Oil And Gas Accounting And Performance Measurement
Overview
This oil and gas accounting program develops an essential understanding of Oil and gas Exploration and production (E&P) accounting, reporting, and performance measurement issues and practices. The performance measurement in management accounting course enhances your ability to prepare, use, and critically evaluate information on E&P activities, integrating specialist industry knowledge and relevant analytical skills with performance measures in management accounting. The oil and gas accounting program is specifically tailored for individuals with a foundational knowledge of accounting who are keen to gain a deeper insight into the accounting and financial reporting policies and practices prevalent in the upstream oil and gas industry. Topics for this oil and gas accounting management course cover successful efforts and complete cost accounting methods, assets classification as tangible or intangible, unit of production method for depreciation, impairment testing of oil and gas assets, and accounting procedures for the eventual removal and restoration of oil and gas facilities.
Objectives
By the end of this oil and gas accounting management course, participants will be able to: Develop an understanding of companies' accounting standards, policies, and practices in the Oil & Gas Exploration & Production industry. Appreciate the 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 apply international and national accounting standards pertinent to the E&P industry. Enhance the relevance and reliability of financial reports to meet users' needs more effectively. Utilize publicly available information to benchmark companies' business performance in the E&P industry.
Audience
Corporate accountants, financial controllers, treasury officers, management accountants. Finance staff in general accounting, payables, receivables, inventory, and fixed assets. Joint venture accountants and auditors. External, financial, and internal auditors. Government regulators and auditors. Financial and investment analysts.
Methodology
This Oil & Gas and Petrochemical Accounting & Performance Measurement training course is highly interactive with delegates actively engaged in the discussion and evaluation of Oil & Gas case studies throughout the course. Delegates are taken through the latest techniques to evaluate performance and learning is further reinforced by examination of annual reports of international oil and gas companies. At the end of each day, participants have an opportunity for a one-to-one session with the training course leader to develop their understanding further and will be provided with course notes and examples in both hard and soft copy.
Outline
Unit 1: Standards of Financial Reporting in the O&G Industry to Stakeholders Investor reporting. New investors. Taxation and royalties. Stock market intermediaries. Unit 2: The Convergence of GAAP and IFRS Impacts on reporting. Migration paths. PSC reporting consequences. Share pricing implications for O&G companies. Unit 3: Capitalization and Cash Flows in The Oil & Gas Industry - Sourcing Capital Capitalization techniques for E&P projects. Implications of IFRS on capital. Capital maintenance strategies. Diverse capital sources. Unit 4: Oil & Gas Value Chain and Accounting Issues E&P exploration and evaluation, borrowing costs, and development expenditures. P&S reserves and resources classification. Product valuation, asset impairment, and disclosure requirements. Royalty and income tax accounting. Emission trading scheme considerations. Unit 5: Company Accounts, PSAs, and Joint Ventures - Accounting for Multiple Efforts Joint ventures accounting—GAAP & IFRS comparisons. Business combination accounting. Currency translation issues. Accounting treatment diversity. Unit 6: Analysis of Financial Statements Analytical tools for financial review. Total cost. Successful efforts approach. Decommissioning obligation accounting. Unit 7: Auditors and Reporting to Investors in The Oil and Gas Industry - External Audit Investigations and Reports Auditor's opinion. Ensuring accurate and fair representation. "Sarbanes-Oxley" Act compliance. Internal audit importance. Unit 8: Ethical Issues in Accounting Corporate governance adherence. Regulatory compliance. Investor confidence and its impact on share prices. Addressing creative accounting to ensure investor protection. Unit 9: Investment Finance in The Oil and Gas Industry - Processes and Lead Times External finance sourcing. Financial market mechanisms. Investment decision-making criteria. Financial intermediary's roles in the market. Unit 10: Shell and BP – Performance and Share Prices Financial statement analysis of shell oil and BP. "DuPont" hierarchy of ratios application. Live insights from the London Stock Exchange. Factors influencing accounting performance measures and valuation.