounting – Enron and investor protection
• Auditors and reporting to investors in the oil and gas industry
• External audit investigations and reports
• The auditor’s ‘Opinion'
• True and Fair
• Sarbanes Oxley
• Internal audits
• Ethical issues
• Corporate governance
• Government regulation
• Investor confidence and share prices

FOR WHOM:

Decision Makers, Performance Monitoring Specialists, Budgeting and Financial Modelling Specialists, Accountant and Analysts and others who perform related functions in the oil and gas industry.

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.